Cars.com (CARS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $179.0 million, down 1% year-over-year, with OEM and National revenue up 6% and dealer revenue down 2% due to macro pressures.

• Adjusted EBITDA margin reached 28.3%, exceeding guidance, reflecting strong cost discipline and operational efficiency.

• Dealer customers totaled 19,250, up over 40 sequentially, marking the strongest organic growth since 2022.

• Average monthly unique visitors set a new record at 29.0 million, up 3% year-over-year.

• 1.6 million shares were repurchased for $21.5 million in Q1, with a full-year repurchase target of $60–$70 million.

Financial highlights

• Adjusted EBITDA was $50.7 million, down 4% year-over-year, with a margin of 28.3%, exceeding outlook due to cost controls.

• Net loss was $2.0 million versus net income of $0.8 million in Q1 2024, mainly due to severance costs.

• Adjusted net income was $24.0 million, down from $28.7 million year-over-year.

• Free cash flow was $23.7 million, down from $27.5 million in Q1 2024.

• Dealer revenue declined 2% year-over-year, while OEM & National revenue increased 6% year-over-year.

Outlook and guidance

• Full-year 2025 revenue guidance is suspended due to macroeconomic and tariff-related uncertainty; an update will be provided when visibility improves.

• Q2 2025 Adjusted EBITDA margin expected between 27%–29%; full-year margin guidance reaffirmed at 29%–31%.

• Growth initiatives for 2025 include product adoption, repackaging, and continued innovation.