Cars.com (CARS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $179.9 million, up 1% year-over-year, with net income rising 103% to $14.3 million and adjusted EBITDA up 4% to $53.0 million, driven by strong Marketplace performance and cost discipline.

• Marketplace revenue grew over 7% year-over-year, the fastest quarterly growth since 2021, offsetting an 18% decline in OEM and National revenue.

• Adjusted EBITDA margin expanded to 29.4%, exceeding guidance for the second consecutive quarter.

• Operating and adjusted operating expenses declined 7% and 6% year-over-year, reflecting efficiency gains.

• Strategic focus on interconnected marketplace ecosystem, product innovation, and operational improvements is yielding positive results.

Financial highlights

• Net income for Q2 2026 was $14.3 million ($0.25 per diluted share), up from $7.0 million ($0.11 per share) in Q2 2025.

• Adjusted net income was $28.7 million ($0.51 per diluted share), up from $26.4 million ($0.41 per share) year-over-year.

• Free cash flow for the first half of 2026 totaled $43.5 million, up from $41.8 million in the prior year.

• Operating income for Q2 2026 was $27.9 million, up 83% year-over-year.

• Adjusted EBITDA margin was 29.4%, up nearly 100 basis points year-over-year.

Outlook and guidance

• Q3 2026 revenue expected to be flat to up 2% year-over-year, with adjusted EBITDA margin projected between 28.5% and 29.5%.

• Full-year 2026 guidance reaffirmed: revenue flat to up 2% year-over-year, adjusted EBITDA margin between 29.0% and 30.0%.

• OEM and national revenue expected to improve quarter-over-quarter in Q3.

• Management expects adequate liquidity for the next twelve months and beyond, supported by positive operating cash flow and a $350 million revolving loan facility.

• 2026 share repurchase target reaffirmed at $90 million.