Cars.com (CARS) Q4 2025 earnings summary

Executive summary

• Achieved record full-year revenue of $723.2 million in 2025, up 1% year-over-year, driven by dealer revenue growth and an expanded customer base to 19,544 dealers.

• Dealer revenue grew 3% year-over-year in Q4, while OEM and national revenue declined 9% due to reduced OEM ad spend.

• Adjusted EBITDA for 2025 was $211.1 million, with a margin of 29.2%, and net income was $20.1 million, down from $48.2 million in 2024, mainly due to prior-year one-time gains.

• Repurchased 7.1 million shares for $86 million, retiring 9% of shares outstanding and deploying nearly 70% of free cash flow for buybacks.

• Leadership transition with a new CEO emphasizing marketplace fundamentals, integration, and data-driven growth.

Financial highlights

• Q4 2025 revenue was $183.9 million, up 2% year-over-year, with dealer revenue up 3% and OEM/national revenue down 9%.

• Q4 Adjusted EBITDA was $55 million, margin 29.9%, down 90 bps year-over-year due to increased marketing investments.

• Q4 net income was $7.4 million ($0.12 per diluted share), down from $17.3 million ($0.26 per share) in Q4 2024, mainly due to prior-year gains.

• Adjusted net income for 2025 was $108.1 million ($1.71 per diluted share), compared to $114.9 million ($1.71 per share) in 2024.

• Free cash flow for 2025 was $125.7 million, slightly down from $128.1 million in 2024.

Outlook and guidance

• Full-year 2026 revenue expected to be flat to up 2% year-over-year, with adjusted EBITDA margin projected between 29% and 30%.

• Q1 2026 revenue expected to be flat to up 1% year-over-year, with adjusted EBITDA margin of 26%–27%.

• Dealer revenue growth anticipated from marketplace and website repackaging, customer base expansion, and product adoption; OEM/national revenue expected to face continued pressure.

• Share repurchase target for 2026 is at least $60 million.

• Growth acceleration targeted for the next 2 years, not a 5-year horizon.