Cars.com, Inc. ( (CARS) ) has released its Q3 earnings. Here is a breakdown of the information Cars.com, Inc. presented to its investors.
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Cars.com, Inc., operating as Cars Commerce Inc., is a technology company that empowers the automotive industry by providing a platform for car buying and selling, leveraging AI-driven technologies and digital retail solutions. The company is known for its flagship automotive marketplace, Cars.com, and offers various services including digital retail technology, trade-in and appraisal technology, and media solutions.
In the third quarter of 2025, Cars.com reported a record total revenue of $182 million, marking a 1% increase from the previous year. The company also saw a 2% year-over-year growth in dealer revenue, driven by strategic enhancements and strong sales execution. The introduction of AI-powered search features, such as the Carson shopping assistant, has significantly improved user engagement and marketplace performance.
Key financial highlights include an adjusted net income of $30.4 million, a 10% increase from the previous year, and an adjusted EBITDA of $54.6 million, up 7% year-over-year. The company also achieved a notable increase in dealer customers, reaching a three-year high of 19,526. Despite a decline in net income due to changes in contingent consideration, Cars.com maintained strong cash flow and continued its share repurchase program, with $64 million repurchased year-to-date.
Looking ahead, Cars.com remains optimistic about its growth prospects, anticipating low-single-digit revenue growth for the second half of 2025. The company is focused on sustaining its platform’s growth and value creation through product innovation and strategic investments, while reaffirming its full-year adjusted EBITDA margin guidance of 29% to 31%.