Cars.com (NYSE:CARS) Issues Earnings Results

Cars.com (NYSE:CARS) issued its earnings results on Thursday. The company reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.04, FiscalAI reports. The company had revenue of $181.88 million during the quarter, compared to analyst estimates of $183.05 million. Cars.com had a net margin of 4.73% and a return on equity of 18.82%. The company’s revenue for the quarter was up .2% on a year-over-year basis. During the same quarter last year, the business posted $0.48 EPS.

Here are the key takeaways from Cars.com’s conference call:

• Marketplace growth strengthened: Marketplace revenue rose 5% year over year, subscribers increased, and ARPD reached another all-time high. Leads were up nearly double digits despite traffic and visitors remaining down mid-single digits.
• New products are expanding inventory and engagement: Nearly 400 dealers signed up for the free, self-service Starter package, with about 80% of their inventory priced below $20,000; Carson surpassed 1 million monthly users. Management said Starter is primarily intended to expand relevant inventory, and could be ARPD-dilutive if dealers convert, though it sees future direct and indirect monetization opportunities.
• Profitability and shareholder returns were strong: Adjusted EBITDA increased 2% to $55.8 million, with a 30.7% margin above the high end of guidance. Year-to-date free cash flow was $97.3 million, and $74 million of share repurchases put the company on pace for its $90 million full-year target.
• 2026 guidance was reaffirmed, with revenue expected near the low end: Cars.com maintained its forecast of 0%–2% revenue growth and a 29%–30% adjusted EBITDA margin, while expecting revenue toward the low end and EBITDA toward the high end of those ranges.
• Dealer solutions remain a near-term challenge: Website subscription declines weighed on dealer count, while the company is de-emphasizing AccuTrade as a standalone offering. Management cited near-term headwinds for websites and trade and appraisal, though it expects website improvements to support stabilization and a better growth outlook in 2027.

Cars.com Stock Down 1.2%

CARS traded down $0.16 during midday trading on Friday, hitting $13.40. 1,846,201 shares of the company’s stock traded hands, compared to its average volume of 742,004. The company has a debt-to-equity ratio of 1.01, a current ratio of 2.00 and a quick ratio of 2.00. The company has a market cap of $717.09 million, a PE ratio of 17.86 and a beta of 1.66. The stock’s fifty day simple moving average is $10.95 and its 200-day simple moving average is $10.60. Cars.com has a one year low of $7.40 and a one year high of $14.02.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on CARS shares. UBS Group dropped their price target on shares of Cars.com from $13.00 to $11.50 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. B. Riley Financial lifted their price objective on Cars.com from $13.00 to $15.00 and gave the company a “neutral” rating in a research report on Friday. Zacks Research upgraded Cars.com from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 9th. Weiss Ratings lowered Cars.com from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, September 29th. Finally, BTIG Research upped their target price on Cars.com from $14.00 to $16.00 and gave the stock a “buy” rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $15.25.

Key Headlines Impacting Cars.com

Here are the key news stories impacting Cars.com this week:

• Positive Sentiment: Cars.com reported third-quarter adjusted earnings of $0.58 per share, above the $0.54 analyst consensus and up from $0.48 a year earlier. Net income more than doubled to $16.3 million, while adjusted EBITDA reached $55.8 million and its 30.7% margin exceeded guidance. Marketplace revenue grew 5%. Cars.com third-quarter results
• Positive Sentiment: BTIG Research raised its price target from $14 to $16 and maintained a Buy rating, signaling greater potential upside in its view.
• Positive Sentiment: B. Riley lifted its target from $13 to $15, although it kept a Neutral rating. The higher target adds support, but the unchanged rating suggests a measured outlook.
• Neutral Sentiment: Full-year 2026 revenue guidance of $723.2 million–$737.7 million brackets the $728.7 million consensus; fourth-quarter guidance of $183.9 million–$187.6 million is also close to the $185.6 million estimate. Cars.com guidance and results
• Negative Sentiment: Quarterly revenue of $181.9 million came in below analysts’ $183.1 million estimate and was up just 0.2% year over year. The modest top-line growth may offset some of the earnings and margin strength. Cars.com misses Q3 revenue estimates

Insider Activity at Cars.com

In other news, insider Angelique Marks sold 57,980 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $11.94, for a total transaction of $692,281.20. Following the transaction, the insider owned 149,636 shares in the company, valued at $1,786,653.84. This represents a 27.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Donald McGovern sold 8,000 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $12.25, for a total transaction of $98,000.00. Following the transaction, the director owned 102,900 shares in the company, valued at approximately $1,260,525. This trade represents a 7.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 3.36% of the company’s stock.

Cars.com Company Profile

Cars.com Inc (NYSE: CARS) operates a digital automotive marketplace that connects consumers with automotive dealers and manufacturers. Its platform enables shoppers to research vehicles, compare listings, read reviews, obtain financing information and connect with sellers when buying new or used cars.

The company provides automotive retailers with digital marketing, advertising, inventory merchandising, website and digital retailing solutions, as well as data and analytics tools. Its portfolio includes the Cars.com marketplace and related brands and services focused on dealer reviews, vehicle financing, automotive content and customer engagement.

Cars.com primarily serves the United States automotive market, working with consumers, franchised and independent dealerships, original equipment manufacturers and other industry participants.