Overview

* Cars.com ( CARS ) Q2 revenue misses analyst expectations, adjusted EPS beats, per LSEG data

* Co repurchased 2.1 mln shares, raising FY 2025 buyback target to $70-$90 mln

* Revenue for Q2 totaled $178.7 mln, roughly flat yr/yr

Outlook

* Company anticipates low-single digit revenue growth for H2 2025

* Company reaffirms full-year adjusted EBITDA margin guidance of 29% to 31%

Result Drivers

* DEALER REVENUE - Subscription-based Dealer revenue was down 1% year-over-year, primarily reflecting changes in customer and product mix

* ACCUTRADE ADOPTION - AccuTrade appraisals grew 45% year-over-year, reflecting increased product adoption and customer engagement

* OPERATIONAL EFFICIENCIES - Cost management and operational efficiencies helped reduce operating expenses, contributing to a high adjusted EBITDA margin

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $178.70 $179.40

Revenue mln mln (7

Analysts

)

Q2 Beat $0.41 $0.07 (6

Adjusted Analysts

EPS )

Q2 Net $7 mln

Income

Q2 $50.90

Adjusted mln

EBITDA

Q2 $152.70

Adjusted mln

Operatin

g

Expenses

Q2 $163.50

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for Cars.com Inc ( CARS ) is $15.25, about 13.9% above its August 6 closing price of $13.13

* The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)