Overview

* Cars.com ( CARS ) Q3 revenue reaches record $182 mln, slightly beating analyst expectations

* Adjusted EPS for Q3 beats analyst expectations, indicating strong operational performance

* Company repurchased $64 mln of stock year-to-date, on track with FY25 target

Outlook

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

* Cars.com ( CARS ) reaffirms full-year adjusted EBITDA margin guidance of 29% to 31%

* Customer spending on media products influenced by vehicle production, inventory levels

Result Drivers

* AI-POWERED FEATURES - Carson AI search features doubled vehicle listing views, enhancing visitor engagement

* MARKETPLACE REPACKAGING - Successful marketplace repackaging boosted Premium subscribers by 60% year-over-year

* DEALER REVENUE GROWTH - Dealer revenue increased 2% year-over-year, driven by website and appraisal product adoption

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $182 mln $181.43

Revenue Beat* mln (6

Analysts

)

Q3 Beat $0.48 $0.16 (6

Adjusted Analysts

EPS )

Q3 Net $7.70

Income mln

Q3 $54.60

Adjusted mln

EBITDA

Q3 $150.40

Adjusted mln

Operatin

g

Expenses

Q3 $164.80

Operatin mln

g

Expenses

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $16.00, about 34.9% above its November 5 closing price of $10.41

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release:

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(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.)