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CARS

Cars.com Inc.

CARS

Cars.com Inc. • NYSE
$11.60 ▼ -1.02% (-0.12)
Market Cap $693.83 M
52w High $20.47
52w Low $9.56
Dividend Yield 0%
P/E 25.22
Volume 255.96K
Outstanding Shares 59.81M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $181.573M ▲ $107.125M ▼ $7.658M ▲ 4.218% ▲ $0.12 ▲ $41.797M ▼
Q2-2025 $178.739M ▼ $132.946M ▼ $7.009M ▲ 3.921% ▲ $0.11 ▲ $42.485M ▲
Q1-2025 $179.024M ▼ $141.625M ▲ $-2.013M ▼ -1.124% ▼ $-0.031 ▼ $33.474M ▼
Q4-2024 $180.431M ▲ $128.92M ▼ $17.304M ▼ 9.59% ▼ $0.27 ▼ $52.528M ▼
Q3-2024 $179.651M $136.585M $18.719M 10.42% $0.28 $60.13M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $55.072M ▲ $1.071B ▲ $593.818M ▲ $477.569M ▼
Q2-2025 $27.704M ▼ $1.065B ▼ $581.437M ▼ $483.217M ▼
Q1-2025 $31.435M ▼ $1.084B ▼ $593.768M ▼ $489.915M ▼
Q4-2024 $50.673M ▲ $1.112B ▼ $600.38M ▼ $511.485M ▲
Q3-2024 $49.573M $1.119B $616.083M $502.425M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $7.658M ▲ $58.838M ▲ $-6.196M ▲ $-25.223M ▼ $27.368M ▲ $58.279M ▲
Q2-2025 $7.009M ▲ $26.228M ▼ $-8.388M ▲ $-21.956M ▲ $-3.731M ▲ $23.697M ▼
Q1-2025 $-2.013M ▼ $29.455M ▼ $-20.736M ▼ $-27.387M ▼ $-19.238M ▼ $28.644M ▲
Q4-2024 $17.304M ▼ $30.007M ▼ $-5.563M ▲ $-22.903M ▲ $1.1M ▼ $24.442M ▼
Q3-2024 $18.719M $53.795M $-6.541M $-26.832M $20.502M $47.254M

Revenue by Products

Product Q4-2022Q1-2023Q2-2023Q3-2023
Display Advertising
Display Advertising
 $20.00M ▲$20.00M ▲$20.00M ▲$30.00M ▲
Other Major Product And Services
Other Major Product And Services
 $0 ▲$0 ▲$0 ▲$0 ▲
Pay Per Lead
Pay Per Lead
 $0 ▲$0 ▲$0 ▲$0 ▲
Subscription Advertising And Digital Solutions
Subscription Advertising And Digital Solutions
 $140.00M ▲$140.00M ▲$140.00M ▲$140.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Cars.com’s income statement shows a steady grind forward rather than dramatic swings. Revenue has risen each year for the last several years, reflecting a business that is slowly but consistently growing its digital marketplace and dealer solutions. Profitability has improved meaningfully since the large loss during the early pandemic period, with the company now solidly back in the black. Operating profit and EBITDA sit at healthy, but not spectacular, levels for an online platform business, suggesting decent efficiency but also ongoing spending on technology, marketing, and product. Net income has been positive but somewhat choppy, with one standout year that likely reflects special items or tax effects. Overall, the picture is of a maturing, asset‑light business with stable growth and improved, but still relatively modest, profit margins.

Balance Sheet

Balance Sheet The balance sheet looks generally sound and gradually stronger over time. Total assets have been fairly stable, which fits an asset‑light, software‑ and data‑driven business rather than a capital‑intensive one. Cash on hand is modest but consistent, so the company is not sitting on a huge war chest, yet it appears to maintain an adequate liquidity cushion for normal operations. Debt levels have trended down from their peak a few years ago while shareholder equity has grown. That combination points to a slow de‑leveraging of the company and an improving capital structure. Cars.com does not appear overburdened by debt, but it also doesn’t have the ultra‑fortress balance sheet of a cash‑rich tech giant. Instead, it sits in a middle ground: reasonably well positioned, with gradual balance sheet strengthening over time.

Cash Flow

Cash Flow Cash flow is one of the clearer strengths here. Cars.com has produced steady, positive cash from operating activities across the period shown, even when accounting earnings were weaker. That consistency suggests a business model that converts a good portion of revenue into real cash, which can be used to service debt, invest, or return value to shareholders. Free cash flow has also been robust and relatively stable, helped by low capital spending needs. The company doesn’t need to pour large amounts into physical assets, so most of the cash it generates is available for strategic uses. This recurring, predictable cash generation provides flexibility and helps reduce financial risk, even if headline profits fluctuate year to year.

Competitive Edge

Competitive Edge Competitively, Cars.com has evolved from a simple listing site into a broader automotive commerce platform. Its brand is well known among car shoppers, and the site still attracts strong organic traffic, which reduces dependence on paid marketing and reinforces its visibility with dealers and advertisers. The company’s main edge now comes from its integrated "Cars Commerce" ecosystem: marketplace listings, dealer websites (Dealer Inspire), appraisal and trade‑in tools (Accu‑Trade), and a data‑driven media network. As dealers adopt more of these services together, they tend to see better leads and faster inventory turns, which deepens the relationship and raises switching costs. Large amounts of first‑party shopper and pricing data further strengthen the moat. That said, the competitive landscape is intense. Cars.com faces pressure from other automotive marketplaces, dealer groups’ own websites, automaker sites, and large digital ad platforms. Its success will depend on maintaining traffic scale, proving that its integrated tools deliver superior results for dealers, and continuing to differentiate through data and technology rather than relying solely on brand recognition.

Innovation and R&D

Innovation and R&D Innovation is a central part of Cars.com’s strategy. The company has been investing in a cloud‑based, modular platform that lets it roll out new tools quickly across its ecosystem. A key recent step is "Carson," its AI‑powered search tool that lets users describe what they want in plain language instead of clicking through rigid filters. Early signs suggest this improves user engagement and repeat visits. Beyond search, Cars.com is pushing deeper into AI and data across the dealer workflow. Dealer Inspire already includes AI chat and digital retailing tools. Accu‑Trade uses data to sharpen trade‑in and inventory decisions. The upcoming Accu‑Trade Inventory Intelligence Platform is meant to give dealers more powerful insights on pricing and stocking. The Cars Commerce Media Network aims to monetize the company’s shopper data through more targeted, efficient advertising. The opportunity is to turn Cars.com into an end‑to‑end, data‑rich operating system for dealerships. The main risks are execution and adoption: the company must prove that these AI and data tools consistently improve dealer economics and consumer experience, while keeping pace in a rapidly evolving AI and advertising technology race.

Summary

Putting it all together, Cars.com today looks like a steady, cash‑generative digital marketplace that is trying to reinvent itself as a broader automotive commerce and data platform. Financially, revenue has grown at a measured, consistent pace, profitability has recovered from the sharp downturn in 2020, and free cash flow has been strong and stable. The balance sheet has improved as debt has gradually come down and equity has built up, although cash reserves remain moderate rather than abundant. Strategically, the company’s main strengths lie in its recognized brand, entrenched dealer relationships, and expanding ecosystem of integrated tools across listings, websites, trade‑in, inventory intelligence, and media. Its large base of first‑party data and its push into AI—especially with Carson and new inventory and ad solutions—could further distinguish it if execution is strong. Key things to watch are: the pace of revenue and margin improvement as new products scale, the stickiness and satisfaction of dealer customers on the Cars Commerce platform, Cars.com’s ability to defend and grow its audience against intense competition, and how effectively it converts its AI and data initiatives into durable, profitable growth over time.

NEWS

November 20, 2025 · 3:24 PM UTC

Cars.com Survey Reveals AI's Growing Influence on Car Shopping: 97% of AI Users Say it Will Impact Purchase Decisions and Almost Half Have Already Leveraged the Tech for Car Shopping

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November 6, 2025 · 7:45 AM UTC

Meet "Carson™": Cars.com's New AI Engine for Car Shopping

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November 6, 2025 · 7:30 AM UTC

Cars.com Reports Third Quarter 2025 Results

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October 31, 2025 · 2:01 PM UTC

U.S. Auto Market Steady in Q3 as Policy Changes Influence Pricing and Production, According to Cars Commerce Q3 Industry Insights Report

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October 23, 2025 · 4:05 PM UTC

Cars.com to Announce Third Quarter 2025 Financial Results

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