Cars.com's Q1 revenue rises 1%, swings to profit

Cars.com

07/05/2026 12:44

Overview

US auto marketplace's Q1 revenue rose 1% yr/yr, slightly missing analyst expectations

Net income turned positive from a loss last year, helped by lower depreciation and amortization

Company raised 2026 share repurchase target to $90 mln, up 50% from prior target

Outlook

Company expects Q2 revenue to be flat to up 2% year-over-year

Cars.com sees Q2 adjusted EBITDA margin between 28.0% and 29.0%

Company reaffirms 2026 revenue guidance of flat to up 2% year-over-year

Cars.com expects full-year adjusted EBITDA margin between 29.0% and 30.0%

Result Drivers

MARKETPLACE MOMENTUM - Dealer revenue rose 2% yr/yr, supported by improvements in website and Marketplace value delivery, and dealer customer growth

OEM ADVERTISING WEAKNESS - OEM and National revenue fell 12% yr/yr due to continued OEM spending shifts

COST REDUCTIONS - Operating expenses fell 5% yr/yr, mainly due to lower depreciation and amortization and improved marketing efficiencies

Company press release: ID:nPn7Y3LvNa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$180.20 mln
$180.32 mln (5 Analysts)
Q1 Net Income
$5 mln
Q1 Adjusted EBITDA
$51 mln
Q1 Adjusted Operating Expenses
$145.90 mln
Q1 Operating Expenses
$163.60 mln


*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 4 "strong buy" or "buy", 2 "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 is $13.00, about 16.2% above its May 6 closing price of $11.19

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)