Cars.com misses Q2 revenue estimates, raises share buyback target

Cars.com

07/08/2025 12:41

Overview

Cars.com 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/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$178.70 mln
$179.40 mln (7 Analysts)
Q2 Adjusted EPS
Beat
$0.41
$0.07 (6 Analysts)
Q2 Net Income
$7 mln
Q2 Adjusted EBITDA
$50.90 mln
Q2 Adjusted Operating Expenses
$152.70 mln
Q2 Operating Expenses
$163.50 mln


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 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: ID:nPn90HSQta

(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.)