Cars.com Q2 profit beats estimates, reaffirms 2026 outlook

Cars.com

06/08/2026 12:47

Overview
US auto marketplace's Q2 revenue up 1% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q2 beat analyst expectations, driven by improved operating income
Company repurchased 3.7 mln shares for $37 mln in Q2 as part of buyback program

Outlook
Cars.com expects Q3 revenue to be flat to up 2% year-over-year
Company sees Q3 adjusted EBITDA margin between 28.5% and 29.5%
Cars.com reaffirms 2026 revenue guidance of flat to up 2% year-over-year

Result Drivers
MARKETPLACE GROWTH - Marketplace revenue grew over 7% yr/yr, the fastest quarterly growth rate since 2021, offsetting declines in OEM revenue
COST REDUCTIONS - Lower operating expenses, driven by reduced depreciation and amortization and cost reduction activities, improved operating leverage and profitability
NEW PRODUCT LAUNCHES - Introduction of features like Dealer Verified Listings and enhanced audience targeting supported dealer revenue and value delivery

Company press release: ID:nPn1mdZhha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$179.90 mln
$180.54 mln (7 Analysts)
Q2 Adjusted EPS
Beat
$0.51
$0.27 (6 Analysts)
Q2 Net Income
 
$14.30 mln
 
Q2 Adjusted EBITDA
 
$53 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 3 "strong buy" or "buy", 3 "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 $13.50, about 14% above its August 5 closing price of $11.84
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Aug 4 - Angi Q2 revenue falls on macroeconomic conditions reducing demand
Aug 4 - RB Global Q2 revenue, beats estimates driven by automotive sector
Aug 4 - Xometry Q2 revenue beats on marketplace growth

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.)