Cars.com Q3 revenue beats estimates on premium subscriber growth

Cars.com

06/11/2025 12:44

Overview

Cars.com 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 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/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$182 mln
$181.43 mln (6 Analysts)
Q3 Adjusted EPS
Beat
$0.48
$0.16 (6 Analysts)
Q3 Net Income
$7.70 mln
Q3 Adjusted EBITDA
$54.60 mln
Q3 Adjusted Operating Expenses
$150.40 mln
Q3 Operating Expenses
$164.80 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 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 $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: ID:nPnbs7tDGa

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