Cars.com (NYSE:CARS) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Cars.com (NYSE:CARS) released its earnings results on Thursday. The company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.54 by $0.04, FiscalAI reports. The company had revenue of $181.88 million for the quarter, compared to analysts’ expectations of $183.05 million. Cars.com had a net margin of 5.92% and a return on equity of 19.86%. Cars.com’s revenue for the quarter was up .2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.48 EPS.

Here are the key takeaways from Cars.com’s conference call:

• Marketplace growth strengthened: Marketplace revenue rose 5% year over year, subscribers increased, and ARPD reached another all-time high. Leads were up nearly double digits despite traffic and visitors remaining down mid-single digits.
• New products are expanding inventory and engagement: Nearly 400 dealers signed up for the free, self-service Starter package, with about 80% of their inventory priced below $20,000; Carson surpassed 1 million monthly users. Management said Starter is primarily intended to expand relevant inventory, and could be ARPD-dilutive if dealers convert, though it sees future direct and indirect monetization opportunities.
• Profitability and shareholder returns were strong: Adjusted EBITDA increased 2% to $55.8 million, with a 30.7% margin above the high end of guidance. Year-to-date free cash flow was $97.3 million, and $74 million of share repurchases put the company on pace for its $90 million full-year target.
• 2026 guidance was reaffirmed, with revenue expected near the low end: Cars.com maintained its forecast of 0%–2% revenue growth and a 29%–30% adjusted EBITDA margin, while expecting revenue toward the low end and EBITDA toward the high end of those ranges.
• Dealer solutions remain a near-term challenge: Website subscription declines weighed on dealer count, while the company is de-emphasizing AccuTrade as a standalone offering. Management cited near-term headwinds for websites and trade and appraisal, though it expects website improvements to support stabilization and a better growth outlook in 2027.

Cars.com Price Performance

NYSE CARS traded down $0.16 on Friday, reaching $13.40. The company had a trading volume of 1,846,201 shares, compared to its average volume of 812,168. The company has a quick ratio of 2.00, a current ratio of 2.03 and a debt-to-equity ratio of 0.99. The stock has a market capitalization of $717.09 million, a PE ratio of 8.45 and a beta of 1.66. The firm’s 50 day moving average price is $10.95 and its 200 day moving average price is $10.60. Cars.com has a 12 month low of $7.40 and a 12 month high of $14.02.

Insider Buying and Selling at Cars.com

In other Cars.com news, Director Donald McGovern sold 8,000 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $12.25, for a total transaction of $98,000.00. Following the completion of the transaction, the director owned 102,900 shares of the company’s stock, valued at $1,260,525. This represents a 7.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Angelique Marks sold 57,980 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $11.94, for a total transaction of $692,281.20. Following the transaction, the insider directly owned 149,636 shares of the company’s stock, valued at $1,786,653.84. This trade represents a 27.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.36% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. B. Riley Financial raised their price target on Cars.com from $13.00 to $15.00 and gave the company a “neutral” rating in a report on Friday. Weiss Ratings lowered Cars.com from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, September 29th. BTIG Research increased their target price on Cars.com from $14.00 to $16.00 and gave the stock a “buy” rating in a research report on Thursday. UBS Group cut their target price on Cars.com from $13.00 to $11.50 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. Finally, Zacks Research raised Cars.com from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 9th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $15.25.

More Cars.com News

Here are the key news stories impacting Cars.com this week:

• Positive Sentiment: Cars.com reported third-quarter adjusted earnings of $0.58 per share, above the $0.54 analyst consensus and up from $0.48 a year earlier. Net income more than doubled to $16.3 million, while adjusted EBITDA reached $55.8 million and its 30.7% margin exceeded guidance. Marketplace revenue grew 5%. Cars.com third-quarter results
• Positive Sentiment: BTIG Research raised its price target from $14 to $16 and maintained a Buy rating, signaling greater potential upside in its view.
• Positive Sentiment: B. Riley lifted its target from $13 to $15, although it kept a Neutral rating. The higher target adds support, but the unchanged rating suggests a measured outlook.
• Neutral Sentiment: Full-year 2026 revenue guidance of $723.2 million–$737.7 million brackets the $728.7 million consensus; fourth-quarter guidance of $183.9 million–$187.6 million is also close to the $185.6 million estimate. Cars.com guidance and results
• Negative Sentiment: Quarterly revenue of $181.9 million came in below analysts’ $183.1 million estimate and was up just 0.2% year over year. The modest top-line growth may offset some of the earnings and margin strength. Cars.com misses Q3 revenue estimates

About Cars.com

Cars.com Inc (NYSE: CARS) operates a digital automotive marketplace that connects consumers with automotive dealers and manufacturers. Its platform enables shoppers to research vehicles, compare listings, read reviews, obtain financing information and connect with sellers when buying new or used cars.

The company provides automotive retailers with digital marketing, advertising, inventory merchandising, website and digital retailing solutions, as well as data and analytics tools. Its portfolio includes the Cars.com marketplace and related brands and services focused on dealer reviews, vehicle financing, automotive content and customer engagement.

Cars.com primarily serves the United States automotive market, working with consumers, franchised and independent dealerships, original equipment manufacturers and other industry participants.