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

Cars.com (NYSE:CARS) issued 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 firm had revenue of $181.88 million for the quarter, compared to analyst estimates of $183.05 million. Cars.com had a net margin of 5.92% and a return on equity of 19.86%. The company’s quarterly revenue was up .2% on a year-over-year basis. During the same quarter last year, the business posted $0.48 earnings per share.

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 Trading Down 1.2%

Cars.com stock traded down $0.16 during trading hours on Friday, reaching $13.40. 1,846,201 shares of the company’s stock were exchanged, compared to its average volume of 812,168. The firm’s 50 day simple moving average is $10.95 and its 200 day simple moving average is $10.60. Cars.com has a twelve month low of $7.40 and a twelve month high of $14.02. 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 firm has a market capitalization of $717.09 million, a PE ratio of 8.45 and a beta of 1.66.

Wall Street Analysts Forecast Growth

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

Insider Transactions at Cars.com

In other news, Director Donald McGovern sold 8,000 shares of the business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $12.25, for a total value of $98,000.00. Following the transaction, the director directly owned 102,900 shares of the company’s stock, valued at $1,260,525. The trade was a 7.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Angelique Marks sold 57,980 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $11.94, for a total value of $692,281.20. Following the sale, the insider owned 149,636 shares in the company, valued at approximately $1,786,653.84. The trade was 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.

Cars.com News Roundup

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.