Cars.com Reports Third Quarter 2025 Results

Achieved Record Total Revenue of $182 Million and Dealer Revenue Growth of 2% Year-over-Year

Accelerating Marketplace Adoption Grew Customer Base +271 Year-over-Year to 19,526 Dealer Customers

Marketplace Supported Record Year-to-Date Traffic and the Launch of CarsonTM AI-Powered Search Features

Repurchased $64 Million of Stock Year-to-Date, On Track with $70 to $90 Million Target for FY25

CHICAGO, November 6, 2025 -- Cars.com Inc. (NYSE: CARS) (d/b/a “Cars Commerce Inc.” or the “Company”), an audience-driven technology company empowering the automotive industry, today released its financial results for the third quarter ended September 30, 2025.

“We delivered record revenue in the third quarter as focused execution of our strategy drove a resurgence in Dealer revenue. Underpinning these strong results was another quarter of triple-digit growth in customer count and notable gains in the Cars.com marketplace and AccuTrade. In particular, dealers are responding positively as we lead the industry on AI integration through features like Carson, our new AI shopping assistant, which is already powering millions of web searches and yielding a 2x improvement in visitor engagement,” said Alex Vetter, Chief Executive Officer of Cars Commerce. “Looking ahead, we are confident in our ability to build upon these successes as we position our platform for sustainable growth and value creation.”

Q3 2025 Financial Highlights

Q3 2025 Key Metrics and Operational Highlights

Q3 2025 Results

Revenue for the third quarter totaled $181.6 million, up 1% compared to the prior year period and reaching a new quarterly record. Subscription-based Dealer revenue was up 2% year-over-year, benefitting from increased adoption of websites and appraisal products as well as Marketplace customer growth and repackaging. OEM and National revenue was down 5% year-over-year, primarily reflecting lower media spending by certain OEM partners.

Total operating expenses for the third quarter were $164.8 million, compared to $168.2 million for the prior year period. Operating expenses declined as compared to the prior year period, as costs associated with the January 2025 acquisition of DealerClub and third party fees were fully offset by efficiencies in headcount and lease-related expenses. Adjusted operating expenses for the quarter were $150.4 million, down 4% compared to the prior year period, reflecting substantially similar dynamics.

Net income for the third quarter was $7.7 million, or $0.12 per diluted share, compared to Net income of $18.7 million, or $0.28 per diluted share, in the third quarter of 2024. The change in Net income is primarily attributable to changes in the fair value of contingent consideration in the prior-year period associated with prior acquisitions. Adjusted net income for the quarter was $30.4 million, or $0.48 per diluted share, compared to $27.7 million, or $0.41 per diluted share a year ago. Adjusted EBITDA for the third quarter was $54.6 million, or 30.1% of revenue, compared to $51.1 million, or 28.5% of revenue in the year-ago period. Adjusted EBITDA strengthened on the basis of improved revenue and the aforementioned cost reduction initiatives.

Cash Flow and Balance Sheet

Net cash provided by operating activities for the nine-month period ended September 30, 2025 was $114.5 million, compared to $122.5 million in the prior year, which is largely attributable to the increase in earnout payments associated with the D2C Media acquisition. Resulting free cash flow for the nine-month period ended September 30, 2025 totaled $94.5 million, compared to $103.7 million in the prior year.

The Company’s total debt outstanding was $455.0 million as of September 30, 2025. The Company’s total net leverage (as defined in the Company’s credit facility) was 1.9x as of September 30, 2025, below its target total net leverage range of 2.0x to 2.5x. Total liquidity as of September 30, 2025 was $350.1 million, which is defined as Cash and cash equivalents of $55.1 million and revolver capacity of $295.0 million.

Share Repurchases

The Company repurchased 1.5 million shares of common stock for $19.3 million in the third quarter, bringing total repurchases to 5.2 million shares for $63.9 million in the first nine months of 2025. The Company also reaffirms its target for $70 to $90 million of share repurchases in fiscal 2025, which was previously revised upward in August 2025.

1 Compared to Base Marketplace packages. Cars.com data, September 2025.

“Third quarter performance demonstrated progress across our major financial and operating metrics, delivering revenue growth as well as strong operating leverage that produced our highest quarter of Adjusted EBITDA margin for this year. Robust cash flow generation also enabled additional share repurchases, consistent with our annual targeted share buyback commitment,” said Sonia Jain, Chief Financial Officer of Cars Commerce. “Through disciplined investments in product innovation as well as prudent capital allocation, we expect to continue to drive platform differentiation and return value to shareholders.”

Outlook

The Company continues to anticipate low-single digit revenue growth for the second half of 2025, based on third quarter performance, current market conditions, and ongoing execution of 2025 growth initiatives. As previously communicated, the favorability, magnitude, and timing of customer spending on media and advertising products are also subject to factors like vehicle production and inventory levels, which have been volatile year-to-date.

The Company is reaffirming Full Year Adjusted EBITDA margin guidance of 29% to 31%. Adjusted EBITDA margin guidance reflects the Company’s confidence in managing operating levers across a range of macroeconomic scenarios.

Q3 2025 Earnings Call

As previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars Commerce Investor Relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.

About Cars Commerce

Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around industry-leading brands: the flagship automotive marketplace and review site Cars.com, digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, a reputation-based dealer-to-dealer wholesale auction from DealerClub and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.

Non-GAAP Financial Measures

This earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net (loss) income, Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company’s performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company’s credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company’s lenders, securities analysts, investors and other interested parties to evaluate companies in the Company’s industry.

While a reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, the Company has provided a reconciliation of non-GAAP financial measures to their most directly comparable financial

measure prepared in accordance with GAAP in this earnings release, see "Non-GAAP Reconciliations" below.

Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.

The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.

Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the AccuTrade acquisition.

The Company defines Adjusted Net Income as GAAP net (loss) income excluding, net of their related tax effects: (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (4) unrealized foreign currency exchange gains and losses, and (5) certain other items, such as transaction-related costs, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.

The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.

The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.

Key Metric Definitions

Average Monthly Unique Visitors (“UVs”) and Traffic (“Visits”). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified upon first visit to an individual Cars.com property on an individual device/browser combination or installation of one of our mobile apps on an individual device. If a visitor accesses more than one of our web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measured UVs and Traffic via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Media, or DealerClub websites.

Monthly Average Revenue Per Dealer ("ARPD"). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services and DealerClub, during the period divided by the monthly average number of Dealer Customers during the same period.

Dealer Customers. Dealer Customers represent dealerships using the Company’s products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. Dealer Customer metrics do not include DealerClub.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as “believe,” “expect,” “project,” “anticipate,” “outlook,” “intend,” “strategy,” “plan,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” “mission,” “strive,” “more,” “goal” or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.

Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see “Part I, Item 1A., Risk Factors” and “Part II, Item 7., Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.

You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.

Cars Commerce Investor Relations Contact:

Katherine Chen

kchen@carscommerce.inc

408.768.6847

Cars Commerce Media Contact:

Marita Thomas

mthomas@carscommerce.inc

312.601.5692

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