Cars.com Reports Third Quarter 2026 Results

(NYSE:CARS) Cars.com Inc. reported financial results for the third quarter ended September 30, 2026. Revenue for the quarter was $181.9 million, reflecting a 5% year-over-year increase in Marketplace revenue. Net income increased to $16.3 million, up 113% year-over-year, and adjusted EBITDA grew to $55.8 million, with an adjusted EBITDA margin of 30.7%, outperforming guidance by 120 basis points. Adjusted net income for the quarter was $32.3 million, or $0.58 per diluted share, compared to $30.4 million, or $0.48 per diluted share, in the prior year. Net income per diluted share was $0.30, up from $0.12 in the prior year. Subscription-based Dealer revenue was $163.4 million, up 1% year-over-year, while OEM and National revenue was $15.7 million, down 3% year-over-year but up 15% quarter-over-quarter. Total operating expenses for the quarter were $153.0 million, down from $164.8 million in the prior year, and adjusted operating expenses were $142.4 million, down 5% year-over-year. The company repurchased 1.4 million shares for $16 million in the third quarter, and 7.6 million shares for $74 million year-to-date, representing over 12% of common shares outstanding as of the prior year-end. The 2026 share repurchase target remains $90 million, with $100.2 million remaining under the current authorization expiring in February 2028. Net cash provided by operating activities for the nine months ended September 30, 2026 was $114.7 million, and free cash flow for the same period was $97.3 million. The company repaid $5 million of debt during the quarter, reducing total debt outstanding to $445.0 million as of September 30, 2026. Total liquidity as of September 30, 2026 was $369.6 million, including cash and cash equivalents of $64.6 million and revolver capacity of $305.0 million. Dealer Customers at quarter-end were 19,251, with monthly average revenue per dealer (ARPD) at $2,532, up 3% year-over-year. Average monthly unique visitors were 24.7 million, and total traffic was 150.2 million visits. The Premium+ package reached 12% adoption for the quarter, and the new self-service Marketplace Starter offering was adopted by nearly 400 independent dealers. Carson, the AI-powered shopping assistant, crossed 1 million monthly users, nearly doubling year-over-year. Mausam Bhatt was appointed Chief Product Officer. The company reaffirmed its full year 2026 guidance, expecting revenue to be flat to up 2% year-over-year and adjusted EBITDA margin between 29.0% and 30.0%.

Cars.com Appoints Mausam Bhatt Chief Product Officer to Accelerate Marketplace Innovation

(NYSE:CARS) Cars.com Inc. announced the appointment of Mausam Bhatt as Chief Product Officer, effective November 2. Mausam Bhatt will oversee product strategy and development across Cars.com's portfolio, with a focus on connecting the company's consumer marketplace, automotive data, AI capabilities, and dealer solutions. Bhatt previously served as Chief Product Officer at Rithum, a commerce technology company. He was also Chief Product and Technology Officer at Realtor.com, where he led product, engineering, AI, and data for the online property marketplace. Earlier in his career, Bhatt led product for Google Shopping's growth and transactions platform, was Chief Product Officer at RetailMeNot, and was part of the senior leadership team at Flipkart. At Flipkart, he helped build the company's mobile commerce business, scaling it to over 75 million users and $4 billion in revenue. Bhatt began his career as a software engineer at Hewlett Packard. Tobi Hartmann, CEO of Cars.com, stated that Bhatt brings product vision, marketplace expertise, and an execution mindset to accelerate the company's evolution into a more intelligent, connected marketplace. Hartmann emphasized Bhatt's ability to build products that create value on both sides of a marketplace. Bhatt commented that he is excited to bring together Cars.com's content, technology, data, and dealer solutions to create more intuitive and connected experiences for consumers and dealers. Cars.com is described as a leading marketplace for automotive sales, combining reviews, answers, and tools to help shoppers make confident car decisions. The company has operated for over 25 years and provides technology, data, and media solutions for dealers and OEMs.

Cars.com Announces Its 2026 Most American-Made Vehicles Ahead of Country's 250th

(NYSE: CARS) Cars.com Inc. unveiled the vehicles on its 21st annual American-Made Index (AMI), listing 86 vehicles that made the cut for 2026. Cars.com experts independently evaluated over 350 vehicles to generate the 2026 AMI list, with the top 10 tying the highest average domestic parts content percentage since the AMI methodology changed in 2020. Tesla claims the most American-made vehicle for the sixth year in a row with the Model 3, followed by the Model Y for a second consecutive year. Toyota contributed the most vehicles to the list with 14, while Honda contributed 13, GM 13, Ford nine, and Stellantis six. The share of electrified vehicles on the AMI declined from 30% to 24%, with the number of EVs dropping from 11 to five, attributed to the sunsetting of the federal EV tax credit in fall 2025. Tariffs enacted in 2025 have led to fewer cars on the 2026 index—86 in 2026, down from 99 in 2025—and increased prices for some vehicles. The company projects ongoing impacts from tariffs and a recalibration of automakers' electrified strategies.

Cars.com Announces Inducement Awards Under NYSE Listing Rule 303A.08

(NYSE:CARS) Cars.com Inc. announced that on June 5, 2026, its Compensation Committee granted restricted stock units ("RSUs") covering 86,540 shares of the Company's common stock to Sarah Kettler as material inducement to her hiring as Chief Marketing Officer, effective June 1, 2026. Of the total RSUs granted, 76,924 RSUs will vest ratably on an annual basis over three years, and 9,616 RSUs will vest ratably on an annual basis over two years, subject to Ms. Kettler's continued employment with the Company through each applicable vesting date. The Inducement Award was granted under the Cars.com Inc. 2025 Inducement Equity Plan. The Inducement Award was granted in reliance on the employment inducement exemption from the NYSE's shareholder approval requirements under the NYSE's Listed Company Manual Rule 303A.08. The Company is issuing this press release to satisfy the public announcement requirement of Rule 303A.08. Cars.com Inc. describes itself as a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars. The flagship Cars.com marketplace connects millions of consumers to dealerships across the U.S., powering the car buying experience with artificial intelligence ("AI") shopping tools and comprehensive vehicle reviews and content.

Cars.com Names Sarah Kettler Chief Marketing Officer

(NYSE:CARS) Cars.com Inc. announced the appointment of Sarah Kettler as Chief Marketing Officer, effective June 15, 2026. Kettler joins from SeatGeek, where she spent a decade leading marketing, most recently as Executive Vice President, Marketing & Communications. During her tenure at SeatGeek, she built a performance marketing engine that doubled consumer awareness and drove sustained growth. Kettler previously held strategy and communications roles at WME-IMG and Deloitte Consulting. Cars.com Inc. describes itself as a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars. The company’s marketplace connects millions of consumers to dealerships across the U.S. and powers the car buying experience with artificial intelligence shopping tools and comprehensive vehicle reviews and content. The company’s ecosystem of products enables dealers and OEMs to sell more cars by leveraging its marketplace, dealer websites, trade and appraisal tools, and proprietary in-market media solutions.