Cars.com announces Q3 adjusted EPS of 48 cents, slightly below consensus of 49 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2025
0mins
Should l Buy CARS?
Q3 Revenue Performance: Cars Commerce reported Q3 revenue of $182 million, exceeding the consensus estimate of $181.37 million, driven by a resurgence in Dealer revenue.
Growth in Customer Count: The company experienced triple-digit growth in customer count and significant gains in its Cars.com marketplace and AccuTrade.
AI Integration Success: The introduction of the AI shopping assistant, Carson, has positively impacted dealer engagement, leading to a 2x improvement in visitor engagement.
Future Outlook: CEO Alex Vetter expressed confidence in the company's ability to sustain growth and create value through strategic execution and AI advancements.
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Analyst Views on CARS
Wall Street analysts forecast CARS stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 7.730
Low
16.00
Averages
19.33
High
25.00
Current: 7.730
Low
16.00
Averages
19.33
High
25.00
About CARS
Cars.com Inc., doing business as Cars Commerce Inc., is an audience-driven technology company. It is engaged in car buying and selling with products, solutions and machine-learning model-driven artificial intelligence technologies that span pretail, retail and post-sale activities. Cars Commerce platform is organized over four brands: the flagship automotive marketplace and dealer reputation site Cars.com, digital retail technology and marketing services from Dealer Inspire and D2C Media, essential trade-in and appraisal technology from AccuTrade, and media solutions from the Cars Commerce Media Network. It enables shoppers with the data, resources and digital tools needed to make informed buying decisions and connect with automotive retailers. Cars.com enables dealerships and original equipment manufacturers with solutions and data-driven intelligence. Its products and solutions have attracted over 19,200 franchise and independent dealer customers across the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Market Volatility: Cars.com has experienced over 21 moves greater than 5% in the past year, indicating the market's sensitivity to company news, although the current drop is seen as significant but not fundamentally altering market perceptions of the business.
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- Profitability Maintenance: The company achieved annual revenue of $723 million with an adjusted EBITDA margin of 29.2% and free cash flow of $126 million, demonstrating its ability to maintain profitability while optimizing costs and processes to return capital to shareholders.
- Strategic Shift: New CEO Tobias Hartmann emphasized the integration of the marketplace as the core of future growth, committing to enhancing market trust and customer connections through product integration and organizational improvements, despite the challenges of making difficult decisions.
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- Future Outlook: For Q1 2026, revenue is expected to be flat to up 1% year-over-year, primarily benefiting from a favorable exit rate for subscription-based Marketplace and website products, although OEM advertising spending is expected to exert near-term pressure, indicating the need for adaptability in changing market conditions.
- Adjusted EBITDA Expectations: The adjusted EBITDA margin for Q1 is projected to be between 26.0% and 27.0%, reflecting changes in revenue mix and slightly elevated technology and compensation expenses, suggesting challenges in cost control for the company.
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