Cars.com Reports First Quarter 2025 Results

Cars.com Inc., operating as Cars Commerce Inc., has released its financial results for the first quarter of 2025. The company, known for its audience-driven technology solutions in the automotive industry, reported several key financial and operational metrics for the period ending March 31, 2025.

Financial Highlights

For the first quarter of 2025, Cars.com reported total revenue of $179 million, a slight decrease from $180.2 million in the same period last year. The company experienced a net loss of $2 million, or $0.03 per diluted share, compared to a net income of $0.8 million, or $0.01 per diluted share, in the first quarter of 2024. Adjusted net income was $24 million, down from $28.7 million in the previous year, and Adjusted EBITDA was $50.7 million, representing a 4% decrease year-over-year.

Business and Operational Highlights

Cars.com achieved a new quarterly record with 29 million average monthly unique visitors, a 3% increase year-over-year. The company also reported a slight increase in dealer customers, reaching 19,250, up from 19,206 in the previous quarter. Additionally, the AccuTrade appraisals grew by 16% quarter-over-quarter and 31% year-over-year, indicating improved customer engagement.

Strategic Initiatives and Corporate Developments

During the first quarter, Cars.com repurchased 1.6 million shares of common stock for $21.5 million as part of its capital allocation strategy. The company aims to repurchase a total of $60 to $70 million worth of shares in 2025. The acquisition of DealerClub in January 2025 also contributed to the company's operational expenses for the quarter.

Management's Perspective

Alex Vetter, Chief Executive Officer of Cars Commerce, expressed optimism about the company's performance, highlighting the growing momentum in their core marketplace and solutions portfolio. Vetter emphasized the company's focus on reaccelerating dealer revenue growth and managing costs amid external uncertainties. Chief Financial Officer Sonia Jain noted the strong Adjusted EBITDA margin and the company's confidence in its asset-light model and robust balance sheet.

Future Outlook

Due to heightened volatility and uncertainty in the automotive industry, Cars.com has suspended its full-year 2025 revenue guidance. However, the company reaffirmed its full-year Adjusted EBITDA margin guidance of 29% to 31% and expects Adjusted EBITDA margins for the second quarter of 2025 to be between 27% and 29%.

SEC Filing: Cars.com Inc. [ CARS ] - 8-K - May. 08, 2025