Cars.com (NYSE:CARS) Announces Quarterly Earnings Results

Cars.com (NYSE:CARS) released its earnings results on Thursday. The company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.12), FiscalAI reports. Cars.com had a return on equity of 18.32% and a net margin of 4.16%.The business had revenue of $183.90 million for the quarter, compared to analysts’ expectations of $183.44 million. During the same quarter last year, the company posted $0.49 earnings per share. The business’s quarterly revenue was up 1.9% compared to the same quarter last year.

Here are the key takeaways from Cars.com’s conference call:

• New CEO Toby Hartmann is refocusing Cars.com on an integrated marketplace flywheel—prioritizing product integration, process and cost optimization, and organizational changes to lift growth above low single digits in the short-to-medium term.
• Full-year 2025 revenue was $723 million (up 1%) with Q4 revenue of $183.9 million (+2%), Adjusted EBITDA margin around 29.2%, and free cash flow of $125.7 million; the company repurchased $86 million of shares (≈9% of float) in 2025.
• Dealer-facing products showed traction: dealer count rose to 19,544 (+338 YoY) with Marketplace adding 100+ dealers sequentially for the third straight quarter, Premium+ subscribers more than doubled, and AccuTrade adoption (≈1,180 customers) plus the new AccuTrade IMS and AI features (Carson, VIN videos) drove higher engagement.
• OEM and national advertising remained soft (roughly a $1.5M YoY decline in Q4), and Cars.com guided 2026 revenue to be flat to +2% with Q1 revenue flat to +1% and Q1 Adjusted EBITDA margin pressured to 26–27% partly due to DealerClub-related losses.
• Management expects to free up cost savings to reinvest in marketplace initiatives while maintaining capital returns—targeting at least $60 million of share buybacks in 2026 and beginning to pay down revolver debt from a net leverage of ~1.9x and liquidity of $351M.

Cars.com Stock Down 14.9%

Shares of Cars.com stock traded down $1.60 on Thursday, hitting $9.14. 3,976,349 shares of the company’s stock traded hands, compared to its average volume of 794,990. Cars.com has a 52-week low of $8.86 and a 52-week high of $14.94. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.94. The stock has a market cap of $546.66 million, a P/E ratio of 19.87 and a beta of 1.46. The firm’s 50-day moving average is $11.73 and its 200 day moving average is $11.95.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Barrington Research reiterated an “outperform” rating and issued a $25.00 price target on shares of Cars.com in a report on Monday, November 3rd. UBS Group boosted their price objective on Cars.com from $12.00 to $13.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. DA Davidson reaffirmed a “buy” rating and issued a $13.50 target price on shares of Cars.com in a research report on Tuesday, November 18th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Cars.com in a report on Tuesday, January 27th. Finally, Wall Street Zen raised Cars.com from a “hold” rating to a “buy” rating in a research report on Saturday, November 8th. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Cars.com presently has a consensus rating of “Moderate Buy” and an average target price of $17.90.

Trending Headlines about Cars.com

Here are the key news stories impacting Cars.com this week:

• Positive Sentiment: Record full-year revenue and cash flow — Cars.com reported record 2025 revenue of $723M, grew its dealer customer base to ~19,544, and generated $152M of annual net cash from operations; management also repurchased 7.1M shares for $86M (retiring ~9% of shares). Cars.com Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Top-line roughly in line for Q4 — Revenue of $183.9M was essentially flat to expectations (consensus ~$183.4M) and up 1.9% year-over-year, showing modest demand stability in the quarter. Cars.com (CARS) Reports Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: Analyst stance remains constructive — consensus analyst rating cited as “Moderate Buy,” which could support longer-term interest if execution continues. Cars.com Inc. Given Consensus Rating of “Moderate Buy”
• Negative Sentiment: EPS miss — Cars.com reported Q4 adjusted EPS of $0.44 vs. the consensus ~$0.56 and vs. $0.49 a year ago; the profit shortfall is the primary near-term negative catalyst. Cars.com (CARS) Misses Q4 Earnings Estimates
• Negative Sentiment: Guidance and disclosure gaps increase uncertainty — Management set Q1 revenue guidance below consensus ($179.0M–$180.8M vs. ~$183.4M) and issued FY revenue guidance with a lower bound close to prior-year revenue; EPS guidance was not provided in the company update, adding to near-term investor caution. Cars.com Reports Fourth Quarter and Full Year 2025 Results

Insiders Place Their Bets

In related news, insider Matthew B. Crawford sold 27,358 shares of the company’s stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $12.03, for a total value of $329,116.74. Following the sale, the insider directly owned 71,103 shares of the company’s stock, valued at $855,369.09. This represents a 27.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Sonia Jain sold 11,400 shares of the stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $13.45, for a total transaction of $153,330.00. Following the transaction, the chief financial officer owned 243,642 shares in the company, valued at $3,276,984.90. This trade represents a 4.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.39% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cars.com

A number of hedge funds have recently bought and sold shares of the company. Par Capital Management Inc. bought a new stake in Cars.com in the second quarter valued at about $14,220,000. JPMorgan Chase & Co. grew its position in shares of Cars.com by 112.1% in the 4th quarter. JPMorgan Chase & Co. now owns 1,127,095 shares of the company’s stock worth $13,751,000 after acquiring an additional 595,609 shares in the last quarter. Bridgeway Capital Management LLC bought a new stake in shares of Cars.com in the 2nd quarter valued at approximately $3,776,000. Arrowstreet Capital Limited Partnership raised its position in shares of Cars.com by 23.1% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,057,322 shares of the company’s stock valued at $12,920,000 after acquiring an additional 198,077 shares in the last quarter. Finally, Monimus Capital Management LP bought a new position in Cars.com during the fourth quarter worth $2,086,000. 89.15% of the stock is currently owned by institutional investors and hedge funds.

Cars.com Company Profile

Cars.com operates as a leading online automotive marketplace in the United States, connecting car shoppers with new and used vehicle listings from dealerships and private sellers. The platform enables consumers to research makes and models, compare prices, read expert and user reviews, and access tools such as TrueCost to estimate ownership expenses over time. Through its website and mobile applications, Cars.com aims to simplify the car-buying process by aggregating detailed vehicle data, payment calculators, and dealership ratings into a single user-friendly experience.

On the dealer side, Cars.com provides a suite of marketing and lead-generation services designed to help automotive retailers reach potential buyers and manage their online presence.