third quarter 2026
Filed Nov 5, 2026Cars.com Reports Third Quarter 2026 Results Focused execution drove efficiency and profitability gains while also powering Marketplace momentum, including launch of new self-service Marketplace Starter package
Third-quarter revenue was essentially flat year-over-year, but operating expenses declined 7%, net income increased 113%, and Adjusted EBITDA margin reached 30.7%, above the stated guidance range by 120 bps.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30 (in thousands)GAAP | $181.9M | – | NM |
| Dealer revenue, three months ended September 30 (in thousands)GAAP | $163.4M | – | 1% |
| OEM and National revenue, three months ended September 30 (in thousands)GAAP | $15.69M | 15% | (3%) |
| Other revenue, three months ended September 30 (in thousands)GAAP | $2.79M | – | – |
| Total operating expenses, three months ended September 30 (in thousands)GAAP | $153.0M | – | (7%) |
| Cost of revenue and operations, three months ended September 30 (in thousands)GAAP | $31.74M | – | – |
| Product and technology expense, three months ended September 30 (in thousands)GAAP | $28.15M | – | – |
| Marketing and sales expense, three months ended September 30 (in thousands)GAAP | $56.52M | – | – |
| General and administrative expense, three months ended September 30 (in thousands)GAAP | $20.22M | – | – |
| Depreciation and amortization, three months ended September 30 (in thousands)GAAP | $16.36M | – | – |
| Operating income, three months ended September 30 (in thousands)GAAP | $28.89M | – | – |
| Interest expense, net, three months ended September 30 (in thousands)GAAP | −$7.21M | – | – |
| Income tax expense, three months ended September 30 (in thousands)GAAP | $5.11M | – | – |
| Net income, three months ended September 30 (in thousands)GAAP | $16.34M | – | 113% |
| Net income per diluted share, three months ended September 30GAAP | $ 0.30 | – | 150% |
| Net income per basic share, three months ended September 30GAAP | $ 0.30 | – | – |
| Adjusted operating expenses, three months ended September 30 (in thousands)non-GAAP | $142.4M | – | (5%) |
| Adjusted net income, three months ended September 30 (in thousands)non-GAAP | $32.33M | – | 6% |
| Adjusted net income per diluted share, three months ended September 30non-GAAP | $ 0.58 | – | 21% |
| Adjusted EBITDA, three months ended September 30 (in thousands)non-GAAP | $55.82M | – | 2% |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 30.7% of revenue | – | – |
| Net cash provided by operating activities, three months ended September 30 (in thousands)GAAP | $59.05M | – | – |
| Free cash flow, three months ended September 30 (in thousands)non-GAAP | $53.80M | – | – |
| Total revenue, nine months ended September 30 (in thousands)GAAP | $542.0M | – | – |
| Operating income, nine months ended September 30 (in thousands)GAAP | $73.40M | – | – |
| Net income, nine months ended September 30 (in thousands)GAAP | $35.58M | – | – |
| Net income per diluted share, nine months ended September 30GAAP | $ 0.62 | – | – |
| Adjusted EBITDA, nine months ended September 30 (in thousands)non-GAAP | $159.8M | – | – |
| Adjusted net income, nine months ended September 30 (in thousands)non-GAAP | $87.68M | – | – |
| Adjusted net income per diluted share, nine months ended September 30non-GAAP | $ 1.52 | – | – |
| Net cash provided by operating activities, nine months ended September 30 (in thousands)GAAP | $114.7M | – | – |
| Free cash flow, nine months ended September 30 (in thousands)non-GAAP | $97.30M | – | – |
| Dealer Customersother | 19,251 | NM | (1%) |
| Monthly Average Revenue Per Dealerother | $ 2,532 | 1% | 3% |
| Average Monthly Unique Visitors (in millions)other | 24.7M | 8% | (3%) |
| Traffic (Visits) (in millions)other | 150.2M | 5% | (4%) |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| DealerDriven by greater Marketplace value delivery and customer count, partially offset by a decline in media and solutions products. | $163.4M | – | 1% |
| OEM and NationalOEM advertising recovered sequentially, as expected. | $15.69M | 15% | (3%) |
| OtherNo driver was specified. | $2.79M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenueflat to up 2% year-over-year
- NoteAdjusted EBITDA margin is expected to be between 29.0% to 30.0%.
- NoteThe Company’s 2026 share repurchase target remains $90 million.
Capital returns
- The Company repurchased 1.4 million shares of common stock for $16 million in the third quarter.
- The Company repurchased 7.6 million shares of common stock for $74 million for the nine months ended September 30, 2026.
- Shares repurchased and retired year-to-date through September 30, 2026 represent over 12% of the Company’s common shares outstanding as of prior year-end.
- As of September 30, 2026, approximately $100.2 million remains available under the current share repurchase authorization, which expires in February 2028.
What drove it
- Marketplace revenue was up 5% Y/Y based on both customer growth and greater uptake of higher-tier subscriptions.
- Premium+ reached 12% adoption for the quarter.
- The new self-service Marketplace Starter offering was adopted by nearly 400 independent dealers.
- ARPD rose 3% Y/Y based on healthy Marketplace performance and set its second-highest quarterly record.
- Active cost management and improved efficiencies within General and Administrative and Sales and Marketing expenses drove operating leverage.
- Carson, the Cars.com AI-powered shopping assistant, crossed 1 million monthly users, nearly doubling year-over-year.
Concerns
- Revenue for the third quarter was up slightly year-over-year.
- Dealer revenue growth was partially offset by a decline in media and solutions products.
- OEM and National revenue was down 3% year-over-year.
- Dealer Customers were down 1% year-over-year.
- Average Monthly Unique Visitors were down 3% year-over-year and Traffic was down 4% year-over-year.
- Full-year guidance reflects pressure in Dealer and OEM media products amid current market conditions.
What to watch
- Marketplace customer growth, Premium+ adoption, and the expansion of the Marketplace Starter offering.
- Whether OEM advertising recovery continues after OEM and National revenue increased 15% quarter-over-quarter.
- The sustainability of cost efficiencies in General and Administrative and Sales and Marketing expenses.
- Performance against the reaffirmed full-year revenue outlook of flat to up 2% year-over-year and Adjusted EBITDA margin outlook of 29.0% to 30.0%.
- Progress toward the $90 million 2026 share repurchase target.
Balance sheet and cash flow
- Cash and cash equivalents were $64.6 million as of September 30, 2026.
- Total liquidity as of September 30, 2026 was $369.6 million, defined as Cash and cash equivalents of $64.6 million and revolver capacity of $305.0 million.
- The Company repaid $5 million of debt during the quarter, reducing total debt outstanding to $445.0 million as of September 30, 2026.
- Long-term debt, net was $ 442,434 (in thousands) as of September 30, 2026, compared with $ 451,516 (in thousands) as of December 31, 2025.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was $114.7 million, compared to $114.5 million in the prior year.
- Free cash flow for the nine months ended September 30, 2026 totaled $97.3 million, compared to $94.5 million in the prior year.
- Capitalization of internally developed technology for the nine months ended September 30, 2026 was $ (16,512 ) (in thousands).
- Purchase of property and equipment for the nine months ended September 30, 2026 was $ (852 ) (in thousands).
Analysis
Cars.com reported third-quarter revenue of $181.9 million, up slightly year-over-year, while the underlying revenue mix remained uneven. Dealer revenue was $163.4 million and increased 1% year-over-year, with greater Marketplace value delivery and customer count partly offset by a decline in media and solutions products. OEM and National revenue was $15.7 million, down 3% year-over-year, although it increased 15% quarter-over-quarter as OEM advertising recovered sequentially. Marketplace revenue increased 5% year-over-year, Premium+ reached 12% adoption, and nearly 400 independent dealers adopted the new Marketplace Starter offering.
Profitability improved materially because expenses declined. Total operating expenses were $153.0 million, down 7% year-over-year, and adjusted operating expenses were $142.4 million, down 5% year-over-year. Management cited active cost management, lower depreciation and amortization, and efficiency gains in General and Administrative and Sales and Marketing. Operating income was $28.9 million versus $16.8 million in the prior-year period, and net income increased to $16.3 million from $7.7 million.
Non-GAAP earnings and cash flow also advanced. Adjusted EBITDA was $55.8 million, up 2% year-over-year, and the 30.7% Adjusted EBITDA margin exceeded the stated guidance range by 120 bps. Adjusted net income was $32.3 million, or $0.58 per diluted share, compared with $30.4 million, or $0.48 per diluted share. For the nine months ended September 30, net cash provided by operating activities was $114.7 million and free cash flow was $97.3 million.
Operating audience metrics require attention. ARPD rose 3% year-over-year to $2,532, while Dealer Customers were down 1% year-over-year to 19,251. Average Monthly Unique Visitors declined 3% year-over-year to 24.7 million and Traffic declined 4% year-over-year to 150.2 million, despite management's statement that audience acquisition optimization delivered robust year-over-year growth in lead volume. Carson crossed 1 million monthly users, nearly doubling year-over-year, and the company stated it was the #1 most cited automotive marketplace across major LLMs.
Capital allocation remained focused on repurchases and debt reduction. Cars.com repurchased 1.4 million shares for $16 million in the quarter and 7.6 million shares for $74 million year to date, while repaying $5 million of debt during the quarter. Total debt outstanding was $445.0 million and total liquidity was $369.6 million at September 30, 2026. The company reaffirmed full-year guidance for revenue to be flat to up 2% year-over-year and Adjusted EBITDA margin of 29.0% to 30.0%, while maintaining its $90 million 2026 share repurchase target.
Management, verbatim
Our third quarter results reinforced the growing strength of our core, scaled Marketplace. We once again grew Marketplace customers, reached another milestone in Premium+ package adoption, and also launched our first ever self-service subscription designed to meet the needs of local independent dealers.
Tobias Hartmann, Chief Executive Officer of Cars.com, Inc.
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- A GAAP or non-GAAP tax rate was not reported.
- Prior-quarter total revenue, operating income, net income, EPS, operating cash flow, free cash flow, and Adjusted EBITDA were not reported.
- No previous-release outlook was provided, so prior-guidance comparisons cannot be made.
- No full-year revenue amount, gross-margin guidance, operating-expense guidance, or tax-rate guidance was reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.