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Investing.com - Cars.com Inc. (NYSE:CARS) reported mixed third quarter results on Thursday, with the online automotive marketplace posting record revenue but falling short of earnings expectations, sending shares down 1.06% in trading.
The company delivered adjusted earnings per share of $0.48, missing analyst estimates of $0.49 by a penny, despite achieving record quarterly revenue of $181.57 million, slightly above the consensus forecast of $181.36 million. Revenue grew 1% compared to the same period last year, driven by a 2% increase in subscription-based Dealer revenue.
"We delivered record revenue in the third quarter as focused execution of our strategy drove a resurgence in Dealer revenue," said Alex Vetter, Chief Executive Officer of Cars Commerce. "Dealers are responding positively as we lead the industry on AI integration through features like Carson, our new AI shopping assistant, which is already powering millions of web searches and yielding a 2x improvement in visitor engagement."
The company reported that its dealer customer base grew to 19,526, reaching a three-year high. Average monthly unique visitors increased 4% YoY to 25.5 million, while traffic rose 1% to 156.2 million visits.
Adjusted EBITDA for the quarter was $54.6 million, representing 30.1% of revenue, compared to $51.1 million, or 28.5% of revenue, in the year-ago period.
Cars.com reaffirmed its full-year adjusted EBITDA margin guidance of 29% to 31% and continues to expect low-single digit revenue growth for the second half of 2025. The company also repurchased 1.5 million shares for $19.3 million during the quarter, bringing total repurchases to 5.2 million shares for $63.9 million in the first nine months of 2025.
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