CHICAGO, Aug. 6, 2026 /PRNewswire/ — Cars.com Inc. (NYSE: CARS), a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars, today released its financial results for the second quarter ended June 30, 2026.
“We delivered revenue and profitability growth in the second quarter while making steady progress on our Marketplace-focused strategy. Deliberate prioritization of Marketplace product, processes, and organizational improvements drove Marketplace revenue growth to its highest level since 2021, more than offsetting the expected decline in OEM revenue. New product launches, such as Dealer Verified Listings, as well as stronger customer value delivery through more precise audience targeting, are encouraging signals. Looking ahead, we will deploy these learnings and operational drivers across our ecosystem to deliver sustainable long-term growth and value creation,” said Tobias Hartmann, Chief Executive Officer of Cars.com, Inc.
Q2 2026 Results
Revenue for the second quarter was $179.9 million, up 1% year-over-year. Subscription-based Dealer revenue of $163.3 million was up 3% year-over-year, primarily driven by improved Marketplace value delivery and dealer count, partially offset by a decline in media products. OEM and National revenue of $13.6 million was down 18% year-over-year, consistent with previously communicated expectations of OEM advertising.
Total operating expenses for the second quarter were $152.1 million compared to $163.5 million in the prior year period, down 7% year-over-year. Lower depreciation and amortization was the largest driver of the year-over-year decline, though expenses were broadly down and reflective of improving operating leverage across the business and a partial quarter of efficiencies associated with April cost reduction activities. Adjusted operating expenses were $144.3 million, down 6% year-over-year, driven by the aforementioned factors.
Net income for the second quarter was $14.3 million, or $0.25 per diluted share, compared to $7.0 million, or $0.11 per diluted share, in the year-ago period. The change in Net income is primarily attributable to improved operating income. Adjusted net income for the second quarter was $28.7 million, or $0.51 per diluted share, compared to $26.4 million, or $0.41 per diluted share a year ago.
Adjusted EBITDA for the second quarter was $53.0 million, or 29.4% of revenue, compared to $50.9 million, or 28.5% of revenue in the year-ago period. Adjusted EBITDA grew 4% year-over-year, demonstrating operating leverage against revenue growth.
| Financial Highlights | ||||||
| (in thousands, except per share data) | Quarter Ended June 30, | |||||
| 2026 | 2025 | Change % | ||||
| Revenue | $179,934 | $178,739 | 1 % | |||
| Net income | 14,263 | 7,009 | 103 % | |||
| Adjusted net income | 28,699 | 26,412 | 9 % | |||
| Adjusted EBITDA | 52,981 | 50,898 | 4 % | |||
| Net income per diluted share | 0.25 | 0.11 | 127 % | |||
| Adjusted net income per diluted share | 0.51 | 0.41 | 22 % | |||
| Key Metrics and Operational Highlights | |||||||||
| (in millions, except dealer data) | Quarter Ended | ||||||||
| June 30,
2026 |
March 31,
2026 |
June 30,
2025 |
Change %
Q/Q |
Change %
Y/Y |
|||||
| Average Monthly Unique Visitors | 22.8 | 25.8 | 26.6 | (12 %) | (14 %) | ||||
| Traffic (“Visits”) | 143.0 | 159.6 | 162.0 | (10 %) | (12 %) | ||||
| Monthly Average Revenue Per Dealer (“ARPD”) | $2,500 | $2,473 | $2,435 | 1 % | 3 % | ||||
| Dealer Customers | 19,343 | 19,390 | 19,412 | NM | NM | ||||
| NM = Not meaningful |
- Marketplace revenue grew over 7% Y/Y and represents the fastest quarterly growth rate since 2021.
- Dealer count declined slightly Y/Y, reflecting lower Solutions adoption that was partially offset by Marketplace strength; Marketplace dealer customers grew 2% Y/Y, reaching four consecutive quarters of Y/Y subscriber growth.
- Traffic and UV performance reflects a deliberate strategic shift to value delivery, which produced year-to-date growth in lead volume.
- Dealer Verified Listings feature launched on marketplace, adding inspection and pricing insights onto vehicle listings.
Cash flow and balance sheet
Net cash provided by operating activities for the six-month period ended June 30, 2026 was $55.6 million, compared to $55.7 million in the prior year. Free cash flow for the six-month period ended June 30, 2026 totaled $43.5 million, compared to $41.8 million in the prior year.
Total debt outstanding was $450.0 million as of June 30, 2026. Total liquidity as of June 30, 2026 was $333.3 million, which is defined as Cash and cash equivalents of $33.3 million and revolver capacity of $300.0 million.
Share repurchase
The Company repurchased 3.7 million shares of common stock for $37 million in the second quarter ended June 30, 2026, and 6.2 million shares of common stock for $57 million year-to-date in 2026. The Company’s 2026 share repurchase target remains $90 million, reflecting its commitment to returning capital to stockholders. Shares repurchased and retired year-to-date through June 30, 2026 represent over 10% of the Company’s common shares outstanding as of prior year end.
As of June 30, 2026, approximately $116.6 million remains available under the current share repurchase authorization, which expires in February 2028.
“Second quarter financial performance was anchored by strong Marketplace growth, coupled with improved operating leverage and Adjusted EBITDA margin outperformance. We also continued to return significant capital to stockholders, and are pacing comfortably to our $90 million share repurchase target for 2026. Looking ahead, we remain focused on efficient and disciplined growth to create long-term value for stakeholders,” said Sonia Jain, Chief Financial Officer of Cars.com, Inc.
Outlook
Third Quarter 2026
- Revenue is expected to be flat to up 2% year-over-year, driven by continued Dealer revenue growth and Marketplace improvement. OEM and National revenue is expected to reflect ongoing pressure in OEM advertising investment.
- Adjusted EBITDA margin is expected to be between 28.5% and 29.5%, reflecting continued operating efficiencies and cost savings.
Full Year 2026
The Company reaffirms its full year 2026 guidance:
- Revenue is expected to be flat to up 2% year-over-year
- Adjusted EBITDA margin is expected to be between 29.0% to 30.0%
Q2 2026 earnings call
As previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars.com Investor Relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.
About Cars Commerce
Cars.com Inc. (NYSE: CARS) is a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars. The flagship Cars.com marketplace connects millions of consumers to dealerships across the U.S., powering the car buying experience with artificial intelligence (“AI”) shopping tools and comprehensive vehicle reviews and content. Our interconnected ecosystem of products enables dealers and OEMs to sell more cars by efficiently leveraging our marketplace, dealer websites, trade and appraisal tools, and proprietary in-market media solutions. Learn more at www.carscommerce.inc.
