Cars.com Inc.

Q2 revenue was $179.9 million, up 1% year over year. Net income was $14.3 million, or $0.25 per diluted share, versus $7 million, or $0.11 per diluted share, a year ago. Adjusted net income was $28.7 million, or $0.51 per diluted share, versus $26.4 million, or $0.41 per diluted share, a year ago. Adjusted EBITDA was $53 million, up 4% year over year, and adjusted EBITDA margin was 29.4%, up nearly 100 basis points year over year. Dealer revenue rose 3% year over year, while OEM and national revenue fell 18% year over year; Q2 ARPD was $2,500, up 3% year over year and 1% sequentially. For Q3, management expects revenue growth of flat to up 2% year over year and adjusted EBITDA margin of 28.5% to 29.5%; full-year 2026 guidance was reaffirmed at flat to 2% revenue growth and 29% to 30% adjusted EBITDA margin.

Toby Hartmann framed the quarter as evidence that Cars.com’s “marketplace-first” strategy is starting to work, emphasizing product integration, process improvements, and organizational changes. He highlighted Dealer Verified Listings, Carson AI, and tighter marketing discipline as early proof points, and said the company is building an interconnected marketplace-centric ecosystem that should support growth into 2027. His tone was confident and constructive, with repeated emphasis that the playbook is showing impact and that the company is positioned to improve further.

Sonia Jain said second-quarter results reflected strong execution and improved operating leverage, with revenue of $179.9 million, operating expenses of $152.1 million, adjusted operating expenses of $144.3 million, adjusted EBITDA of $53 million, and adjusted EBITDA margin of 29.4%. She noted dealer revenue grew 3% year over year, OEM and national revenue declined $3 million, and ARPD reached $2,500, with marketplace driving the improvement. On cash and capital allocation, she said first-half free cash flow was $43.5 million, share buybacks totaled $57 million for 6.2 million shares, debt outstanding was $450 million, liquidity was $333.3 million, and the company is pacing toward its $90 million 2026 repurchase target.

Analysts focused on the sustainability of marketplace growth, the decline in website uniques, the timeline for turning around Solutions/website subscriber trends, and the early results and monetization of Dealer Verified Listings. Management said marketplace strength came from better dealer count, improved ARPD, and Premium Plus adoption, while the traffic decline was intentional as Cars.com shifts spend toward higher-quality, higher-converting shoppers and also invests in brand. On website/Solutions, Toby Hartmann said the company is applying the marketplace playbook there too, with a focus on product innovation over the next 2 to 3 quarters. On Dealer Verified Listings, management said it is only in early testing, currently limited to AccuTrade customers, and is intended to expand more broadly over time.