Cars.com Inc.
- Open
- 11.13
- Day high
- 11.37
- Day low
- 11.09
- Prev close
- 10.94
- Volume
- 232K
- Mkt cap
- $626M
- P/E (TTM)
- 25.8
- EPS (TTM)
- $0.43
- P/B
- 1.4
- P/S
- 0.9
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$826K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions mixed (13F)
Cars.com Inc. (CARS) is a Consumer Cyclical company listed on NYSE. The stock is down 10% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
Cars.com Inc. (CARS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CARS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.48 | $0.45 | -6.2% | $180M | +0.0% |
| Feb 26, 2026 | $0.56 | $0.12 | -78.6% | $184M | +0.3% |
| Nov 6, 2025 | $0.50 | $0.48 | -4.0% | $182M | -1.0% |
| Aug 7, 2025 | $0.46 | $0.41 | -10.9% | $179M | -1.7% |
| May 8, 2025 | $0.39 | $0.37 | -5.1% | $179M | -2.3% |
| Feb 27, 2025 | $0.52 | $0.49 | -5.8% | $180M | -2.4% |
| Nov 7, 2024 | $0.44 | $0.41 | -6.8% | $180M | -2.3% |
| May 9, 2024 | $0.09 | $0.01 | -88.9% | $180M | +0.4% |
| Feb 22, 2024 | $0.16 | $0.12 | -25.0% | $180M | +0.7% |
| Nov 2, 2023 | $0.10 | $0.07 | -30.0% | $174M | +0.7% |
| Aug 3, 2023 | $0.10 | $1.37 | +1270.0% | $168M | -0.5% |
| May 4, 2023 | $0.06 | $0.17 | +183.3% | $167M | +0.1% |
CARS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 15, 2026 | Jain Soniaofficer: Chief Financial Officer | Sell | 34,021 | $9.49 |
| Jun 15, 2026 | Jain Soniaofficer: Chief Financial Officer | Sell | 52,579 | $9.56 |
| Jun 9, 2026 | McGovern Jr. Donald A.director | Grant | 18,267 | — |
| Jun 9, 2026 | WIENER BRYANdirector | Grant | 18,267 | — |
| Jun 9, 2026 | FORBES SCOTT Edirector | Grant | 25,478 | — |
| Jun 9, 2026 | Hale Thomas Edirector | Grant | 18,267 | — |
| Jun 9, 2026 | Ross Jenelldirector | Grant | 18,267 | — |
| Jun 9, 2026 | Greenthal Jill Adirector | Grant | 18,267 | — |
| Jun 9, 2026 | Subramanian Baladirector | Grant | 18,267 | — |
| Mar 16, 2026 | Ross Jenelldirector | Buy | 1,995 | $7.56 |
| Mar 13, 2026 | Hartmann Tobiasdirector, officer: CEO | Grant | 344,150 | — |
| Mar 13, 2026 | Gosselin Lisaofficer: Chief Commercial Officer | Grant | 124,282 | — |
| Mar 13, 2026 | Marks Angelique Strongofficer: Chief Legal Officer | Grant | 64,603 | — |
| Mar 13, 2026 | Jain Soniaofficer: Chief Financial Officer | Grant | 156,267 | — |
| Mar 5, 2026 | Vetter Thomas Alexother: Former Director & CEO | Grant | 137,797 | — |
Source: CARS SEC Form 4 filings, latest Jun 15, 2026. For informational purposes only — not investment advice.
See the full CARS insider & 13F page →Cars.com Inc. company profile
Overview
Cars.com Inc. (NASDAQ:CARS) is a digital automotive marketplace and technology solutions provider founded in 1998 and headquartered in Chicago, Illinois. The company went public in June 2017 after being spun off from Tegna Inc. Cars.com operates as a leading online platform connecting car buyers with sellers, while also providing comprehensive digital solutions to automotive dealers and original equipment manufacturers (OEMs). The company has evolved from a simple classified listings site into a comprehensive automotive commerce platform, serving over 19,000 dealer customers across the United States and expanding into Canada through strategic acquisitions.
Business
Cars.com operates in the digital automotive marketplace industry, serving as an intermediary between car buyers and sellers while providing technology solutions to automotive retailers. The company's business is structured around three primary segments: Marketplace Operations represent the core consumer-facing platform where Cars.com connects car shoppers with automotive dealers. The marketplace attracts over 29 million average monthly unique visitors and generates approximately 70 million total visits quarterly. This platform allows consumers to search vehicle inventory, compare prices, read reviews, and connect directly with dealers. The marketplace generates revenue through dealer subscription fees and advertising placements. Digital Solutions Portfolio encompasses comprehensive technology services for automotive dealers, including website hosting and development, customer relationship management tools, digital retailing capabilities, and AI-powered chat solutions. Through its Dealer Inspire platform, Cars.com powers over 7,600 dealer websites. The company also offers AccuTrade, a vehicle appraisal and acquisition solution that helps dealers evaluate and purchase used vehicles directly from consumers, and recently acquired Dealer Club, a dealer-to-dealer wholesale marketplace platform. OEM and National Advertising serves automotive manufacturers and large national advertisers seeking to reach in-market car buyers. This segment has shown strong growth, with revenue increasing 15% year-over-year in 2024, representing the best quarterly performance since 2021. The segment includes display advertising, digital advertising campaigns, and specialized services for electric vehicle manufacturers like Rivian and INEOS. The marketplace and dealer solutions segments generate the majority of revenue, with dealer-related services accounting for approximately 85-90% of total revenue, while OEM and national advertising contributes roughly 10-15% of total revenue based on recent financial performance.
Revenue model
Cars.com generates revenue through multiple complementary business models centered around subscription services and advertising fees. The primary revenue stream comes from dealer subscription fees, where automotive dealers pay monthly or annual subscriptions to list their inventory on the Cars.com marketplace and access various digital tools. The Average Revenue Per Dealer (ARPD) currently stands at approximately $2,475, with over 19,000 dealer customers contributing roughly $160 million in quarterly dealer revenue. The company also operates an advertising-based model for OEM and national advertisers, generating revenue through display advertising, digital campaigns, and specialized marketing services. This segment contributed approximately $16 million in quarterly revenue as of Q1 2025, showing strong growth momentum with 6% year-over-year increases. Digital solutions subscriptions represent a growing revenue stream, including website hosting services, AI-powered tools, and specialized platforms like AccuTrade (vehicle appraisal) and the newly acquired Dealer Club (wholesale marketplace). AccuTrade has crossed 1,000 subscribers and generates revenue through monthly subscription fees, while also positioning for potential transaction-based fees in the future. Several factors influence Cars.com's profit margins and revenue potential. Positive margin drivers include the company's high proportion of organic traffic (reducing customer acquisition costs), economies of scale in technology infrastructure, and the recurring nature of dealer subscriptions which provide predictable revenue streams. The company's strong market position and brand recognition also support pricing power with dealers. Margin pressures come from intense competition with other automotive platforms like AutoTrader and CarGurus, requiring continuous technology investment and marketing spend to maintain market share. Macroeconomic factors affecting automotive sales, such as interest rate changes, consumer confidence, and vehicle inventory levels, directly impact dealer willingness to spend on advertising and digital solutions. Additionally, the company faces ongoing technology development costs as it expands AI capabilities and integrates acquired platforms like Dealer Club.
Competitive moat
Cars.com possesses a moderate competitive moat built primarily around network effects, brand recognition, and switching costs, though the moat faces ongoing challenges from well-funded competitors. The company's strongest defensive position comes from its two-sided marketplace dynamics, where a large inventory of vehicles attracts more consumers, which in turn attracts more dealers willing to pay for access to that traffic. With over 29 million monthly unique visitors and serving 19,000+ dealers, Cars.com benefits from meaningful scale advantages. The company's brand recognition and organic traffic provide additional protection, as Cars.com generates a majority of its traffic organically rather than through paid acquisition, reducing customer acquisition costs compared to competitors. This organic traffic advantage reflects years of SEO optimization and brand building that would be difficult for new entrants to replicate quickly. Switching costs for dealers provide moderate protection, particularly for comprehensive digital solutions like website hosting and integrated tools like AccuTrade. Dealers who have integrated Cars.com's website platform, inventory management, and customer relationship tools face operational disruption and training costs when switching providers. However, Cars.com's moat faces significant competitive pressure from established players like AutoTrader (owned by Cox Automotive) and CarGurus, both of which have substantial resources and similar value propositions. The automotive digital marketplace space has relatively low barriers to entry for basic listing services, and dealers often use multiple platforms simultaneously, reducing exclusivity advantages. The company's recent strategic moves into wholesale markets (Dealer Club) and vehicle appraisal services (AccuTrade) represent attempts to strengthen the moat by creating more integrated, harder-to-replicate service offerings. Success in these adjacent markets could significantly strengthen Cars.com's competitive position, but execution risk remains high as these represent newer, less proven business lines.
Risks & safety
Cars.com demonstrates strong financial stability with minimal solvency risk and reasonable valuation metrics, though growth prospects appear modest. • Liquidity and Debt: Strong balance sheet with $31.4 million in cash and short-term investments, current ratio of 1.65, and zero debt-to-equity ratio as of Q1 2025, indicating excellent financial flexibility • Cash Generation: Consistent positive free cash flow of $28.6 million in Q1 2025 and $149.5 million for full year 2024, demonstrating strong operational cash generation capabilities • Valuation Metrics: EV/EBITDA of 9.6x appears reasonable for a mature digital marketplace, though P/E ratios have been volatile due to fluctuating net income; Price-to-book ratio of 1.48x suggests modest valuation premium • Operational Stability: Recurring subscription revenue model provides predictable cash flows, with 15 consecutive quarters of year-over-year revenue growth through Q2 2024 • Risk Factors: Revenue growth has been modest (low single digits), dealer customer count has shown recent volatility, and the company faces ongoing competitive pressure in a mature market with well-funded rivals
Recent development
Over the past few years, Cars.com has executed a strategic transformation from a simple classified listings platform into a comprehensive automotive commerce ecosystem. The company's most significant strategic pivot has been developing AccuTrade, a vehicle appraisal and acquisition solution that helps dealers purchase used vehicles directly from consumers. Since its launch, AccuTrade has grown to over 1,000 subscribers with 35% annual appraisal volume growth, and the company has secured eight OEM endorsements including partnerships with Stellantis and Jaguar Land Rover. The company has pursued an aggressive acquisition strategy to expand its capabilities and market reach. Key acquisitions include D2C Media for Canadian market expansion, DealerQuote for enhanced dealer solutions, and most recently Dealer Club, a dealer-to-dealer wholesale marketplace that represents a significant expansion into the wholesale automotive market. The Dealer Club acquisition is particularly strategic as it could potentially capture a portion of the massive wholesale vehicle market. Technology and AI integration has become a central focus, with Cars.com implementing AI-powered solutions across dealer operations including lead handling, inventory management, and customer service tools. The company has also enhanced its marketplace with features like "Your Garage" for consumers and improved data intelligence capabilities for dealers. Organizational changes include the appointment of Lisa Goss as Chief Commercial Officer and a renewed focus on packaging and cross-selling solutions to existing dealer customers. The company has also implemented a more disciplined capital allocation strategy, authorizing $250 million in share repurchases while maintaining investment in growth initiatives. The strategic direction emphasizes platform integration and creating a more comprehensive solution suite that increases switching costs and average revenue per dealer, while expanding into adjacent markets like wholesale and vehicle financing through partnerships and acquisitions.
CARS company profile · for informational purposes only — not investment advice.
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