#United States #Chicago #Cars.com #Marketplace #Tobias Hartmann

Cars.com Reports Strong Financial Outcomes for Q3 2026

Cars.com Inc., a recognized leader in the automotive marketplace sector, announced its robust financial performance for the third quarter ended September 30, 2026. With a revenue of $181.9 million, the company recorded a 5% year-over-year growth in Marketplace revenue, driven by focused execution and enhanced operational efficiencies.

Key Financial Highlights

For the third quarter, Cars.com reported a remarkable net income of $16.3 million, showcasing a staggering 113% increase compared to the same period last year. Adjusted EBITDA also reflected positive momentum, soaring to $55.8 million, representing a solid adjusted EBITDA margin of 30.7%, exceeding expectations by 120 basis points.

In terms of share repurchases, Cars.com successfully bought back 1.4 million shares for $16 million in the third quarter, contributing to total year-to-date repurchases of 7.6 million shares valued at $74 million. The company remains on track to meet its share repurchase target of $90 million for 2026.

Operational Achievements

Tobias Hartmann, CEO of Cars.com, emphasized the growing strength of its core Marketplace, noting significant customer growth and milestones in the adoption of its Premium+ service, now at 12%. Additionally, the recent introduction of the self-service Marketplace Starter package has been well-received, with almost 400 independent dealers integrating the offering, marking a significant development aimed at supporting local dealers.

The metrics for Q3 showcase Cars.com's effectiveness in audience acquisition strategies, resulting in a 3% year-over-year increase in monthly average revenue per dealer (ARPD), which reached $2,532. Marketplace traffic and average monthly unique visitors also demonstrated solid engagement, although with slight variances quarter-over-quarter.

Carson, the AI-powered shopping assistant from Cars.com, reached over one million monthly users, nearly doubling its user base versus the previous year, underlining the platform's increasing reliance on innovative technology.

Strategic Focus for Continued Growth

Looking ahead, Cars.com remains committed to enhancing its operating model for consistent growth. With the appointment of Mausam Bhatt as Chief Product Officer, the company aims to fuel further product innovations and establish a framework conducive to long-term growth.

Hartmann concluded by stating, "Though early in our journey towards a product-led growth path, we are making strides in refining our operational efficiencies and focusing on innovation aligned with our strategic goals."

As the company reiterates its full year guidance for 2026, it anticipates stable revenue growth, potentially flat to a 2% increase year-over-year, as it navigates some pressures in the Dealer and OEM media segments due to market conditions.

Conclusion

With strategic initiatives in place and a clear focus on innovation, Cars.com is well-positioned to maintain its competitive edge in the automotive marketplace. The results from Q3 2026 are not merely numbers but signify an ongoing journey toward redefining how cars are bought and sold using technology.

For further details on Cars.com’s performance and future outlook, interested parties can participate in the planned conference call and webcast scheduled for today at 8:00 AM CT, accessible via the Cars.com Investor Relations website.

For more information, visit Cars.com.