Industry veteran to pass the reins to accomplished leader with proven track record for scaling digital B2C and B2B companies as part of company's CEO succession plan CHICAGO, Dec. 18, 2025 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce Inc."), today announced that Tobias ("Tobi") Hartmann will become the company's next Chief Executive Officer (CEO) and be appointed to the Board of Directors, effective January 15, 2026. Hartmann succeeds Alex Vetter, who will step down as CEO and a member o ...

Core Insights - Cars.com Inc. has appointed Cormac Twomey as the new Chief Technology Officer (CTO) to enhance innovation and scale the technology platform [1][2] - Twomey brings extensive experience in SaaS and digital marketplace technologies, having previously served as CTO at OpenTable, where he successfully transitioned the company to a SaaS-based model [2][3] - His appointment is expected to drive the company's growth in AI and improve automotive retail and wholesale capabilities [1][2] Company Overview - Cars Commerce is a technology company focused on empowering the automotive industry through innovative products and AI-driven solutions [4] - The company operates a platform that includes various brands such as Cars.com, Dealer Inspire, AccuTrade, DealerClub, and Cars Commerce Media Network, aimed at streamlining car buying and selling processes [4] - The platform supports local retail operations by providing essential tools for trade-in, appraisal, and marketing services [4]

With the stock market enjoying a rebound rally as we head into the final few weeks of 2025, the gap between the large-cap growth stocks that have driven the S&P 500’s gains this year has widened against small- and mid-cap value stocks, largelyWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular ...

Core Insights - The article highlights that 44% of consumers are using AI-powered car search tools, indicating a significant shift in how Americans shop for vehicles [1][2] - The survey results show that 97% of consumers believe AI will influence their purchase decisions, marking a new era in auto retail [2] Consumer Behavior and Preferences - Approximately 73% of AI users find it saves time by converting conversational queries into targeted search results, while two-thirds desire an AI-powered personal car shopping assistant [2] - 71% of respondents trust AI tools for unbiased and accurate vehicle information, but 63% express concerns about potential biases in AI recommendations [3] Post-AI Search Actions - After using AI tools, 41% of shoppers are likely to visit a dealer or manufacturer's website, and 64% are open to additional recommendations from salespeople [4] - Most consumers prefer transitioning from AI tools to direct dealer interaction for budget and financing discussions when nearing a purchase [4] Impact of Carson - Carson, the AI tool launched by Cars.com, has shown strong engagement, with users returning to the site twice as often as other shoppers and saving three times more vehicles [5] - Carson currently assists about 15% of web and mobile searches on Cars.com and is continuously evolving with new features [5] Industry Positioning - Cars.com is positioned as a leader in automotive innovation, promising a more efficient and user-friendly experience for consumers and dealerships [6]

Core Insights - Cars.com met Wall Street's revenue expectations for Q3 CY2025, with a revenue of $181.6 million, reflecting a year-on-year growth of 1.1% [1][6] - The non-GAAP profit per share was $0.48, aligning with analysts' consensus estimates [1][6] Financial Performance - Revenue: $181.6 million vs analyst estimates of $181.4 million, showing a 1.1% year-on-year growth [6] - Adjusted EPS: $0.48 vs analyst estimates of $0.49, in line with expectations [6] - Adjusted EBITDA: $54.63 million, exceeding analyst estimates of $53.51 million, with a margin of 30.1% [6] - Operating Margin: 9.3%, an increase from 6.4% in the same quarter last year [6] - Dealer Customers: 19,526, an increase of 271 year on year [6] - Market Capitalization: $669.4 million [6] Management Insights - Management highlighted successful dealer acquisition and new product packaging as key factors for stable results [5] - The company is focusing on subscription growth, product adoption, and expanding its AI-powered platform to enhance user and dealer experiences [4][5] - CEO Alex Vetter noted the importance of a differentiated consumer audience and product suite in attracting dealers [3] - CFO Sonia Jain emphasized that future results will depend on the execution of growth initiatives, including improved dealer count and product adoption [4]

Financial Performance - Revenue for the three months ended September 30, 2025, was $181,573,000, a 1% increase from $179,651,000 in the same period of 2024[73] - Net income for the three months ended September 30, 2025, was $7,658,000, a 59% decrease from $18,719,000 in the same period of 2024[86] - Total revenue for the nine months ended September 30, 2025, was $539.3 million, a slight increase of $0.6 million or 0% compared to $538.7 million in 2024[100] - Operating income rose to $38.5 million, an increase of $4.8 million or 14% compared to $33.7 million in 2024[100] - Net income decreased significantly to $12.7 million, down $18.2 million or 59% from $30.9 million in 2024[100] Visitor and Customer Metrics - Average Monthly Unique Visitors increased by 4% to 25,454,000 for the three months ended September 30, 2025, compared to 24,547,000 in 2024[74] - Dealer Customers increased by 1% to 19,526 for the three months ended September 30, 2025, compared to 19,255 in 2024[74] Revenue Breakdown - Dealer revenue accounted for 89% of total revenue, decreasing by $1.5 million or 0% due to a lower average dealer count and changes in customer mix[100] - OEM and National revenue increased by $0.9 million or 2%, representing 9% of total revenue, driven by increased OEM spending[101] - Other revenue grew by $1.2 million or 13%, maintaining a 2% share of total revenue[101] Expenses - Cost of revenue and operations decreased by 5% to $30,063,000 for the three months ended September 30, 2025, compared to $31,610,000 in 2024[89] - Marketing and sales expenses increased by 2% to $59,336,000 for the three months ended September 30, 2025, compared to $58,288,000 in 2024[92] - General and administrative expenses increased by 13% to $24,325,000 for the three months ended September 30, 2025, compared to $21,511,000 in 2024[93] - Monthly Average Revenue Per Dealer decreased by 1% to $2,460 for the three months ended September 30, 2025, compared to $2,478 in 2024[74] - Interest expense decreased by 5% to $7,631,000 for the three months ended September 30, 2025, compared to $8,028,000 in 2024[95] Share Repurchase and Debt - The company repurchased 5.2 million shares for $63.9 million at an average price of $12.39 per share during the nine months ended September 30, 2025[117] - The company repurchased a total of 1,493,127 shares during the three months ended September 30, 2025, with an average price per share of $12.76 in July, $12.69 in August, and $13.23 in September[138] - The Board of Directors authorized a three-year share repurchase program to acquire up to $250.0 million of the company's common stock[138] - As of September 30, 2025, the maximum dollar value of shares that may yet be purchased under the repurchase program is $195,869,000[138] - The outstanding aggregate principal amount of indebtedness was $455.0 million, with an average interest rate of 6.3%[115] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $55.1 million, with total liquidity of $350.1 million including an undrawn Revolving Loan[114] Internal Controls and Risk Factors - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the period covered by the report[132] - The company's disclosure controls and procedures were evaluated and deemed effective by the Chief Executive Officer and Chief Financial Officer[130] - There have been no material changes in risk factors affecting the company since the last annual report[136] - The company continues to monitor market risks, with no material changes since December 31, 2024[129] Other Financial Activities - An investment of $8.0 million was made in a secured convertible note for a new customer relationship management platform, maturing in five years[126] - The Chief Financial Officer adopted a trading plan to sell a maximum of 14,818 shares of the company's common stock for tax withholdings[142] - The company reported no unregistered sales of equity securities during the period[137] - The company has not experienced any defaults upon senior securities[140]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $181.6 million, reflecting a 1% year-over-year increase, aligning with expectations for low single-digit growth in the second half of the year [16] - Adjusted EBITDA for Q3 was $55 million, a 7% year-over-year increase, with an adjusted EBITDA margin of 30.1%, demonstrating strong revenue flow-through and cost management [22][21] - Net income for Q3 was $7.7 million, or $0.12 per diluted share, compared to $18.7 million, or $0.28 per diluted share, a year ago, primarily due to changes in the fair value of contingent consideration for prior acquisitions [21] Business Line Data and Key Metrics Changes - Dealer revenue increased by 2% year-over-year, driven by successful repackaging activities and an increase in customer count [16] - The marketplace continues to be the largest contributor to dealer count growth, with over 300 net new dealer customers added since the start of the year [17] - AccuTrade and Dealer Club saw significant growth, with AccuTrade surpassing 1 million quarterly appraisals and Dealer Club increasing active users by nearly 40% quarter-over-quarter [11][12] Market Data and Key Metrics Changes - The average monthly visitors to the marketplace reached 25.4 million, up 4% year-over-year, with total traffic year-to-date at 488 million visits, setting a new record [7] - OEM and national revenue was down 5% year-over-year, primarily due to reduced spending from two OEM partners, although the overall OEM revenue pipeline remains strong [13][18] Company Strategy and Development Direction - The company is focused on 2025 growth initiatives, including enhancing dealer engagement through new sales leadership and improved go-to-market strategies [5] - The phased marketplace repackaging exercise aims to align pricing with product value, helping dealers drive more leads per listing [6] - AI integration is central to the company's product innovation roadmap, enhancing the shopping experience for consumers and improving lead conversion for dealers [8][9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to grow OEM revenue despite near-term headwinds, citing strong enthusiasm for the audience and dealer adoption [31] - The company reaffirmed expectations for low single-digit revenue growth in the second half of 2025, driven by continued execution of growth initiatives [26] - Adjusted EBITDA margin outlook for fiscal 2025 is between 29%-31%, reflecting disciplined cost management and high contribution margins from pricing initiatives [26] Other Important Information - The company has utilized over two-thirds of free cash flow for share buybacks, totaling $64 million year-to-date, with a full-year repurchase target raised to $70 million-$90 million [24][25] - Total liquidity was reported at $350 million as of September 30, 2025, providing ample capacity for capital allocation priorities [25] Q&A Session Summary Question: Drivers of revenue in Q3 and dealer navigation of the current industry backdrop - Management noted that while there are near-term headwinds for manufacturers, enthusiasm for the audience remains strong, and dealers are increasingly recognizing the value of the platform [30][31] Question: Insights on repackaging and its impact on ARPD - Management highlighted that repackaging has led to sequential momentum in ARPD, with premium-plus packages showing significant adoption [36][37] Question: Competitive landscape changes and capital allocation priorities - Management indicated that while the competitive landscape is evolving, the company's platform strategy remains differentiated, focusing on driving down dealer advertising costs [44][47]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Cars Commerce achieved record Q3 revenue of $181.6 million, a 1% year-over-year increase[37] - Adjusted EBITDA increased by 7% year-over-year to $55 million[45] - Adjusted EBITDA margin improved by 160+ bps year-over-year to 30.1%[15, 45] - The company repurchased 5.2 million shares year-to-date in 2025, totaling $64 million, compared to $36 million in the same period of 2024[12] Key Metrics - Average Monthly Unique Visitors increased by 4% year-over-year to 25.5 million[15, 46] - Total traffic (visits) increased by 1% year-over-year in Q3, reaching 156.2 million[19, 46] - Dealer Customers increased QoQ by 114, reaching 19,526[15, 32] - Average Revenue Per Dealer (ARPD) was $2,460, up 1% QoQ[15, 34] Business Growth - AccuTrade appraisals increased by 56% year-over-year, surpassing 1 million quarterly vehicle appraisals[24] - DealerClub active dealers increased by almost 40% QoQ[26] Outlook - The company anticipates low-single digit year-over-year revenue growth for the second half of 2025[53] - The company projects an Adjusted EBITDA margin between 29% and 31% for the full year 2025[57] - The company targets share repurchases between $70 million and $90 million for the full year 2025[57]

Revenue Performance - Total revenue for Q3 2025 reached a record $181.6 million, up 1% year-over-year[4] - Total revenue for Q3 2025 was $181.573 million, a slight increase from $179.651 million in Q3 2024, representing a growth of 1.0%[35] - The company anticipates low-single digit revenue growth for the second half of 2025 based on current market conditions[14] Customer and Dealer Metrics - Dealer revenue grew by 2% year-over-year, driven by increased adoption of websites and appraisal products[6] - The customer base expanded by 271 year-over-year, totaling 19,526 dealer customers, marking a three-year high[2] - The average monthly unique visitors increased by 4% year-over-year to 25.5 million[5] Income and Earnings - Adjusted net income for the quarter was $30.4 million, or $0.48 per diluted share, an 18% increase from the previous year[8] - Adjusted net income for Q3 2025 was $30.381 million, compared to $27.704 million in Q3 2024, representing an increase of 9.1%[42] - Net income for Q3 2025 decreased to $7.658 million compared to $18.719 million in Q3 2024, reflecting a decline of 59.0%[35] - Basic earnings per share for Q3 2025 were $0.12, down from $0.28 in Q3 2024, a decline of 57.1%[35] Operating Performance - Adjusted EBITDA for Q3 2025 was $54.6 million, representing 30.1% of revenue, up from 28.5% in the prior year[8] - Adjusted EBITDA for Q3 2025 was $54.631 million, compared to $51.131 million in Q3 2024, indicating an increase of 6.0%[41] - Operating income increased to $16.805 million in Q3 2025, up from $11.456 million in Q3 2024, marking a growth of 46.0%[35] Cash Flow and Expenses - The company reported a net cash provided by operating activities of $114.521 million for the nine months ended September 30, 2025, compared to $122.517 million for the same period in 2024, a decrease of 6.5%[39] - Net cash provided by operating activities for Q3 2025 was $58,838 million, an increase from $53,795 million in Q3 2024, while free cash flow rose to $52,642 million from $47,254 million[43] - Total operating expenses decreased to $164.8 million, down from $168.2 million in the prior year[7] - Total operating expenses for Q3 2025 were reported at $164,768 million, adjusted to $150,407 million after accounting for adjustments, compared to $168,195 million reported in Q3 2024, adjusted to $156,083 million[44][45] Debt and Financial Position - Total debt outstanding was $455 million, with a net leverage ratio of 1.9x, below the target range of 2.0x to 2.5x[10] - Long-term debt as of September 30, 2025, was $451.206 million, slightly down from $455.288 million at the end of 2024, a decrease of 0.5%[37] Asset Management - Cash and cash equivalents at the end of Q3 2025 were $55.072 million, up from $50.673 million at the end of Q4 2024, a rise of 8.7%[39] - Total assets as of September 30, 2025, were $1.071 billion, a decrease from $1.112 billion at the end of 2024, reflecting a decline of 3.6%[37] Expense Breakdown - The cost of revenue and operations for Q3 2025 was $30,063 million, adjusted to $29,841 million, down from $31,610 million reported in Q3 2024, adjusted to $31,395 million[44][45] - Marketing and sales expenses for Q3 2025 were $59,336 million, adjusted to $57,800 million, compared to $58,288 million in Q3 2024, adjusted to $56,775 million[44][45] - General and administrative expenses for Q3 2025 were $24,325 million, adjusted to $14,036 million, significantly lower than $21,511 million reported in Q3 2024, adjusted to $14,083 million[44][45] Capital Expenditures - The company capitalized $5,637 million on internally developed technology in Q3 2025, slightly up from $5,594 million in Q3 2024[43] - Depreciation and amortization for Q3 2025 remained stable at $23,464 million, consistent with the previous year[44][45]