Cars.com(CARS) - 2025 Q3 - Quarterly Results

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]