Cars.com(US:CARS)2025-11-06 21:06Financial 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]