Core Viewpoint - Cars.com Inc. is set to announce its financial results for the fourth quarter and full year ended December 31, 2025, on February 26, 2026, highlighting its ongoing commitment to transparency and investor engagement [1]. Financial Results Announcement - The financial results will be discussed in a conference call hosted by CEO Tobias Hartmann and CFO Sonia Jain at 8:00 a.m. CT/9:00 a.m. ET on the announcement day [1]. - A live webcast of the conference call will be available, with a replay accessible shortly after the event [1]. Company Overview - Cars.com Inc. operates as a technology platform that simplifies the buying and selling of cars, connecting over 25 million consumers monthly to dealerships across the U.S. [1]. - The company leverages AI shopping tools, comprehensive vehicle reviews, and personalized market insights to enhance the car buying experience [1]. - Its ecosystem of products aims to help dealers and OEMs sell more cars efficiently through various solutions, including marketplace access and appraisal tools [1].

Core Insights - Cars.com announced the winners of its annual Best Of Awards for 2026, highlighting top-rated vehicles amidst rising vehicle prices and changing market conditions [1][2] - The Nissan Leaf was named Best Car of the Year, recognized for its value, innovation, and usability, especially as affordable EV options become more limited [2][7] Award Winners - Best Car: 2026 Nissan Leaf, starting at $31,485, offers up to 303 miles of range and access to Tesla's Supercharger network [7] - Best SUV: 2026 Nissan Armada, known for its strong twin-turbo V-6 power and towing capacity of up to 8,500 pounds [7] - Best Family Car: 2026 Hyundai Santa Fe, featuring three-row seating and flexible cargo space [7] - Best Pickup Truck: 2026 Ram 1500, combining work-ready trims with luxury models and class-leading comfort [7] - Best Electric Vehicle: 2026 Kia EV9, providing up to 305 miles of range and family-friendly versatility [7] - Best Luxury Vehicle: 2026 Cadillac Escalade IQ, offering an estimated 465 miles of range and advanced technology [7] Methodology - The Best Car of the Year was selected from over 40 new or redesigned models, evaluated based on quality, innovation, and value [4] - Other awards considered specific criteria relevant to their respective categories, open to all model-year 2026 vehicles [4]

Core Insights - AccuTrade has launched a new Inventory Management System (IMS) designed to enhance gross profit in the used-car sector by providing precise appraisals and integrated solutions for dealers [1][2][3] Group 1: Technology Features - The AccuTrade IMS offers instant online visibility and a streamlined process from acquisition to retail or wholesale, integrating with Cars.com, Dealer Inspire, and DealerClub [1][3] - New features include AI-powered vehicle descriptions, real-time inventory updates, and automated SMS texting for service lane acquisitions [4][5] - The system utilizes a precise appraisal engine that provides VIN-specific deductions and real-time competitive data, eliminating manual guessing [5] Group 2: Risk Management and Profitability - AccuTrade IMS evaluates vehicles based on risk rather than age, using a proprietary intelligence score that considers factors like vehicle pedigree and projected days on market [5] - The platform offers profit forecasting at the VIN level, allowing dealers to make informed decisions on retail versus wholesale strategies [5] - Built-in accountability features provide insights into appraisal efficiency and gross profit, enabling dealerships to measure effectiveness [5] Group 3: Market Opportunity - The used-car market presents significant profitability opportunities in 2026, and AccuTrade aims to equip dealers with the necessary tools to capitalize on this potential [3] - The connected workflow of AccuTrade IMS maximizes efficiency by allowing dealers to manage all aspects of vehicle appraisal, pricing, and merchandising on a single platform [5]

Core Insights - Cars.com Inc. is launching new technology and advertising solutions aimed at enhancing dealer profitability and growth ahead of the NADA Conference [1] Group 1: New Technology and Solutions - The company is introducing an AI-powered inventory video solution that allows dealers to create VIN-specific video ads, resulting in a 2X increase in lead conversion compared to traditional video ads [4] - A new Market Area Expansion tool enables dealers to showcase inventory beyond their local market, with 34% of total Search Result Page views and 25% of Vehicle Details Page views during the pilot coming from this feature [4] - Integrated wholesale tools are being enhanced through partnerships with AccuTrade and DealerClub, allowing dealers to access desirable late model inventory and efficiently move aging units [4] Group 2: Reporting and Insights - Cars.com is launching a consolidated reporting platform called Cars Commerce Hub, which provides comprehensive performance insights and market signals to help dealers make informed decisions [4]

Group 1 - Cars.com Inc. granted performance-based stock unit awards (PSUs) covering 155,885 shares and restricted stock units (RSUs) covering 233,827 shares to Tobias Hartmann as part of his hiring as Chief Executive Officer-Designate [1] - The RSUs will vest ratably over three years, while the PSUs will vest over a three-year performance period based on specified stock price targets [1] - The awards were approved by a majority of the independent members of the Company's Board of Directors and are part of the Cars.com Inc. 2025 Inducement Equity Plan [1][2] Group 2 - Cars Commerce is a technology company focused on the automotive industry, providing solutions that enhance car buying and selling processes [3] - The company operates a platform that includes various brands such as Cars.com, Dealer Inspire, AccuTrade, DealerClub, and Cars Commerce Media Network [3] - The company's offerings are designed to improve retail operations through AI-driven technologies and efficient solutions across different stages of the automotive sales process [3]

Core Viewpoint - Cars.com Inc. has announced the appointment of Tobias Hartmann as the new CEO, effective January 15, 2026, succeeding Alex Vetter, who will step down from his role and serve as an advisor until March 31, 2026 [1][2]. Company Leadership Transition - Tobias Hartmann brings over 25 years of experience in B2C and B2B technology, eCommerce, and marketplace companies, having previously served as CEO of Scout24 SE Group and President of HelloFresh SE [2][3]. - Alex Vetter has been with Cars.com since its inception in 1998 and has played a crucial role in transforming the company into a vertical SaaS platform for the automotive industry [3][4]. Strategic Vision - Hartmann aims to leverage digital tools, data, and AI to enhance customer competitiveness in the automotive retail and wholesale sectors [3]. - The Board of Directors expressed confidence in Hartmann's ability to accelerate growth and guide the company into the future [3][4]. Company Background - Cars Commerce is a technology company focused on empowering the automotive industry through innovative solutions and AI-driven technologies that enhance car buying and selling processes [5][6]. - The platform includes various brands such as Cars.com, Dealer Inspire, AccuTrade, DealerClub, and Cars Commerce Media Network, which collectively support efficient and profitable retail operations [6].

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]

Core Viewpoint - The stock market is experiencing a rebound rally as it approaches the end of 2025, with a notable widening gap between large-cap growth stocks and small- and mid-cap value stocks, which have been the primary drivers of the S&P 500's gains this year [1] Group 1: Market Trends - The stock market is enjoying a rebound rally as it heads into the final weeks of 2025 [1] - There is a widening gap between large-cap growth stocks and small- and mid-cap value stocks [1] - Large-cap growth stocks have significantly contributed to the S&P 500's gains this year [1] Group 2: Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley [1] - He has served as an outside adviser to several seed-round startups, providing insights into industry themes [1] - Alexander has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications [1]

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]

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]