Cars.com Inc. Reports Q3 2025 Results: Navigating Challenges Amidst Growth

Cars.com Inc. operates with a mission to simplify the car buying and selling process, leveraging data and machine learning to enhance the efficiency of retail operations. The company offers a suite of products that supports various stages of the automotive transaction process, including its automotive marketplace, digital retail technology, dealer reputation services, and more. This diverse portfolio has positioned Cars.com as a significant player in the rapidly evolving automotive industry.

For the three months ended September 30, 2025, Cars.com saw positive growth in user engagement metrics. Average Monthly Unique Visitors (UVs) rose by 4%, and Traffic increased by 1%. These improvements can be attributed to enhanced marketing investments and strategic shifts in the marketing mix, which successfully attracted a larger audience.

The number of Dealer Customers, or dealerships using Cars.com's products, grew by 1% year-over-year, reflecting a slight uptick in marketplace customers. Monthly Average Revenue Per Dealer (ARPD) experienced a marginal decline of 1% compared to the previous year, although it showed a slight increase of 1% from the previous quarter.

For the three months ended September 30, 2025, Cars.com reported total revenue of $181.5 million, an increase of 0.5% from $179.6 million in Q3 2024. Dealer revenue, representing 89% of total revenue, increased by $2.5 million or 2%, driven primarily by growth in solutions offered to dealerships. Conversely, revenue from OEM and National partners decreased by $0.8 million or 5%, likely due to temporary shifts in spending patterns.

Operating expenses were reported at $164.7 million, with general and administrative expenses increasing by $2.8 million or 13%, largely due to rising third-party costs. Despite these increases, the net income for the quarter amounted to $7.65 million, down from $18.71 million in Q3 2024, reflecting a challenging operating environment.

For the nine months ended September 30, 2025, Cars.com’s dealer revenue represented 89% of total revenue but saw a decline of $1.5 million compared to the same period in the previous year. However, OEM and National revenue increased by $0.9 million or 2%, while other revenue rose by 13%. The company maintained a stable cost structure, with general and administrative expenses rising due to severance-related costs.

As of September 30, 2025, Cars.com reported total assets of $1.07 billion, with cash and cash equivalents amounting to $55.1 million. The company’s total equity stood at $477.5 million, down from $502.4 million a year earlier. Total liabilities were reported at $593.8 million, comprising both current and long-term debt.

Cars.com remains well-capitalized, with total liquidity amounting to $350.1 million and a reduction in interest expense due to lower total indebtedness and favorable interest rates. The company has also engaged in a share repurchase program, repurchasing 5.2 million shares for $63.9 million in the first nine months of 2025.

In a strategic move to enhance its offerings, Cars.com entered a Security Agreement on October 14, 2025, investing in an $8.0 million secured convertible note with an automotive technology solutions provider. This investment aims to develop a new customer relationship management platform, demonstrating Cars.com’s commitment to innovation and growth.

Despite facing challenges from external factors such as inflation and changing consumer preferences, Cars.com Inc. has shown resilience in its Q3 2025 results. With a focus on expanding its platform capabilities and enhancing dealer relationships, the company is well-positioned to navigate the evolving automotive landscape. Looking ahead, Cars.com aims to capitalize on its strengths to drive growth and profitability in the coming quarters.