Cars.com Q2 2025: Unpacking Contradictions in OEM Spend, Dealer Strategy, and AI Impact

OEM media spend and visibility, dealer club and dealer count inclusion, dealer club and vehicle acquisition strategy, impact of AI on marketplace model, and dealer revenue and inventory levels are the key contradictions discussed in Cars.com's latest 2025Q2 earnings call.



Revenue Performance and Growth Initiatives:
- Cars.com reported revenue of $179 million for Q2 2025, showing 5% year-over-year growth in OEM and national revenue, offset by temporary softness in dealer revenue.
- The growth was driven by strong execution on 2025 growth initiatives, including improved sales velocity and the launch of enhanced marketplace repackaging.

Dealer Count and Product Adoption:
- The company achieved a total dealer count of 19,412, marking an increase of 162 customers quarter-over-quarter, the best sequential organic growth in over 3 years.
- This growth was attributed to the new commercial leadership driving sales velocity and increased adoption of product innovations, such as AccuTrade and DealerClub.

Marketplace Traffic and Consumer Engagement:
- Cars.com's traffic reached a new record of 162 million in Q2, up 2% year-over-year, with average monthly unique visitors at 26.6 million.
- The increase in traffic was driven by AI-powered search capabilities, which led to higher lead submission rates, and effective editorial content showcased during the summer car buying season.

Financial Stability and Share Buybacks:
- Cars.com reported an adjusted EBITDA margin of 28.5%, at the high end of expectations, and repurchased $23 million of shares in Q2.
- These financial metrics reflect the company's focus on cost efficiencies and returning value to shareholders, with a full-year share repurchase target raised to $70 million to $90 million.