Cars.com 2025 Q3 Earnings Revenue Surpasses Estimates Amid EPS Decline

Generated by AI AgentDaily EarningsReviewed byAInvest News Editorial Team
Friday, Nov 7, 2025 1:25 pm ET1min read
Aime RobotAime Summary

- Cars.com reported mixed Q3 2025 results, with revenue exceeding estimates but EPS declining 57.1% year-over-year, while reaffirming its 29%-31% adjusted EBITDA margin guidance.

- The EPS drop reflected cost pressures and margin challenges, despite doubled vehicle listing views and strong audience engagement in new car shopping.

- CEO Alex Vetter highlighted Carson AI's success and disciplined cost management, while accelerating $100M share repurchases to boost shareholder value.

- Post-earnings stock performance showed 7.6% gains over 30 days, with analysts cautiously optimistic about AI-driven growth and operational efficiency improvements.

Cars.com (CARS) reported mixed results for Q3 2025, with revenue exceeding expectations but earnings per share (EPS) falling short. The company reaffirmed its full-year adjusted EBITDA margin guidance of 29% to 31%, signaling operational confidence despite market volatility.

Revenue

, . , which doubled vehicle listing views.

Earnings/Net Income

Cars.com’s EPS declined sharply to $0.12 in Q3 2025, a 57.1% drop from $0.28 in the prior-year period. , , reflecting broader cost pressures and margin challenges. The significant decline in EPS and net income highlights challenges despite revenue growth.

Post-Earnings Price Action Review

, . After 30 days, , yielding a 7.6% return. Q4 2023 Earnings Release: The stock price was $16.24 on the release date. After 30 days, it increased to $17.35, . . After 30 days, , . . After 30 days, , . . After 30 days, , . , indicating that this strategy has been profitable in the majority of cases. However, , .

CEO Commentary

, CEO of Cars.com, . “Despite headwinds in OEM spending, our audience remains strong, particularly with new car shoppers,” he stated. The CEO highlighted the success of Carson, an , , .

Guidance

. The company also outlined plans to maintain disciplined cost management and continue share repurchases, .

Additional News

  1. AI Innovation: Cars.com launched Carson, . , .

  2. Premium Growth, .

  3. Share Repurchases: Cars.com accelerated its buyback program, , .

Market Reaction

, , . Analysts remain cautiously optimistic, , .

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