Cars.com Q2 revenue up 27%, customer growth at 3-year high.

• Cars.com grew to 19,412 dealer customers, driven by sequential increase in marketplace subscriptions. • Achieved record 27.8MM monthly average unique visitors and 332MM visits in H1. • Repurchased 2.1 million shares, representing 3% of shares outstanding. • Raised FY25 share repurchase target to $70 to $90 million.

Cars.com (NYSE:CARS) reported its Q2 2025 financial results, showcasing a mixed performance. The company's revenue of $178.7 million was flat year-over-year, while its net income decreased to $7.0 million ($0.11 per share) from $11.4 million in Q2 2024 [2]. Despite the revenue stagnation, Cars.com achieved significant growth in key metrics.

The company grew its dealer customer base to 19,412, marking the best sequential customer growth in over three years. This growth was driven by an increase in marketplace subscriptions. Additionally, Cars.com reported record first-half monthly visitors of 27.8 million and 332 million visits, indicating strong consumer demand and effective marketing strategies [1].

On the positive side, Cars.com repurchased 2.1 million shares, representing 3% of shares outstanding, and raised its FY2025 share repurchase target to $70 to $90 million. The company also maintained its Adjusted EBITDA margin guidance of 29-31% for the full year [2].

However, the company's net cash provided by operating activities for the six-month period ended June 30, 2025, was $55.7 million, a decrease from $68.7 million in the prior year. Free cash flow for the same period was $41.8 million, down from $56.4 million in the prior year [1].

Cars.com is confident in its ability to manage operating levers across various macroeconomic scenarios and expects low-single digit revenue growth for H2 2025. The company reaffirmed its Full Year Adjusted EBITDA margin guidance of 29% to 31% [1].

References:
[1] https://seekingalpha.com/news/4481250-carscom-misses-top-line-and-bottom-line-estimates-reaffirms-fy25-outlook
[2] https://www.stocktitan.net/news/CARS/cars-com-reports-second-quarter-2025-fadofrxux4i0.html