Cars.com, Inc. (CARS)
NYSE:CARS
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Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.51Last Year’s EPS
0.41Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a mix of operational progress and near‑term challenges. Key positives include revenue growth (Q1 +1% YoY), strong profitability and cash flow (adjusted EBITDA margin 28.3%, free cash flow +~42% YoY), identified $25–$30 million of annualized cost savings, active share repurchases and multiple product launches (dealer app, Conversational Carson, MCP integrations). Offsets include pressure in OEM/national advertising (Q1 down $2M YoY and expected Q2 weakness), sequential dealer count declines and AccuTrade subscriber softness, tempered media performance impacting ARPD upside, and a portion of GAAP improvement driven by amortization/D&A tailwinds rather than purely operating improvements. Overall, the company appears to be taking credible, proactive steps (cost actions, product integration, buybacks) to improve margins and accelerate growth, while facing cyclical ad headwinds and transitional product bundling impacts that may weigh on near‑term unit metrics.Company Guidance
Revenue and Continuation of Growth
Q1 revenue of $180.2 million, up 1% year‑over‑year and the third consecutive quarter of YoY growth; revenue came in toward the high end of guidance.
Profitability and Cash Flow Strength
Adjusted EBITDA margin of 28.3% (more than 1 percentage point above guidance); adjusted EBITDA of $51 million (up slightly YoY); GAAP net income of $5.0 million vs. a net loss of $2.0 million year‑ago; adjusted net income of $26.7 million, up ~11% from $24.0 million a year ago; free cash flow of $33.5 million, up ~42% YoY; net cash provided by operations $39.8 million vs $29.5 million last year (≈+35%).
Immediate Cost Actions and Identified Savings
Company identified $25 million to $30 million of recurring annualized operating cost savings and implemented actions in April intended to grow adjusted EBITDA faster than revenue; Q1 adjusted operating expenses were $145.9 million, down 6% YoY and reported operating expenses were $163.6 million, down 5% YoY.
Capital Allocation and Balance Sheet Health
Aggressive buyback activity: 2.5 million shares repurchased for $20 million in Q1 and 3.8 million shares for $32.9 million through April 30 (reduced shares outstanding ~5% YTD); increased 2026 share repurchase target from $60 million to $90 million; debt outstanding $455 million with net leverage ~1.8x and total liquidity of $359.6 million.
Product and Marketplace Innovation
Launched dealer mobile app (April) with AI-generated performance summaries, lead alerts and pricing intelligence; deployed Conversational 'Carson' assistant and MCP (model context protocol) integrations to agentic AI platforms (e.g., ChatGPT); early metrics show consumers were >4x more likely to submit a lead after conversing with Carson; Premium Plus marketplace tier grown to nearly 7% of subscribers with a target of ~15% by year‑end.
Core Marketplace and Dealer Metrics
Dealer revenue growth driven by marketplace strength and dealer count up ~140 customers YoY; ARPD stable at $2,473 YoY and sequentially; organic traffic represented close to 60% of total mix in Q1; direct traffic conversion increased meaningfully YoY and leads/connections already influenced >30% of customers' vehicle sales.
Reaffirmed Full-Year Guidance with Near-Term Visibility
Reaffirmed 2026 full-year guidance of flat to +2% revenue growth and adjusted EBITDA margin of 29%–30%; Q2 revenue guidance flat to +2% YoY and Q2 adjusted EBITDA margin expected 28%–29% (guidance incorporates partial quarter benefit from April cost program).
CARS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CARS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $11.19 | $12.33 | +10.19% |
Feb 26, 2026 | $10.74 | $9.08 | -15.46% |
Nov 06, 2025 | $10.41 | $11.09 | +6.53% |
Aug 07, 2025 | $13.13 | $11.77 | -10.36% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Cars.com, Inc. (CARS) report earnings?
Cars.com, Inc. (CARS) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Cars.com, Inc. (CARS) earnings time?
Cars.com, Inc. (CARS) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CARS EPS forecast?
CARS EPS forecast for the fiscal quarter 2026 (Q2) is 0.51.