Cars.com Reports Q2 2025 Revenue of $178.7 Million, Net Income Down 38%

Cars.com Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $178.7 million, a slight decrease of 0.1% from $178.9 million in the same period last year. For the first half of 2025, revenue also fell to $357.8 million from $359.1 million in the prior year, marking a decline of 0.4%. The company's net income for the second quarter was $7.0 million, down 38% from $11.4 million in the previous year, while the first half net income decreased to $5.0 million from $12.2 million, a 59% drop. The earnings per share for the second quarter were $0.11, compared to $0.17 in the same quarter of 2024.

The company experienced a decrease in dealer revenue, which constitutes the majority of its income, falling by 1% to $158.5 million in the second quarter. This decline was attributed to a lower average dealer count and changes in customer mix. However, revenue from OEM and National customers increased by 5% to $16.6 million, driven by higher spending from OEMs. Other revenue sources also saw a 12% increase, reaching $3.6 million. Operating expenses decreased by 3% to $163.5 million, contributing to an operating income of $15.2 million, a significant increase of 60% compared to the previous year.

Strategically, Cars.com completed the acquisition of DealerClub Inc. in January 2025 for $25.3 million, which is expected to enhance its dealer-to-dealer auction capabilities. The acquisition may also involve performance-based payments of up to $88 million, contingent on future revenue targets. The company has also been active in share repurchases, retiring 3.7 million shares for $44.6 million during the first half of 2025, as part of a broader $250 million repurchase program initiated earlier this year.

Operationally, Cars.com reported a slight increase in dealer customers, totaling 19,412, and a 2% rise in average monthly unique visitors to 26.6 million. Traffic to the platform also grew by 2% year-over-year. Despite these positive engagement metrics, the average revenue per dealer decreased by 2% to $2,435, reflecting shifts in the customer mix. The company continues to focus on enhancing its digital solutions to meet the evolving needs of automotive dealers and consumers.

Looking ahead, Cars.com remains cautious about the broader automotive market, which is influenced by various macroeconomic factors, including supply chain disruptions and changing consumer preferences. The company aims to leverage its strategic strengths, including its digital solutions and audience engagement, to navigate these challenges and drive future growth. The management expressed optimism about the potential of its recent acquisitions and ongoing investments in technology to enhance its competitive position in the automotive marketplace.