Cars.com Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $181.6 million, a slight increase of 1% from $179.7 million in the same period last year. The company's net income for the quarter was $7.7 million, down 59% from $18.7 million in Q3 2024. For the nine months ending September 30, 2025, Cars.com generated $539.3 million in revenue, a marginal increase from $538.7 million in the prior year, while net income decreased to $12.7 million from $30.9 million.
The company experienced a 2% increase in dealer revenue, which accounted for 89% of total revenue, rising to $162.0 million from $159.5 million year-over-year. However, OEM and National revenue fell by 5% to $16.2 million, attributed to temporary shifts in spending by certain OEM partners. Other revenue, which includes vehicle listing data and pay-per-lead products, increased by 8% to $3.4 million. Operating expenses decreased by 2% to $164.8 million, primarily due to lower costs in revenue operations and product technology.
In terms of strategic developments, Cars.com completed the acquisition of DealerClub Inc. in January 2025 for $25.3 million, enhancing its dealer-to-dealer digital wholesale auction capabilities. The company may also pay up to $88 million in performance-based consideration related to this acquisition, contingent on future revenue targets. Additionally, Cars.com has been focusing on expanding its digital solutions for automotive dealers, which includes enhancing its marketplace and marketing services.
Operationally, Cars.com reported a 1% increase in dealer customers, reaching 19,526, and a 4% rise in average monthly unique visitors to 25,454. The company’s average revenue per dealer decreased slightly by 1% to $2,460, reflecting changes in customer and product mix. The total cash and cash equivalents as of September 30, 2025, stood at $55.1 million, with an additional $295 million available under its revolving loan facility.
Looking ahead, Cars.com anticipates continued challenges in the automotive market, including fluctuations in consumer demand and macroeconomic factors. The company remains focused on leveraging its platform to enhance customer engagement and expand its dealer relationships. Management expressed confidence in its strategic direction, emphasizing the importance of delivering value to customers through innovative digital solutions.
About Cars.com Inc.
Cars.com Inc. is a technology-driven automotive marketplace and solutions provider. It offers digital retail, trade-in, appraisal, and media services to connect consumers, dealers, and OEMs. The company’s platform enhances car shopping, financing, and inventory management, serving millions of monthly users across North America. Its asset-light, subscription-based model generates recurring revenue, supporting innovation and strategic growth in the competitive automotive digital ecosystem.
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