Cars.com Inc. · NYSE:CARS
Cars.com — Q2 2025 Earnings Presentation
25 slides from Cars.com's earnings presentation, Aug 7, 2025
Slide 1: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings August 7, 2025
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as “believe,” “expect,” “project,” “ant
Slide 3: Definitions: Non-GAAP Financial Measures
Definitions: Non-GAAP Financial Measures This presentation discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States
Slide 4: Q2 performance shows broad-based improvement
Q2 performance shows broad-based improvement Revenue ($MM) Adj. EBITDA ($MM) Share Repurchases ($MM) & Dealer Count & Margin (% Revenue) 19,390 19,412 28.5% 28.2% $179 $179 $51 $23 $50 $5 Q2’24 Q2’25 Q2’24 Q2’25 Q2’24 Q2’25 Steady Revenue and Adj. EBITDA Margin at High End of Repurchased 3.7MM Impro
Slide 5: Continued momentum across all growth drivers
Continued momentum across all growth drivers Grow Grow Dealer Unlock the Transform OEM Create Platform Consumers Customers Cross-Sell Relationships Advantages 19,412 Dealer Product Adoption 28.5% Adjusted 162MM OEM and National Customers, up Up YoY EBITDA Margin Total Traffic Visits revenue up 5% Yo
Slide 6: OEM and National revenue +5% YoY
OEM and National revenue +5% YoY OEM & National Q2 Revenue ($MM) ● Approximately half of OEM customers $16.6 increased marketing and advertising investments in Cars Commerce products and solutions during Q2 ● Q2 performance included the impact of temporary shifts in OEM media spending, primarily at
Slide 7: Achieved record second quarter total traffic
Achieved record second quarter total traffic Q2 Total Traffic (MM) & Average Monthly Unique Visitors (MM) 162.0 ● Tariff-motivated surge in consumer demand 26.6 helped drive Q2 traffic and overall lead delivery ● Average monthly unique visitors grew year-over-year in each month of Q2 *These metrics do
Slide 8: AI-powered search capabilities
AI-powered search capabilities ● Standard keyword searches on Cars.com now augmented with AI-powered natural language recognition, yielding 2x higher lead submission rates compared to standard search ● Nearly 20% of internet leads now originate from new search capability ● Roadmap includes AI-powere
Slide 9: Unique and highly relevant editorial content
Unique and highly relevant editorial content “ There is no vehicle that is 100% American,” said Jenni Newman, editor-in-chief of Cars.com. “ “There are a lot of moving pieces. This is still a global industry. 9
Slide 10: Maintaining strong market position
Maintaining strong market position Dealer Customers Q2 Average Revenue Per Dealer +162 dealers QoQ $2,435 19,412 Note: The decline of the digital dealer industry negatively impacted our Dealer Customer count by over 650 cancellations (which started in Q2’22). There are effectively no digital dealers
Slide 11: AccuTrade wins enterprise deal and grows appraisal volume
AccuTrade wins AccuTrade Connected Subscriptions & Appraisals enterprise deal and grows appraisal volume ~1,070 ● Subscriber base grew to nearly 1,070 AccuTrade Connected customers in Q2 ● Won enterprise deal with leading independent dealer group to deploy AccuTrade into ~150 stores over the course
Slide 12: DealerClub and Cars Commerce platform further integrated
DealerClub and Cars Commerce platform Vehicle Mileage Days on Cars.com further integrated 2015 FordRAV4 Explorer 2022 Toyota WBY23HD028,459SFU47048 53,462 92 130 Import 128 115 107 ● DealerClub is a reputation-based, 94 dealer-to-dealer digital wholesale auction 91 88 81 ● ~50% QoQ increase in compl
Slide 13: Dealer websites continue steady growth trajectory
Dealer websites continue steady growth trajectory Website Customers ~7,800 ● Websites added approximately 50 subscribers QoQ during Q2 ● Completed an additional repackaging agreement during Q2, with additional negotiations expected to close by end of year Website customer data includes D2C Media, eff
Slide 14: Revenue performance held steady
Revenue performance held steady Quarterly Revenue ($MM) ● Q2 revenue of $178.7MM was $179 $179 flat year-over-year ● OEM & National revenue +5% YoY, as automakers continued to compete for consumer demand and shopping consideration despite dynamic macro environment ● Dealer revenue down 1% YoY, largel
Slide 15: Disciplined investment in growth
Disciplined investment in growth Quarterly Adjusted Operating Expense excl. D&A ($MM) ● Q2 Adjusted operating expenses, inclusive of D&A, were down 2% YoY ● Q2 Operating expenses were down 3% YoY, reflecting actions taken in Q1 to streamline costs and headcount, as well as shifts in marketing investm
Slide 16: Delivered Adjusted EBITDA at high end of guidance
Delivered Adjusted EBITDA at high end of guidance Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) ● Q2 Adjusted EBITDA margin of 28.5% was at high end of guidance range of 27% to 29% 16
Slide 17: Quarterly Key Operating Metrics
Quarterly Key Operating Metrics Q2 2025 Q2 2024 AVERAGE MONTHLY 26.6 MM 26.1 MM UNIQUE VISITORS1 TRAFFIC (VISITS)1 162.0 MM 158.1 MM MONTHLY ARPD2 $2,435 $2,474 DEALER CUSTOMERS 19,412 19,390 1 UVs and Traffic are measured via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Medi
Slide 18: Robust cash flow and consistent capital return
Robust cash flow and consistent capital return Free Cash Flow Trend ($MM) Share Repurchase ($MM) 18
Slide 19: Outlook
Outlook 2H 2025 OUTLOOK ● Revenue: Low-single digit YoY growth FULL YEAR 2025 OUTLOOK ● Adjusted EBITDA margin: 29% to 31% ● Increased share repurchase target: $70 to $90 million 19
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Appendix 21
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 22
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 23
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 24
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 25