Cars.com Posts 1% Revenue Growth, Guides Flat to 2% 2026 with $60M Buybacks
Cars.com posted 2025 revenue of $723 million (+1% YoY) with adjusted EBITDA margin of 29.2%, free cash flow of $126 million and GAAP net income of $20.1 million. For 2026, management forecasts revenue flat to +2%, 29–30% EBITDA margin and $60 million buybacks as CEO Hartmann integrates AI tools.
1. Q4 and Full-Year 2025 Financial Results
Cars.com posted 2025 revenue of $723 million, up 1% year over year, with adjusted EBITDA margin of 29.2% and free cash flow of $126 million. GAAP net income declined to $20.1 million from $48.2 million a year earlier. Dealer revenue increased 3% and dealer count reached 19,544 in Q4, while OEM and national advertising remained episodic.
2. 2026 Guidance and Capital Allocation
For 2026, management forecasts revenue flat to +2% and adjusted EBITDA margin of 29–30%. The company plans at least $60 million in share buybacks and modest debt paydown, balancing stable top-line growth with capital returns.
3. Strategic Pivot and Product Integration
New CEO Toby Hartmann is refocusing on integrating core marketplace assets and AI tools, including the Carson search assistant, AI-powered video and the AccuTrade inventory management system. Executives aim to link inventory, data and appraisal products to boost engagement, cross-selling and operational efficiency.