Cars.com Q1 EBITDA Margin Tops Outlook, Raises Buyback to $90M
CARS•Cars.com generated Q1 revenue of $180.2 million, up 1% year-over-year, with net income of $5.0 million versus a $2.0 million loss a year earlier and adjusted EBITDA of $51.0 million at a 28.3% margin. It repurchased 3.8 million shares for $33 million and raised its buyback target to $90 million.
1. Q1 Financial Performance
Cars.com delivered first quarter revenue of $180.2 million, a 1% increase from the prior year, driven by subscription-based dealer revenue growth. The company swung to a net income of $5.0 million from a $2.0 million loss, while adjusted EBITDA rose 1% year-over-year to $51.0 million, achieving a 28.3% margin.
2. Operational Metrics
Average monthly unique visitors reached 25.8 million, up 19% sequentially but down 11% year-over-year, while site visits totaled 159.6 million. Dealer customers held steady at 19,390 and average monthly revenue per dealer remained flat at $2,473.
3. Cash Flow and Share Repurchases
Operating cash flow increased to $39.8 million from $29.5 million a year ago, supporting free cash flow of $33.5 million. The company repurchased 3.8 million shares for $33 million through April and expanded its full-year share buyback target to $90 million.
4. Strategic Initiatives and Outlook
Cost reduction efforts are expected to yield $25–30 million in annualized savings by 2027, while new AI-powered shopping assistant features and a mobile Dealer App aim to enhance marketplace differentiation and drive future growth.
