# EDGAR Filing Document

**Accession Number:** 0001683606
**File Stem:** 0001193125-25-268110
**Filing Date:** 2025-11
**Character Count:** 45651
**Document Hash:** 448fa5ec4c433a220d6c7cd5b927eea8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-268110.hdr.sgml**: 20251106

**ACCESSION NUMBER**: 0001193125-25-268110

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 11

**CONFORMED PERIOD OF REPORT**: 20251106

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251106

**DATE AS OF CHANGE**: 20251106

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cars.com Inc.
- **CENTRAL INDEX KEY:** 0001683606
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 813693660
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37869
- **FILM NUMBER:** 251456218

**BUSINESS ADDRESS:**
- **STREET 1:** 300 S. RIVERSIDE PLAZA
- **STREET 2:** SUITE 1000
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606
- **BUSINESS PHONE:** 312-601-5000

**MAIL ADDRESS:**
- **STREET 1:** 300 S. RIVERSIDE PLAZA
- **STREET 2:** SUITE 1000
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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## FORM 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** November 06, 2025<br>

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Cars.com Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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---

| | | |
|:---|:---|:---|
| Delaware | 001-37869 | 81-3693660 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 300 S. Riverside Plaza |  |  |
| Chicago**,** Illinois |  | 60606 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** 312 601-5000<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Stock | CARS | The New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On November 6, 2025, Cars.com Inc. (the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits

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| | |
|:---|:---|
| **Exhibit**<br>**No.** | **Exhibit** |
| 99.1 | [<u>Cars.com Inc. Press Release, dated November 6, 2025, concerning financial results</u>](cars-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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The information furnished in this report, including Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section, nor shall it be deemed to be incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly set forth by specific reference in such filing.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | Cars.com Inc. |
| Date: | November 6, 2025 | By:  | /s/ Sonia Jain |
|  |  |  | Chief Financial Officer |

---

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## Exhibit 99.1

Exhibit 99.1

**Cars.com Reports Third Quarter 2025 Results**

*Achieved Record Total Revenue of $182 Million and Dealer Revenue Growth of 2% Year-over-Year*

*Accelerating Marketplace Adoption Grew Customer Base +271 Year-over-Year to 19,526 Dealer Customers*

*Marketplace Supported Record Year-to-Date Traffic and the Launch of Carson*<sup>TM</sup> *AI-Powered Search Features*

*Repurchased $64 Million of Stock Year-to-Date, On Track with $70 to $90 Million Target for FY25*

**CHICAGO, November 6, 2025** -- Cars.com Inc**.** (NYSE: CARS) (d/b/a "Cars Commerce Inc." or the "Company"), an audience-driven technology company empowering the automotive industry, today released its financial results for the third quarter ended September 30, 2025.

"We delivered record revenue in the third quarter as focused execution of our strategy drove a resurgence in Dealer revenue. Underpinning these strong results was another quarter of triple-digit growth in customer count and notable gains in the Cars.com marketplace and AccuTrade. In particular, dealers are responding positively as we lead the industry on AI integration through features like Carson, our new AI shopping assistant, which is already powering millions of web searches and yielding a 2x improvement in visitor engagement," said Alex Vetter, Chief Executive Officer of Cars Commerce. "Looking ahead, we are confident in our ability to build upon these successes as we position our platform for sustainable growth and value creation."

**Q3 2025 Financial Highlights**

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| | | | |
|:---|:---|:---|:---|
| <br>*(in thousands, except per share data)* | Quarter Ended September 30, | Quarter Ended September 30, |  |
| <br>*(in thousands, except per share data)* | 2025 | 2024 | Change % |
| Total Revenue | $181573 | $179651 | 1% |
| Net income | 7658 | 18719 | (59%) |
| Adjusted net income | 30381 | 27704 | 10% |
| Adjusted EBITDA | 54631 | 51131 | 7% |
| Net income per diluted share | 0.12 | 0.28 | (56%) |
| Adjusted net income per diluted share | 0.48 | 0.41 | 18% |

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**Q3 2025 Key Metrics and Operational Highlights**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>*(in millions, except dealer data)* | Quarter Ended | Quarter Ended | Quarter Ended |  |  |
| <br>*(in millions, except dealer data)* | September 30, <br>2025 | June 30, <br>2025 | September 30, <br>2024  | Change %<br>Q/Q | Change % Y/Y |
| Average Monthly Unique Visitors | 25.5 | 26.6 | 24.5 | (4%) | 4% |
| Traffic ("Visits") | 156.2 | 162.0 | 154.2 | (4%) | 1% |
| Monthly Average Revenue Per Dealer ("ARPD") | $2460 | $2435 | $2478 | 1% | (1%) |
| Dealer Customers | 19526 | 19412 | &nbsp;&nbsp;&nbsp;&nbsp;19255 | 1% | 1% |

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• Dealer Customers grew to 19,526 dealers, reaching a new three-year high based on strategic go-to-market enhancements and continued strong sales and product execution

• Carson, a new suite of AI-powered search features, is driving 2X more vehicle listings views when utilized for web searches, with mobile app rollout currently in pilot during Q4

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• Successful execution of marketplace repackaging boosted Premium subscribers by approximately 60% year-over-year, while new Premium+ packages leveraged bundled media products to improve leads per listing by 14%<sup>1</sup>

• AccuTrade and DealerClub helped address vehicle sourcing challenges across the industry, evidenced by AccuTrade surpassing one million quarterly appraisals, and DealerClub active users growing by nearly 40% quarter-over-quarter

**Q3 2025 Results**

Revenue for the third quarter totaled $181.6 million, up 1% compared to the prior year period and reaching a new quarterly record. Subscription-based Dealer revenue was up 2% year-over-year, benefitting from increased adoption of websites and appraisal products as well as Marketplace customer growth and repackaging. OEM and National revenue was down 5% year-over-year, primarily reflecting lower media spending by certain OEM partners.

Total operating expenses for the third quarter were $164.8 million, compared to $168.2 million for the prior year period. Operating expenses declined as compared to the prior year period, as costs associated with the January 2025 acquisition of DealerClub and third party fees were fully offset by efficiencies in headcount and lease-related expenses. Adjusted operating expenses for the quarter were $150.4 million, down 4% compared to the prior year period, reflecting substantially similar dynamics.

Net income for the third quarter was $7.7 million, or $0.12 per diluted share, compared to Net income of $18.7 million, or $0.28 per diluted share, in the third quarter of 2024. The change in Net income is primarily attributable to changes in the fair value of contingent consideration in the prior-year period associated with prior acquisitions. Adjusted net income for the quarter was $30.4 million, or $0.48 per diluted share, compared to $27.7 million, or $0.41 per diluted share a year ago. Adjusted EBITDA for the third quarter was $54.6 million, or 30.1% of revenue, compared to $51.1 million, or 28.5% of revenue in the year-ago period. Adjusted EBITDA strengthened on the basis of improved revenue and the aforementioned cost reduction initiatives.

**Cash Flow and Balance Sheet**

Net cash provided by operating activities for the nine-month period ended September 30, 2025 was $114.5 million, compared to $122.5 million in the prior year, which is largely attributable to the increase in earnout payments associated with the D2C Media acquisition. Resulting free cash flow for the nine-month period ended September 30, 2025 totaled $94.5 million, compared to $103.7 million in the prior year.

The Company's total debt outstanding was $455.0 million as of September 30, 2025. The Company's total net leverage (as defined in the Company's credit facility) was 1.9x as of September 30, 2025, below its target total net leverage range of 2.0x to 2.5x. Total liquidity as of September 30, 2025 was $350.1 million, which is defined as Cash and cash equivalents of $55.1 million and revolver capacity of $295.0 million.

**Share Repurchases**

The Company repurchased 1.5 million shares of common stock for $19.3 million in the third quarter, bringing total repurchases to 5.2 million shares for $63.9 million in the first nine months of 2025. The Company also reaffirms its target for $70 to $90 million of share repurchases in fiscal 2025, which was previously revised upward in August 2025.

<sup>1</sup>*Compared to Base Marketplace packages. Cars.com data, September 2025.*

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"Third quarter performance demonstrated progress across our major financial and operating metrics, delivering revenue growth as well as strong operating leverage that produced our highest quarter of Adjusted EBITDA margin for this year. Robust cash flow generation also enabled additional share repurchases, consistent with our annual targeted share buyback commitment," said Sonia Jain, Chief Financial Officer of Cars Commerce. "Through disciplined investments in product innovation as well as prudent capital allocation, we expect to continue to drive platform differentiation and return value to shareholders."

**Outlook**

The Company continues to anticipate low-single digit revenue growth for the second half of 2025, based on third quarter performance, current market conditions, and ongoing execution of 2025 growth initiatives. As previously communicated, the favorability, magnitude, and timing of customer spending on media and advertising products are also subject to factors like vehicle production and inventory levels, which have been volatile year-to-date.

The Company is reaffirming Full Year Adjusted EBITDA margin guidance of 29% to 31%. Adjusted EBITDA margin guidance reflects the Company's confidence in managing operating levers across a range of macroeconomic scenarios.

**Q3 2025 Earnings Call**

As previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars Commerce Investor Relations website, <u>investor.cars.com</u>. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.

**About Cars Commerce**

Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around industry-leading brands: the flagship automotive marketplace and review site <u>Cars.com</u>, digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, a reputation-based dealer-to-dealer wholesale auction from DealerClub and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.

**Non-GAAP Financial Measures**

This earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net (loss) 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 ("GAAP"). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company's performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company's credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company's lenders, securities analysts, investors and other interested parties to evaluate companies in the Company's industry.

While a reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, the Company has provided a reconciliation of non-GAAP financial measures to their most directly comparable financial

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measure prepared in accordance with GAAP in this earnings release, see "Non-GAAP Reconciliations" below.

Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.

The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.

Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the AccuTrade acquisition.

The Company defines Adjusted Net Income as GAAP net (loss) income excluding, net of their related tax effects: (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (4) unrealized foreign currency exchange gains and losses, and (5) certain other items, such as transaction-related costs, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.

The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.

The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.

**Key Metric Definitions**

Average Monthly Unique Visitors ("UVs") and Traffic ("Visits"). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified upon first visit to an individual Cars.com property on an individual device/browser combination or installation of one of our mobile apps on an individual device. If a visitor accesses more than one of our web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measured UVs and Traffic via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Media, or DealerClub websites.

Monthly Average Revenue Per Dealer ("ARPD"). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services and DealerClub, during the period divided by the monthly average number of Dealer Customers during the same period.

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Dealer Customers. Dealer Customers represent dealerships using the Company's products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. Dealer Customer metrics do not include DealerClub.

**Forward-Looking Statements**

This press release 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," "anticipate," "outlook," "intend," "strategy," "plan," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecasts," "mission," "strive," "more," "goal" or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.

Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see "Part I, Item 1A., Risk Factors" and "Part II, Item 7., Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission ("SEC") on February 27, 2025 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.

You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.

**Cars Commerce Investor Relations Contact:**

Katherine Chen

kchen@carscommerce.inc

408.768.6847 **Cars Commerce Media Contact:**

Marita Thomas

mthomas@carscommerce.inc

312.601.5692 ###

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| | | | | |
|:---|:---|:---|:---|:---|
| **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** |
| **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** |
| ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** |
| ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| ***Revenue:*** |  |  |  |  |
| &nbsp;&nbsp;Dealer | $162009 | $159513 | $479630 | $481171 |
| &nbsp;&nbsp;OEM and National | 16180 | 17014 | 49096 | 48149 |
| &nbsp;&nbsp;Other | 3384 | 3124 | 10610 | 9401 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 181573 | 179651 | 539336 | 538721 |
| ***Operating expenses:*** |  |  |  |  |
| &nbsp;&nbsp;Cost of revenue and operations | 30063 | 31610 | 91549 | 92602 |
| &nbsp;&nbsp;Product and technology | 27580 | 29223 | 84692 | 84891 |
| &nbsp;&nbsp;Marketing and sales | 59336 | 58288 | 177318 | 177664 |
| &nbsp;&nbsp;General and administrative | 24325 | 21511 | 71890 | 67348 |
| &nbsp;&nbsp;Depreciation and amortization | 23464 | 27563 | 75376 | 82499 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 164768 | 168195 | 500825 | 505004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 16805 | 11456 | 38511 | 33717 |
| ***Nonoperating expenses:*** |  |  |  |  |
| &nbsp;&nbsp;Interest expense, net | (7631) | (8028) | (22943) | (24458) |
| &nbsp;&nbsp;Other income, net | 1528 | 21111 | 3869 | 32498 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonoperating (expense) income, net | (6103) | 13083 | (19074) | 8040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 10702 | 24539 | 19437 | 41757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 3044 | 5820 | 6783 | 10873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $7658 | $18719 | $12654 | $30884 |
| ***Weighted-average common shares outstanding:*** |  |  |  |  |
| Basic | 61708 | 66107 | 63133 | 66319 |
| Diluted | 63070 | 67666 | 63844 | 67590 |
| ***Earnings per share:*** |  |  |  |  |
| Basic | $0.12 | $0.28 | $0.20 | $0.47 |
| Diluted | 0.12 | 0.28 | 0.20 | 0.46 |

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| | | |
|:---|:---|:---|
| **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** |
| **Consolidated Balance Sheets** | **Consolidated Balance Sheets** | **Consolidated Balance Sheets** |
| ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** |
|  | **September 30, 2025** | **December 31, 2024** |
|  | **(unaudited)** |  |
| ***Assets:*** |  |  |
| *Current assets:* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $55072 | $50673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 128825 | 133741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 15483 | 13782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 12972 | 16134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 212352 | 214330 |
| Property and equipment, net | 35284 | 40704 |
| Goodwill | 166603 | 143279 |
| Intangible assets, net | 537174 | 585690 |
| Deferred tax assets | 94280 | 100530 |
| Investments and other assets, net | 25694 | 27332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1071387 | $1111865 |
| ***Liabilities and stockholders' equity:*** |  |  |
| *Current liabilities:* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $33040 | $33498 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | 28890 | 36295 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 54889 | 47092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 116819 | 116885 |
| *Noncurrent liabilities:* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, net | 451206 | 455288 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 6658 | 6773 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 19135 | 21434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent liabilities | 476999 | 483495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 593818 | 600380 |
| Commitments and contingencies |  |  |
| *Stockholders' equity:* |  |  |
| Preferred Stock at par, $0.01 par value; 5,000 shares authorized; no shares<br> issued and outstanding as of September 30, 2025 and December 31, 2024,<br> respectively |  |  |
| Common Stock at par, $0.01 par value; 300,000 shares authorized; 60,360<br> and 64,391 shares issued and outstanding as of September 30, 2025 and <br> December 31, 2024, respectively | 604 | 643 |
| Additional paid-in capital | 1426829 | 1473986 |
| Accumulated deficit | (948892) | (961546) |
| Accumulated other comprehensive loss | (972) | (1598) |
| Total stockholders' equity | 477569 | 511485 |
| Total liabilities and stockholders' equity | $1071387 | $1111865 |

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| | | |
|:---|:---|:---|
| **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** |
| **Consolidated Statements of Cash Flows** | **Consolidated Statements of Cash Flows** | **Consolidated Statements of Cash Flows** |
| ***(In thousands)*** | ***(In thousands)*** | ***(In thousands)*** |
| ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** |
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| ***Cash flows from operating activities:*** |  |  |
| Net income | $12654 | $30884 |
| Adjustments to reconcile Net income to Net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 23077 | 19306 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 52299 | 63193 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 22433 | 23689 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 6269 | 12469 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts | 1501 | 2634 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 1430 | 1769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on foreign currency denominated transactions | (1440) | 965 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fair value of contingent consideration |  | (33473) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 2284 | 766 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 4057 | (2574) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (8050) | (12705) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (320) | 9947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | (8119) | (2067) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 6446 | 7714 |
| Net cash provided by operating activities | 114521 | 122517 |
| ***Cash flows from investing activities:*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments for acquisitions, net of cash acquired | (24769) | (218) |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalization of internally developed technology | (16131) | (16770) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (3901) | (2046) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of equity investment | 9481 |  |
| Net cash used in investing activities | (35320) | (19034) |
| ***Cash flows from financing activities:*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Revolving Loan borrowings | 10000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments of Revolving Loan borrowings and long-term debt | (15000) | (20000) |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments for stock-based compensation plans, net | (5227) | (8065) |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchases of common stock | (64339) | (35686) |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments of contingent consideration |  | (27435) |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments of debt issuance costs and other fees |  | (1869) |
| Net cash used in financing activities | (74566) | (93055) |
| Effect of exchange rate changes on Cash and cash equivalents | (236) | (53) |
| Net increase in Cash and cash equivalents | 4399 | 10375 |
| Cash and cash equivalents at beginning of period | 50673 | 39198 |
| Cash and cash equivalents at end of period | $55072 | $49573 |
| **Supplemental cash flow information:** |  |  |
| Cash paid for income taxes | $2223 | $5506 |
| Cash paid for interest | 17053 | 18453 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** | **Cars.com Inc.** |
| **Non-GAAP Reconciliations** | **Non-GAAP Reconciliations** | **Non-GAAP Reconciliations** | **Non-GAAP Reconciliations** | **Non-GAAP Reconciliations** |
| ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** |
| ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** | ***(Unaudited)*** |
| **Reconciliation of Net income to Adjusted EBITDA** | **Reconciliation of Net income to Adjusted EBITDA** | **Reconciliation of Net income to Adjusted EBITDA** | **Reconciliation of Net income to Adjusted EBITDA** | **Reconciliation of Net income to Adjusted EBITDA** |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income | $7658 | $18719 | $12654 | $30884 |
| Interest expense, net | 7631 | 8028 | 22943 | 24458 |
| Income tax expense | 3044 | 5820 | 6783 | 10873 |
| Depreciation and amortization | 23464 | 27563 | 75376 | 82499 |
| Stock-based compensation, including related payroll tax expense | 7701 | 8444 | 23162 | 25207 |
| Transaction-related and other one-time items | 4068 | (16971) | 16609 | (20655) |
| Non-operating foreign exchange loss (gain) | 1065 | (472) | (1277) | 963 |
| Adjusted EBITDA | $54631 | $51131 | $156250 | $154229 |
| **Reconciliation of Net income to Adjusted Net income** | **Reconciliation of Net income to Adjusted Net income** | **Reconciliation of Net income to Adjusted Net income** | **Reconciliation of Net income to Adjusted Net income** | **Reconciliation of Net income to Adjusted Net income** |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income | $7658 | $18719 | $12654 | $30884 |
| Stock-based compensation, including related payroll tax expense | 7701 | 8444 | 23162 | 25207 |
| Amortization of intangible assets | 17463 | 20979 | 52299 | 63193 |
| Transaction-related items | 2864 | (17941) | 8530 | (24466) |
| Non-operating foreign exchange loss (gain) | 1065 | (472) | (1277) | 963 |
| Other one-time items | 1204 | 970 | 8079 | 3811 |
| Income tax impact of adjustments | (7574) | (2995) | (22698) | (17177) |
| Adjusted net income | $30381 | $27704 | $80749 | $82415 |
| Adjusted net income per share, diluted | $0.48 | $0.41 | $1.26 | $1.22 |
| Weighted-average common shares outstanding, diluted | 63070 | 67666 | 63844 | 67590 |
| **Reconciliation of Net cash provided by operating activities to Free cash flow** | **Reconciliation of Net cash provided by operating activities to Free cash flow** | **Reconciliation of Net cash provided by operating activities to Free cash flow** | **Reconciliation of Net cash provided by operating activities to Free cash flow** | **Reconciliation of Net cash provided by operating activities to Free cash flow** |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net cash provided by operating activities | $58838 | $53795 | $114521 | $122517 |
| Capitalization of internally developed technology | (5637) | (5594) | (16131) | (16770) |
| Purchase of property and equipment | (559) | (947) | (3901) | (2046) |
| Free cash flow | $52642 | $47254 | $94489 | $103701 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2025:** |
|  | **As Reported** | **Adjustments** <sup>(1)</sup> | **Stock-Based Compensation** | **As Adjusted** |
| Cost of revenue and operations | $30063 | $— | $(222) | $29841 |
| Product and technology | 27580 |  | (2314) | 25266 |
| Marketing and sales | 59336 | (43) | (1493) | 57800 |
| General and administrative | 24325 | (6617) | (3672) | 14036 |
| Depreciation and amortization | 23464 |  |  | 23464 |
| Total operating expenses | $164768 | $(6660) | $(7701) | $150407 |
| Total nonoperating expense, net | $(6103) | $(1527) | $— | $(7630) |
| <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. |
| **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2024:** |
|  | **As Reported** | **Adjustments** <sup>(1)</sup> | **Stock-Based Compensation** | **As Adjusted** |
| Cost of revenue and operations | $31610 | $— | $(215) | $31395 |
| Product and technology | 29223 |  | (2956) | 26267 |
| Marketing and sales | 58288 | (44) | (1469) | 56775 |
| General and administrative | 21511 | (3624) | (3804) | 14083 |
| Depreciation and amortization | 27563 |  |  | 27563 |
| Total operating expenses | $168195 | $(3668) | $(8444) | $156083 |
| Total nonoperating income (expense), net | $13083 | $(21111) | $— | $(8028) |
| <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2025:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2025:** |
|  | **As Reported** | **Adjustments** <sup>(1)</sup> | **Stock-Based Compensation** | **As Adjusted** |
| Cost of revenue and operations | $91549 | $— | $(625) | $90924 |
| Product and technology | 84692 |  | (7294) | 77398 |
| Marketing and sales | 177318 | (128) | (5263) | 171927 |
| General and administrative | 71890 | (19073) | (9980) | 42837 |
| Depreciation and amortization | 75376 |  |  | 75376 |
| Total operating expenses | $500825 | $(19201) | $(23162) | $458462 |
| Total nonoperating expense, net | $(19074) | $(3869) | $— | $(22943) |
| <sup>(1)</sup> Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. |
| **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2024:** | **Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2024:** |
|  | **As Reported** | **Adjustments** <sup>(1)</sup> | **Stock-Based Compensation** | **As Adjusted** |
| Cost of revenue and operations | $92602 | $— | $(773) | $91829 |
| Product and technology | 84891 |  | (8746) | 76145 |
| Marketing and sales | 177664 | (132) | (4362) | 173170 |
| General and administrative | 67348 | (12675) | (11326) | 43347 |
| Depreciation and amortization | 82499 |  |  | 82499 |
| Total operating expenses | $505004 | $(12807) | $(25207) | $466990 |
| Total nonoperating income (expense), net | $8040 | $(32499) | $— | $(24459) |
| <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | <sup>(1)</sup> Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. |

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