CARS.COM INC (NYSE:CARS) Reports Mixed Q2 2025 Earnings: Revenue Miss, EPS Beat, and Increased Share Buybacks

CARS.COM INC (NYSE:CARS) reported its second-quarter 2025 earnings, delivering mixed results compared to analyst expectations. The company posted revenue of $178.74 million, falling short of the consensus estimate of $183.02 million. However, earnings per share (EPS) came in at $0.41, significantly surpassing the estimated $0.0731. The market reaction in pre-market trading showed a decline of approximately 2.6%, suggesting investor caution despite the earnings beat.

Key Takeaways from the Earnings Report

• Revenue Miss, EPS Beat: While revenue fell below expectations, the strong EPS performance indicates improved profitability, likely driven by cost management or operational efficiencies.
• Dealer Growth: The company expanded its dealer customer base to 19,412, supported by sequential growth in marketplace subscriptions.
• Traffic Milestones: Cars.com achieved record first-half monthly average unique visitors (27.8 million) and total visits (332 million), reinforcing its position as a leading automotive marketplace.
• Share Repurchases: The company repurchased 2.1 million shares (3% of outstanding shares) and raised its full-year buyback target to $70–90 million, signaling confidence in its financial position.

Market Reaction & Outlook

The pre-market dip suggests investors may be weighing the revenue miss against the EPS outperformance. While the company did not provide explicit forward guidance in the press release, analysts estimate Q3 2025 revenue at $185.34 million and EPS at $0.1224. For the full year, revenue is projected at $738.44 million, with EPS at $0.30396.

The share repurchase increase could be seen as a bullish signal, but the immediate market reaction indicates some skepticism, possibly due to concerns over top-line growth. The stock’s performance over the past month (+4.7%) suggests broader optimism, but today’s pullback reflects a more cautious stance post-earnings.

For a deeper dive into earnings estimates and historical performance, see CARS earnings and estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.