Cars.com Reports First Quarter 2025 Results
- Record-breaking 29 million average monthly unique visitors, up 3% YoY - Dealer customer base grew to 19,250, adding 40+ dealers quarter-over-quarter - OEM and National revenue increased 6% YoY - Company reported net loss of ($2.0M) or ($0.03) per share - Adjusted EBITDA was $50.7M with 28.3% margin
The company repurchased 1.6M shares for $21.5M and maintains strong liquidity of $321.4M. Due to macroeconomic uncertainty and automotive industry volatility, Cars.com suspended its full-year 2025 revenue guidance but reaffirmed Adjusted EBITDA margin guidance of 29-31%, with Q2 2025 margins expected between 27-29%.
- Record di 29 milioni di visitatori unici mensili medi, in aumento del 3% su base annua - La base clienti dei concessionari è cresciuta fino a 19.250, con oltre 40 nuovi concessionari aggiunti trimestre su trimestre - I ricavi da OEM e National sono aumentati del 6% su base annua - L'azienda ha riportato una perdita netta di ($2,0M) o ($0,03) per azione - L'EBITDA rettificato è stato di 50,7 milioni di dollari con un margine del 28,3%
L'azienda ha riacquistato 1,6 milioni di azioni per 21,5 milioni di dollari e mantiene una solida liquidità di 321,4 milioni di dollari. A causa dell'incertezza macroeconomica e della volatilità del settore automobilistico, Cars.com ha sospeso le previsioni di fatturato per l'intero 2025, ma ha confermato la guidance sul margine EBITDA rettificato tra il 29% e il 31%, con margini previsti per il secondo trimestre 2025 tra il 27% e il 29%.
- Récord de 29 millones de visitantes únicos promedio mensuales, un aumento del 3% interanual - La base de clientes concesionarios creció a 19,250, sumando más de 40 concesionarios trimestre a trimestre - Los ingresos de OEM y National aumentaron un 6% interanual - La compañía reportó una pérdida neta de ($2.0M) o ($0.03) por acción - El EBITDA ajustado fue de 50.7 millones de dólares con un margen del 28.3%
La empresa recompró 1.6 millones de acciones por 21.5 millones de dólares y mantiene una sólida liquidez de 321.4 millones de dólares. Debido a la incertidumbre macroeconómica y la volatilidad en la industria automotriz, Cars.com suspendió su guía de ingresos para todo el año 2025, pero reafirmó la guía de margen EBITDA ajustado entre 29% y 31%, con márgenes esperados para el segundo trimestre de 2025 entre 27% y 29%.
- 월평균 고유 방문자 수 2,900만 명으로 사상 최고치 경신, 전년 대비 3% 증가 - 딜러 고객 수가 19,250명으로 증가하며 분기별 40명 이상의 딜러 추가 - OEM 및 내셔널 매출이 전년 대비 6% 증가 - 순손실은 200만 달러(주당 손실 0.03달러) 보고 - 조정 EBITDA는 5,070만 달러, 28.3% 마진
회사는 160만 주를 2,150만 달러에 자사주 매입하였으며, 3억 2,140만 달러의 강력한 유동성을 유지하고 있습니다. 거시경제 불확실성과 자동차 산업 변동성으로 인해 Cars.com은 2025년 연간 매출 가이던스를 중단했으나, 조정 EBITDA 마진 가이던스는 29-31%로 재확인했으며, 2025년 2분기 마진은 27-29%로 예상하고 있습니다.
- Nombre record de 29 millions de visiteurs uniques mensuels moyens, en hausse de 3 % sur un an - La base de clients concessionnaires a augmenté pour atteindre 19 250, avec plus de 40 concessionnaires ajoutés trimestre après trimestre - Les revenus OEM et National ont augmenté de 6 % en glissement annuel - La société a enregistré une perte nette de (2,0 M$) soit (0,03 $) par action - L'EBITDA ajusté s'est élevé à 50,7 M$ avec une marge de 28,3 %
La société a racheté 1,6 million d'actions pour 21,5 millions de dollars et maintient une forte liquidité de 321,4 millions de dollars. En raison de l'incertitude macroéconomique et de la volatilité du secteur automobile, Cars.com a suspendu ses prévisions de chiffre d'affaires pour l'année 2025, mais a réaffirmé ses prévisions de marge EBITDA ajustée entre 29 % et 31 %, avec des marges attendues pour le deuxième trimestre 2025 entre 27 % et 29 %.
- Rekordverdächtige 29 Millionen durchschnittliche monatliche Unique Visitors, ein Anstieg von 3 % im Jahresvergleich - Die Händlerkundenbasis wuchs auf 19.250, mit über 40 neuen Händlern im Quartalsvergleich - OEM- und National-Umsätze stiegen um 6 % im Jahresvergleich - Das Unternehmen meldete einen Nettoverlust von (2,0 Mio. USD) bzw. (0,03 USD) je Aktie - Das bereinigte EBITDA betrug 50,7 Mio. USD bei einer Marge von 28,3 %
Das Unternehmen kaufte 1,6 Millionen Aktien für 21,5 Millionen USD zurück und verfügt über eine starke Liquidität von 321,4 Millionen USD. Aufgrund makroökonomischer Unsicherheiten und der Volatilität in der Automobilbranche setzte Cars.com seine Umsatzprognose für das Gesamtjahr 2025 aus, bestätigte jedoch die Prognose für die bereinigte EBITDA-Marge von 29-31 %, wobei für das zweite Quartal 2025 Margen zwischen 27-29 % erwartet werden.
- Record-breaking 29M average monthly unique visitors, up 3% YoY
- OEM and National revenue grew 6% YoY
- Strong liquidity position of $321.4M
- AccuTrade appraisals grew 31% YoY with 813,000 appraisals
- DealerClub grew active users by over 60% since acquisition
- Maintained healthy Adjusted EBITDA margin at 28.3%
- Active share repurchase program with 1.6M shares bought for $21.5M
- Revenue declined 1% YoY to $179M
- Net loss of $2.0M compared to $0.8M profit in Q1 2024
- Subscription-based Dealer revenue down 2% YoY
- Suspended full-year 2025 revenue guidance due to market uncertainty
- Operating expenses increased to $172.6M from $167.4M YoY
Insights
Cars Commerce delivered mixed Q1 results with stable margins despite revenue pressures; strategic pivots showing promise amid automotive market uncertainty.
Cars Commerce's Q1 2025 results reveal a company navigating complex market dynamics with a balanced approach. The $179 million revenue represented a modest 1% year-over-year decline, reflecting ongoing pressures in the automotive sector. The company's transition to a $2 million net loss from a profit position last year warrants attention, though it's largely attributable to one-time severance costs from targeted headcount reductions—a strategic cost management decision rather than operational weakness.
The divergent performance across revenue streams tells a compelling story about the shifting automotive landscape. OEM and National revenue grew 6% year-over-year, indicating manufacturers are prioritizing digital channels amid intense competition for consumer attention. Conversely, Subscription-based Dealer revenue declined 2%, reflecting persistent budget constraints at the dealership level as retailers manage through uncertain economic conditions.
A pivotal development is the sequential growth in dealer customers to 19,250 (though still down 1% year-over-year). This modest quarterly increase of 40+ dealers potentially signals an inflection point after previous periods of decline. Combined with the record 29 million monthly unique visitors (+3% YoY), the platform appears to be maintaining its competitive position despite headwinds.
The company's strategic evolution toward comprehensive inventory solutions is showing promising early results. AccuTrade appraisals increased 31% year-over-year to 813,000, while the newly acquired DealerClub saw 60% growth in active users between February and March. These offerings address a critical pain point for dealers: sourcing profitable used inventory amid tightening new vehicle production.
From a financial perspective, Cars Commerce maintained a healthy 28.3% Adjusted EBITDA margin despite revenue challenges. The decision to suspend full-year revenue guidance while maintaining EBITDA margin targets (29-31%) reflects confidence in cost control capabilities amid uncertain top-line conditions. With 2.1x net leverage and $321.4 million in total liquidity, the company maintains financial flexibility while continuing to return capital to shareholders through $21.5 million in share repurchases during Q1.
The relatively stable Monthly Average Revenue Per Dealer (ARPD) of $2,473 (down just 1% YoY) suggests pricing resilience despite market pressures, though this metric bears watching as an indicator of upsell potential in future quarters.
Delivered Q1 Revenue of
Reached 19,250 Dealer Customers, Reflecting Strong Solutions Adoption
Achieved New Quarterly Record of 29 Million Average Monthly Unique Visitors
Repurchased 1.6 Million Shares
"We were encouraged to see growing momentum across our core marketplace and solutions portfolio as the first quarter progressed. Dealer count improvement, coupled with record unique visitors to Cars.com, signal that we are winning share in our key end markets at a critical time when the automotive industry is seeking trusted, efficient, and highly effective tools to cut through external noise," said Alex Vetter, Chief Executive Officer of Cars Commerce. "As laid out at the start of the year, our priority in the second quarter is to reaccelerate dealer revenue growth by advancing growth initiatives, such as marketplace and website repackaging and increasing adoption of used car products. Simultaneously, we have also taken steps to actively manage costs in light of elevated uncertainty in the external environment. We expect to continue delivering strong Adjusted EBITDA margins over the next several quarters. Our goals and strategic vision remain unchanged, and we are focused on executing our 2025 roadmap while staying responsive to evolving operating conditions."
Q1 2025 Financial Highlights | ||||||
(in thousands, except per share data) | Quarter Ended March 31, | |||||
2025 | 2024 | Change % | ||||
Total Revenue | $ 179,024 | $ 180,176 | (1 %) | |||
Net (loss) income | (2,013) | 784 | NM | |||
Adjusted net income | 23,956 | 28,663 | (16 %) | |||
Adjusted EBITDA | 50,721 | 52,673 | (4 %) | |||
Net (loss) income per diluted share | (0.03) | 0.01 | NM | |||
Adjusted net income per diluted share | 0.37 | 0.43 | (14 %) | |||
NM = Not meaningful |
Q1 2025 Key Metrics and Operational Highlights | |||||||||
(in millions, except dealer data) | Quarter Ended | ||||||||
March 31, | December 31, | March 31, | Change % | Change % | |||||
Average Monthly Unique Visitors | 29.0 | 23.1 | 28.3 | 26 % | 3 % | ||||
Traffic ("Visits") | 170.1 | 143.8 | 171.4 | 18 % | (1 %) | ||||
Monthly Average Revenue Per Dealer ("ARPD") | $ 2,473 | $ 2,475 | $ 2,505 | NM | (1 %) | ||||
Dealer Customers | 19,250 | 19,206 | 19,381 | NM | (1 %) | ||||
NM = Not meaningful |
- Average Monthly Unique Visitors set a new record in the first quarter, exceeding 29.0 million and up
3% year-over-year from strategic shifts in marketing investments, which also helped capture strong demand from shoppers who accelerated vehicle purchases late in the quarter likely due to tariff uncertainty - Dealer Customers grew to 19,250, up over 40 dealers quarter-over-quarter, returning to sequential growth
- AccuTrade appraisals of 813,000 grew
16% quarter-over-quarter and31% year-over-year, a meaningful increase in utilization as customer engagement continues to improve - DealerClub grew active users by over
60% and nearly doubled the volume of completed auctions from February to March following its acquisition in January 2025
"Our complete used car solution is uniquely positioned to help dealers acquire the right car at the right price amid rising competition for inventory. AccuTrade enables service lane acquisitions from consumers, an important and underutilized source of inventory that generates as much as
Q1 2025 Results
Revenue for the first quarter totaled
Total operating expenses for the first quarter were
Net loss for the first quarter was
Cash Flow and Balance Sheet
Net cash provided by operating activities for the first quarter was
The Company's total debt outstanding was
Share Repurchases
The Company executed on its capital allocation strategy with the repurchase of 1.6 million shares of common stock for
"We were pleased to deliver strong Adjusted EBITDA margin that exceeded our first quarter guidance range, driving efficiencies in the business while supporting ongoing growth investments and deepening our product differentiation," said Sonia Jain, Chief Financial Officer of Cars Commerce. "Looking ahead, we have confidence that our asset-light model and robust balance sheet and free cash flow generation put us in a strong position to execute our strategy for the remainder of the year."
Second Quarter 2025 and FY 2025 Outlook
While OEM and dealer partners remain committed to investments in Cars Commerce solutions, it is likely that the magnitude and timing of some spending will continue to shift until the macroeconomic environment stabilizes. In light of this heightened volatility and uncertainty related to the automotive industry outlook and tariff impacts, the Company is suspending full year 2025 revenue guidance and will provide an update when visibility improves. The Company's 2025 growth initiatives remain intact, which include driving product adoption, broad-based repackaging efforts, and continued product innovation.
Additionally, the Company is reaffirming Full Year Adjusted EBITDA margin guidance of
Q1 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, investor.cars.com. 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 four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com, award-winning technology and 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
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 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 when a user first visits an individual Cars.com property on an individual device/browser combination or installs one of its mobile apps on an individual device. If a visitor accesses more than one of its 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.
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
ir@carscommerce.inc
408.768.6847
Cars Commerce Media Contact:
Marita Thomas
mthomas@carscommerce.inc
312.601.5692
Cars.com Inc | |||
Consolidated Statements of Income | |||
(In thousands, except per share data) | |||
(Unaudited) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Revenue: | |||
Dealer | $ 159,144 | $ 161,815 | |
OEM and National | 16,279 | 15,307 | |
Other | 3,601 | 3,054 | |
Total revenue | 179,024 | 180,176 | |
Operating expenses: | |||
Cost of revenue and operations | 30,939 | 29,962 | |
Product and technology | 28,478 | 28,085 | |
Marketing and sales | 60,225 | 59,163 | |
General and administrative | 25,883 | 22,857 | |
Depreciation and amortization | 27,039 | 27,365 | |
Total operating expenses | 172,564 | 167,432 | |
Operating income | 6,460 | 12,744 | |
Nonoperating expenses: | |||
Interest expense, net | (7,668) | (8,321) | |
Other expense, net | (25) | (3,603) | |
Total nonoperating expense, net | (7,693) | (11,924) | |
(Loss) income before income taxes | (1,233) | 820 | |
Income tax expense | 780 | 36 | |
Net (loss) income | $ (2,013) | $ 784 | |
Weighted-average common shares outstanding: | |||
Basic | 64,467 | 66,318 | |
Diluted | 64,467 | 67,291 | |
(Loss) earnings per share: | |||
Basic | $ (0.03) | $ 0.01 | |
Diluted | (0.03) | 0.01 | |
Cars.com Inc | |||
Consolidated Balance Sheets | |||
(In thousands, except per share data) | |||
March 31, 2025 | December 31, 2024 | ||
(unaudited) | |||
Assets: | |||
Current assets: | |||
Cash and cash equivalents | $ 31,435 | $ 50,673 | |
Accounts receivable, net | 130,973 | 133,741 | |
Prepaid expenses | 11,931 | 13,782 | |
Other current assets | 8,391 | 16,134 | |
Total current assets | 182,730 | 214,330 | |
Property and equipment, net | 36,517 | 40,704 | |
Goodwill | 165,248 | 143,279 | |
Intangible assets, net | 571,006 | 585,690 | |
Deferred tax assets | 101,259 | 100,530 | |
Investments and other assets, net | 26,923 | 27,332 | |
Total assets | $ 1,083,683 | $ 1,111,865 | |
Liabilities and stockholders' equity: | |||
Current liabilities: | |||
Accounts payable | $ 29,415 | $ 33,498 | |
Accrued compensation | 28,212 | 36,295 | |
Other accrued liabilities | 53,325 | 47,092 | |
Total current liabilities | 110,952 | 116,885 | |
Noncurrent liabilities: | |||
Long-term debt, net | 455,591 | 455,288 | |
Deferred tax liabilities | 6,798 | 6,773 | |
Other noncurrent liabilities | 20,427 | 21,434 | |
Total noncurrent liabilities | 482,816 | 483,495 | |
Total liabilities | 593,768 | 600,380 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred Stock at par, | — | — | |
Common Stock at par, | 637 | 643 | |
Additional paid-in capital | 1,454,891 | 1,473,986 | |
Accumulated deficit | (963,559) | (961,546) | |
Accumulated other comprehensive loss | (2,054) | (1,598) | |
Total stockholders' equity | 489,915 | 511,485 | |
Total liabilities and stockholders' equity | $ 1,083,683 | $ 1,111,865 | |
Cars.com Inc | |||
Consolidated Statements of Cash Flows | |||
(In thousands) | |||
(Unaudited) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net (loss) income | $ (2,013) | $ 784 | |
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: | |||
Depreciation | 9,661 | 6,360 | |
Amortization of intangible assets | 17,378 | 21,005 | |
Stock-based compensation | 8,334 | 7,074 | |
Deferred income taxes | (343) | 4,426 | |
Provision for doubtful accounts | 359 | 741 | |
Amortization of debt issuance costs | 473 | 738 | |
Unrealized (gain) loss on foreign currency denominated transactions | (12) | 1,009 | |
Changes in fair value of contingent consideration | — | 2,554 | |
Other, net | 958 | 217 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 2,410 | (1,155) | |
Prepaid expenses and other assets | 970 | (5,531) | |
Accounts payable | (4,696) | 3,294 | |
Accrued compensation | (8,420) | (13,585) | |
Other liabilities | 4,396 | 5,537 | |
Net cash provided by operating activities | 29,455 | 33,468 | |
Cash flows from investing activities: | |||
Payments for acquisitions, net of cash acquired | (24,422) | — | |
Capitalization of internally developed technology | (4,984) | (5,305) | |
Purchase of property and equipment | (811) | (708) | |
Proceeds from sale of equity investment | 9,481 | — | |
Net cash used in investing activities | (20,736) | (6,013) | |
Cash flows from financing activities: | |||
Proceeds from Revolving Loan borrowings | 10,000 | — | |
Payments of Revolving Loan borrowings and long-term debt | (10,000) | (10,000) | |
Payments for stock-based compensation plans, net | (5,849) | (8,357) | |
Repurchases of common stock | (21,538) | (9,096) | |
Payments of contingent consideration | — | (7,750) | |
Net cash used in financing activities | (27,387) | (35,203) | |
Effect of exchange rate changes on Cash and cash equivalents | (570) | (87) | |
Net decrease in Cash and cash equivalents | (19,238) | (7,835) | |
Cash and cash equivalents at beginning of period | 50,673 | 39,198 | |
Cash and cash equivalents at end of period | $ 31,435 | $ 31,363 | |
Supplemental cash flow information: | |||
Cash paid for income taxes | $ 1,321 | $ 1,168 | |
Cash paid for interest | 1,164 | 2,566 | |
Cars.com Inc | |||||||
Non-GAAP Reconciliations | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Reconciliation of Net (loss) income to Adjusted EBITDA | |||||||
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Net (loss) income | $ (2,013) | $ 784 | |||||
Interest expense, net | 7,668 | 8,321 | |||||
Income tax expense | 780 | 36 | |||||
Depreciation and amortization | 27,039 | 27,365 | |||||
Stock-based compensation, including related payroll tax expense | 8,703 | 7,950 | |||||
Transaction-related and other one-time items | 8,519 | 7,169 | |||||
Non-operating foreign exchange loss | 25 | 1,048 | |||||
Adjusted EBITDA | $ 50,721 | $ 52,673 | |||||
Reconciliation of Net (loss) income to Adjusted Net income | |||||||
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Net (loss) income | $ (2,013) | $ 784 | |||||
Stock-based compensation, including related payroll tax expense | 8,703 | 7,950 | |||||
Amortization of intangible assets | 17,378 | 21,005 | |||||
Transaction-related items | 2,930 | 6,143 | |||||
Non-operating foreign exchange loss | 25 | 1,048 | |||||
Other one-time items | 5,589 | 1,026 | |||||
Income tax impact of adjustments | (8,656) | (9,293) | |||||
Adjusted net income | $ 23,956 | $ 28,663 | |||||
Adjusted net income per share, diluted | $ 0.37 | $ 0.43 | |||||
Weighted-average common shares outstanding, diluted* | 65,137 | 67,291 | |||||
* Weighted-average common shares outstanding, diluted, includes shares excluded from GAAP loss per | |||||||
Reconciliation of Net cash provided by operating activities to Free cash flow | |||||||
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Net cash provided by operating activities | $ 29,455 | $ 33,468 | |||||
Capitalization of internally developed technology | (4,984) | (5,305) | |||||
Purchase of property and equipment | (811) | (708) | |||||
Free cash flow | $ 23,660 | $ 27,455 | |||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended March 31, 2025: | |||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | ||||
Cost of revenue and operations | $ 30,939 | $ — | $ (178) | $ 30,761 | |||
Product and technology | 28,478 | — | (2,513) | 25,965 | |||
Marketing and sales | 60,225 | (41) | (2,187) | 57,997 | |||
General and administrative | 25,883 | (8,478) | (3,825) | 13,580 | |||
Depreciation and amortization | 27,039 | — | — | 27,039 | |||
Total operating expenses | $ 172,564 | $ (8,519) | $ (8,703) | $ 155,342 | |||
Total nonoperating expense, net | $ (7,693) | $ 25 | $ — | $ (7,668) | |||
(1) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit | |||||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended March 31, 2024: | |||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | ||||
Cost of revenue and operations | $ 29,962 | $ — | $ (329) | $ 29,633 | |||
Product and technology | 28,085 | — | (2,781) | 25,304 | |||
Marketing and sales | 59,163 | (44) | (1,221) | 57,898 | |||
General and administrative | 22,857 | (4,570) | (3,619) | 14,668 | |||
Depreciation and amortization | 27,365 | — | — | 27,365 | |||
Total operating expenses | $ 167,432 | $ (4,614) | $ (7,950) | $ 154,868 | |||
Total nonoperating expense, net | $ (11,924) | $ 3,603 | $ — | $ (8,321) | |||
(1) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit | |||||||
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SOURCE Cars Commerce
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