Overview

• Car marketplace's Q4 revenue slightly beat analyst expectations

• Net income for Q4 fell 57% yr/yr due to prior period investment gain

• Company repurchased 7.1 mln shares, retiring 9% of shares outstanding

Outlook

• Company expects Q1 2026 revenue to be flat to up 1% year-over-year

• Company anticipates Q1 2026 Adjusted EBITDA margin of 26.0% to 27.0%

• Cars.com sees full-year 2026 revenue flat to up 2% year-over-year

• Company expects full-year 2026 Adjusted EBITDA margin of 29.0% to 30.0%

Result Drivers

• DEALER REVENUE GROWTH - Subscription-based dealer revenue rose 3% yr/yr, driven by marketplace and website repackaging benefits

• MARKETPLACE PREMIUM+ GROWTH - Marketplace Premium+ subscriber base more than doubled quarter-over-quarter during Q4

• OEM REVENUE DECLINE - OEM and National revenue fell 9% yr/yr, reflecting changes in OEM spending

Company press release: ID:nPn6JNVCLa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Slight Beat*	$183.90 mln	$183.45 mln (6 Analysts)
Q4 Net Income		$7.40 mln
Q4 Adjusted EBITDA		$54.90 mln
Q4 Adjusted Operating Expenses		$145.50 mln
Q4 Operating Expenses		$162.20 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Cars.com Inc is $16.00, about 49% above its February 25 closing price of $10.74

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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