$CARS

Cars.com Inc.

CIK:0001683606|SEC Filings

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 179,934	$ 178,739	$ 360,157	$ 357,763
Operating expenses:
Cost of revenue and operations	30,285	30,605	62,026	62,088
Product and technology	26,687	29,417	58,182	60,035
Marketing and sales	60,737	58,067	122,555	120,607
General and administrative	17,006	20,531	38,824	41,416
Depreciation and amortization	17,343	24,873	34,061	51,912
Total operating expenses	152,058	163,493	315,648	336,058
Operating income	27,876	15,246	44,509	21,705
Nonoperating expenses:
Interest expense, net	(7,397)	(7,644)	(14,628)	(15,312)
Other (expense) income, net	(953)	2,366	(1,639)	2,342
Total nonoperating expense, net	(8,350)	(5,278)	(16,267)	(12,970)
Income before income taxes	19,526	9,968	28,242	8,735
Income tax expense	5,263	2,959	9,001	3,739
Net income	$ 14,263	$ 7,009	$ 19,241	$ 4,996
Weighted-average common shares outstanding:
Basic	55,871	63,163	57,453	63,859
Diluted	56,652	63,842	58,130	64,476
Net income per share:
Basic	$ 0.26	$ 0.11	$ 0.33	$ 0.08
Diluted	$ 0.25	$ 0.11	$ 0.33	$ 0.08
Dealer
Revenue:
Total revenue	$ 163,348	$ 158,477	$ 326,355	$ 317,621
OEM and National
Revenue:
Total revenue	13,641	16,637	27,920	32,916
Other
Revenue:
Total revenue	$ 2,945	$ 3,625	$ 5,882	$ 7,226

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 19,241	$ 4,996
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation	12,985	17,076
Amortization of intangible assets	21,076	34,836
Stock-based compensation	14,478	15,013
Deferred income taxes	7,250	1,158
Provision for doubtful accounts	1,356	957
Amortization of debt issuance costs	950	950
Unrealized loss (gain) on foreign currency denominated transactions	1,543	(2,474)
Other, net	819	1,439
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(12,968)	795
Prepaid expenses and other assets	5,498	1,193
Accounts payable	5,380	(2,475)
Accrued compensation	(23,630)	(14,570)
Other liabilities	1,642	(3,211)
Net cash provided by operating activities	55,620	55,683
Cash flows from investing activities:
Payments for acquisitions, net of cash acquired	0	(24,769)
Capitalization of internally developed technology	(11,314)	(10,494)
Purchase of property and equipment	(809)	(3,342)
Proceeds from sale of equity investment	0	9,481
Net cash used in investing activities	(12,123)	(29,124)
Cash flows from financing activities:
Proceeds from Revolving Loan borrowings	0	10,000
Payments of Revolving Loan borrowings	(5,000)	(10,000)
Payments for stock-based compensation plans, net	(3,791)	(4,699)
Repurchases of common stock	(57,466)	(44,644)
Net cash used in financing activities	(66,257)	(49,343)
Effect of exchange rate changes on Cash and cash equivalents	(189)	(185)
Net decrease in Cash and cash equivalents	(22,949)	(22,969)
Cash and cash equivalents at beginning of period	56,236	50,673
Cash and cash equivalents at end of period	33,287	27,704
Supplemental cash flow information:
Cash (received) paid for income taxes	(1,927)	2,088
Cash paid for interest	$ 14,721	$ 15,067

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 33,287	$ 56,236
Accounts receivable, net	143,132	131,945
Prepaid expenses	12,881	15,491
Other current assets	5,668	7,920
Total current assets	194,968	211,592
Property and equipment, net	34,151	35,223
Goodwill	165,794	167,207
Intangible assets, net	505,049	527,082
Deferred tax assets, net	81,183	88,594
Investments and other assets, net	31,293	32,720
Total assets	1,012,438	1,062,418
Current liabilities:
Accounts payable	33,048	27,749
Accrued compensation	15,238	38,074
Other accrued liabilities	49,352	47,564
Total current liabilities	97,638	113,387
Noncurrent liabilities:
Long-term debt, net	447,125	451,516
Deferred tax liabilities, net	5,866	6,241
Other noncurrent liabilities	18,204	18,744
Total noncurrent liabilities	471,195	476,501
Total liabilities	568,833	589,888
Commitments and contingencies
Stockholders' equity:
Preferred Stock at par, $0.01 par value; 5,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	0	0
Common Stock at par, $0.01 par value; 300,000 shares authorized; 53,926 and 58,636 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	539	586
Additional paid-in capital	1,367,045	1,413,994
Accumulated deficit	(922,253)	(941,494)
Accumulated other comprehensive loss	(1,726)	(556)
Total stockholders' equity	443,605	472,530
Total liabilities and stockholders' equity	$ 1,012,438	$ 1,062,418