Cars.com Inc. (NYSE:CARS) released its third-quarter financial results for the period ended September 30, 2026, reporting net income of $16.3 million and Adjusted EBITDA of $55.8 million on revenue of $181.9 million.

Key Highlights

  • Revenue: $181.9 million for Q3 2026, up slightly year-over-year from $181.6 million.
  • Net income: $16.3 million, up 113% year-over-year, or $0.30 per diluted share versus $0.12 in the prior-year period.
  • Adjusted EBITDA: $55.8 million, representing a 30.7% margin, which the company disclosed outperformed its guidance range by 120 basis points.
  • Share repurchases: 1.4 million shares for $16 million in Q3; 7.6 million shares for $74 million year-to-date through September 30, 2026, representing over 12% of common shares outstanding as of prior year-end.
  • Marketplace revenue: Up 5% year-over-year, with Premium+ package adoption reaching 12% for the quarter.
  • New self-service offering: The Marketplace Starter package was adopted by nearly 400 independent dealers.
  • Total debt: Reduced to $445.0 million after a $5 million repayment during the quarter; total liquidity stood at $369.6 million as of September 30, 2026.

Cars.com Q3 2026 Financial Results: Marketplace Growth and Cost Efficiency Drive Earnings Gains

According to the filing, revenue for the third quarter was $181.9 million, with Subscription-based Dealer revenue of $163.4 million up 1% year-over-year. OEM and National revenue of $15.7 million was down 3% year-over-year but up 15% quarter-over-quarter, which the company attributed to sequential recovery in OEM advertising. Total operating expenses were $153.0 million, down 7% year-over-year from $164.8 million, driven by cost management in General and Administrative and Sales and Marketing expense categories.

The company reported net income of $16.3 million, or $0.30 per diluted share, compared to $7.7 million, or $0.12 per diluted share, in the year-ago period. Adjusted net income was $32.3 million, or $0.58 per diluted share, versus $30.4 million, or $0.48 per diluted share a year ago. Adjusted EBITDA of $55.8 million represented 30.7% of revenue, compared to $54.6 million and 30.1% of revenue in the prior-year quarter. According to the filing, the company reaffirms its full year 2026 guidance, with revenue expected to be flat to up 2% year-over-year and Adjusted EBITDA margin expected between 29.0% and 30.0%.

On the balance sheet, the company reported cash and cash equivalents of $64.6 million and revolver capacity of $305.0 million as of September 30, 2026. Free cash flow for the nine months ended September 30, 2026 totaled $97.3 million, compared to $94.5 million in the prior year. Approximately $100.2 million remains available under the current share repurchase authorization, which the filing states expires in February 2028. The company also disclosed the appointment of Mausam Bhatt as Chief Product Officer during the quarter.

What Was Disclosed

Cars.com disclosed Q3 2026 earnings results showing net income of $16.3 million and Adjusted EBITDA of $55.8 million, alongside updated details on share repurchases, debt levels, liquidity, and a reaffirmation of full year 2026 guidance.