Quarterly ResultMay 7, 2026, 07:47 AM
Cars.com Q1 Net Income $5.0M; Revenue $180.2M; Buyback Target Up
AI Summary
Cars.com Inc. reported strong first-quarter 2026 financial results, with revenue growing 1% year-over-year to $180.2 million, meeting guidance. The company achieved a significant turnaround in net income, reaching $5.0 million compared to a net loss in the prior year, and Adjusted EBITDA grew 1% to $51.0 million, exceeding margin guidance. Reflecting confidence and commitment to shareholder returns, Cars.com also increased its 2026 share repurchase target by 50% to $90 million and announced significant cost reduction initiatives.
Key Highlights
- Net income increased to $5.0 million from a net loss of ($2.0) million year-over-year.
- Revenue grew 1% year-over-year to $180.2 million, in line with guidance.
- Adjusted EBITDA increased 1% year-over-year to $51.0 million, with a 28.3% margin.
- Net cash provided by operating activities rose to $39.8 million from $29.5 million.
- Share repurchase target for 2026 increased to $90 million, up 50%.
- Cost reductions are expected to yield $25-30 million in annualized savings by 2027.
- Q2 2026 revenue is projected to be flat to up 2% year-over-year.
- Full year 2026 Adjusted EBITDA margin guidance reaffirmed at 29.0% to 30.0%.