10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-37869

Cars.com Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware	81-3693660
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

300 S. Riverside Plaza, Suite 1100

Chicago, Illinois 60606

(Address of principal executive offices)

(312) 601-5000

Registrant’s telephone number, including area code


Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock	CARS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 1, 2025, the registrant had 62,886,695 shares of common stock, $0.01 par value per share, outstanding.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION	2
Item 1.	Financial Statements:	2
	Consolidated Balance Sheets	2
	Consolidated Statements of (Loss) Income	3
	Consolidated Statements of Comprehensive (Loss) Income	4
	Consolidated Statements of Stockholders’ Equity	5
	Consolidated Statements of Cash Flows	6
	Notes to the Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
PART II.	OTHER INFORMATION	22
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24
Signatures		25

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

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, $0.01 par value; 5,000 shares authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		—			—
Common Stock at par, $0.01 par value; 300,000 shares authorized; 63,710 and 64,391 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		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

The accompanying notes are an integral part of the Consolidated Financial Statements.

Cars.com Inc.

Consolidated Statements of (Loss) 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

The accompanying notes are an integral part of the Consolidated Financial Statements.

Cars.com Inc.

Consolidated Statements of Comprehensive (Loss) Income

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2025			2024
Net (loss) income	$	(2,013	)	$	784
Other comprehensive loss, net of tax:
Foreign currency translation adjustments		(456	)		(738	)
Total other comprehensive loss, net of tax		(456	)		(738	)
Comprehensive (loss) income	$	(2,469	)	$	46

The accompanying notes are an integral part of the Consolidated Financial Statements.

Cars.com Inc.

Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)


	Preferred Stock				Common Stock				Additional Paid-In		Accumulated			Accumulated Other Comprehensive			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Loss			Equity
Balance at December 31, 2024		—	$	—		64,391	$	643	$	1,473,986	$	(961,546	)	$	(1,598	)	$

SEC Form 10-Q filed by Cars.com Inc.