Cars.com Reports FY 2025 Revenue Amid Declining Net Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Source: seekingalpha
Cars.com Inc. saw its stock price drop by 15.64% as it crossed below the 5-day SMA, reflecting investor concerns amid broader market declines.
The company reported $723 million in revenue for FY 2025, a modest 1% increase year-over-year, driven by dealer growth and marketplace product repackaging. However, net income fell sharply by 58% to $20.1 million, raising concerns about profitability stability. The company also repurchased 7.1 million shares for $86 million, indicating a commitment to shareholder value despite the challenges faced in the competitive automotive market.
This performance highlights the ongoing pressures within the automotive sector, as Cars.com navigates a decline in marketplace activity while attempting to maintain revenue growth through strategic initiatives.
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Analyst Views on CARS
Wall Street analysts forecast CARS stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 11.400
Low
16.00
Averages
19.33
High
25.00
Current: 11.400
Low
16.00
Averages
19.33
High
25.00
About CARS
Cars.com Inc. is an audience-powered and data-driven technology platform for buying and selling cars. Its Cars.com marketplace connects consumers to dealerships across the United States, powering the car buying experience with artificial intelligence (AI) shopping tools and vehicle reviews and content. Its interconnected ecosystem of products enables dealers and original equipment manufacturers (OEMs) to sell more cars by leveraging its marketplace, dealer websites, trade and appraisal tools and in-market media solutions. Its platform provides local dealers, OEMs, dealer groups and auto-adjacent companies with a variety of digital and media solutions to improve marketing and operations. It enables dealers and OEMs to professionally merchandise inventory to shoppers. It offers dealers with packages that include reputation management technology and digital financing tools, with additional functionality like media solutions for upper-tier packages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Toyota and Honda Dominance: Among the 10 models, Toyota accounted for four, with the cheapest being the Toyota Corolla LE at $24,420, followed by the Honda Civic LX at $25,890, reflecting the competitive edge these brands hold in the economy car segment.
- Consumer Willingness Survey: A Cars.com survey revealed that 57% of respondents would pay more for vehicles that create U.S. jobs, while 42% indicated that tariffs made them more likely to seek American-made vehicles, highlighting a growing consumer focus on domestic manufacturing.
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- Economic Contribution Assessment: The index evaluated over 350 vehicles to identify 86 that contribute most to the U.S. economy, emphasizing the importance of American manufacturing and providing consumers with options that support the domestic economy.
- Toyota's Dominance: Toyota excels in the affordable segment with four models listed, including the Corolla LE at $24,420, making it the cheapest American-made vehicle, showcasing Toyota's competitive edge in the market.
- Consumer Willingness Survey: A Cars.com survey indicates that 57% of respondents are willing to pay more for vehicles that create U.S. jobs, reflecting a strong consumer desire to support American manufacturing, especially significant as the nation celebrates its 250th anniversary.
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- Significant Tariff Impact: Following the implementation of tariffs in 2025, the number of vehicles on the 2026 American-Made Index has decreased to 86 from 99 in 2025, demonstrating the ongoing impact of tariffs on the automotive market and consumer purchasing decisions.
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- Decline in EV Proportion: The share of electrified vehicles in the American-Made Index has decreased from 30% to 24%, reflecting the impact of the phasing out of the federal EV tax credit and prompting automakers to reassess their electrification strategies.
- Significant Tariff Impact: Following the implementation of tariffs in 2025, the number of vehicles in the 2026 American-Made Index has dropped from 99 to 86, demonstrating the ongoing effects of tariffs on automakers' product lines and pricing strategies, while consumer interest in American-made vehicles is rising.
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Three Profitable Stocks to Avoid
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- Timken Earnings Decline: Timken's GAAP operating margin stands at 12.1%, but its earnings per share have dipped by 8.6% annually over the past two years, indicating a decline in profitability and diminishing returns on capital, suggesting a need for strategic adjustments or M&A to catalyze faster growth.
- Borr Drilling Cash Flow Concerns: Borr Drilling boasts a GAAP operating margin of 29.3%, yet its revenue base of $1.05 billion has not achieved the economies of scale enjoyed by larger industry players, and cash burn raises questions about its long-term sustainable growth, with a stock price of $4.35 implying a staggering 187.9x forward P/E ratio.
- Market Opportunity Analysis: While these companies are currently profitable, their growth challenges and potential risks warrant caution from investors, who should seek alternative investment opportunities with greater growth potential.
See More
2026 American-Made Index Lists Lowest-Priced Vehicles
- Lowest-Priced Vehicle List: Cars.com published its 2026 American-Made Index, identifying 10 models with starting prices below $35,000, despite the average new vehicle price exceeding $50,000, indicating a strong market demand for affordable vehicles.
- Toyota and Honda Dominance: Among the 10 models, Toyota accounted for four, with the cheapest being the Toyota Corolla LE at $24,420, followed by the Honda Civic LX at $25,890, reflecting the competitive edge these brands hold in the economy car segment.
- Consumer Willingness Survey: A Cars.com survey revealed that 57% of respondents would pay more for vehicles that create U.S. jobs, while 42% indicated that tariffs made them more likely to seek American-made vehicles, highlighting a growing consumer focus on domestic manufacturing.
- American-Made Truck Performance: Additionally, the Hyundai Santa Cruz SE, starting at $31,350, was noted as the lowest-priced American-made truck, further emphasizing consumer demand for cost-effective domestic products.
See More
2026 American-Made Index Highlights Affordable Vehicles
- Affordable Models: Cars.com's 2026 American-Made Index reveals 10 American-made vehicles starting as low as $24,420, significantly below the current average new car price of $50,000, catering to budget-conscious consumers.
- Economic Contribution Assessment: The index evaluated over 350 vehicles to identify 86 that contribute most to the U.S. economy, emphasizing the importance of American manufacturing and providing consumers with options that support the domestic economy.
- Toyota's Dominance: Toyota excels in the affordable segment with four models listed, including the Corolla LE at $24,420, making it the cheapest American-made vehicle, showcasing Toyota's competitive edge in the market.
- Consumer Willingness Survey: A Cars.com survey indicates that 57% of respondents are willing to pay more for vehicles that create U.S. jobs, reflecting a strong consumer desire to support American manufacturing, especially significant as the nation celebrates its 250th anniversary.
See More
2026 American-Made Vehicle Price Guide Released
- Affordable Models: Cars.com's 2026 American-Made Index reveals 10 American-made vehicles starting as low as $24,420, significantly below the current average new car price of $50,000, catering to budget-conscious consumers.
- Toyota Dominance: Toyota claims four spots on the list, with the Toyota Corolla LE priced at $24,420 as the most affordable American-made vehicle, showcasing Toyota's competitive edge in both pricing and quality.
- Sedan Value: While SUVs dominate the market, four sedans on the list offer strong American-Made Index rankings and fuel economy at lower starting prices than their SUV counterparts, appealing to value-focused shoppers.
- Consumer Willingness Survey: A Cars.com survey indicates that 57% of respondents are willing to pay more for vehicles that create U.S. jobs, reflecting strong consumer support for American manufacturing and economic impact considerations.
See More
2026 American-Made Index Revealed with 65% Foreign Automakers
- High Foreign Automaker Share: The 2026 American-Made Index features 65% of vehicles from foreign automakers, while the Detroit Three hold about one-third, highlighting the complexity and diversity of American automotive manufacturing.
- Tesla Continues to Lead: Tesla's Model 3 has been ranked as the most American-made vehicle for six consecutive years, followed by the Model Y, indicating strong performance and consumer acceptance of electric vehicles in the U.S. market.
- Significant Tariff Impact: Following the implementation of tariffs in 2025, the number of vehicles on the 2026 American-Made Index has decreased to 86 from 99 in 2025, demonstrating the ongoing impact of tariffs on the automotive market and consumer purchasing decisions.
- Decline in EV Proportion: The share of electrified vehicles in the American-Made Index has dropped from 30% to 24%, with the number of EVs nearly halving, reflecting the influence of changes in federal EV tax credit policies on the market.
See More
2026 American-Made Index Revealed by Cars.com
- High Foreign Automaker Share: The 2026 American-Made Index reveals that 65% of the vehicles are from foreign automakers, while the Detroit Three still hold about one-third of the index, highlighting the complexity and diversity of the U.S. automotive market.
- Tesla Maintains Leadership: Tesla has claimed the top spot in the American-Made Index for the sixth consecutive year, with the Model 3 and Model Y ranking first and second respectively, indicating its strong influence and consumer preference in the U.S. market.
- Decline in EV Proportion: The share of electrified vehicles in the American-Made Index has decreased from 30% to 24%, reflecting the impact of the phasing out of the federal EV tax credit and prompting automakers to reassess their electrification strategies.
- Significant Tariff Impact: Following the implementation of tariffs in 2025, the number of vehicles in the 2026 American-Made Index has dropped from 99 to 86, demonstrating the ongoing effects of tariffs on automakers' product lines and pricing strategies, while consumer interest in American-made vehicles is rising.
See More
Three Profitable Stocks to Avoid
- Cars.com Profitability Risks: With a GAAP operating margin of 9.7%, Cars.com has seen flat dealer customer numbers over the past two years, indicating a need for platform improvement or increased marketing budget, leading to a 1% annual decline in average revenue per buyer and limiting future growth potential.
- Timken Earnings Decline: Timken's GAAP operating margin stands at 12.1%, but its earnings per share have dipped by 8.6% annually over the past two years, indicating a decline in profitability and diminishing returns on capital, suggesting a need for strategic adjustments or M&A to catalyze faster growth.
- Borr Drilling Cash Flow Concerns: Borr Drilling boasts a GAAP operating margin of 29.3%, yet its revenue base of $1.05 billion has not achieved the economies of scale enjoyed by larger industry players, and cash burn raises questions about its long-term sustainable growth, with a stock price of $4.35 implying a staggering 187.9x forward P/E ratio.
- Market Opportunity Analysis: While these companies are currently profitable, their growth challenges and potential risks warrant caution from investors, who should seek alternative investment opportunities with greater growth potential.
See More
