Cars.com Inc. (CARS) shares skyrocketed 14.12% in pre-market trading on Thursday following the release of the company's exceptional third-quarter 2025 financial results. The online automotive marketplace operator significantly outperformed analyst expectations, driving investor enthusiasm and pushing the stock to new heights.
The company reported adjusted earnings per share of $0.48, substantially beating the analyst consensus estimate of $0.15 by an impressive 220%. Revenue for the quarter came in at $181.573 million, slightly above the expected $181.434 million, representing a 1.07% increase compared to the same period last year. Cars.com's net income for the quarter was $7.7 million, while adjusted EBITDA reached $54.6 million.
Cars.com's strong performance was attributed to several factors, including the success of its marketplace repackaging strategy, which boosted Premium subscribers by 60% year-over-year. The company also saw positive results from its AI-powered features, with the Carson AI search doubling vehicle listing views. Additionally, dealer revenue grew by 2% year-over-year, with the company's dealer customer base increasing by 271 to 19,526. Looking ahead, Cars.com reaffirmed its full-year adjusted EBITDA margin guidance of 29% to 31% and continues to anticipate low-single digit revenue growth for the second half of 2025. The company remains on track with its share repurchase program, having bought back $64 million in stock year-to-date, aligning with its $70 to $90 million target for the full year.
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