Cars.com Inc. (CARS) shares surged 8.07% in pre-market trading on Thursday, following the release of the company's impressive third-quarter 2025 financial results. The online automotive marketplace operator significantly outperformed analyst expectations, driving investor enthusiasm.
The company reported adjusted earnings per share of $0.48, substantially beating the analyst consensus estimate of $0.15. Revenue for the quarter came in at $182 million, slightly above the expected $181.4 million. This represents a 1.1% year-over-year increase from $179.7 million in 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. 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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