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Second Quarter 2026 Earnings August 6 , 2026 cars.com
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Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as “believe,” “expect,” “project,” “anticipate,” “outlook,” “intend,” “strategy,” “plan,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” “mission,” “strive,” “more,” “goal” or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control. Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see “Part I, Item 1A., Risk Factors” and “Part II, Item 7., Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.
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Forward-Looking Statements This presentation discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company’s performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company’s credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company’s lenders, securities analysts, investors and other interested parties to evaluate companies in the Company’s industry. For a reconciliation of the non-GAAP measures presented in this earnings release to their most directly comparable financial measure prepared in accordance with GAAP, see "Non-GAAP Reconciliations" below. Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below. We define Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets. Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the AccuTrade acquisition. We define Adjusted Net Income as GAAP net income (loss) excluding, net of their related tax effects: (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (4) unrealized foreign currency exchange gains and losses, and (5) certain other items, such as transaction-related costs, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets. We define Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology. We define Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.
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Continued Revenue and Adj. EBITDA Growth Revenue ($MM) Adj. EBITDA ($MM) & Margin (% Revenue) Revenue +1% YoY Growth in line with guidance range Adj. EBITDA Margin up ~100 bps YoY Adj. EBITDA +4% YoY Q2’25 Q2’26 Q2’25 Q2’26 Dealer Revenue ($MM)& Dealer Count Dealer Revenue +3% YoY Marketplace revenue up over 7% YoY, highest growth since 2021 Q2’25 Q2’26 $179 $180 19,34319,412 $158 $163 29.4% 28.5% $51 $53
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Building an Interconnected Marketplace Laying a stronger foundation in 2026 to support long-term growth strategy Interconnectivity Trust • Speed • Data Dealers & OEMs SeekersSellers Cost efficiency Process and organizational improvements Accelerating product innovation
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Focused Strategy Drove Marketplace Revenue Growth of Over 7% YoY Dealer Verified Listings provide proprietary Marketplace trust signals Carson users driving nearly 30% of total leads submitted1 Speeding product development velocity Delivering strong customer value organic traffic mix in Q2, showing brand strength most cited public automotive marketplace by leading LLMs2 ~60% #1 Double digitlead conversion improvement YoY 1. Cars.com data, June 2026 2. Aggregated citation volume across ChatGPT, Google AI Overviews, Google AI Mode, and Google Gemini. Comparing Cars.com, Edmunds, Autotrader, CarGurus, KBB, Carfax, TrueCar, Carvana, and Carmax. Semrush, June 2026.
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● Q2 revenue of $179.9MM grew 1% YoY, in line with guidance of flat to 2% YoY growth ● Dealer revenue was up 3% YoY, driven by Marketplace revenue growth of over 7% YoY that reflects robust value delivery and increased customer adoption ● OEM & National revenue was down (18%) YoY, reflecting expected pressures in OEM advertising spend Revenue Driven by Strong Dealer Marketplace Growth Quarterly Revenue ($MM) (2%) YoY +6% YoY (1%) YoY +5% YoY +2% YoY (5%) YoY +3% YoY (9%) YoY OtherOEM/NationalDealer (12%) YoY +2% YoY (18%) YoY +3% YoY
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ARPD rose 3% YoY from positive Marketplace contribution, partially offset by decline in media products Average Revenue Per Dealer Stable Dealer Count and Rising ARPD $2,500 Dealer Customers 19,343 Marketplace dealers grew YoY and QoQ Solutions dealers were down YoY and QoQ, primarily due to lower Dealer Inspire website subscriptions (0%) YoY +3% YoY
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Website Customers ~7,590 AccuTrade Connected Subscriptions & Appraisals ~1,040 Solutions Adoption Slightly Down in Q2 Accelerating website product development velocity Focused on increasing package value Beginning to amplify the value of trade and appraisal solutions through Marketplace integration (3%) YoY (3%) YoY
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● Operating expenses declined (7%) YoY ● Adjusted operating expenses were down (6)% YoY, benefiting from lower depreciation and amortization and operating efficiencies across the organization ● Adjusted EBITDA of $53 million was up 4% YoY, outpacing revenue growth ● Adjusted EBITDA margin of 29.4% outperformed guidance range of 28% - 29% +2% Y o Y (5%) Y o Y +3% Y o Y (9%) Y o Y (12%) Y o Y +2% Y o Y Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) Adj EBITDA Margin Exceeded Guidance for Second Consecutive Quarter
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Repurchased 6.2 million shares for $57.3 million through June 30, 2026 Deployed ~132% of Free Cash Flow for year-to-date share repurchases FY26 share repurchase target remains at $90MM Free Cash Flow ($MM) Share Repurchase ($MM) Cash Flow Generation Remains Strong
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● Revenue: Flat to 2% YoY growth ● Adjusted EBITDA margin: 29% to 30% REAFFIRM FULL YEAR 2026 OUTLOOK Outlook ● Revenue: Flat to 2% YoY growth ● Adjusted EBITDA margin: 28.5% to 29.5% Q3 2026 OUTLOOK ● Reaffirming $90 million target 2026 SHARE REPURCHASE TARGET
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Q&A
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Appendix NON-GAAP RECONCILIATIONS
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1. UVs and Traffic are measured via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Media, or DealerClub websites. 2. Dealer Customers does not include DealerClub active users. 3. ARPD is defined as Dealer revenue, excluding digital advertising services and DealerClub, during the period divided by the monthly average number of Dealer Customers during the same period. Q2 2026 Q2 2025 AVERAGE MONTHLY UNIQUE VISITORS1 22.8 MM 26.6 MM TRAFFIC (VISITS)1 143.0 MM 162.0 MM DEALER CUSTOMERS2 19,343 19,412 MONTHLY ARPD3 $2,500 $2,435 Quarterly Key Operating Metrics
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Non-GAAP Reconciliations (UNAUDITED AND IN THOUSANDS)
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Non-GAAP Reconciliations (UNAUDITED AND IN THOUSANDS)
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Non-GAAP Reconciliations (UNAUDITED AND IN THOUSANDS)
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Non-GAAP Reconciliations (UNAUDITED AND IN THOUSANDS)