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Third Quarter 2026 Earnings November 5, 2026
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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.com Inc. and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars.com Inc. 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, Adjusted net income per diluted share, 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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Stable Revenue with AEBITDA Growth Revenue ($MM) Adj. EBITDA ($MM) & Margin (% Revenue) Revenue Up Slightly YoY Growth within guidance range Adj. EBITDA Margin up ~60 bps YoY Record Adj. EBITDA was up +2% YoY Q3’25 Q3’26 Q3’25 Q3’26 Dealer Revenue ($MM) Dealer Revenue +1% YoY Marketplace revenue up 5% YoY Q3’25 Q3’26 $181.6 $181.9 19,25119,526 $162.0 $163.4 $54.6 $55.8 Dealer Customers AEBITDA Margin 30.7%30.1%
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Solid progress in 2026 Aggregate discrete annualized operating cost savings of $30 to $35 million Carson shopping assistant reached 1 MM monthly shoppers in Q3 PRODUCT DEVELOPMENT COST AND PROCESSES ORGANIZATION Cars.com MCP integration for agentic AI platforms Dealer App mobile assistant Cost reduction program initiated in April 2026 ~20% of eliminated roles were within management and executive layers Eliminated product-based silos within sales organization Approximately 11% reduction in full time roles announced in April Dealer Verified Listings launched, adding new Marketplace trust signal Launched self-service Starter offering for smaller, independent dealers Additional initiatives to align resources to Marketplace roadmap Welcomed new finance, product, and marketing executives with strong track record of scaling digital businesses and marketplaces
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Improved pricing breakdown gives consumers a better understanding of dealer fees to directly address a known consumer pain point Improved Marketplace Experience and Richer Vehicle Listings 1. Cars Verified Module 3. Pricing Transparency AI shopping assistant summarizes critical details for each unique VIN and provides a conversational entry point for deeper vehicle research Dealer-verified condition reports available only on Cars.com improve trust by helping shoppers understand the car’s true condition 2. Ask Carson™ 4. Shippable Listings Dealers with delivery services can now reach shoppers beyond their local market, with transparent and zip code-specific shipping cost estimates built directly into listings Plus 5. Vehicle Condition history 6. AI Seller Notes 7. Payment Calculator 8. Multi-lead Submit 9. Certified Pre-owned Module (not shown) 10. AI Dealer Review Summary (not shown) 1 3 2 4 5 6 7 8 Cars.com Vehicle Details Page with existing components in an illustrative design.
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Focused Execution Drove Strong Marketplace Performance New Self-Service Starter Package Delivering Strong Customer Value organic traffic mix in Q3, showing brand strength most cited public automotive marketplace by leading LLMs1 60%+ #1 ~Double digit lead volume growth YoY 1. Aggregated citation volume across ChatGPT, Google AI Overviews, Google AI Mode. Comparing Cars.com, Edmunds, Autotrader, CarGurus, KBB, Carfax, TrueCar, Carvana, and Carmax. Semrush, September 2026.
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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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● Q3 revenue of $181.9MM was up slightly YoY and up 1% QoQ ● Dealer revenue was up 1% YoY, driven by Marketplace revenue growth of 5% YoY from continued strong value delivery and customer adoption ● OEM & National revenue was down (3%) YoY and up 15% QoQ, reflecting expected sequential improvement in OEM advertising compared to Q2 Revenue Driven by Strong Dealer Marketplace Growth Quarterly Revenue ($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 (3%) YoY +1% YoY
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ARPD rose 3% YoY and reached highest level since Q3’23 Continued positive Marketplace contribution was slightly offset by decline in media products Average Revenue Per Dealer Growth in Marketplace Reach and Near-Record ARPD $2,532 Dealer Customers 19,251 Marketplace dealer customers were up YoY New self-service Marketplace Starter packages(1) scaled to 383 independent dealers since launching in June (1%) YoY +3% YoY 383 Starter Dealers(1) 1. Dealer Customers does not include Marketplace Starter packages, which are non-paid subscriptions. Dealer Customers Starter Dealers
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Website Customer Base Remains Scaled Website Subscriptions ~7,380 (6%) YoY ● Website strategy focused on product innovation, data intelligence, and increasing customer value delivery ● Ongoing integration of AI shopping tools into websites, such as natural language search, vehicle recommendations, and vehicle summaries ● AI-enabled VIN videos for dealer websites are slated to launch in Q4
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● Record Adjusted EBITDA of $56 million was up 2% YoY ● Adjusted EBITDA margin of 30.7% outperformed guidance range of 28.5% - 29.5% ● Operating expenses declined (7%) YoY ● Adjusted operating expenses were down (5)% YoY, benefiting from lower depreciation and amortization and more efficient marketing investments +2% Y o Y (5%) Y o Y +3% Y o Y (9%) Y o Y (12%) Y o Y +2% Y o Y Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) Adjusted EBITDA Margin Exceeded Guidance for Third Consecutive Quarter
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Repurchased 7.6 million shares for $73.6 million through September 30, 2026 Deployed ~80% of Free Cash Flow toward share repurchases through September 30, 2026 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 ● 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. Q3 2026 Q3 2025 AVERAGE MONTHLY UNIQUE VISITORS1 24.7 MM 25.5 MM TRAFFIC (VISITS)1 150.2 MM 156.2 MM DEALER CUSTOMERS2 19,251 19,526 MONTHLY ARPD3 $2,532 $2,460 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)