# Cars.com Inc. (CARS)

> Source: Nexqual · https://nexqual.com/CARS · data as of 2026-10-29 20:00 UTC · cite as "Nexqual, Cars.com Inc. (CARS), nexqual.com/CARS" · informational, not investment advice.

**Price:** USD 11.41 (+4.30% on the day) · last close of Oct 29, 2026; US market closed, not a live price. Prev close 10.94 · day 10.61–11.47 · 52w 7.4–13.69 · market cap $611M · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $726M, net income $34.3M (4.7% margin), free cash flow $150M (SEC filings).
- Valuation: P/E 17.8x (avg 24.5x at the last 3 fiscal year-ends), EV/EBITDA 6.5x, net debt $414M.
- Earnings quality: non-operating income -$29.2M vs operating income $83.1M over the last four quarters; P/E excluding non-operating income ≈11.5x (estimate: non-operating income taxed at the company's 35% effective rate).
- Insider open-market sales, last ~7 months: 3 Form 4 filings, $1.6M; 3 not under a Rule 10b5-1 plan ($1.6M); 1 by opportunistic insiders (1 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 2.67 on a 1–5 scale) (6 analysts), mean target USD 13.33 (range 11–17.5).
- Total return with dividends: 1Y +3.1% vs S&P 500 +14.8%; 5Y -12.4% vs S&P 500 +79.1%.
- Next earnings: 2026-11-05, EPS estimate USD 0.54, revenue estimate $183M. All companies reporting that day: https://nexqual.com/earnings/2026-11-05
- Dividend: CARS paid no cash dividend in the last five years.
- Short interest: 19.52% of float (as of 2026-10-15), 10.5 days to cover.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $624M | $654M | $689M | $719M | $723M | $726M |
| Operating income | $48.3M | $66.0M | $54.1M | $53.5M | $60.3M | $83.1M |
| Net income | $10.8M | $17.2M | $118M | $48.2M | $20.1M | $34.3M |
| EPS (diluted) | $0.15 | $0.25 | $1.74 | $0.72 | $0.32 | — |
| Free cash flow | $137M | $127M | $135M | $150M | $147M | $150M |
| Operating margin | 7.8% | 10.1% | 7.9% | 7.4% | 8.3% | 11.4% |
| Net margin | 1.7% | 2.6% | 17.2% | 6.7% | 2.8% | 4.7% |
| Revenue growth | +13.9% | +4.8% | +5.4% | +4.3% | +0.6% | — |
| Cash + short-term investments | $39.1M | $31.7M | $39.2M | $50.7M | $56.2M | — |
| Total debt | $478M | $481M | $490M | $460M | $455M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 17.8x · P/E ex non-operating (est.) ≈11.5x · P/S 0.8x · EV/EBITDA 6.5x · EV/Sales 1.4x · P/FCF 4.1x · P/B 1.4x · FCF yield 24.53% · Earnings yield 5.62% · Buyback yield (TTM) 16.33% · Net debt $414M · EV $1.02B
P/E at fiscal year-ends: Dec 2025 38.5x, Dec 2024 24.2x, Dec 2023 10.9x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 3 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-20 | McGovern Jr. Donald A. | Director | 8,000 | $98K | 7.2% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-08-17 | Marks Angelique Strong | Chief Legal Officer | 57,980 | $692K | 27.9% | No | Too little history (no open-market trades in 2025) |
| 2026-06-11…2026-06-12 | Jain Sonia | Chief Financial Officer | 86,600 | $826K | 21.7% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 2.67 on a 1–5 scale), 6 analysts; mean target USD 13.33 (low 11, high 17.5).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-07 | UBS | Target lowered | Neutral | $13 → $11.5 |
| 2026-08-07 | UBS | Target raised | Neutral | $12 → $13 |
| 2026-08-06 | BTIG | Reiterated | Buy | $14 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-30) | 5Y (from 2021-10-25) |
|---|---|---|
| Total return | +3.1% | -12.4% |
| S&P 500 (SPY) | +14.8% | +79.1% |
| Per year | +3.1% | -2.6% |
| Volatility (annualized) | 46.1% | 43.5% |
| Max drawdown | -43.9% (Dec 2025→Mar 2026) | -66.3% (Jul 2023→Mar 2026) |

## Dividends
CARS paid no cash dividend in the last five years.

## Short interest
8,249,065 shares sold short, 19.52% of the float, as of Oct 15, 2026 (exchange short-interest report, published about twice a month). Prior report (Sep 15, 2026): 7,082,670 shares (+16.5%). Days to cover: 10.5 (short shares ÷ average daily volume).

## Peers (Internet Content & Information)
UPWK (Upwork Inc.) USD 9.12 +1.33% · WBTN (WEBTOON Entertainment Inc.) USD 9.53 +0.11% · WB (Weibo Corporation) USD 6.3 +1.94% · OPRA (Opera Limited) USD 17.37 -6.81% · DJT (Trump Media & Technology Group ) USD 5.78 -3.18% · GENI (Genius Sports Limited) USD 6.46 +1.73%

## More
Full page: https://nexqual.com/CARS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Company outlook (8-K filed 2026-08-06)

- "Third Quarter 2026 • Revenue is expected to be flat to up 2% year-over-year, driven by continued Dealer revenue growth and Marketplace improvement."
- "OEM and National revenue is expected to reflect ongoing pressure in OEM advertising investment. • Adjusted EBITDA margin is expected to be between 28.5% and 29.5%, reflecting continued operating efficiencies and cost savings."
- "Full Year 2026 The Company reaffirms its full year 2026 guidance: • Revenue is expected to be flat to up 2% year-over-year • Adjusted EBITDA margin is expected to be between 29.0% to 30.0% Q2 2026 Earnings Call As previously announced, management will hold a conference call and webcast today at 8:00 a.m."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.54 | $0.58 | -7.6% | $183.0M | 4 |
| Next quarter (ends 2026-12-31) | $0.59 | $0.63 | -7.1% | $185.6M | 4 |
| Current fiscal year (ends 2026-12-31) | $2.00 | $2.12 | -5.7% | $728.8M | 4 |
| Next fiscal year (ends 2027-12-31) | $2.34 | $2.52 | -7.2% | $744.5M | 4 |

## Earnings history and stock reaction
| Results filed | Quarter | EPS | Consensus | Surprise | Stock reaction |
|---|---|---|---|---|---|
| — | Quarter ended Jun 30, 2026 | $0.51 | $0.51 | In line | — |
| — | Quarter ended Mar 31, 2026 | $0.45 | $0.46 | Miss −2.2% | — |
| — | Quarter ended Dec 31, 2025 | $0.44 | $0.55 | Miss −20.0% | — |
| — | Quarter ended Sep 30, 2025 | $0.48 | $0.49 | Miss −2.0% | — |
EPS as reported against the analyst consensus before the release; surprise uses the cent-rounded figures shown (in dollars when EPS and consensus have opposite signs). Stock reaction = close before the results to close after (the first close following a release after the bell or before the open).

## Recent SEC filings (last 120 days)
| Filed | Form | What it says | Filing |
|---|---|---|---|
| 2026-10-08 | Schedule 13G/A | Dimensional Fund Advisors LP: 6.7% of shares, passive 5%+ holder (amended) | https://www.sec.gov/Archives/edgar/data/1683606/000035420426001031/0000354204-26-001031-index.htm |
| 2026-09-30 | 8-K | Director or executive officer change, or pay arrangement; Regulation FD disclosure — “Departure of Sonia Jain as Chief Financial Officer Cars.com Inc. (the "Company") is reporting that, as of September 24, 2026, Sonia Jain, the Company's Chief Financial Officer, will cease to serve as Chief Financial Officer effective November 6, 2026, and in order to ensure an orderly transition, will continue to be employed as an Executive Advisor of the Company until March 31, 2027 (the "Transition Period"). During the Transition Period, Ms. Jain will receive $250,000 and remain eligible for customary employee…” | https://www.sec.gov/Archives/edgar/data/1683606/000119312526409040/0001193125-26-409040-index.htm |
| 2026-08-06 | 10-Q | Quarterly report · period ended Jun 30, 2026 | https://www.sec.gov/Archives/edgar/data/1683606/000119312526337949/0001193125-26-337949-index.htm |
| 2026-08-06 | 8-K | Quarterly results | https://www.sec.gov/Archives/edgar/data/1683606/000119312526336773/0001193125-26-336773-index.htm |
Source: SEC EDGAR. Quotes are the opening words of each item as filed.