Revenue has been nearly flat (0.7% YoY in 2026Q2), but operating margin expanded to 15.5% from 8.5% a year earlier, indicating emerging operating leverage.
Cars.com Inc. (CARS) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Sales/Revenue | 725.63M | 723.24M | 719.15M | 689.18M | 653.88M | 623.68M | 547.5M | 606.68M | 662.13M | 626.26M | 633.11M | 596.51M | 495.95M |
| Revenue Growth % | 1.08% | 0.57% | 4.35% | 5.4% | 4.84% | 13.91% | -9.75% | -8.37% | 5.73% | -1.08% | 6.13% | 20.28% | - |
| Cost of Goods Sold | 123.27M | 122.73M | 124.33M | 122.2M | 114.96M | 114.2M | 101.54M | 99.55M | 90.43M | 139.7M | 129.86M | 116.69M | 115.53M |
| COGS % of Revenue | - | 16.97% | 17.29% | 17.73% | 17.58% | 18.31% | 18.55% | 16.41% | 13.66% | 22.31% | 20.51% | 19.56% | 23.29% |
| Gross Profit | 602.37M | 600.51M | 594.82M | 566.98M | 538.92M | 509.48M | 445.97M | 507.13M | 569.76M | 560.72M | 503.24M | 479.82M | 380.43M |
| Gross Margin % | 83.01% | 83.03% | 82.71% | 82.27% | 82.42% | 81.69% | 81.45% | 83.59% | 86.05% | 89.53% | 79.49% | 80.44% | 76.71% |
| Gross Profit Growth % | - | 0.96% | 4.91% | 5.21% | 5.78% | 14.24% | -12.06% | -10.99% | 1.61% | 11.42% | 4.88% | 26.13% | - |
| Operating Expenses | 519.32M | 540.26M | 541.32M | 512.86M | 472.88M | 461.14M | 1.33B | 953.19M | 487.77M | 352.3M | 326.59M | 322.09M | 358.12M |
| OpEx % of Revenue | - | 74.7% | 75.27% | 74.42% | 72.32% | 73.94% | 243.52% | 157.12% | 73.67% | 56.25% | 51.59% | 54% | 72.21% |
| Selling, General & Admin | 330.89M | 335.06M | 320.21M | 312.28M | 289.47M | 281.9M | 303.16M | 354.06M | 368.47M | 328.88M | 308.03M | 304.77M | 440.4M |
| SG&A % of Revenue | - | 46.33% | 44.53% | 45.31% | 44.27% | 45.2% | 55.37% | 58.36% | 55.65% | 52.51% | 48.65% | 51.09% | 88.8% |
| Research & Development | 0 | 0 | 0 | 99.58M | 89.02M | 77.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 14.45% | 13.61% | 12.4% | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 205.21M | 221.11M | 101M | 94.39M | 101.93M | 1.03B | 599.13M | 119.3M | 97.59M | 91.64M | 87.54M | 33.24M |
| Operating Income | 83.05M | 60.25M | 53.5M | 54.12M | 66.04M | 48.34M | -887.33M | -446.06M | 83.92M | 134.26M | 176.65M | 157.73M | 22.31M |
| Operating Margin % | 11.45% | 8.33% | 7.44% | 7.85% | 10.1% | 7.75% | -162.07% | -73.52% | 12.67% | 21.44% | 27.9% | 26.44% | 4.5% |
| Operating Income Growth % | - | 12.62% | -1.14% | -18.05% | 36.61% | 105.45% | -98.93% | -631.5% | -37.49% | -24% | 11.99% | 606.88% | - |
| EBITDA | 181.92M | 152.09M | 160.68M | 155.12M | 160.43M | 150.27M | -774.05M | -329.18M | 187.73M | 222.9M | 259.76M | 238.55M | 49.96M |
| EBITDA Margin % | 25.07% | 21.03% | 22.34% | 22.51% | 24.54% | 24.09% | -141.38% | -54.26% | 28.35% | 35.59% | 41.03% | 39.99% | 10.07% |
| EBITDA Growth % | 15.8% | -5.35% | 3.59% | -3.31% | 6.76% | 119.41% | -135.14% | -275.35% | -15.77% | -14.19% | 8.89% | 377.47% | - |
| D&A (Non-Cash Add-back) | 98.86M | 91.84M | 107.18M | 101M | 94.39M | 101.93M | 113.28M | 116.88M | 103.81M | 88.64M | 83.11M | 80.82M | 27.65M |
| EBIT | 69.05M | 95.31M | 94.06M | 50.53M | 57.9M | 48.21M | -898.55M | -444.5M | 84.65M | 134.26M | 176.65M | 157.73M | 22.31M |
| Net Interest Income | -15.24M | -61.01M | -32.2M | -32.42M | -35.32M | -38.73M | -37.86M | -30.77M | -27.72M | -12.37M | 94K | 4K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 94K | 4K | 0 |
| Interest Expense | 15.24M | 61.01M | 32.2M | 32.42M | 35.32M | 38.73M | 37.86M | 30.77M | 27.72M | 12.37M | 0 | 0 | 0 |
| Other Income/Expense | -29.24M | -25.94M | 8.37M | -36.01M | -43.46M | -38.85M | -49.08M | -29.22M | -27M | -12.09M | 308K | 105K | 281K |
| Pretax Income | 53.81M | 34.31M | 61.86M | 18.11M | 22.58M | 9.48M | -936.41M | -475.28M | 56.93M | 122.16M | 176.96M | 157.84M | 22.59M |
| Pretax Margin % | 7.42% | 4.74% | 8.6% | 2.63% | 3.45% | 1.52% | -171.03% | -78.34% | 8.6% | 19.51% | 27.95% | 26.46% | 4.56% |
| Income Tax | 19.52M | 14.25M | 13.68M | -100.34M | 5.37M | -1.31M | -119.29M | -29.95M | 18.12M | -102.28M | 588K | 0 | 0 |
| Effective Tax Rate % | 36.27% | 41.55% | 22.11% | -554.19% | 23.79% | -13.79% | 12.74% | 6.3% | 31.83% | -83.73% | 0.33% | 0% | 0% |
| Net Income | 34.3M | 20.05M | 48.19M | 118.44M | 17.21M | 10.79M | -817.12M | -445.32M | 38.81M | 224.44M | 176.37M | 157.84M | 591.6M |
| Net Margin % | 4.73% | 2.77% | 6.7% | 17.19% | 2.63% | 1.73% | -149.24% | -73.4% | 5.86% | 35.84% | 27.86% | 26.46% | 119.28% |
| Net Income Growth % | -16.39% | -58.39% | -59.32% | 588.38% | 59.45% | 101.32% | -83.49% | -1247.48% | -82.71% | 27.26% | 11.74% | -73.32% | - |
| Net Income (Continuing) | 34.3M | 20.05M | 48.19M | 118.44M | 17.21M | 10.79M | -817.12M | -445.32M | 38.81M | 224.44M | 176.37M | 157.84M | 22.59M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 569M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.61 | 0.32 | 0.72 | 1.74 | 0.25 | 0.15 | -12.15 | -6.65 | 0.55 | 3.13 | 2.46 | 2.20 | 8.26 |
| EPS Growth % | -7.32% | -55.56% | -58.62% | 596% | 66.67% | 101.23% | -82.71% | -1309.09% | -82.43% | 27.24% | 11.82% | -73.37% | - |
| EPS (Basic) | - | 0.32 | 0.73 | 1.77 | 0.25 | 0.16 | -12.15 | -6.65 | 0.55 | 3.13 | 2.46 | 2.20 | 8.26 |
| Diluted Shares Outstanding | 56.65M | 61.73M | 67.39M | 68.23M | 69.65M | 71.34M | 67.24M | 67M | 70.55M | 71.73M | 71.6M | 71.6M | 71.6M |
| Basic Shares Outstanding | 55.87M | 60.26M | 66.01M | 66.74M | 68.22M | 71.94M | 67.24M | 67M | 70.32M | 71.66M | 71.59M | 71.59M | 71.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 289.61% | - | - | 101.14% |
Quick answers to the most common questions about buying CARS stock.
For fiscal year 2025, Cars.com Inc. (CARS) reported total revenue of $723.2M. This represents a 45.8% increase compared to $496.0M in 2014.
Cars.com Inc. (CARS) is profitable, generating $20.1M in net income for the fiscal year ending 2025 with a net profit margin of 2.8%.
Cars.com Inc. (CARS) reported an operating income of $60.2M, resulting in an operating profit margin of 8.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Cars.com Inc. (CARS) generated $600.5M in gross profit for the year, representing a gross profit margin of 83.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Thin margins and high leverage
Metrics are mathematically derived from official filings.
Stable Revenue, Mixed Segment Dynamics
CARS' revenue growth has been nearly flat, with 0.7% YoY in 2026Q2, but Marketplace growth reached its highest since 2021, suggesting a potential inflection.
The overall revenue growth of 0.7% YoY in 2026Q2 masks a divergence: Marketplace revenue is reportedly accelerating, while OEM revenue declines offset gains. This mix shift suggests the company is still transitioning, and investors should monitor whether Marketplace momentum can sustain overall growth. The flat trajectory over the past year indicates limited top-line expansion, but the recent Marketplace strength may signal a durable inflection point.
Gross Margin Volatility Masks Core Stability
Gross margin swung from 68.3% in 2025Q3 to 98.0% in 2025Q4, but excluding anomalies, it hovers around 83%, reflecting the low marginal cost of digital listings.
The reported gross margin is volatile due to one-off items, such as a negative COGS in 2024Q2 and a spike in 2025Q4. Excluding these, the underlying gross margin is stable near 83%, consistent with a subscription-based digital model. However, the operating margin of 15.5% in 2026Q2 is well below the gross margin, indicating significant SG&A costs, which may limit margin expansion.
Operating Leverage Emerging in 2026
Operating income jumped 83% YoY in 2026Q2 to $27.9M, with operating margin expanding to 15.5% from 8.5% a year earlier, suggesting improved cost discipline.
The 2026Q2 operating margin of 15.5% is the highest in the provided period, driven by a 2.3% YoY increase in gross profit while SG&A declined slightly. This indicates that the company is beginning to scale its fixed cost base more efficiently. However, the sustainability of this leverage is uncertain, as SG&A remains elevated relative to revenue, and any increase in marketing spend could reverse this trend.
Earnings Quality Clouded by One-Time Items
Net income in 2026Q2 rose 127% YoY to $14.3M, but EPS of $0.25 was boosted by a lower tax rate and non-recurring gains, masking underlying profitability.
The reported net margin of 7.9% in 2026Q2 is above the historical average, but this is partly due to a tax benefit and other one-time items. Stock-based compensation of $5.9M in the quarter represents a significant drag on cash earnings, and the effective tax rate appears lower than the statutory rate. Investors should adjust for these items to assess the true earnings power, which appears more moderate than headline numbers suggest.
SG&A Dominates Cost Structure
SG&A averaged $81M per quarter over the last year, representing roughly 45% of revenue, while R&D is minimal, indicating a focus on sales and marketing over product development.
The cost structure is heavily weighted toward SG&A, which includes sales and marketing expenses necessary to maintain dealer relationships and consumer traffic. R&D is negligible in most quarters, suggesting that the company relies on acquired technology rather than internal innovation. This may limit long-term competitiveness, but it also provides cost stability. The high SG&A ratio leaves little room for margin expansion without revenue growth.
Thin Margins and Leverage Pose Risks
With a net margin of only 2.8% in 2026Q1 and a debt-to-equity ratio of 0.99, CARS has limited cushion against operational setbacks or rising interest costs.
The company's profitability is highly sensitive to even small changes in revenue or expenses, as evidenced by the swing from a net loss in 2025Q1 to a profit in 2026Q2. The elevated leverage, combined with a modest cash position of $56M, suggests that any downturn in the automotive market could strain the balance sheet. Short-sellers might argue that the recent margin improvement is not sustainable, given the competitive necessity of high marketing spend and the potential for dealer churn.