Cars.com Inc. (NYSE: CARS)

Cars.com Inc. is a trusted audience powered and data driven technology platform that simplifies buying and selling cars. Its flagship Cars.com marketplace connects millions of consumers to dealerships across the United States and Canada, offering AI powered shopping tools, vehicle reviews, and editorial content. The company also provides dealers and OEMs with digital websites, trade and appraisal tools, and in market media solutions to increase sales and operational efficiency.

Cars.com Inc. generates revenue primarily through subscription based offerings that include marketplace advertising packages, digital experience services, media solutions, and trade and appraisal products. Approximately 80% of its revenue comes from recurring subscriptions, with the average monthly revenue per dealer exceeding $2,400. The company also earns fees from transaction based services such as wholesale vehicle auctions and performance based media campaigns.

The company operates through the following segments.

• Marketplace: Central to the platform is Cars.com marketplace, which provides AI powered search, vehicle listings, reviews, and financing tools that connect consumers with dealers and OEMs.

• Digital Experience: This segment operates dealer websites in the United States and Canada, delivering customizable hosting and related solutions that streamline automotive retail processes from search to signature.

• Media Solutions: The segment offers exclusive automotive media products such as Cars Social, VIN Performance Media, and In Market Video to help dealers and OEMs reach in market consumers and drive engagement.

• Trade & Appraisal: This segment provides AccuTrade for inventory life cycle management, including appraisal, trade in valuation, and wholesale options via DealerClub to improve dealer profitability.

Cars.com Inc. holds a strong position in the online automotive marketplace industry, competing with companies such as CarGurus, AutoTrader, TrueCar, CARFAX, Edmunds, and Kelley Blue Book for consumer traffic, and with dealer software providers like Cox Automotive and DealerOn for dealer spend. Its competitive advantages stem from a large in market audience of 26 million average monthly users, high engagement levels, proprietary data, AI driven tools, and an integrated platform that combines marketplace, digital, media, and trade solutions.

The company serves approximately 19,500 franchise and independent dealer customers across the United States and Canada, substantially all original equipment manufacturers selling vehicles in those markets, and millions of consumers seeking information and tools to facilitate vehicle purchases.