Cars.com Inc. (CARS) shares plummeted 6.63% in pre-market trading on Thursday following the release of its second-quarter 2025 financial results. The online automotive marketplace reported mixed results, with revenue falling short of analyst expectations while adjusted earnings per share surpassed estimates.

The company reported Q2 revenue of $178.7 million, slightly below the consensus estimate of $179.4 million and nearly flat compared to the same period last year. Despite the revenue miss, Cars.com's adjusted earnings per share of $0.41 significantly beat the analyst estimate of $0.07. However, net income fell 38% year-over-year to $7 million, or $0.11 per diluted share, down from $11.4 million, or $0.17 per share, in Q2 2024.

Investors appear to be reacting negatively to the company's outlook for the second half of 2025, which anticipates only low-single digit revenue growth. This conservative forecast, combined with the slight decrease in Monthly Average Revenue Per Dealer to $2,435, may be contributing to the stock's sharp decline. On a positive note, Cars.com raised its full-year share repurchase target to $70-$90 million and reaffirmed its full-year adjusted EBITDA margin guidance of 29% to 31%, signaling confidence in its operational efficiency and commitment to returning value to shareholders.