Shares of Cars.com Inc. (CARS) tumbled 6.10% in pre-market trading on Thursday following the company's mixed first-quarter results and the suspension of its full-year 2025 revenue guidance. The online car marketplace cited uncertainties surrounding the global tariff situation as the primary reason for withdrawing its outlook.

For the first quarter, Cars.com reported revenue of $179 million, slightly below the analyst estimate of $179.8 million. The company swung to a net loss of $2 million, or 3 cents per share, compared to a profit of $784,000, or 1 cent per share, in the same quarter last year. However, the loss was primarily attributed to severance costs from job cuts implemented during the quarter. Adjusted earnings came in at 37 cents per share, falling short of the 49 cents per share analysts had expected.

Despite the disappointing bottom line, Cars.com saw some positive trends in its business segments. While subscription-based dealer revenue, the company's largest segment, declined 2% due to economic pressures on dealers' marketing spending, revenue from automakers and its national business grew by 6% as competition among automakers intensified. The company also reaffirmed its full-year adjusted EBITDA margin guidance of 29% to 31%, suggesting confidence in its operational efficiency.

The decision to suspend full-year revenue guidance appears to be the main driver behind the stock's pre-market decline. Cars.com stated that while automakers and dealer partners remain committed to their investments, the magnitude and timing of spending will remain uncertain until the volatility around tariffs subsides. This move has likely unsettled investors, who now face reduced visibility into the company's near-term financial performance.

As global trade tensions continue to impact various industries, Cars.com's situation highlights the broader challenges faced by companies in the automotive sector. Investors will be closely monitoring any developments in the tariff landscape and their potential effects on Cars.com's business model and financial outlook in the coming months.