Cars.com Inc. (CARS) stock plummeted 7.24% in Thursday's trading session following the company's mixed first-quarter results and the suspension of its full-year 2025 revenue guidance. The online car marketplace reported revenue of $179 million, slightly below the analyst estimate of $179.79 million, while adjusted earnings per share came in at $0.37, beating the expected $0.11.

The primary catalyst for the stock's decline appears to be the company's decision to suspend its full-year revenue guidance. Cars.com cited uncertainties surrounding the global tariff situation as the main reason for withdrawing its outlook. While the company reaffirmed its full-year adjusted EBITDA margin guidance of 29% to 31%, the lack of revenue visibility has unsettled investors.

Despite the disappointing overall results, Cars.com saw some positive trends in its business segments. Although 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 mixed performance across segments and the ongoing tariff concerns have left investors cautious about the company's near-term prospects, leading to the significant stock price drop.