Cars.com Inc. (CARS): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how the digital auto marketplace giant is making its money as of late 2025, and honestly, it's a story of subscription dominance and tech integration. After two decades analyzing these plays, what stands out here is the near-total reliance on dealer services, with subscription revenue pulling in about 89% of the total, servicing over 19,500 dealers who are buying into their full-funnel digital retail stack. We'll break down how their $181.6 million Q3 revenue was built across the nine blocks-from the AI-powered Carson shopping assistant to their enterprise appraisal tools-so you can quickly map their current strengths and where the next big investment is going. Dive in below for the full, unvarnished canvas.

Cars.com Inc. (CARS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power the Cars Commerce platform, the ones that bring the audience and the tools together for the dealers and OEMs. These aren't just casual agreements; they are deep integrations that drive significant transaction volume.

OEM endorsements; Dealer Inspire is a preferred provider for nearly every OEM.

Dealer Inspire, which handles digital experience, is a preferred provider with nearly every OEM in the United States. This preferred status means Dealer Inspire is certified for nearly every OEM program, connecting Tier 1 branding directly with local dealer sites. For example, Subaru has tapped Dealer Inspire as a Certified Website and Technology Platform Provider for its 570+ U.S. Retailers. This level of OEM integration is a key resource for Cars.com Inc. (CARS).

Large-scale dealer groups adopting AccuTrade for enterprise appraisal solutions.

The Trade & Appraisal capability, powered by AccuTrade, is seeing adoption that impacts inventory acquisition. In 2024, retailers completed over 2.5 million appraisals using AccuTrade. This led to a 45% more used-car acquisitions year over year for those dealers. Following the January 2025 acquisition of DealerClub, which accelerates AccuTrade adoption, the combined entity serves more than 650 dealer customers through the wholesale auction platform. Overall, as of June 30, 2025, Cars.com Inc. (CARS) served 19,412 Dealer Customers.

Here's a quick look at the scale of the dealer and audience base these partnerships support:

Metric	Value	Date/Period Reference
Total Dealer Customers	19,412	As of June 30, 2025
Average Monthly Unique Visitors	26.6 million	Q2 2025
Total Consumer-Generated Reviews	More than 13 million	As of 2024/2025 reporting
AccuTrade Appraisals Completed	More than 2.5 million	2024

Content distribution partnership with Uber Advertising for in-ride entertainment.

Cars.com Inc. (CARS) launched its first video content syndication partnership with Uber Advertising on September 30, 2025. This collaboration makes Cars.com the first automotive content partner for Uber Advertising's "JourneyTV Presents" in-ride entertainment experience. This targets a high-intent audience, given that more than 70% of consumers coming to Cars.com are undecided on the make and model they want to purchase. The OEM and National revenue segment, which benefits from these top-of-funnel efforts, grew 6% year-over-year in Q1 2025.

Third-party data and technology vendors for platform enhancement.

The platform relies on external data and technology integrations to maintain its edge. The acquisition of DealerClub, which closed on January 23, 2025, for approximately $25 million in cash at closing, was a key move to enter the wholesale market worth over $10B. Furthermore, the company's Q2 2025 Adjusted EBITDA margin was 28.5% of revenue, showing operational efficiency that underpins investment in these external and internal technologies.

The platform's core capabilities are supported by these external relationships:

• Dealer Inspire is certified for nearly every OEM programs.
• AccuTrade's average standard deviation from final sale price is 4%, which is a 34% lower standard deviation than KBB and Blackbook based on a 2024 analysis.
• The DealerClub acquisition was valued at up to an additional $88 million in performance-based consideration.
• Cars.com shoppers convert 5x higher than Google's audiences, and its cost-per-click is 32% lower than dealer first-party data, according to a recent case study.

Cars.com Inc. (CARS) - Canvas Business Model: Key Activities

You're looking at the core engine room of Cars.com Inc., the activities that actually make the platform run and generate revenue in late 2025. It's a mix of high-tech development and massive-scale audience management. Let's break down the numbers behind what they are doing day-to-day.

Developing and Integrating AI-Powered Features like the Carson Shopping Assistant

Cars.com Inc. is heavily focused on embedding artificial intelligence across its platform. The launch of the natural language search assistant, Carson, is a key activity here. This isn't just a gimmick; the data shows real shopper engagement. As of the third quarter of 2025, Carson was assisting in 15% of all searches on the platform. That engagement translates to better outcomes, with users leveraging Carson saving three times more vehicles than the average shopper. This aligns with broader consumer trends, as a November 2025 survey indicated that 44% of consumers were already using AI-powered car search tools on marketplaces like Cars.com to guide their purchases. Furthermore, 97% of AI users believe this technology will influence their final vehicle purchase decisions.

Generating a High-Quality, In-Market Consumer Audience

The value proposition for dealers hinges on getting eyeballs on their inventory, and Cars.com Inc. is focused on maintaining massive scale. The flagship marketplace continues to draw significant traffic. For instance, the average monthly unique visitors (UVs) hit a record exceeding 29.0 million in the first quarter of 2025. While traffic fluctuates, the second quarter of 2025 recorded 26.6 million average monthly unique visitors. More recently, in October 2025, the site registered 27.24 million visits. This activity is crucial because, as of March 2025, the marketplace was noted as being visited by nearly 30 million in-market consumers each month.

Selling and Managing Subscription-Based Digital Solutions

This is where the core subscription revenue comes from, managing the relationship and service delivery to the dealer base. The dealer customer count has been trending up, which is a positive sign for recurring revenue stability. The number of Dealer Customers reached 19,526 by the third quarter of 2025, which is right around the 19,500 benchmark you mentioned. This base is supported by ongoing product repackaging efforts, such as new Premium and Premium Plus packages, which are designed to drive up the Average Revenue Per Dealer (ARPD).

Here's a look at the scale of the dealer base and related platform adoption as of late 2025:

Metric	Latest Reported Figure (2025)	Context/Source Period
Total Dealer Customers	19,526	Q3 2025
Dealer Inspire Website Subscribers	Nearly 7,900	Q3 2025
AccuTrade Subscribers	Surpassing 1,150	Q3 2025
AccuTrade Quarterly Appraisals	Over 1 million	Q3 2025

Maintaining and Scaling the Core Cars.com Marketplace and Dealer Inspire Websites

Keeping the marketplace running smoothly and enhancing the Dealer Inspire digital experience are continuous, resource-intensive activities. The platform's success is measured by the efficiency it brings to dealer operations. For example, dealers who use both a Dealer Inspire website and a Cars.com marketplace package can sell their inventory, on average, four days faster than those only using the Dealer Inspire website. This translates to an approximate 10% lift in inventory turn time for those using the combined offering. Furthermore, dealer tools like shopper alerts, which are part of the marketplace offering, saw strong initial adoption, with over 50% of marketplace customers using the feature within the first two months of its availability.

The key operational outputs supporting these platforms include:

• Driving up to 14% more leads per listing versus base packages through new Marketplace packaging.
• Achieving an Adjusted EBITDA margin of 30% in Q3 2025, up over 160 basis points year-over-year, showing operating leverage from scale.
• Managing total debt outstanding of $455 million as of September 30, 2025.
• Generating $55.7 million in net cash provided by operating activities for the six-month period ended June 30, 2025.

It's about making sure the tech stack supports the dealer's need to acquire used cars more profitably, which was a top dealer concern growing 20 percentage points year-over-year in 2025. Finance: draft 13-week cash view by Friday.

Cars.com Inc. (CARS) - Canvas Business Model: Key Resources

You're looking at the core assets that make the Cars.com Inc. engine run. These aren't just line items; they are the competitive moat.

The first resource is the sheer weight of the flagship Cars.com brand recognition. This brand strength translates directly into high organic traffic, which is key because it's essentially free, high-intent audience flow. While the expectation is approximately 60% organic traffic, the company reported organic traffic was 61% of traffic share in the fourth quarter of 2024, demonstrating a sustained advantage in attracting in-market shoppers without direct advertising spend.

Next up is the proprietary technology platform, which is built around four core capabilities: Marketplace, Digital Experience, Trade & Appraisal, and Media Network. This platform is where the real differentiation happens. The Digital Experience component is anchored by the industry-leading brand Dealer Inspire, which provides next-generation digital retail solutions. The Trade & Appraisal capability is powered by AccuTrade, which, as of Q3 2025, surpassed 1,150 subscribers and facilitated over 1 million quarterly appraisals. Furthermore, the platform is integrating AI, with the Carson natural language search assistant assisting 15% of searches in Q3 2025.

The scale of the customer base and the company's financial footing are also critical resources. These numbers reflect the current operational footprint as of late 2025.

Key Resource Metric	Value	As Of Date/Period
Dealer Customer Base	19,526	Q3 2025
Total Liquidity	$350.1 million	September 30, 2025
AccuTrade Subscribers	Over 1,150	Q3 2025
Quarterly Appraisals (AccuTrade)	Over 1 million	Q3 2025
Organic Traffic Share (Prior Period Reference)	61%	Q4 2024

These tangible assets underpin the revenue generation model. The technology stack is designed to drive adoption across the platform's offerings.

• The platform enables dealers using multiple core capabilities to receive up to 2x more leads compared to those using only one capability.
• The marketplace is designed to connect dealers with an audience where approximately 83% of shoppers are in-market to buy a car.

Finance: draft 13-week cash view by Friday.

Cars.com Inc. (CARS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why dealers and consumers choose the Cars.com platform as of late 2025. It's about connecting high-intent buyers with the right inventory and the right dealer, using new tech to make that connection stickier.

For Dealers: High-intent, unduplicated consumer audience for efficient lead generation

Cars.com Inc. offers dealers access to a massive, qualified audience. As of the third quarter of 2025, the platform supported 19,526 Dealer Customers, marking a three-year high in sequential customer growth. This audience is highly engaged; for instance, the Average Monthly Unique Visitors hit a record 27.8 million in the first half of 2025. The value here is direct performance: management reported in Q3 2025 that new marketplace packaging helped dealers drive up to 14% more leads per listing compared to base packages. This focus on high-intent traffic is defintely key to their dealer value proposition.

For Dealers: Full-funnel digital solutions to simplify operations and acquire used inventory

Beyond just leads, Cars.com Inc. provides tools that touch the entire dealer operation, especially around used inventory, which is a major focus given the market dynamics. Their trade and appraisal solution, AccuTrade, scaled significantly, surpassing 1,150 subscribers by Q3 2025, processing over 1 million quarterly appraisals. Furthermore, the DealerClub auction platform continues its ramp-up, aiming to simplify inventory acquisition. This suite of solutions helps dealers manage the complexities of the current market, where new-car supply was reported up 45% year-over-year as of late 2024, signaling a growing need for efficient used-vehicle sourcing tools.

For Consumers: AI-powered, personalized shopping experience via Carson, improving engagement 2x

The introduction of Carson™, the AI search engine launched in November 2025, is a massive value-add for shoppers navigating complex decisions. The platform is already seeing significant adoption, assisting approximately 15% of all web and mobile web searches. This isn't just a novelty; the engagement metrics show a clear uplift in shopper commitment. Consumers using Carson are treating the AI as a trusted co-pilot, with 97% of AI users stating it will influence their purchase decisions, and 44% of all in-market consumers using AI tools on marketplaces like Cars.com as of a November 2025 survey.

Here's the quick math on how Carson deepens shopper commitment:

Metric	Carson User Improvement	Data Source/Date
Repeat Visitation	2x more than other shoppers	October 2025
Vehicles Saved	3x more than other shoppers	October 2025
Leads Generated	2x more compared to other shoppers	October 2025
Conversion (SRP to VDP)	Nearly 30% higher rate	October 2025

The platform's editorial content is also a key resource; Cars.com is the most cited public automotive marketplace across AI tools like Google AI Overviews and ChatGPT, holding double the citations of its closest peer, according to third-party data.

For Consumers: Trusted reputation data via DealerRater to inform buying decisions

Trust remains central to the final purchase decision, and DealerRater, part of the Cars Commerce family, provides the necessary social proof. This platform is built on a foundation of verified user feedback.

• The system supports access to MORE THAN 11.5 MILLION REVIEWS YOU CAN TRUST.
• The proprietary Experience Report leverages data from 13 million consumer reviews across Cars.com and DealerRater.
• The data informs dealers on critical reputation drivers like review response rates and lead response quality.

Finance: draft 13-week cash view by Friday.

Cars.com Inc. (CARS) - Canvas Business Model: Customer Relationships

You're looking at how Cars.com Inc. manages its relationships with dealers and the millions of car shoppers using its platform as of late 2025. It's a mix of direct sales effort and high-volume digital self-service.

Dedicated enterprise sales and account management for subscription-based dealer services.

The direct sales effort focuses on securing and growing the dealer customer base, which is managed through subscription services for the marketplace, websites, and appraisal technology. Dealer Customers reached 19,526 in the third quarter of 2025, marking a three-year high. This represented a year-over-year increase of +271 in Q3 2025. Average Revenue Per Dealer (ARPD) showed signs of growth, increasing by 1% quarter-over-quarter to reach $2,460 in Q3 2025. For the appraisal technology, AccuTrade, subscribers surpassed 1,150 by the end of Q3 2025. AccuTrade appraisals grew 45% year-over-year in Q2 2025.

Self-service, high-engagement digital marketplace for car shoppers.

The consumer side relies heavily on the self-service nature of the Cars.com marketplace, which is designed for high engagement. Average Monthly Unique Visitors (MAUV) hit a record of over 29.0 million in the first quarter of 2025. In the third quarter of 2025, MAUV was reported at 26.6 million. Total visits for the first half of 2025 reached 332 million visits.

Here's a quick look at some key operational metrics for both sides of the platform through Q3 2025:

Metric Category	Key Metric	Value (as of late 2025)	Period/Context
Dealer Base	Total Dealer Customers	19,526	Q3 2025
Dealer Base	Average Revenue Per Dealer (ARPD)	$2,460	Q3 2025
Shopper Engagement	Average Monthly Unique Visitors (MAUV)	26.6 million	Q3 2025
Shopper Engagement	Record MAUV	29.0 million	Q1 2025
Dealer Solutions	AccuTrade Subscribers	Over 1,150	Q3 2025

Product repackaging to drive adoption of Premium and Premium Plus dealer packages.

The company actively repackages its offerings to push dealers toward higher-tier solutions. The marketplace repackaging exercise bundled media products into new Premium and Premium Plus packages. Dealers adopting these bundled packages see tangible results, driving up to 14% more leads per listing compared to the base packages.

Automated customer support and AI-driven personalization for consumers.

Consumer relationship enhancement is increasingly driven by AI integration, which acts as a personalization layer. The AI-powered search assistant, Carson, assisted 15% of all web searches in Q3 2025. Shoppers using Carson saved vehicles at a rate three times that of average shoppers. A November 2025 survey showed that 44% of consumers opted to use AI-powered car search tools on marketplaces like Cars.com. Furthermore, Cars.com is the most cited public automotive marketplace across AI tools like Google AI Overviews and ChatGPT, holding double the citations of its closest peer. Dealer tools like shopper alerts saw adoption by over 50% of marketplace customers within the first two months of their Q3 2025 launch.

• Shopper Alerts Adoption: Over 50% of marketplace customers used the feature within two months of launch.
• AI Search Assistance: Carson assisted 15% of searches in Q3 2025.
• AI User Vehicle Savings: Users on Carson saved vehicles 3x more than average shoppers.

Finance: draft Q4 2025 cash flow projection by Monday.

Cars.com Inc. (CARS) - Canvas Business Model: Channels

You're looking at how Cars.com Inc. gets its products and services to its customers-the dealers and, indirectly, the car buyers-as of late 2025. This is all about the delivery mechanisms for their platform capabilities.

Cars.com Marketplace (website and mobile app)

This is the core consumer-facing channel, driving the audience that dealers pay to reach. The platform saw strong engagement through the third quarter of 2025.

• Average Monthly Unique Visitors (AMUV) reached 25.4 million in Q3 2025, up 4% year-over-year.
• Total traffic for the first nine months of 2025 was 488 million visits through the end of Q3.
• The AI shopping assistant, Carson, is now assisting 15% of searches.
• The total dealer customer base, which subscribes to marketplace and other services, stood at 19,526 as of September 30, 2025.

The marketplace is where the AI innovation is immediately visible to consumers; shoppers using Carson are saving three times more vehicles than the average shopper. So, the channel is not just a listing site anymore; it's an active, AI-powered shopping tool.

Dealer Inspire (digital experience and website platform hosting)

Dealer Inspire provides the digital front door for many dealerships, hosting their websites and digital retail experience. This channel is critical for subscription revenue.

Metric	Data Point	Context/Source
Website Subscribers	Nearly 7,900	As of Q3 2025.
Inventory Turn Lift (with Marketplace)	4 days faster on average	For retailers using Dealer Inspire website plus a Cars.com marketplace package vs. website only.
Key Event Lift (with Marketplace)	40% more key events (forms, chat, click to call)	For retailers using Dealer Inspire website plus a Cars.com marketplace package vs. website only.

The platform is designed to seamlessly convert online shoppers into sales, and when bundled with the marketplace, the performance lift is quite clear.

AccuTrade (trade-in and appraisal technology platform)

AccuTrade is the channel for dealers to efficiently acquire used vehicle inventory, which remains a top concern for retailers in 2025. This technology is integrated directly into dealer operations.

• AccuTrade subscribers reached 1,150 in Q3 2025.
• The platform processed over 1 million quarterly appraisals in Q3 2025.
• In 2024, retailers completed more than 2.5 million appraisals through AccuTrade.

The goal here is to turn vehicle acquisition into a profit center, and the technology is designed to provide accurate valuations quickly.

Cars Commerce Media Network (in-market media solutions across social, video, and search)

This network is how Cars.com Inc. monetizes its massive audience data by offering targeted advertising solutions to dealers and OEMs across various digital channels. Dealer revenue, which includes these media solutions, grew 2% year-over-year in Q3 2025. Dealer revenue represented 89% of the total Q3 2025 revenue of $181.6 million.

The effectiveness of this channel is highlighted by comparison data from 2024:

Media Comparison	Performance Metric	Result
Cars.com Audience vs. Google Audience	Shopper Conversion Rate	Cars.com shoppers convert 5x higher.
Cars.com Audience vs. Other Digital Providers	Cost-Per-Click (CPC)	32% lower than dealer first-party data.
Media Package Addition	Connections Improvement	Consistently see double-digit improvements.

Also, ads leveraging the Cars.com in-market audience showed a 35% higher conversion rate versus the same ads without that audience in 2024. The OEM and National revenue segment, which includes some of these media buys, was down 5% year-over-year in Q3 2025, though.

Finance: review the Q4 2025 impact of the new Premium and Premium Plus packages on ARPD by end of January.

Cars.com Inc. (CARS) - Canvas Business Model: Customer Segments

You're looking at the core groups Cars.com Inc. (Cars Commerce Inc.) serves as of late 2025. This business model is heavily reliant on the health and engagement of the dealer ecosystem, which forms the bedrock of their revenue.

Local Automotive Dealers (franchise and independent) seeking digital retail solutions represent the largest segment, driving the majority of the company's top line. By the third quarter of 2025, the total count of Dealer Customers hit a three-year high of 19,526, up from 19,412 in Q2 2025 and 19,250 in Q1 2025. Subscription-based Dealer revenue saw a year-over-year increase of 2% in Q3 2025, making up 89% of the total revenue for that quarter. Within this group, nearly 7,900 customers subscribe to their website products. Dealers adopting multiple platform capabilities, like Marketplace and Digital Experience, see tangible results, receiving up to 2x more leads and selling inventory at least 10% faster, based on January 2025 data.

For OEM and National Advertisers targeting in-market car shoppers, the value proposition centers on reaching highly qualified audiences. While this segment showed strong growth in Q1 2025, with OEM and National revenue up 6% year-over-year, the Q3 2025 results showed a year-over-year decline of 5%, which management attributed to lower spending by two specific OEM customers. Still, their Dealer Inspire digital marketing technology and services are endorsed by nearly every OEM. The Cars Commerce Media Network offers exclusive in-market media solutions across social, video, search, and display.

The third segment is the US Car Shoppers and Sellers (consumers) of new and used vehicles. This audience fuels the entire marketplace. In Q1 2025, the flagship Cars.com marketplace achieved a record of over 29.0 million Average Monthly Unique Visitors (UVs). While UVs dipped to 26.6 million in Q2 2025, the platform continues to attract significant traffic, with the flagship brand showing more than 30% traffic growth over the last 5 years. Furthermore, AI is becoming central to their experience; the new Carson AI shopping assistant powered millions of web searches in Q3 2025, yielding a 2x improvement in visitor engagement. Separately, a November 2025 survey indicated that 97% of AI users believe it will impact their purchase decisions, and 44% have already used AI for car shopping.

Finally, Large dealer groups requiring enterprise-level digital and appraisal technology represent a key growth vector for their solutions portfolio. The proprietary trade and appraisal technology, AccuTrade, is gaining traction at scale. By Q3 2025, AccuTrade subscribers surpassed 1,150, processing over 1 million quarterly appraisals. A significant win here was the selection of AccuTrade as the enterprise trade and appraisal solution by a leading dealer group, set to expand its technology across roughly 150 total stores by the end of 2025, as announced in Q2 2025.

Here's a quick look at the scale across these segments as of the latest reported data:

Customer Segment	Key Metric	Latest Reported Number (2025)	Reporting Period
Local Automotive Dealers	Total Dealer Customers	19,526	Q3 2025
Local Automotive Dealers	Website Subscribers	Nearly 7,900	Q3 2025
Local Automotive Dealers	AccuTrade Subscribers	Over 1,150	Q3 2025
OEM and National Advertisers	Year-over-Year Dealer Revenue Growth	2%	Q3 2025
OEM and National Advertisers	Year-over-Year OEM/National Revenue Change	-5%	Q3 2025
US Car Shoppers and Sellers	Average Monthly Unique Visitors (UVs)	Exceeded 29.0 million	Q1 2025
US Car Shoppers and Sellers	AI Users Impacting Purchase Decisions	97%	November 2025
Large Dealer Groups	Enterprise Stores Adoption (AccuTrade)	Roughly 150 total stores (by EOY)	Q2 2025 Announcement

The platform's success hinges on driving more engagement from consumers, which in turn drives higher value for dealers. For instance, the Cars.com marketplace shoppers convert 5x higher than Google's audiences in some reported cases, and the cost-per-click is 32% lower than dealer first-party data, according to a January 2025 case study.

• Dealer revenue accounted for 89% of Total Revenue in Q3 2025.
• Total Revenue in Q3 2025 was $181.6 million.
• AccuTrade appraisals grew 31% year-over-year in Q1 2025.
• The company is focused on growing its Average Revenue Per Dealer (ARPD), which saw a sequential increase of 1% in Q3 2025.

Cars.com Inc. (CARS) - Canvas Business Model: Cost Structure

You're mapping out the cost side of Cars.com Inc.'s operations as of late 2025. Honestly, the structure shows a heavy reliance on getting the word out and keeping the tech engine running, which is typical for a marketplace platform.

The largest single bucket of operating expense for the third quarter of 2025 was dedicated to reaching potential customers and supporting the sales team. Marketing and Sales expenses totaled $59.3 million in Q3 2025. This spend reflects ongoing investments to drive adoption across the platform, including the new AI shopping assistant, Carson.

Next up is the investment in the future of the platform itself. Product and Technology development costs were reported at $27.6 million in Q3 2025. This is the cost to build and maintain the digital retail technology, AI features, and the core marketplace functionality that dealers pay for.

The overall cost picture for the quarter shows a focus on efficiency, even with growth investments. Total operating expenses for the third quarter were $164.8 million, down from $168.2 million in the prior year period. Adjusted operating expenses were $150.4 million, a 4% decrease year-over-year.

Here's a quick look at how the major cost categories stack up based on the required structure for the period ending September 30, 2025:

Cost Category	Q3 2025 Financial Amount
Marketing and Sales expenses	$59.3 million
Product and Technology development costs	$27.6 million
Total Operating Expenses (Reported)	$164.8 million
Adjusted Operating Expenses	$150.4 million

General and administrative costs are a key area where you see the impact of corporate overhead and one-time items. On a reported basis, general and administrative expense was up $2.8 million year-over-year in Q3 2025. What this estimate hides is the mix of factors at play.

The drivers for the reported increase in general and administrative costs include specific, non-recurring or variable items:

• Increased third-party costs.
• Severance-related costs.
• Savings from the lease amendment completed in Q4 2024 partially offset the increases.

Finally, a significant non-operating cost consideration is the servicing of the capital structure. The company was servicing total debt outstanding of $455.0 million as of September 30, 2025. This level of debt resulted in a total net leverage ratio of 1.9x, which was below the target range of 2.0x to 2.5x at that date. Finance: draft 13-week cash view by Friday.

Cars.com Inc. (CARS) - Canvas Business Model: Revenue Streams

You're looking at how Cars.com Inc. actually brings in the money as of late 2025. It's heavily reliant on its dealer network, which is the core engine of the business.

The biggest piece comes from Subscription-based Dealer Revenue. For the nine months ending September 30, 2025, this stream represented approximately 89% of Cars.com Inc.'s total revenue. This revenue comes from dealers subscribing to access the marketplace, website solutions, and appraisal technology.

To give you a snapshot of the most recent performance, the company hit a record quarterly total revenue of $181.6 million in Q3 2025. That quarter showed a resurgence in dealer-focused income, with Dealer Revenue growing 2% year-over-year.

Here's a quick look at how the Q3 2025 revenue streams performed year-over-year, showing the mix:

Revenue Stream Component	Q3 2025 Year-over-Year Change	Notes
Subscription-based Dealer Revenue	Up 2%	Driven by solutions adoption and marketplace customer growth.
OEM and National Advertising Revenue	Down 5%	Reflecting lower media spending by certain OEM partners.
Other Revenue (Nine-Month Basis)	Up 13%	Reported for the nine-month period ended September 30, 2025.

Beyond the core subscriptions, Cars.com Inc. generates revenue from its digital solutions, which are becoming increasingly important for dealer efficiency. You see this in the utilization of their technology assets.

Revenue from digital solutions like AccuTrade and the DealerClub auction platform is a key growth area. For instance, by Q3 2025, AccuTrade surpassed 1,150 subscribers, and the platform was processing over 1 million quarterly appraisals. DealerClub, acquired in January 2025, nearly doubled the volume of completed auctions between February and March of that year.

The revenue streams can be summarized by their sources and recent performance indicators:

• Subscription-based Dealer Revenue: Accounted for 89% of nine-month 2025 total revenue.
• OEM and National Advertising Revenue: Experienced a 5% year-over-year decrease in Q3 2025.
• Digital Solutions Adoption: AccuTrade appraisals grew 31% year-over-year in Q1 2025.
• Record Quarterly Top Line: Q3 2025 total revenue reached $181.6 million.

If onboarding takes 14+ days, churn risk rises, which directly impacts that crucial 89% dealer revenue stream. Finance: draft 13-week cash view by Friday.