The Company's plan for 2026 is focused on accelerating product development and innovation, streamlining processes and costs, and improving organizational structure. Key actions include:

  • New AI-powered product releases. March and April product releases reflect a renewed focus on strengthening Marketplace and AI functionality for customers. The new Cars.com Dealer App is an AI-powered mobile assistant that provides on-the-go analytics and recommendations tailored to drive sales for each dealer's unique inventory. Advanced Shopper Alerts was launched for Premium+ customers in late March, integrating new AI- and location-enabled insights from the Cars.com marketplace directly into the dealer's CRM for the first time. Together, these products drive efficiencies for dealers by turning Cars.com proprietary data into actionable insights across the sales process.
  • Streamlining processes and costs. The Company has initiated a cost reduction program, which includes an approximately 11% reduction in full time roles, along with process changes and vendor cost optimization. These actions advance the Company's Marketplace strategy and are expected to generate $25-30 million in recurring annualized operating cost savings in 2027, while supporting 2026 profitability targets. This cost initiative is expected to be completed by early Q2 2026 and incur aggregate related one-time charges of approximately $8.5-$9 million, substantially all of which will be recognized in Q1 2026.
  • Flattening organizational structure. The Company's reporting structure has been flattened to empower faster decision making. Roughly 20% of eliminated roles are within management layers, including two executive roles.
  • Near-term increase to share repurchase plan. In light of progress made to-date, the Company is raising its full-year share repurchase target from $60-plus million to $90 million. As of April 8, 2026, the Company has repurchased approximately 2.9 million shares of common stock for $24 million, representing 5% of shares outstanding as of December 31, 2025.
  • Reaffirming guidance. The Company reaffirms its Q1 2026 and FY2026 guidance, previously announced during the Q4 2025 earnings call on February 26, 2026:
    • Q1 2026 revenue growth of flat to up 1% year-over-year and Adjusted EBITDA margin of 26% to 27%
    • FY 2026 revenue growth of flat to up 2% and Adjusted EBITDA margin of 29% to 30%

"We are moving quickly to execute our 2026 initiatives and make changes that support healthy long-term growth. Better internal processes and a more nimble organization are essential to accelerate the Marketplace flywheel while also growing responsibly to create shareholder value. Simplifying our business also provides more bandwidth to dedicate to key products, like AI, data and analytics, that we believe are critical to the future of automotive retail. We are grateful to the employees whose contributions have helped shape Cars.com into what it is today, and we enter this next chapter with conviction and a clear path forward," said Tobi Hartmann, CEO of Cars.com.