Cars.com Inc

Hybrid shopper interest is running at roughly double the share of hybrids on dealer lots, according to new data from Cars.com. In its latest report, Cars.com said 25% of surveyed shoppers named a hybrid as the powertrain they're most seriously considering, while hybrids make up only about one in eight new listings; the survey of 648 recent car buyers and shoppers was fielded from July 31 to Aug. 6. The mismatch is showing up in how fast the cars sell, with days on the lot for new hybrids falling to 46 in August, down 10% from a year ago, while new hybrid supply grew just 1%, and new vehicles overall sat for 73 days, up from 70 a year earlier. The shopper data lines up with automaker results, as Hyundai said its hybrid sales rose 39% in September and 35% in the third quarter, both records, with hybrids accounting for 28% of September volume, while sister brand Kia said its hybrid sales jumped 152% in September and Toyota North America reported its electrified vehicle sales, which include hybrids and EVs, jumped 29% in Q3 as overall volume climbed only 0.6%. Cars.com points to pump prices as one driver, with gas averaging $4.19 a gallon in August and Energy Information Administration data showing the national average at $4.46 by mid-September, and lead analyst Peter Hoang wrote that with gas prices climbing again, hybrids look positioned to keep benefiting from shoppers hedging against pump prices without fully committing to an EV. The findings come as the EV market enters its first year without federal tax credits, after the $7,500 federal EV tax credit expired on Sept. 30, 2025, with days on lot for new EVs falling to 93 in August, the fifth straight monthly improvement, but still double the time for hybrids, and average new-EV prices falling 11% from a year ago to $57,046.

Cars.com reported second-quarter net income of $14.3 million, up 103% from $7 million a year earlier, while revenue rose just 1% to $179.9 million. The profit surge was driven by a 7% increase in Marketplace revenue, the fastest since 2021, and a 3% rise in Dealer revenue to $163.3 million, which helped offset an 18% decline in OEM and National revenue to $13.6 million. Operating expenses fell 7% to $152.1 million, boosting adjusted EBITDA margin to 29.4%, above guidance. However, average monthly unique visitors dropped 14% to 22.8 million, and total traffic fell 12% to 143 million visits. The company also repurchased 6.2 million shares for $57 million in the first half, reducing share count by over 10%.