Cars.com Inc.

Q2 2026 Earnings Call — August 6, 2026

Analyst Thomas White (DA Davidson): Thank you. Good morning, guys. So I guess just first off, marketplace looks like a nice quarter there, 7% growth. I was hoping maybe you could just unpack a little bit more kind of the drivers there, you know, kind of between maybe some of the premium package adoption and

Executive Toby (Title): Thanks for the question. No, we're excited about the marketplace performance that we saw in Q2. I would say that it was driven by a combination of both improvements in dealer count, which really help accelerate the marketplace flywheel, and also the continued progress on ARPD, a chunk of which was driven by the new premium plus package that we rolled out last year. We continue to see good adoption there. ==Our target

as a reminder is to get to 15% penetration rate by the end of the year.

==

Analyst: Okay, great. So you called out growth in lead volume, but there's still a pretty sharp decline in uniques. Toby, maybe can you help us, or Sonia, help us reconcile that a little bit? It didn't sound like SEO headwinds for you kind of have gotten worse, although there's some other kind of internet marketplaces who are talking about that. So, I don't know, just help us kind of reconcile what's going on there with uniques and Eventually, I presume that that trend has to change, particularly if you're going to look to be adding more dealers to the marketplace.

Executive Toby (Title): Yeah, sure. As we laid out and shared, this is really an intentional shift. We looked at our marketing spend and our marketing practice, and we figured that there are some inefficiencies. We drove a lot of traffic in the past, a lot of clicks that didn't convert into leads. So we do not want to do this anymore. So we are intentionally shifting to prioritize the value delivery versus the pure audience reach. And they're very happy to see that this is actually kicking in. So a lot better conversion and lead volume also kicking in. We also have a new CMO who started, so she's going to take it to a new level. So you saw with marketplace, obviously it's a good sign that it's working. You saw the growth kicking in and you saw also the dealer growth and the revenue growth. So we think that's the right strategy. And of course, we'll create the right momentum to also reinvest in the right spots. But again, lower funnel versus just upper funnel.

Analyst Marvin Fong (U.S. Bank Corp): Great. Good morning. Thanks for taking my questions here. Just would like to ask a question on the subscribers for solutions. Talked about turning that around with more innovation and new products. Could you just kind of talk about the timeline you have for rolling out those new products? And do you have a timeline in mind for when we can expect that the user or the subscriber count there to stabilize and be positive? And then second question, I know it was just launched in June, but just talk about what you're seeing in terms of leads and conversion rates, if you're able to, on the dealer-verified product. And what's the monetization strategy for that? You know, what packages, what are you including, and how would you modify it outside of IQ Trade specific subscribers? Thank you.

Executive Toby (Title): Hi Marvin, it's Toby. Thank you for your questions. Let's talk about the first part, which is the website part and the AI part. First of all, we'd like to recall that we did tell you in the future that the future growth would be a little bit slowing down and given the fact that we actually repackaged and this is actually what we did. So it's not just about a mere volume, but it's also the price points and the packaging. So we push that and that's totally in line with strategy. Having said that, our value delivery remains really, really strong. We're a really scaled provider. We're endorsed by pretty much every major OEM and we're still winning new customers. But let's also talk about the weakness, which I'd like to address. First of all, there's a slow pace of new feature releases to date. And what we've done is we've rolled out the playbook for marketplace. We talked about it. We're seeing great productivity enhancements and acceleration. And we are going to apply that same playbook also for the solutions business.

So we have a pretty exciting roadmap ahead that we work behind closed doors, which will actually focus on the interconnectivity with some of the marketplace functionalities. And then another point I'd like to mention is we do have some organizational and process misalignment in the past, which we're also addressing as part of our reorganization. We've named a new GM, and we're really picking up speed there. So over the next, you know, two to three quarters, there will be a focus on really product innovation and applying the same playbook to be very confident that we'll get this back on a growth trajectory. Now, regarding your second question with dealer innovation, Verified Listings. We're really very happy about that because it took us only a few months to launch that. And what it does is, in terms of impact, it's basically creating already more impressions, which then converts into higher click-through rates to BDPs, which essentially then drives faster listing turns. Why? Because this is a major trust signal that we are integrating into Marketplace to stand out and help consumers really getting a better coordination between lots of vehicles, and there's either CPOs or nothing.

And this is another alternative that looks at not just the historic vehicle report, but at the actual condition and at the actual inspection that a dealer had to go through by applying some of the assets from Accutrade. So view this as a really important step, first step. We'll share more data points. We just rolled it out, so it's too early, but we are testing heavily towards an interconnected experience with a focus on trust signals and guiding consumers. So hopefully this is some context for you. Thank you.

Analyst Gary Prestopino (Barrington Research): Hi. Good morning, all. Hey, Toby. Good progress here. I guess with some of the marketplace revenue growth, is that really somewhat of a function of that year now? got the sales force selling an integrated product and you're getting more uptake because of that integrated product sales approach?

Executive Toby (Title): Yeah, thank you. There's a couple of factors. That's certainly one. I'm glad you called it out. We made good progress there as well. You know, the other piece is we're bundling it and it's easier to understand, it's easier to package, and it's easier to roll it out. So, away from point solutions more towards an interconnected subscription with a clear value delivery. And then also let's not forget about the marketing piece that we just called out. We are focused on delivering more leads as opposed to just more traffic. And that is the, at the very end, that's the value delivery that dealers want. So it's a combination of the process and organizational adjustments we made, plus a clear interconnectivity. First steps will by no means done. Thirdly, sales efficiency and packaging. And fourthly, support from marketing efficiency and greater lead volume.

Analyst: Okay. And then just to follow up on the verified product, which is being generated by Accutrade, is the data that is being shown there accurate? Very similar to some of the output that we were shown in Las Vegas, or is it more or less just a deeper dive versus a Carfax where it's going to say no mechanical issues, et cetera, et cetera, things like that?

Executive Toby (Title): Yeah, it's a great question. Thank you. So the main difference between what you saw in Vegas and how we're utilizing it currently is it was very much dealer-facing in Vegas, which is, if you remember, this was used as a tool to determine the best price, how to price the vehicle from a dealer's perspective to then put it onwards to a consumer-facing potential sale listing. Now what this does today, our focus is really on guiding consumers. So it's a shift more towards consumers, giving them additional data points to really understand that this is a vehicle and a VIN number that went through an additional loop of 15, 18 points inspection, which by the way, the dealer adhered to and signed off. So that's the difference. It's more consumer facing as opposed to just price labeling.

Analyst: I know I only have two questions, but I just want to be clear. In order to do a verified, have this program, the dealer does have to do some kind of certified inspection and guarantee that inspection for the purchaser of the car?

Executive Toby (Title): Yes. They need to go through a rigorous process, which is obviously part of the and then they can put it up online. That's correct. Thank you.

Analyst Naveen Khan (B. Riley): Thanks so much, guys. Two questions from me. One, maybe just on the traffic, the website traffic between Unique and Visits. Please, you said that you're focusing on higher quality traffic, not just the volume of traffic, which I understand. But if I just look at sort of marketing and sales as a percentage of revenue, that's up here on the area, spending more money. So is it that we have to spend more money to kind of acquire the high quality traffic? How should I understand that deleverage in the marketing line versus... You know, what you just spoke about in the quality trade-off. And then I have a follow-up.

Executive Toby (Title): Yeah, good catch there. We anticipated that question, but there's something else that we're trying to catch up with and trying to have proper allocation, which is really call it brand. Remember, we still need some brand investments for the long-term interconnected strategy. So we need to position this not only just a listing destination, but instead as a transaction enablement platform. So the focus we just called out is really on the performance and growth marketing piece where we really focus on driving more value. Definitely from that, we are continuing and actually, you know, we're spending money on positioning this right in terms of branding. And that's an important part of the journey because we're here for long-term success. So, yes, that's why you see those numbers. Thank you.

Analyst: Okay, that's great. The second question I have is just on the verified listings. So, it looks like, you know, you're creating a greater value proposition for the dealers that buy active trade and ultimately that should drive sales for this product. Is that the right way I should be understanding this? Or are you just going to expand verified listing to more dealers regardless of whether or not they're AccuTrade customers?

Executive Toby (Title): Yeah, good question too. As Sonia shared, we started with the AccuTrade customers. Why? Because they're used to the procedures and the processes and obviously they're closer to our intentional shift of driving a differentiated listing and providing a different trust signal. That's the current testing. Now again, this is early innings. We're only out there for a couple of weeks, but the intent is to then also make this available to a broader audience of dealers. And we're seeing very positive and very encouraging signals right now. But also to be fair, we are learning because these are the power users and they're giving us incredibly fundamental and good sound feedback on how we can further improve that. So in summary, correct, we started with AccuTrade customers only and also only a subgroup of those. We're getting their feedback, we're monitoring, we're finessing the product, but the intent is to roll it out and expand it and make it available to other dealers. Thank you.

Analyst Alejandro Nuno (UBS): Hi, good morning. Maybe you can just sort of help us out with the guidance. The EBITDA guide basically implies margins are relatively flat quarter over quarter, but it sounds like you continue to make good progress on optimizing the cost structure and expect sort of return growth in OEM revenue. So why are margins sort of flat quarter over quarter? And then maybe sort of on top of that, like the fourth quarter margin sort of implies close to sort of 31%. Like what drives, I guess, the step up then from Q3 to Q4?

Executive: Yeah, no, thank you for the question. You know, we're happy with our EBITDA performance on a year-to-date basis. As you heard, we've kind of reaffirmed the full year guide. I think the shape of the year maybe looks a little bit different from a margin perspective than you may have originally anticipated. But we're definitely committed to finding those ongoing efficiencies, some of them unlocked in Q2 with the changes that we made to streamline the organization.

Analyst: Thank you so much for joining us. All right, thanks for that color. And maybe just sort of one more follow up if I can. And sorry if I missed this, but on the new premium plus package, you highlighted that you're targeting sort of 15% by the end of the year, like, can you just give us an update of where you stand now?

Executive Toby (Title): We're making good progress. You know, we're midway through the year, and I think we're seeing a lot of momentum in terms of those sales. Premium Plus was the fastest growing of our three packages in Q2. And as we continue to add more features and improve the interconnectivity of our marketplace experience, we believe a lot of that value will accrete to the Premium Plus package. We're still fixed on delivering the 15% by the end of the year.

Analyst: Do you have a penetration for the quarter so far or where you stand right now?

Executive Toby (Title): We're basically at double digits or close to double digit penetration.

Analyst: Great. Thank you so much. I'll pass it on.

Analyst Rajat Gupta (JP Morgan): Hi, good morning. This is Josh Hahn for Rajat Gupta. Thanks for taking our questions. I just wanted to start off with one on the FTC's push around dealer pricing transparency. I was just wondering if you could expand on how you've changed the platform to just adhere to that increasing pricing transparency standard. You said a step removed since dealers do the advertising. So does all-in pricing play to a marketplace built on trust or does it create somewhat of a friction for your dealers? And is your approach any different from that that is employed by your peers? Thanks, and I have a quick follow-up.

Executive: You know, we've tried to take a role in helping dealers ensure that they're able to get their information out there and be trusted partners to consumers. If you think about our vision for Marketplace, it is embedded in trust, transparency, and so we've been supporting them through this process, encouraging compliance and just better information, right? Because when the consumer understands what they have to pay before they walk into a dealership, it reduces the friction of the transaction, right? It increases lead to sale conversion. So we feel like we're taking the right steps.

Analyst: Understood, that's very helpful. And then just as a quick follow-up, could we get an update on, you know, where cost.com's dealer-to-dealer wholesale initiative stand just around Dealer Club with AccuTrade connected dealers not yet seeing meaningful upward pressure? Just curious how that flywheel starts turning and what's the unlock that gets that ecosystem to compound? Thank you.

Executive: Currently, we are focused on, as we just laid out, on really taking some of the actual assets and making them more interconnected. So that's the first step. That's plenty of stuff to chew on. So we're going to take it step by step. And the dealer verified listings program, as we just launched it, is going to keep us busy for quite some months. So we'll give you more updates on the other stuff. But that's the focus. That's the current focus right now. The other part that we really and making it more connected is also anything that's related to our treatment plus features. So we've developed a stack of new features that are going to be launched as part of our rollout and our future subscription services. But again, too early to talk about in public, but there's a lot of work behind closed doors. So stay tuned.

Analyst: Understood. Thanks and good luck.

Executive: Thank you and no further questions that came through this concludes our conference call for today thank you all for participating you may now disconnect.

Q1 2026 Earnings Call — May 7, 2026

Analyst Tom White (D.A. Davidson): One on AI, and then I have a follow-up. But, Toby, I was hoping maybe you could share your latest thoughts on how you feel about the prospect of consumers increasingly relying on the horizontal LLMs and increasingly maybe sort of personal agents to help them shop for cars and what does that mean for cars.com's ability to kind of interface directly with consumers? And are there ways that you guys can maybe make your business more resilient or sort of better positioned for that sort of future, you know, maybe by making some of your data sort of more proprietary or protected or anything else? Thanks.

Executive Toby (Title): Yes, we do think that we are in a highly relevant space because car purchasing is very complex and we have data accumulated over the past 20 plus years. As we talked over during this call, we make that data more discoverable, which we're in the midst of that. We've made some great progress there. And then we have a great brand, which is also something that we see increasingly become more important that the people start initially at a high level searching, but then once they're getting down into deeper funnel metrics, they do rely on the branded context and the branded information that comes from cars.com. Big picture automotive is obviously a complex industry and it requires deep vertical expertise. A car is the second largest purchase for consumers and obviously the vast majority of consumers spend time researching in depth, actually on average eight to nine hours. And we have a great brand, and we are in the process of making it more discoverable and bringing it up front to the site and the site experience. So that will be a major focus for our future product development. Let me just add, it's also in the spirit of I talked about the interconnectivity, so that's why it's so important to interconnect everything as opposed to routing in siloed subsidiaries. So that's actually what we're doing underneath the platform and across different data silos. Thank you.

Analyst Tom White (D.A. Davidson): Maybe just a quick follow-up on AccuTrade and probably maybe just get a bit more color on kind of what's happening there. I think you mentioned subscribers down sequentially. Is there, you know, is there maybe any seasonality happening there? Is what's happening with subscribers sort of a function of just the automotive backdrop more generally, or is this sort of more of a product market fit thing that you guys, you know, sort of plan to work through maybe via bundling it with kind of core marketplace, just a little bit more color on what's happening at Accutrade? And then I'll get back into you. Thanks.

Executive Toby (Title): Yeah, I want to be very transparent. We're in the midst of rearranging and refocusing to work in more interconnected experience and more interconnected product. And that means that we are de-emphasizing the standalone solution as opposed to really bundling it up and making this part of an integrated marketplace experience. So we have a pretty exciting product roadmap. You'll hear more over the next couple of months and quarters. There's a lot in the making. And that's why you see, you know, temporarily maybe the numbers going down a little bit because we're de-emphasizing again on just selling standalone solutions as opposed to making this an integrated part. So I wouldn't call this like a trend in the industry or anything. It's more the result of what we're doing internally, and I would say it's according to plan. Thanks.

Analyst Rahat Gupta (JP Morgan): Could you clarify the MCP integration opportunity? How many agentic AI platforms is connected? What does that usage funnel look like in terms of unit quality for dealers? I have a quick follow-up. Thanks.

Executive Toby (Title): Right now, it's just one, and we're working towards other opportunities and channel integrations, but that's just with the chat GPT. But again, we also mentioned the traffic is well below 1%.

Analyst Rahat Gupta (JP Morgan): And, you know, it looks like OEM and national is coming in weaker than expected, you know, both in 1Q, you know, including the 2Q guidance that Sonia had mentioned. But it seems like you feel comfortable reiterating, you know, the margin guidance. Is it just the cost outs that are offsetting some of the drop through from the OEM national weakness? I'm curious if any other call you could give and also an update on the OEM and national FOIA guidance. I think the previous outlook was for flat year over year.

Executive Sonia (Title): I think in terms of the margin guidance, certainly some of the actions that we took in April were helpful. And in addition to that, we continue to be focused on driving efficiencies in the business. I think you heard Toby talk a little bit about the shifts that we're making in terms of marketing and focusing on lead generation versus solely kind of these top of funnel metrics. At the end of the day, that's what dealers really value from us. And so those are some of the levers we have at our disposal to deliver on margins in addition to, over time, the interconnected nature of the platform will naturally lend itself to more efficiencies. And Marketplace, in and of itself, is also a fairly high-margin business.

Analyst Marvin Fong (BTIG): I guess I'd like to start just to dive a little deeper into the solutions business. I think you did describe entering a new phase of growth there. Just any commentary on that? Should we expect the counts of solutions customers to continue to decline for a few more quarters here? I think last call, we talked about how some dealers are striking out on their own, developing their own kind of solution. Is that dynamic still up right here? Just some additional commentary would be great.

Executive Toby (Title): Yes, I do think we are entering a slightly different phase of growth. We've talked about it a little bit over the last several quarters, which is initially on websites in particular. As we got onto OEM programs, we have the opportunity for rapid market share gains, and the business is really switching to a mode where it's not just about unit count growth. It is, in fact, even more important to think about the packages that we're putting forward to dealers, and how we integrate some of what we're doing from an innovation perspective and improvements and enhancements perspective into these packages. So it becomes a little bit more basically of an ARPD game.

I think we certainly would like to see that unit count number stay stable over a longer period of time with maybe some modest upward improvement, but we feel pretty good about some of the steps we've taken over the last several quarters, improvements we're making in site speed, enhancements that we think we're somewhat uniquely bringing to market on the security side of things to improve the technical performance of websites, not to mention being able to integrate some of what we've done for Marketplace with solutions. So a good example of that are, you know, how we can leverage Carson, the Marketplace AI assistant, to enable experiences on DI websites in a more intuitive way, how we can take AI videos, which we launched as part of our IMV product, and bring that also over to the dealer website experience. So I think, you know, things don't always move as linearly as you would like them to, but we believe that we're making the right steps or taking the right steps to continue to grow websites.

Analyst Marvin Fong (BTIG): And then my follow-up question, just from the repackaging, I just wanted to more fully understand how that's going to roll out. The last time there was a major repackaging, there was some dealership. Granted, I believe that was also an embedded license. But just how you're thinking about or how we should think about you know, dealer counts as you roll out the new set of packages, do you expect there to be a period of some choppiness, or do you think you can just start growing the dealer base right out of the gate as you roll out these new packages? Thanks.

Executive Sonia (Title): Yeah, I think in terms of what we saw in dealer count this quarter, the decline that we saw was largely related to solutions, and as I sort of alluded to, we do believe we have a pretty robust plan on how to tackle that. The goal is to grow dealer count. It is critical to how we think about continuing to grow our marketplace business. Growing dealer count is one of those things that brings more inventory to us. It's one of the things that then brings more consumers to us. And so it's naturally just important to how we think about marketplace flywheel dynamics. I think critical to our ability to grow dealer accounts is how we go to market with more interconnected solutions. There's a lot on the product roadmap that we're excited about. Toby alluded to it earlier, which is, you know, the integration of AccuTrade and Marketplace is something that puts really powerful data tools in the hands of dealers and allows them to manage one of their biggest assets more effectively, which is inventory.

Executive Toby (Title): Maybe let me just add what Sonia mentioned. Historically, this has been not the center of gravity for the company. So by just looking at the market and in terms of what the different segments are in the customer penetration we have and dealership penetrations in those segments. We just feel there's a lot of room for us to grow. But we need to treat the product. We need to have the right product fit to really cater towards the needs of the dealers. And it's not just a two or three different product types. It's more like, you know, there's six to eight different product types going forward. So that's what we're working behind the scenes. So to sum it all up, we do believe there's significant headroom for us to grow. At the same time, we do not want to, you know, create the impression that all of a sudden overnight a number of dealers will jump through the roof. This is a concentrated effort that will take a couple quarters, but it's going to be product-led and product-first and data-first and AI-first, and that's what we're working on.

Analyst Gary Pastapina (Barrington Research): One dealing with the cost savings, Sonia. You're saying you annualized the $25 to $30 million for 2027. Is that an absolute number that we should expect to capture as we model this? And where are those costs coming out of? Is it SG&A, Cost of Goods Sold? Can you help us out there?

Executive Sonia (Title): So I think that is the 25 to 30 is kind of the discrete value on an annualized basis of the changes that we announced in April. It doesn't necessarily mean a $25 to $30 million year-over-year step down, if that's kind of your question. But what it does enable us to do is be more thoughtful about reallocation in the business as we work to build out more of the interconnected nature, the interconnections to marketplace. In terms of where the costs are coming out of, you know, they're distributed across the lines of our P&L. We took a hard look across the business. You know, whether it's operations, product and technology, marketing and sales, G&A, those were all important areas for us to look at. How can we simplify our go-to-market process? How can we foster, you know, from a product and tech perspective, more of the interconnectivity? Tools have obviously improved also really materially over the last couple years that allows us to work more efficiently. And then reducing layers in the organization is also really important as a way to speed decision-making. So those are some of the changes that we made.

Analyst Gary Pastapina (Barrington Research): Okay, that's helpful. And then just a question, Toby, as you're going out to market with an integrated sales product offering, you're going to bundle it, right? I would assume that will drive an increase in average revenue per dealer just from bundling. But at the same time, does that preclude a salesperson from going into a dealership and also selling a single-point solution? I guess, are they still going to have the autonomy to sell a single-point solution, or you have to bundle in order to get, you know, the full ball of wax from cars.com?

Executive Toby (Title): It's a great question. You know, it's the tradeoff, but by and large, we would say point solutions will be de-emphasized and not because they're not important, but just because you need to understand the holistic nature of a dealership infrastructure and there's many systems that are in process and replacing one by one is a much harder sell and it's much less convenient for dealers than coming in with the core, which is we are a marketplace partner. It's very easy to interact with us. It's very simple to get activities going, i.e. listings. It's very easy then to just activate or deactivate certain features that come as an embedded function with that marketplace integration. So that's the way how we're thinking about it. We want to make it as easy as possible for the dealers to use different features and dependent on what their needs are, as opposed to you've got to use this one solution only and we are competing with two or three other legacy systems that are in place. So that's our high-level strategy. So in a nutshell, is it allowed to still sell point solutions? Will we still sell point solutions? Yes, if it makes sense and if there's a very specific need by a dealer, but the broad stroke strategy will be we are leading with Marketplace, and we'll provide an interconnected experience.

Analyst Navitan (BWiley Securities): Just a couple of questions from me. One, maybe just on the website business, I saw a decline in dealer customers, and I think last time around, or Q4, I think you said it may be a passing trend, or just more noise than anything, but is there a change in the competitive dynamics or is there something else going on that's causing this sequential decline again in the website customer count and what are the things you can do to kind of correct it? And then the second question I had is just around the organic traffic around 60% where it has been historically but as more and more traffic goes to AI overviews, AI mode and things like that. What are the things that you can do on your end to stay in that organic result mix that the technology, you know, that the top of the funnel providers are kind of unleashing for everyone? Thank you.

Executive Toby (Title): You know, I'll start with the website question. So I do still think some of this is a little bit of noise. We are entering, and we've talked about it for the last couple quarters, a slightly different phase of growth for websites. We initially grew through pretty significant market share gains as we got onto OEM programs and had the ability to bring in a significant number of dealers at a time. That dynamic has shifted a little bit since we're basically on program with everybody. The dealer acquisition side is coming in in smaller pieces. It's still there in terms of a very active launch pipeline. But what we're focused on more is not necessarily unit growth. It is how do we think about the packages that we're putting forward to market and how do we think about more interconnectivity between marketplace and website, specifically leveraging innovation happening in the marketplace side of our business and putting it onto dealer websites to make those tools available? Carson is a good example, person conversational search for dealer websites, bringing AI videos to dealer websites, not having it solely be a marketplace product.

Those are some of the things that we're excited about. And there is a real opportunity for us to continue to push website customers into higher tier packages since 50% of them are still in the base package. So we feel good about this business. We have a solid foundation. Sometimes there are going to be flicks when it comes to, you know, the tradeoff of volume and ARP. But I think it's largely noise at this point.

Regarding your second question about the traffic, let's just put things in context. We love the discoverability with LLMs, but the traffic is well below 1%, and we do know what people are searching for, and we do know that it's a really great tool and a really great entry point for very high-level searches. But again, we got the advantage. We are in a highly complex industry, where it really matters on a purchasing intent and decision journey to go deep into the specificities of a particular vehicle. And that's where our strengths come into play. So you will see us being focused more on leads and the right leads and investments and reallocation towards generating those leads in the future than pure traffic. So I guess the punchline is, whereas in the past, we were chasing traffic and visitors only as a key metric, we'll now focus more on the right leads because if you think this through as part of an interconnected marketplace experience, it means that we need to get the lead allocation, lead generation right because smaller dealers have completely different need for specific leads than larger dealerships which are driven by the value they propose and the vehicles they carry. So that's to summarize our opportunity also in context of AI.

Analyst Joe Spack (UBS): I just want to go back to some of the OPEX comments and maybe get a better understanding for the trends. Because I know, you know, you mentioned OPEX was down a lot year over year, but really it was DNA, right? Which I think was sort of a result of some of the actions in the fourth quarter. So that's just sort of the lower trend. And you still had, you know, like, you know, GNA up year over year. So maybe back to the earlier questions, like how should we expect maybe some of the individual line items between product, marketing, G&A to sort of really trend here over the balance of the year?

Executive Sonia (Title): You're right to point out that a lot of what we saw on a year-over-year basis in operating costs was really tied to G&A. I think there are two pieces there. One is just some customer lists that were part of the spin. We fully amortize those. So that's kind of like a permanent step down. And then there's some of the reduction is also due to the accounting for our office leases. You won't see the benefit of the April actions in our Q1 numbers. So that's going to start trickling through and flowing through our numbers in Q2. The majority of the actions took place in April. Some of them are in May. So even in Q2, you don't see necessarily the full benefit of what we're doing, but it is reflected in the guidance numbers that we've put out both for Q2 and on a full-year basis. With regards to GNA, I do recognize it looks a little bit maybe wonky, the GNA trend for Q1. But at the end of the day, we're talking about pretty small delta on a year-over-year basis. Most of this was tied to some, again, a couple different discrete items, third-party costs, things like that, that had a blip. We would ultimately, on a longer-term basis, expect to get leverage out of the GNA line. And transparently, we would expect to get leverage across our P&L. So that's the goal in terms of driving expanded margin in the business.

Analyst Joe Spack (UBS): And you know, it mentioned that dealer advertising in 2025 was up, like, high single digits, and then they sort of break down where that's spent, and, you know, third-party listings, you know, is 20%, so one of the larger buckets, but it was actually down a point versus 24, so overall growth, third-party listings share down a little bit, and I'm not exactly sure, to be honest, how they're bucketing it and how I should sort of compare that to your business, whether it's sort of that display advertising and other line that is sort of most relevant. But if it is, you grew pretty nicely within that sub-revenue line in, I guess, what was implying there's sort of, I guess, decent share. So I don't know if you could sort of just help me put into context, like, how you think you're performing within some of those high-level dealership spending metrics, and which line really, you know, should we be looking at?

Executive Toby (Title): Thanks for your question. Maybe just a more generic response to your question. We think we should do better, and we think that the market is attractive. We don't see any major headwinds from a dealership perspective or massive changes in behavior. But we do see the opportunity for cars to grow by having a better product fit and tailoring it towards the needs of the dealers. Again, going back to selling five, six and point solutions as opposed to, hey, here's what we can do. And by the way, here's how we are combining those assets. Imagine, you know, the dealer website and the inventory that's listed on that and a subscription that we have on marketplaces. And imagine just that there was some sort of a connection, which by the way, in the past, we didn't have. Those were siloed solutions. So from a dealer's perspective, you look at this from a budget and you're like, okay, I got a dealer website that cost me. I got listings there. I got my own listings. I got listings on third parties. But I look at this entire bucket of expenses and you're like, oh, okay, great. Now I have a partner who can actually drive efficiency and bring synergies to the table. So that's why we think we have headroom. So we actually don't think that there's a major change in our hands to make this work and grow.

Analyst Doug Arthur (Uber Research): Did website management grow in the quarter? And I realize in the integrated strategy you've got, it might not be as relevant a number. But was that up quarter over quarter, number of desktops?

Executive Sonia (Title): I think if you're asking about website units, we did see some volatility in that number, so they were down a little bit on a year-over-year and quarter-over-quarter basis.

Management: There are no questions

at this time.

This concludes today's conference call. Thank you for your participation.