Cars.com Inc.

Previous wording

We define UVs in a given month as the number of distinct visitors that engage with our platform during that month. Visitors are identified when a user first visits an individual Cars.com property on an individual device/browser combination or installs one of our mobile apps on an individual device. If a visitor accesses more than one of our web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). We measure UVs and Traffic via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Media or DealerClub websites.

Current wording

We define UVs in a given month as the number of distinct visitors that engage with our platform during that month. Visitors are identified upon first visit to an individual Cars.com property on an individual device/browser combination or installation of one of our mobile apps on an individual device. If a visitor accesses more than one of our web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). We measure UVs and Traffic via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Media or DealerClub websites.

Previous wording

UVs increased 2% for each of the three and six months ended June 30, 2025, and Traffic increased 2% and 1% for the three and six months ended June 30, 2025, respectively, primarily driven by increased consumer demand in March and early April in anticipation of rising prices related to automotive tariffs and strategic shifts in our marketing mix.

Current wording

UVs increased 4% and 3% for the three and nine months ended September 30, 2025, respectively, and Traffic increased 1% for both the three and nine months ended September 30, 2025, primarily driven by increased marketing investment along with strategic shifts to our marketing mix and optimization of our visitor acquisition strategy. The nine months ended September 30, 2025 was also impacted by increased consumer demand in March and early April in anticipation of rising prices related to automotive tariffs.

Previous wording

For the three months ended June 30, 2025, ARPD decreased 2% compared to each of the three months ended June 30, 2024 and March 31, 2025, primarily due to changes in our customer mix.

Current wording

For the three months ended September 30, 2025, ARPD decreased 1% compared to the three months ended September 30, 2024, primarily due to changes in our customer and product mix.

Previous wording

Our long-term success will depend in part on our ability to continue to execute our platform strategy including continuing to create an engaged in-market audience, growing our dealer customers, expanding our relationship with dealers through greater adoption of our platform, unlocking the cross-sell, transforming our OEM relationships and creating platform advantages. We believe our core strategic strengths, including our powerful family of brands, growing high-quality audience and suite of digital solutions for advertisers, including artificial intelligence, will assist us as we navigate a rapidly changing automotive environment. Additionally, we are focused on equipping our customers with digital solutions to enable them to compete in an environment in which an increasing number of car-buying customers are shopping online. These solutions include online chat, vehicle financing, appraisal and valuation and instant guaranteed offer capabilities. The foundation of our continued success is the value we deliver to customers, and we believe that our large audience of in-market car shoppers and innovative solutions deliver significant value to our customers.

Current wording

Our long-term success will depend in part on our ability to continue to execute our platform strategy including continuing to create an engaged in-market audience, growing our dealer customers, expanding our relationship with dealers through greater adoption of our platform, unlocking cross selling opportunities, transforming our OEM relationships and creating platform advantages. We believe our core strategic strengths, including our powerful family of brands, growing high-quality audience and suite of digital solutions for advertisers, including artificial intelligence, will assist us as we navigate a rapidly changing automotive environment. Additionally, we are focused on equipping our customers with digital solutions to enable them to compete in an environment in which an increasing number of car-buying customers are shopping online. These solutions include online chat, vehicle financing, appraisal and valuation and instant guaranteed offer capabilities. The foundation of our continued success is the value we deliver to customers, and we believe that our large audience of in-market car shoppers and innovative solutions deliver significant value to our customers.

Previous wording

Dealer revenue. Dealer revenue is typically subscription-oriented and consists of marketplace, digital experience, including website solutions, AccuTrade and media products sold to dealer customers. Dealer revenue is our largest revenue stream, representing 89% of total revenue for each of the three months ended June 30, 2025 and 2024. Dealer revenue decreased $1.4 million or 1% primarily due to marketplace, as a result of lower average dealer count during the second quarter of 2025 and changes in our customer mix, partially offset by continued growth in solutions.

Current wording

Dealer revenue. Dealer revenue is typically subscription-oriented and consists of marketplace, digital experience, including website solutions, AccuTrade and media products sold to dealer customers. Dealer revenue is our largest revenue stream, representing 89% of total revenue for both the three months ended September 30, 2025 and 2024. Dealer revenue increased $2.5 million or 2%, primarily due to growth in solutions.

Previous wording

OEM and National revenue. OEM and National revenue largely consists of Cars Commerce Media Network products, including display advertising and other solutions sold to OEMs, advertising agencies, automotive dealer associations and auto adjacent businesses, including insurance companies. OEM and National revenue represented 9% of total revenue for each of the three months ended June 30, 2025 and 2024. OEM and National revenue increased $0.8 million or 5%, primarily due to increased OEM spending to raise consumer awareness.

Current wording

OEM and National revenue. OEM and National revenue largely consists of Cars Commerce Media Network products, including display advertising and other solutions sold to OEMs, advertising agencies, automotive dealer associations and auto adjacent businesses, including insurance companies. OEM and National revenue represented 9% of total revenue for both the three months ended September 30, 2025 and 2024. OEM and National revenue decreased $0.8 million or 5%, which we believe is primarily due to temporary shifts in spending by certain OEM partners.

Previous wording

Other revenue. Other revenue primarily consists of revenue related to vehicle listing data sold to third parties and pay per lead products. Other revenue represented 2% of total revenue for each of the three months ended June 30, 2025 and 2024. Other revenue increased $0.4 million or 12%.

Current wording

Other revenue. Other revenue primarily consists of revenue related to vehicle listing data sold to third parties and pay per lead products. Other revenue represented 2% of total revenue for both the three months ended September 30, 2025 and 2024. Other revenue increased $0.3 million or 8%.

Previous wording

Cost of revenue and operations. Cost of revenue and operations expense primarily consists of costs related to processing dealer vehicle inventory, product fulfillment, pay per lead products and compensation costs for the product fulfillment and customer service teams. Cost of revenue and operations expense represented 17% of total revenue for each of the three months ended June 30, 2025 and 2024. Cost of revenue and operations decreased $0.5 million or 2%, and remained flat as a percentage of revenue. The change is primarily due to lower compensation expense, partially offset by higher third-party costs associated with certain products driven by product mix.

Current wording

Cost of revenue and operations. Cost of revenue and operations expense primarily consists of costs related to processing dealer vehicle inventory, product fulfillment, pay per lead products and compensation costs for the product fulfillment and customer service teams. Cost of revenue and operations expense represented 17% and 18% of total revenue for the three months ended September 30, 2025 and 2024, respectively. Cost of revenue and operations decreased $1.5 million or 5%, primarily due to lower compensation expense.

Previous wording

Product and technology. The product team creates and manages consumer and customer-facing innovation and consumer and customer experience. The technology team develops and supports our products, websites and mobile apps. Product and technology expense includes compensation costs, consulting and contractor costs, hardware and software maintenance, software licenses and other infrastructure costs. Product and technology expense represented 16% and 15% of total revenue for the three months ended June 30, 2025 and 2024, respectively. Product and technology expense increased $1.1 million or 4%, primarily driven by incremental costs related to the acquisition of the DealerClub Inc. ("DealerClub") business. For information related to the acquisition, see Note 3 (Business

Current wording

Product and technology. The product team creates and manages consumer and customer-facing innovation and consumer and customer experience. The technology team develops and supports our products, websites and mobile apps. Product and technology expense includes compensation costs, consulting and contractor costs, hardware and software maintenance, software licenses and other infrastructure costs. Product and technology expense represented 15% and 16% of total revenue for the three months ended September 30, 2025 and 2024, respectively. Product and technology expense decreased $1.6 million or 6%, primarily due to lower compensation, including stock-based compensation.

Previous wording

Marketing and sales. Marketing and sales expense primarily consists of traffic and lead acquisition costs, performance and brand marketing, trade events, compensation costs and travel for the marketing, sales and sales support teams, as well as bad debt expense related to the allowance for doubtful accounts. Marketing and sales expense represented 32% and 34% of total revenue for the three months ended June 30, 2025 and 2024, respectively. Marketing and sales expense decreased $2.5 million or 4%, as a strong surge in tariff-driven consumer interest allowed us to reduce our spend.

Current wording

Marketing and sales. Marketing and sales expense primarily consists of traffic and lead acquisition costs, performance and brand marketing, trade events, compensation costs and travel for the marketing, sales and sales support teams, as well as bad debt expense related to the allowance for doubtful accounts. Marketing and sales expense represented 33% and 32% of total revenue for the three months ended September 30, 2025 and 2024, respectively. Marketing and sales expense increased $1.0 million or 2%, primarily due to increased investment in marketing.

Previous wording

General and administrative. General and administrative expense primarily consists of compensation costs for certain of the executive, finance, legal, human resources, facilities and other administrative employees. In addition, general and administrative expense includes the cost of office space, legal, accounting and other professional services, transaction-related costs, severance, transformation and other exit costs and costs related to the write-off of assets. General and administrative expense represented 12% and 13% of total revenue for the three months ended June 30, 2025 and 2024, respectively. General and administrative expense decreased $1.3 million or 6%, primarily due to lower costs associated with our amended headquarters office lease.

Current wording

General and administrative. General and administrative expense primarily consists of compensation costs for certain of the executive, finance, legal, human resources, facilities and other administrative employees. In addition, general and administrative expense includes the cost of office space, legal, accounting and other professional services, transaction-related costs, severance, transformation and other exit costs and costs related to the write-off of assets. General and administrative expense represented 13% and 12% of total revenue for the three months ended September 30, 2025 and 2024, respectively. General and administrative expense increased $2.8 million or 13%, primarily due to third-party costs, partially offset by lower costs associated with our amended headquarters office lease.

Previous wording

Depreciation and amortization. Depreciation and amortization expense decreased $3.0 million or 6%, primarily due to certain assets being fully depreciated and amortized as compared to the prior-year period, partially offset by accelerated depreciation associated with our amended headquarters office lease.

Current wording

Depreciation and amortization. Depreciation and amortization expense decreased $4.1 million or 15%, primarily due to certain intangible assets being fully amortized as compared to the prior-year period.

Previous wording

Interest expense, net. Interest expense, net decreased $1.1 million or 7%, primarily due to a reduction in total indebtedness compared to the prior-year period and lower interest rates. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Current wording

Interest expense, net. Interest expense, net decreased $0.4 million or 5%, primarily due to a reduction in total indebtedness compared to the prior-year period and lower interest rates. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Previous wording

Other income, net. Other income, net changed primarily due to the change in the fair value of contingent consideration in the prior- year period associated with the AccuTrade and CreditIQ acquisitions. For more information related to contingent consideration, see "Liquidity and Capital Resources" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (the "SEC") on February 27, 2025.

Current wording

Other income, net. Other income, net changed primarily due to the change in the fair value of contingent consideration in the prior- year period associated with the AccuTrade and CreditIQ acquisitions. For more information related to contingent consideration, see "Liquidity and Capital Resources" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025.

Previous wording

Income tax expense. The effective income tax rate differed from the statutory federal income tax rate of 21%, primarily due to the tax expense on stock-based compensation.

Current wording

Income tax expense. The effective income tax rate differed from the statutory federal income tax rate of 21%, primarily due to the tax expense on nondeductible items.

Previous wording

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Current wording

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Previous wording

Dealer revenue. Dealer revenue represented 89% and 90% of total revenue for the six months ended June 30, 2025 and 2024, respectively. Dealer revenue decreased $4.0 million or 1% primarily due to marketplace, as a result of lower average dealer count during the first half of 2025 and changes in our customer mix. Additionally, media revenue decreased slightly, which we believe is due to macroeconomic trends. These decreases were partially offset by continued growth in solutions.

Current wording

Dealer revenue. Dealer revenue represented 89% of total revenue for both the nine months ended September 30, 2025 and 2024. Dealer revenue decreased $1.5 million, primarily due to marketplace and media, as a result of lower average dealer count during the first half of 2025 and changes in our customer mix. These decreases were partially offset by continued growth in solutions.

Previous wording

OEM and National revenue. OEM and National revenue represented 9% of total revenue for each of the six months ended June 30, 2025 and 2024. OEM and National revenue increased $1.8 million or 6%, primarily due to increased OEM spending to raise consumer awareness and increased on-the-lot inventory levels earlier in the year.

Current wording

OEM and National revenue. OEM and National revenue represented 9% of total revenue for both the nine months ended September 30, 2025 and 2024. OEM and National revenue increased $0.9 million or 2%, primarily due to increased OEM spending to raise consumer awareness earlier in the year.

Previous wording

Other revenue. Other revenue represented 2% and 1% of total revenue for the six months ended June 30, 2025 and 2024, respectively. Other revenue increased $0.9 million or 15%.

Current wording

Other revenue. Other revenue represented 2% of total revenue for both the nine months ended September 30, 2025 and 2024. Other revenue increased $1.2 million or 13%.

Previous wording

Cost of revenue and operations. Cost of revenue and operations expense represented 17% of total revenue for each of the six months ended June 30, 2025 and 2024. Cost of revenue and operations increased $0.5 million or 1%, primarily due to higher third-party costs associated with certain products driven by product mix, partially offset by lower compensation expense.

Current wording

Cost of revenue and operations. Cost of revenue and operations expense represented 17% of total revenue for both the nine months ended September 30, 2025 and 2024. Cost of revenue and operations decreased $1.1 million or 1%, primarily due to lower compensation expense, partially offset by higher third-party costs associated with certain products driven by slight shifts in product mix.

Previous wording

Product and technology. Product and technology expense represented 16% of total revenue for each of the six months ended June 30, 2025 and 2024. Product and technology expense increased $1.4 million or 3%, primarily due to incremental costs related to the acquisition of the DealerClub business and higher compensation, partially offset by lower third-party costs, including licenses.

Current wording

Product and technology. Product and technology expense represented 16% of total revenue for both the nine months ended September 30, 2025 and 2024. Product and technology expense decreased $0.2 million, primarily due to lower compensation and third-party costs, partially offset by incremental costs related to the acquisition of DealerClub Inc. ("DealerClub"). For more information related to the acquisition, see Note 3 (Business Combinations) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Previous wording

Marketing and sales. Marketing and sales expense represented 33% of total revenue for each of the six months ended June 30, 2025 and 2024. Marketing and sales expense decreased $1.4 million or 1%, primarily due to changes in our marketing investment and mix, partially offset by higher compensation, including stock-based compensation.

Current wording

Marketing and sales. Marketing and sales expense represented 33% of total revenue for both the nine months ended September 30, 2025 and 2024. Marketing and sales expense decreased $0.3 million, primarily due to changes in our marketing investment and lower bad debt expense, partially offset by higher compensation, including stock-based compensation.

Previous wording

General and administrative. General and administrative expense represented 13% of total revenue for each of the six months ended June 30, 2025 and 2024. General and administrative expense increased $1.7 million or 4%, primarily due to higher severance-related costs, partially offset by lower costs associated with our amended headquarters office lease.

Current wording

General and administrative. General and administrative expense represented 13% of total revenue for both the nine months ended September 30, 2025 and 2024. General and administrative expense increased $4.5 million or 7%, primarily due to higher severance-related costs and third-party costs, partially offset by lower costs associated with our amended headquarters office lease.

Previous wording

Depreciation and amortization. Depreciation and amortization expense decreased $2.7 million or 10%, primarily due to certain assets being fully depreciated and amortized as compared to the prior-year period, partially offset by accelerated depreciation associated with our amended headquarters office lease.

Current wording

Depreciation and amortization. Depreciation and amortization expense decreased $7.1 million or 9%, primarily due to certain assets being fully depreciated and amortized as compared to the prior-year period, partially offset by accelerated depreciation associated with our amended headquarters office lease.

Previous wording

Interest expense, net. Interest expense, net decreased $0.5 million or 6%, primarily due to a reduction in total indebtedness compared to the prior-year period and lower interest rates. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Current wording

Interest expense, net. Interest expense, net decreased $1.5 million or 6%, primarily due to a reduction in total indebtedness compared to the prior-year period and lower interest rates. For information related to our debt, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Previous wording

Overview. Our primary sources of liquidity are cash flows from operations, available cash reserves and borrowing capacity available under our credit facility. We believe our positive operating cash flow, along with our Revolving Loan, provide adequate liquidity to meet our business needs for the next 12 months and beyond, including those for investments, debt service, share repurchases, contingent consideration payments and strategic acquisitions. However, our ability to maintain adequate liquidity in the future is dependent upon a number of factors, including our revenue, our ability to contain costs, including capital expenditures, and to collect accounts receivable and various other macroeconomic factors, many of which are beyond our direct control.

Current wording

Overview. Our primary sources of liquidity are cash flows from operations, available cash reserves and borrowing capacity available under our credit facility. We believe our positive operating cash flow, along with our Revolving Loan, provide adequate liquidity to meet our business needs for the next twelve months and beyond, including those for investments, debt service, share repurchases, contingent consideration payments and strategic acquisitions. However, our ability to maintain adequate liquidity in the future is dependent upon a number of factors, including our revenue, our ability to contain costs, including capital expenditures, and to collect accounts receivable and various other macroeconomic factors, many of which are beyond our direct control.

Previous wording

We may also seek to raise funds through debt or equity financing in the future to fund operations, significant investments or acquisitions that are consistent with our strategy. If we need to access the capital markets, there can be no assurance that financing may be available on attractive terms, if at all. As of June 30, 2025, Cash and cash equivalents were $27.7 million and including our undrawn Revolving Loan, our total liquidity was $317.7 million.

Current wording

We may also seek to raise funds through debt or equity financing in the future to fund operations, significant investments or acquisitions that are consistent with our strategy. If we need to access the capital markets, there can be no assurance that financing may be available on attractive terms, if at all. As of September 30, 2025, Cash and cash equivalents were $55.1 million and including our undrawn Revolving Loan, our total liquidity was $350.1 million.

Previous wording

Indebtedness. As of June 30, 2025, the outstanding aggregate principal amount of our indebtedness was $460.0 million, at an average interest rate of 6.4%, including $400.0 million of outstanding aggregate principal under the 6.375% Senior Unsecured Notes due in 2028 and $60.0 million of outstanding principal under the Revolving Loan which had an interest rate of 6.4%.

Current wording

Indebtedness. As of September 30, 2025, the outstanding aggregate principal amount of our indebtedness was $455.0 million, at an average interest rate of 6.3%, including $400.0 million of outstanding aggregate principal under the 6.375% Senior Unsecured Notes due in 2028 and $55.0 million of outstanding principal under the Revolving Loan which had an interest rate of 6.1%.

Previous wording

During the six months ended June 30, 2025, we borrowed $10.0 million and repaid $10.0 million on our Revolving Loan. As of June 30, 2025, $290.0 million was available to borrow under the Revolving Loan. Our borrowings are limited by our Senior Secured Net Leverage Ratio and Consolidated Interest Coverage Ratio, in addition to other factors. Calculated in accordance with our Credit Agreement, these ratios were 0.2x and 6.7x, respectively, as of June 30, 2025. For further information, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Current wording

During the nine months ended September 30, 2025, we borrowed $10.0 million and repaid $15.0 million on our Revolving Loan. As of September 30, 2025, $295.0 million was available to borrow under the Revolving Loan. At each quarter-end, we are subject to certain net leverage ratio and interest coverage ratio financial covenants under our Credit Agreement. As of September 30, 2025, we were in compliance with all such covenants. For further information, see Note 5 (Debt) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Previous wording

Share Repurchase Program. On February 27, 2025, we announced that our Board of Directors had authorized a three-year share repurchase program to acquire up to $250.0 million of our common stock. The repurchase program may be suspended or discontinued at any time and does not obligate us to repurchase any specific amount or number of shares. We may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws and other applicable legal requirements, and subject to our blackout periods. We intend to fund the share repurchase program principally with cash from operations. During the six months ended June 30, 2025, we repurchased and subsequently retired 3.7 million shares for $44.6 million at an average price paid per share of $12.17.

Current wording

Share Repurchase Program. On February 27, 2025, we announced that our Board of Directors had authorized a three-year share repurchase program to acquire up to $250.0 million of our common stock. The repurchase program may be suspended or discontinued at any time and does not obligate us to repurchase any specific amount or number of shares. We may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws and other applicable legal requirements, and subject to our blackout periods. We intend to fund the share repurchase program principally with cash from operations. During the nine months ended September 30, 2025, we repurchased and subsequently retired 5.2 million shares for $63.9 million at an average price paid per share of $12.39.

Previous wording

As part of the D2C Media acquisition, we may be required to pay additional cash consideration to certain former owners who are now employees of Cars Commerce based on the achievement of a revenue performance metric. The amount to be paid will be determined by the acquired business’ future achievement of certain revenue-related financial targets through December 31, 2025 and expensed over each performance period. In April 2025, we paid CAD$15.0 million (approximately USD$10.8 million) associated with the earnout for the year ended December 31, 2024. For the year ending December 31, 2025, we may expense up to CAD$15.0 million (approximately USD$11.0 million as of June 30, 2025) associated with the remaining portion of the earnout.

Current wording

As part of the D2C Media acquisition, we may be required to pay additional cash consideration to certain former owners who are now employees of Cars Commerce based on the achievement of a revenue performance metric. The amount to be paid will be determined by the acquired business’ future achievement of certain revenue-related financial targets through December 31, 2025 and expensed over each performance period. In April 2025, we paid CAD$15.0 million (approximately USD$10.8 million) associated with the earnout for the year ended December 31, 2024. For the year ending December 31, 2025, we may expense up to CAD$15.0 million (approximately USD$10.8 million as of September 30, 2025) associated with the remaining portion of the earnout.

Previous wording

Operating Activities. Cash provided by operating activities for the six months ended June 30, 2025 decreased due to Net income and the related adjustments on the Consolidated Statement of Cash Flows and also by changes in working capital compared to the six months ended June 30, 2024, which include an increase of $7.8 million of earnout payments related to the D2C acquisition. For further information, see the Consolidated Statements of Cash Flows included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Current wording

Operating Activities. Cash provided by operating activities for the nine months ended September 30, 2025 decreased as compared to the nine months ended September 30, 2024 primarily due to an increase of $7.8 million of earnout payments related to the D2C acquisition, as well as lower Net income and the related adjustments on the Consolidated Statement of Cash Flows. For further information, see the Consolidated Statements of Cash Flows included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q.

Previous wording

Investing Activities. The increase in cash used in investing activities was primarily due to the impact of the DealerClub Acquisition, partially offset by the proceeds collected from the sale of the RepairPal equity investment in the current year.

Current wording

Investing Activities. The increase in cash used in investing activities during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 was primarily due to the impact of the DealerClub Acquisition, partially offset by the proceeds collected from the sale of the RepairPal equity investment in the current year.

Previous wording

Financing Activities. During the six months ended June 30, 2025, cash used in financing activities was primarily related to repurchases of common stock and tax payments made in connection with the vesting of certain equity awards. During the six months ended June 30, 2024, cash used in financing activities was primarily related to payments of contingent consideration, debt repayments, repurchases of common stock and tax payments made in connection with the vesting of certain equity awards. For information related to our debt, repurchases of common stock and contingent consideration, see Note 5 (Debt) and Note 7 (Stockholders' Equity) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q, and "Liquidity and Capital Resources" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025.

Current wording

Financing Activities. During the nine months ended September 30, 2025, cash used in financing activities was primarily related to repurchases of common stock, tax payments made in connection with the vesting of certain equity awards and net debt repayments. During the nine months ended September 30, 2024, cash used in financing activities was primarily related to repurchases of common stock, payments of contingent consideration, debt repayments and tax payments made in connection with the vesting of certain equity awards. For information related to our debt, repurchases of common stock and contingent consideration, see Note 5 (Debt) and Note 7 (Stockholders' Equity) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q, and "Liquidity and Capital Resources" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025.

Previous wording

Critical Accounting Policies. For information related to critical accounting policies, see "Critical Accounting Policies and Estimates" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025 and see Note 1 (Description of Business and Summary of Significant Accounting Policies) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q. During the six months ended June 30, 2025, there have been no changes to our critical accounting policies.

Current wording

Critical Accounting Policies. For information related to critical accounting policies, see "Critical Accounting Policies and Estimates" in Part II, Item 7., "Management’s Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025 and see Note 1 (Description of Business and Summary of Significant Accounting Policies) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements" of this Quarterly Report on Form 10-Q. During the nine months ended September 30, 2025, there have been no changes to our critical accounting policies.