Cars.com (CARS) risk factors, FY2025 10-K

Cars.com's FY2025 10-K, filed Feb 26, 2026, lists 35 risk factors in 8 groups. Against the prior year's 34: 3 new, 2 dropped, 10 substantially reworded.

Risk factors listed
358 groups
New this year
3vs 34 last year
Dropped
2since the prior 10-K
Substantially reworded
10of those kept
Section length
12k wordsItem 1A

What the changes say

  • Cars.com faces emerging threats from generative AI search engines, intensifying digital ad competition, and tightening privacy tracking restrictions.

What changed since the prior 10-K

New

  • NewRisks Related to Our Business

    The increased use, development and regulation of generative AI, including generative AI and agentic AI technologies, could materially and could materially and adversely affect our business, results of operations and financial condition

    Generative and agentic AI platforms could answer vehicle queries directly, reducing website traffic, ad inventory, and dealer subscription value.

  • NewStrategic and Competitive Risks

    Competition to capture share of the total digital automotive advertising spend has increased and may continue to increase due to the attractive projected growth of digital automotive advertising spend, low barriers to entry in the online automotive marketplace and related digital automotive advertising markets

    Increased competition for digital automotive advertising spending from OEMs and low-barrier marketplaces may hinder revenue growth.

  • NewRisks Related to Data Privacy and Security

    has inhibited our ability to retarget users who access our mobile applications and have opted out of ad tracking and limited our ability to attribute advertising performance across devices and platforms

    Ad-tracking opt-outs on mobile apps and new privacy laws restricting cookies have hindered user retargeting and cross-device performance attribution.

Dropped

  • DroppedStrategic and Competitive Risks

    We compete with other consumer automotive websites and mobile applications and other digital content providers for share of automotive-related digital display advertising spending and may be unable to maintain or grow our base of advertising customers or increase our revenue from existing customers

  • DroppedGeneral Risks

    We have a limited history of operating with a virtual first workforce and the long-term impact on our financial results and business operations is uncertain

Reworded

  • 84% rewrittenRisks Related to Our Business

    Our increased operations in Canada involve risks that may differ from, or are in addition to, our domestic operational risks

    Added a concluding sentence noting that increased operations in Canada involve risks that could impact overall operations and growth.

  • 57% rewrittenRisks Related to Data Privacy and Security

    If the use of third-party cookies or other tracking technologies is rejected by Internet browsers or service providers or users, restricted or blocked, or subject to unfavorable laws or regulations, the amount of Internet user information would decrease, which may harm our business and operating results

    Replaced Safari with Edge in the list of commonly used internet browsers that allow cookie blocking.

    Was: If the use of third-party cookies or other tracking technologies is rejected by Internet browsers or service providers or users, restricted, blocked, or subject to unfavorable laws or regulations, the amount of Internet user information would decrease, which may harm our business and operating results

  • 44% rewrittenRisks Related to Technology

    The value of our assets or operations may be diminished if our information technology systems fail to perform adequately

    Minor phrasing adjustments regarding IT system reliability and interruptions.

  • 41% rewrittenRisks Related to Environmental Laws and Climate Change Impacts

    Our business may be affected by climate change, including physical risks and regulatory changes that may increase our operating costs and impact our ability to deliver services to our customers

    Replaced regulatory climate risks with transition risks regarding the shift to a low-carbon economy.

  • 39% rewrittenRisks Related to Environmental Laws and Climate Change Impacts

    Expectations relating to environmental, social and governance considerations expose us to potential liabilities, increased costs, reputational harm and other adverse effects on the Company’s business

    Removed references to governments and regulators from the list of stakeholders focused on ESG considerations.

    Was: Expectations relating to environmental, social and governance considerations expose Cars Commerce to potential liabilities, increased costs, reputational harm and other adverse effects on the Company’s business

  • 31% rewrittenRisks Related to Our Business

    Our business depends on our strong brand recognition, and any failure to maintain, protect and enhance our brands could hurt our ability to retain or expand our base of consumers, dealers and customers, and our ability to increase the frequency with which consumers, dealers and customers use our services

    Clarified branding language by describing the Cars.com website and consumer audience as the starting point of the business flywheel.

  • 28% rewrittenGeneral Risks

    The value of our existing goodwill and intangible assets may become impaired depending upon future operating results

    Updated goodwill and intangible assets figures to $694.3 million (65% of total assets) down from $729.0 million (66%).

  • 27% rewrittenRisks Related to Our Business

    Our business is subject to risks related to the larger automotive ecosystem, including consumer demand, direct-to-consumer sales models and other macroeconomic issues

    Added consumer demand for new vehicle models as an economic driver and trimmed mention of OEMs from subscription revenue sources.

  • 26% rewrittenStrategic and Competitive Risks

    Strategic acquisitions, investments and partnerships could pose various risks, including integration risks, increase our leverage, dilute existing stockholders and significantly impact our ability to expand our overall profitability

  • 25% rewrittenRisks Related to Technology

    We rely on third-party service providers for many aspects of our business, including inventory information and sales of our product through social media, and interruptions in the services or data they provide or any failure to maintain these relationships could harm our business

All 35 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business

  1. 01Our business is subject to risks related to the larger automotive ecosystem, including consumer demand, direct-to-consumer sales models and other macroeconomic issues27% rewritten
  2. 02Market acceptance of and influence over certain of our products and services is concentrated with a limited number of automobile OEMs, dealership associations and major dealership groups and we may not be able to maintain or grow these relationships
  3. 03Dealer closures or consolidation among dealers, major dealership groups or OEMs could reduce demand for, and negatively affect the pricing of, our marketing and solutions offerings, thereby leading to decreased earnings
  4. 04Our business depends on our strong brand recognition, and any failure to maintain, protect and enhance our brands could hurt our ability to retain or expand our base of consumers, dealers and customers, and our ability to increase the frequency with which consumers, dealers and customers use our services31% rewritten
  5. 05Our increased operations in Canada involve risks that may differ from, or are in addition to, our domestic operational risks84% rewritten
  6. 06The increased use, development and regulation of generative AI, including generative AI and agentic AI technologies, could materially and could materially and adversely affect our business, results of operations and financial conditionNew
  7. 07We rely on in-house content creation and development to drive organic traffic to the Company's sites and mobile applications
  8. 08Certain of our third-party service providers and customers are highly regulated financial institutions, and the federal and state laws related to financial services could have a direct or indirect materially adverse effect on our business

Risks Related to Environmental Laws and Climate Change Impacts

  1. 09Our business may be affected by climate change, including physical risks and regulatory changes that may increase our operating costs and impact our ability to deliver services to our customers41% rewritten
  2. 10Expectations relating to environmental, social and governance considerations expose us to potential liabilities, increased costs, reputational harm and other adverse effects on the Company’s business39% rewritten

Strategic and Competitive Risks

  1. 11We participate in a highly competitive market, and pressure from existing and new competitors may materially and adversely affect our business, results of operations or financial condition
  2. 12Competition to capture share of the total digital automotive advertising spend has increased and may continue to increase due to the attractive projected growth of digital automotive advertising spend, low barriers to entry in the online automotive marketplace and related digital automotive advertising marketsNew
  3. 13If we do not adapt to automated buying strategies, our display revenue could be adversely affected
  4. 14We may face difficulties in developing and launching new solution offerings or growing our complementary offerings that help automotive brands and dealers create enduring customer relationships
  5. 15Strategic acquisitions, investments and partnerships could pose various risks, including integration risks, increase our leverage, dilute existing stockholders and significantly impact our ability to expand our overall profitability26% rewritten

Risks Related to Technology

  1. 16The value of our assets or operations may be diminished if our information technology systems fail to perform adequately44% rewritten
  2. 17Our business is dependent on keeping pace with advances in technology. If we are unable to keep pace with advances in technology, consumers and customers may stop using our services and our revenue may decrease
  3. 18We rely on third-party service providers for many aspects of our business, including inventory information and sales of our product through social media, and interruptions in the services or data they provide or any failure to maintain these relationships could harm our business25% rewritten
  4. 19We rely on third-party services to track and calculate certain of our key metrics, including unique visitors and traffic, and any errors or interruptions in the services or data they provide or any failure to maintain these relationships could harm our business

Risks Related to Data Privacy and Security

  1. 20We rely on technology systems’ availability and ability to prevent unauthorized access. If our security and resiliency measures fail to prevent incidents, it could result in damage to our reputation, incur costs and create liabilities
  2. 21If the use of third-party cookies or other tracking technologies is rejected by Internet browsers or service providers or users, restricted or blocked, or subject to unfavorable laws or regulations, the amount of Internet user information would decrease, which may harm our business and operating results57% rewritten
  3. 22has inhibited our ability to retarget users who access our mobile applications and have opted out of ad tracking and limited our ability to attribute advertising performance across devices and platformsNew
  4. 23Our ability to attract and retain customers depends on our ability to collect and use data and develop tools to enable us to effectively deliver and accurately measure advertisements on our platform
  5. 24Misappropriation or infringement of our intellectual property and proprietary rights, enforcement actions to protect our intellectual property and claims from third parties relating to intellectual property could materially and adversely affect our business, results of operations or financial condition

General Risks

  1. 25Our ability to operate effectively could be impaired if we fail to attract and retain our key employees
  2. 26Adverse results from litigation or governmental investigations could impact our business practices and operating results
  3. 27The value of our existing goodwill and intangible assets may become impaired depending upon future operating results28% rewritten

Risks Relating to our Common Stock

  1. 28We cannot assure our stockholders that our share repurchase program will enhance long-term stockholder value and stock repurchases, if any, could increase the volatility of the price of our common stock and will diminish our cash reserves
  2. 29We do not expect to pay any cash dividends for the foreseeable future
  3. 30Your percentage of ownership in the Company may be diluted in the future
  4. 31Certain provisions of our Amended and Restated Certificate of Incorporation, By-laws and Delaware law may discourage takeovers and limit our ability to use, acquire, or develop certain competing businesses
  5. 32establish advance notice requirements for nominations of candidates for elections as directors or to bring other business before an annual meeting of our stockholders
  6. 33Our business could be negatively affected as a result of actions of activist stockholders, and such activism could impact the trading value of our common stock

Risks Relating to our Debt Agreements

  1. 34Our debt agreements contain restrictions that may limit our flexibility in operating our business
  2. 35Increases in interest rates could increase interest payable under our variable rate indebtedness

Other Cars.com 10-Ks

  • FY2024 10-K risk factors
    34 risks

    Automotive market cycles, OEM and dealer concentration, and competitive pressure heavily dominate Cars.com risk disclosures.

    Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.