CarGurus Q3 2026: Double Beat, $250M Buyback, and a Leaner Share Count

CarGurus posted adjusted non-GAAP EPS of $0.70 in Q3 2026, exceeding the consensus estimate of $0.66. Revenue came in at $258.4 million, ahead of the $256.5 million estimate and growing 8.2% year over year. The result lands on top of a string of consecutive beats stretching back through 2024 and 2025, reinforcing a pattern of modest but consistent outperformance.

The underlying engine is the U.S. marketplace, where revenue rose to $232.5 million, up from $210.4 million a year earlier. U.S. quarterly average revenue per subscribing dealer climbed 7% to $8,308, while U.S. paying dealers grew 3% to 26,402. Those two levers working in tandem are what drove the top-line beat even as growth remained measured rather than explosive.

Free cash flow of $73.9 million, up from $64.0 million a year ago, gave the board the confidence to authorize a fresh $250 million share repurchase program. The company had already repurchased $225.1 million of common stock year to date through Q3, shrinking the diluted share count to 90.1 million from 99.7 million a year earlier. That kind of share count compression is what turned a solid operating quarter into a notably stronger per-share result.

CEO Jason Trevisan flagged the launch of StockVantage, a new inventory product, as part of a broader push to build AI-enabled solutions across the dealer workflow. He also pointed to a consumer-facing strategy of distributing the CarGurus experience through third-party AI tools, positioning the company to capture car shoppers in the places they are already searching.

For Q4 2026, CarGurus guided revenue of $258.5 million to $263.5 million and non-GAAP EPS of $0.73 to $0.79. Full-year 2026 revenue guidance implies 11.5% to 12.1% year-over-year growth, with full-year non-GAAP EPS expected in the range of $2.66 to $2.72.