CarGurus (CARG) Q3 2026 Earnings
How Did CARG Stock React to Q3 2026 Earnings?
Did CARG Beat Earnings? Q3 2026 Results
Yes. CarGurus reported Q3 2026 earnings of $0.70 a share on Nov 5, 2026, beating the $0.66 consensus estimate by 5.4%. Revenue was $258.4M against a $256.5M estimate.
CarGurus, Inc. delivered a solid third quarter of 2026, posting adjusted non-GAAP EPS of $0.70 against a consensus estimate of $0.66, a beat of 5.44%, while revenue of $258.37 million edged past the $256.48 million estimate by 0.73% and grew 8.2% year over year. The cleaner comparison, made possible by the completed wind-down of CarOffer, which is now presented as discontinued operations, helped highlight the underlying momentum in CarGurus' core marketplace. That momentum was driven primarily by the U.S. segment, where revenue climbed to $232.49 million from $210.44 million a year earlier, powered by a 7% rise in U.S. quarterly average revenue per subscribing dealer to $8,308 and a 3% increase in U.S. paying dealers to 26,402. Free cash flow rose to $73.87 million from $64.01 million, and the company authorized a new $250.00 million share repurchase program. Looking ahead, CarGurus guided Q4 revenue of $258.50 million to $263.50 million and full-year 2026 revenue of $1.01 billion to $1.02 billion, representing growth of 11.5% to 12.1%.
- Revenue up 12% YoY to $258.4 million, at the high end of guidance
- U.S. QARSD up 7% to $8,308; International QARSD up 14% to $2,715; Consolidated QARSD up 7% to $6,955
- U.S. paying dealers up 3% to 26,402; International paying dealers up 5% to 8,299; total paying dealers up 3% to 34,701
- Non-GAAP Adjusted EBITDA from continuing operations up 9% to $89.7 million, 35% margin
- Non-GAAP free cash flow of $73.9 million vs $64.0 million a year earlier
- Lower share count from repurchases (diluted weighted shares 90.1 million vs 99.7 million)
“We delivered strong third-quarter results, with revenue up 12% year-over-year at the high end of guidance and Adjusted EBITDA near the high end.”
CarGurus CEO, on the earnings call
What Is CarGurus's Outlook?
For Q4 2026, CarGurus expects: - Total revenue of $258.5M to $263.5M - Non-GAAP Adjusted EBITDA from continuing operations of $93.0M to $101.0M - Non-GAAP EPS from continuing operations of $0.73 to $0.79, assuming 90.0M diluted shares For full-year 2026, it expects: - Total revenue of $1,011.5M to $1,016.5M, or 11.5% to 12.1% YoY growth - Non-GAAP Adjusted EBITDA from continuing operations of $347.5M to $355.5M, a margin change of (0.8)% to (0.2)% YoY - Non-GAAP EPS from continuing operations of $2.66 to $2.72, assuming 92.0M diluted shares Guidance is based on recent trends in paid dealer acquisition, churn and expansion. It excludes macro-level industry disruptions and future foreign currency exchange gains or losses.
CARG YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $258.4M | $238.7M | +8.2% |
| Gross Profit | $237.1M | $213.5M | +11.0% |
| Operating Income | $67.9M | $54.7M | +24.3% |
| Net Income | $52.8M | $44.7M | +18.1% |
CARG Revenue by Segment
CARG Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.