CarGurus Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.65%.
Did CARG Beat Earnings? Q1 2026 Results
CarGurus delivered a solid first-quarter beat to open fiscal 2026, with non-GAAP diluted EPS of $0.58 edging past the $0.57 consensus by 1.81% and revenue of $243.56 million topping estimates by 0.18% on 8.2% year-over-year growth. The standout driver beneath the headline numbers was dealer network expansion, with total paying dealers rising 7% to 34,596 and consolidated quarterly average revenue per subscribing dealer climbing 8% to $6,647, a combination that powered non-GAAP adjusted EBITDA to $80.23 million, exceeding the high end of guidance and up 17% year-over-year at a 33% margin. GAAP results were more nuanced, as $19.71 million in impairment charges compressed operating income to $40.08 million from $50.65 million a year ago. <a href="https://247wallst.com/investing/2026/03/11/cargurus-is-quietly-becoming-the-auto-marketplace-to-beat/">CarGurus' growing competitive position</a> in the auto marketplace is also reflected in aggressive capital returns, with $175 million in buybacks during the quarter alone. Looking ahead, management guided Q2 revenue of $247 million to $252 million and full-year growth of 10% to 13%, while flagging potential tariff and currency headwinds as exclusions from its outlook.
- 15% YoY revenue growth driven by dealer subscription growth and QARSD expansion
- U.S. paying dealers grew 4% YoY to 26,116; international paying dealers grew 17% YoY to 8,480
- Consolidated QARSD increased 8% YoY to $6,647
- U.S. QARSD grew 9% to $7,996; international QARSD grew 19% to $2,468
- Non-GAAP Adjusted EBITDA margin expanded to 33% from 32% YoY
“We are pleased with our first quarter results, as we sustained our momentum with revenue growing 15% year-over-year as we continued to invest in AI-led product innovation across dealer pillars and the consumer journey.”
CarGurus CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, CarGurus guides total revenue of $247.0 million to $252.0 million, non-GAAP adjusted EBITDA from continuing operations of $77.5 million to $85.5 million, and non-GAAP EPS from continuing operations of $0.57 to $0.64 (assuming 91.0 million diluted weighted-average shares outstanding). For full-year 2026, management expects revenue growth of 10% to 13% YoY and non-GAAP adjusted EBITDA margin contraction of 1.5% to 2.5% YoY. Guidance excludes macro-level disruptions from tariffs, foreign currency effects, and material changes in recent dealer/consumer market trends.
CARG YoY Financials
CARG Revenue by Segment
CARG Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.