CarGurus (CARG) Q1 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025

Earnings

CarGurus posted a mixed but fundamentally encouraging first quarter for 2025, beating on the bottom line while falling just short on the top line, as non-GAAP EPS of $0.46 cleared the $0.44 consensus by 5.50% even as revenue of $225.16 million came i… Read more CarGurus posted a mixed but fundamentally encouraging first quarter for 2025, beating on the bottom line while falling just short on the top line, as non-GAAP EPS of $0.46 cleared the $0.44 consensus by 5.50% even as revenue of $225.16 million came in 0.63% below estimates, rising 4.3% year-over-year. The clearest driver of the earnings strength was a dramatic shift in business mix: the company's winding down of its lower-margin CarOffer wholesale operation, where segment revenue collapsed 55% to $12.92 million, allowed gross margin to expand to 89% from 81% a year ago, lifting non-GAAP adjusted EBITDA 32% to $66.30 million and pushing the EBITDA margin to 29%. The core Marketplace business carried its weight, growing 13% to $212.24 million, with U.S. Paying dealers up 3% to 25,153 and U.S. QARSD climbing 10% to $7,369. Looking ahead, CarGurus guided Q2 2025 total revenue of $222.00 million to $242.00 million and non-GAAP EPS of $0.52 to $0.58, though management noted the outlook excludes potential disruption from tariff-related shifts in dealer and consumer behavior.