Q2 25 EPS
$0.57
BEAT +4.40%
Est. $0.55
Q2 25 Revenue
$234.0M
BEAT +0.77%
Est. $232.2M
vs S&P Since Q2 25
-12.5%
TRAILING MARKET
CARG +6.0% vs S&P +18.5%
Market Reaction
Did CARG Beat Earnings? Q2 2025 Results
CarGurus delivered a solid second quarter, posting adjusted EPS of $0.57 against a consensus estimate of $0.55, a beat of 4.40%, while revenue climbed 7.0% year-over-year to $234.03 million, edging past the $232.25 million Wall Street expected. The h… Read more CarGurus delivered a solid second quarter, posting adjusted EPS of $0.57 against a consensus estimate of $0.55, a beat of 4.40%, while revenue climbed 7.0% year-over-year to $234.03 million, edging past the $232.25 million Wall Street expected. The headline story, however, was the company's decision to wind down its CarOffer transactions business, a strategic pivot away from volatile digital wholesale markets that had weighed on results, with Wholesale revenue falling 52% in the quarter. The core Marketplace segment proved the real engine, growing 14% year-over-year to $202.65 million and helping lift non-GAAP Adjusted EBITDA 39% to $77.30 million with margins expanding 762 basis points to 33%. Total paying dealers grew 6% to 33,095, while consolidated QARSD rose 9% to $6,349, signaling steady monetization strength. Elsewhere in the auto sector, digital used-car platforms have faced similar pricing headwinds. Looking ahead, CarGurus guided Q3 Marketplace revenue of $228.00 million to $233.00 million and non-GAAP EPS of $0.50 to $0.58.
Key Takeaways
- • Marketplace revenue growth of 14% YoY driven by dealer acquisition, expansion, and QARSD growth of 9%
- • U.S. paying dealers grew 4% to 25,478; international paying dealers grew 10% to 7,617
- • Non-GAAP Adjusted EBITDA margin expanded 762 basis points YoY to 33%
- • GAAP gross profit margin improved 391 basis points to 87%
- • U.S. Marketplace segment operating income grew 40% YoY
CARG YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
CARG Revenue by Segment
With YoY comparisons, source: SEC Filings
CARG Revenue by Geography
With YoY comparisons, source: SEC Filings
“Our Marketplace business had another strong quarter, with year-over-year revenue growth of 14%. We remain committed to expanding our suite of data-driven solutions across dealers' workflows and powering a more seamless car-shopping journey for consumers. Within transaction-enablement, we are sharpening our focus on technology and analytics that enable smarter sourcing decisions rather than facilitating the transactions themselves. Accordingly, we have made the decision to wind down the CarOffer transactions business over the balance of the year. This decision was not taken lightly, especially as it impacts colleagues who have contributed meaningfully to our efforts. We're grateful for their work and are committed to supporting them through the transition.”
— Jason Trevisan, Q2 2025 Earnings Press Release
CARG Earnings Trends
CARG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CARG EPS Trend
Earnings per share: estimate vs actual
CARG Revenue Trend
Quarterly revenue: estimate vs actual
CARG Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.57 | $0.58 | +1.81% | $243.6M | +0.18% |
| Q4 25 MISS FY | $0.63 | $0.63 | -0.44% | $241.1M | +0.85% |
| FY Full Year | $2.16 | $2.28 | +5.62% | $907.0M | -3.20% |
| Q3 25 BEAT | $0.55 | $0.57 | +3.75% | $238.7M | +1.62% |
| Q2 25 BEAT | $0.55 | $0.57 | +4.40% | $234.0M | +0.77% |
| Q1 25 BEAT | $0.44 | $0.46 | +5.50% | $225.2M | -0.63% |