Q3 25 EPS
$0.57
BEAT +3.75%
Est. $0.55
Q3 25 Revenue
$238.7M
BEAT +1.62%
Est. $234.9M
vs S&P Since Q3 25
-10.5%
TRAILING MARKET
CARG +2.0% vs S&P +12.5%
Market Reaction
Did CARG Beat Earnings? Q3 2025 Results
CarGurus posted a clean beat across the board in Q3 2025, with non-GAAP EPS of $0.57 topping the $0.55 consensus estimate by 3.75% and revenue of $238.70 million edging past expectations by 1.62% on 3.2% year-over-year growth. The headline figures we… Read more CarGurus posted a clean beat across the board in Q3 2025, with non-GAAP EPS of $0.57 topping the $0.55 consensus estimate by 3.75% and revenue of $238.70 million edging past expectations by 1.62% on 3.2% year-over-year growth. The headline figures were powered almost entirely by Marketplace momentum, where revenue surged 14% year-over-year to $231.70 million, even as the deliberate wind-down of the CarOffer digital wholesale business dragged the Digital Wholesale segment down 74% to just $7.04 million. That mix shift proved a net positive for margins, with gross profit expanding to 89% from 79% a year ago as low-margin wholesale volume exited the revenue base. Non-GAAP Adjusted EBITDA climbed 21% to $78.67 million, representing a 33% margin. Paying dealers grew 6% year-over-year to 33,673, while QARSD rose 8% to $6,492, underscoring healthy monetization trends. Looking ahead, CarGurus guided Q4 non-GAAP EPS of $0.61 to $0.67 and full-year 2025 Marketplace revenue of $902.00 million to $907.00 million, with used car marketplace peers also navigating a cautiously recovering auto retail environment.
Key Takeaways
- • 14% YoY Marketplace revenue growth driven by dealer adoption of data-driven tools
- • U.S. paying dealers grew 5% YoY to 25,743; international paying dealers grew 11% YoY to 7,930
- • Consolidated QARSD increased 8% YoY to $6,492
- • GAAP gross profit margin expanded to 89% from 79% a year ago driven by lower wholesale transaction costs
- • Non-GAAP Adjusted EBITDA grew 21% YoY to $78.7 million with 33% margin
- • GAAP net income nearly doubled YoY to $44.7 million
CARG YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
CARG Revenue by Segment
With YoY comparisons, source: SEC Filings
CARG Revenue by Geography
With YoY comparisons, source: SEC Filings
“We delivered another quarter of strong Marketplace revenue growth as dealers have increasingly adopted our data-driven tools. Our product innovation is driving measurable ROI across more areas of the dealership, like inventory, pricing, marketing, and data intelligence. That adoption, coupled with strong execution, has fueled solid growth in both our U.S. and international businesses. We believe these trends position us well to extend our leadership, deepen customer relationships, access new market segments, and drive long-term growth.”
— Jason Trevisan, Q3 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% |