CarGurus Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
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 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 <a href="https://247wallst.com/investing/2025/10/29/earnings-live-complete-carvana-cvna-q3-coverage/">used car marketplace peers</a> also navigating a cautiously recovering auto retail environment.
- 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
“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.”
CarGurus CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, CarGurus guided Marketplace revenue of $236.0 million to $241.0 million, Non-GAAP Marketplace Adjusted EBITDA of $83.0 million to $91.0 million, and Non-GAAP EPS of $0.61 to $0.67. For full-year 2025, the company guided Marketplace revenue of $902.0 million to $907.0 million, Non-GAAP Marketplace Adjusted EBITDA of $313.0 million to $321.0 million, and Non-GAAP EPS of $2.19 to $2.25. Guidance is based on recent market trends and industry conditions and excludes macro-level industry issues that could materially change dealer or consumer behavior, as well as foreign currency exchange impacts.
CARG YoY Financials
CARG Revenue by Segment
CARG Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.