CarGurus Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.26%.
Did CARG Beat Earnings? Q4 2025 Results
CarGurus posted a mixed but broadly solid Q4 2025, delivering revenue of $241.09 million, up 5.5% year-over-year and edging past the $239.04 million consensus estimate by 0.86%, while earnings per share of $0.63 fell just short of the $0.63 consensus by 0.40%. The clearest story behind the quarter was the completed wind-down of the CarOffer Transactions Business, abandoned as of December 31, 2025, after the Board determined it had struggled in a volatile used-car pricing environment; stripping out that drag allowed the core marketplace to shine, with total paying dealers climbing 7% year-over-year to 34,409 and consolidated quarterly average revenue per subscribing dealer rising 8% to $6,616. The company also authorized a new $250 million share repurchase program, following roughly $350 million in buybacks during 2025, a signal that drew notable investor enthusiasm and <a href="https://247wallst.com/investing/2026/02/18/live-analysis-will-carvana-soar-after-earnings-tonight/">lifted shares across the used-car sector</a>. Looking ahead, CarGurus guided Q1 2026 revenue of $240.50 million to $245.50 million and full-year growth of 10% to 13%, even as modest EBITDA margin contraction suggests deliberate investment in AI-driven product development.
- Expanding wallet share with accelerating product adoption
- Improving dealer retention
- Adding new dealers
- U.S. paying dealers grew 5% YoY to 26,049
- International paying dealers grew 14% YoY to 8,360
- Total paying dealers grew 7% YoY to 34,409
- U.S. QARSD grew 8% YoY to $7,938
- International QARSD grew 16% YoY to $2,413
- Consolidated QARSD grew 8% YoY to $6,616
“2025 was a pivotal year for CarGurus as we delivered strong financial performance while expanding our products and use cases across both dealer workflows and the consumer journey.”
CarGurus CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, CarGurus guides total revenue of $240.5 million to $245.5 million, non-GAAP Adjusted EBITDA from continuing operations of $72.0 million to $80.0 million, and non-GAAP EPS from continuing operations of $0.52 to $0.58 (assuming 94.0 million diluted weighted-average shares). For full-year 2026, the company expects revenue growth of 10% to 13% YoY with a non-GAAP Adjusted EBITDA margin contraction of 1.5% to 2.5% YoY. Guidance excludes macro-level disruptions that would materially alter dealer and consumer behavior, as well as foreign currency impacts.
CARG YoY Financials
CARG Revenue by Segment
CARG Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.