CarGurus (CARG) Q1 2026 Earnings
How Did CARG Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: −1.65%.
Did CARG Beat Earnings? Q1 2026 Results
Yes. CarGurus reported Q1 2026 earnings of $0.58 a share on May 7, 2026, beating the $0.57 consensus estimate by 1.8%. Revenue was $243.6M against a $243.1M estimate.
CarGurus delivered a solid first-quarter beat to open fiscal 2026, with non-GAAP diluted EPS of $0.58 edging past the $0.57 consensus by 1.81% and revenue of $243.56 million topping estimates by 0.18% on 8.2% year-over-year growth. The standout driver beneath the headline numbers was dealer network expansion, with total paying dealers rising 7% to 34,596 and consolidated quarterly average revenue per subscribing dealer climbing 8% to $6,647, a combination that powered non-GAAP adjusted EBITDA to $80.23 million, exceeding the high end of guidance and up 17% year-over-year at a 33% margin. GAAP results were more nuanced, as $19.71 million in impairment charges compressed operating income to $40.08 million from $50.65 million a year ago. <a href="https://247wallst.com/investing/2026/03/11/cargurus-is-quietly-becoming-the-auto-marketplace-to-beat/">CarGurus' growing competitive position</a> in the auto marketplace is also reflected in aggressive capital returns, with $175 million in buybacks during the quarter alone. Looking ahead, management guided Q2 revenue of $247 million to $252 million and full-year growth of 10% to 13%, while flagging potential tariff and currency headwinds as exclusions from its outlook.
- 15% YoY revenue growth driven by dealer subscription growth and QARSD expansion
- U.S. paying dealers grew 4% YoY to 26,116; international paying dealers grew 17% YoY to 8,480
- Consolidated QARSD increased 8% YoY to $6,647
- U.S. QARSD grew 9% to $7,996; international QARSD grew 19% to $2,468
- Non-GAAP Adjusted EBITDA margin expanded to 33% from 32% YoY
“We are pleased with our first quarter results, as we sustained our momentum with revenue growing 15% year-over-year as we continued to invest in AI-led product innovation across dealer pillars and the consumer journey.”
CarGurus CEO, on the earnings call
What Was CarGurus's Outlook in Q1 2026?
For Q2 2026, CarGurus guides total revenue of $247.0 million to $252.0 million, non-GAAP adjusted EBITDA from continuing operations of $77.5 million to $85.5 million, and non-GAAP EPS from continuing operations of $0.57 to $0.64 (assuming 91.0 million diluted weighted-average shares outstanding). For full-year 2026, management expects revenue growth of 10% to 13% YoY and non-GAAP adjusted EBITDA margin contraction of 1.5% to 2.5% YoY. Guidance excludes macro-level disruptions from tariffs, foreign currency effects, and material changes in recent dealer/consumer market trends.
CARG YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $243.6M | $225.2M | +8.2% |
| Gross Profit | $224.6M | $199.7M | +12.5% |
| Operating Income | $40.1M | $45.8M | −12.4% |
| Net Income | $32.2M | $39.0M | −17.5% |
CARG Revenue by Segment
CARG Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.