CarGurus (NASDAQ:CARG) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

CarGurus (NASDAQ:CARG) announced its earnings results on Thursday. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02, FiscalAI reports. The business had revenue of $243.56 million during the quarter, compared to the consensus estimate of $243.12 million. CarGurus had a return on equity of 48.98% and a net margin of 15.57%.The business’s quarterly revenue was up 8.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.46 EPS. CarGurus updated its Q2 2026 guidance to 0.570-0.640 EPS.

Here are the key takeaways from CarGurus’ conference call:

• Q1 revenue grew 15% YoY to $244 million and adjusted EBITDA rose 17% to $80 million with a 33% EBITDA margin; management reiterated 2026 revenue growth guidance of 10–13%.
• Dealer-facing AI products are driving adoption and engagement — PriceVantage reached several hundred paying dealers with top users seeing a 117% faster turn time and 47% higher VDP views, Shopper Signals engaged over 8,000 dealers since its April launch, and Discover leads grew 52% QoQ.
• International momentum was strong, with U.K. and Canada revenue up 39% YoY, which management says is driving share gains in those markets.
• The company repurchased about $175 million in Q1 under a $250 million program (leaving $72 million in cash) and expects full‑year adjusted EBITDA margins to compress ~1.5–2.5 percentage points as it increases product, tech and AI investments.

CarGurus Price Performance

NASDAQ CARG traded down $3.42 during mid-day trading on Friday, hitting $34.74. The stock had a trading volume of 1,907,451 shares, compared to its average volume of 988,883. The firm’s 50 day moving average is $34.59 and its 200 day moving average is $34.63. CarGurus has a twelve month low of $26.39 and a twelve month high of $39.42. The stock has a market capitalization of $3.31 billion, a price-to-earnings ratio of 22.86, a PEG ratio of 1.42 and a beta of 1.28.

Analyst Ratings Changes

Several research firms recently weighed in on CARG. BTIG Research reduced their price target on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a research report on Friday, February 20th. DA Davidson reduced their price target on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating for the company in a research report on Friday, February 20th. Oppenheimer reduced their price target on shares of CarGurus from $40.00 to $38.00 and set an “outperform” rating for the company in a research report on Tuesday, February 24th. UBS Group upped their price target on shares of CarGurus from $33.00 to $37.00 and gave the stock a “neutral” rating in a research report on Friday. Finally, Royal Bank Of Canada reduced their price target on shares of CarGurus from $40.00 to $34.00 and set an “outperform” rating for the company in a research report on Friday, February 20th. Five analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $38.14.

Key CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: CarGurus reported Q1 2026 EPS of $0.58, topping estimates, while revenue of $243.6 million was also slightly above expectations and up 8.2% year over year. Q1 Earnings Report and Conference Call
• Positive Sentiment: The company said Q1 adjusted EBITDA came in above the high end of guidance, and it repurchased $175 million of stock during the quarter, signaling strong cash generation and capital return. CarGurus Announces First Quarter 2026 Results
• Positive Sentiment: Needham raised its price target on CarGurus from $37 to $43 and kept a Buy rating, while JPMorgan also lifted its target from $36 to $38, reinforcing optimism around the stock. Analyst price target updates
• Neutral Sentiment: CarGurus’ Q2 guidance calls for EPS of $0.57 to $0.64 and revenue of $247 million to $252 million, which is broadly in line with Street expectations and suggests steady near-term growth. Q1 Results and Guidance
• Negative Sentiment: Despite the earnings beat, some market commentary noted the stock sold off after the report, suggesting investors may be focusing on guidance and valuation rather than just the headline beat. Market reaction article

Insider Transactions at CarGurus

In other CarGurus news, CTO Matthew Todd Quinn sold 4,341 shares of the stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total value of $143,426.64. Following the completion of the sale, the chief technology officer owned 246,098 shares in the company, valued at approximately $8,131,077.92. This represents a 1.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Kaufer acquired 30,766 shares of the business’s stock in a transaction on Tuesday, March 3rd. The stock was acquired at an average price of $32.50 per share, with a total value of $999,895.00. Following the acquisition, the director owned 323,939 shares in the company, valued at $10,528,017.50. The trade was a 10.49% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold a total of 12,852 shares of company stock valued at $431,053 in the last 90 days. 16.99% of the stock is owned by company insiders.

Institutional Trading of CarGurus

A number of hedge funds have recently bought and sold shares of the business. UBS Group AG increased its stake in shares of CarGurus by 158.2% in the 3rd quarter. UBS Group AG now owns 1,537,856 shares of the company’s stock worth $57,254,000 after acquiring an additional 942,199 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of CarGurus by 6.6% in the 3rd quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company’s stock worth $358,773,000 after acquiring an additional 594,670 shares during the last quarter. No Street GP LP increased its stake in shares of CarGurus by 108.9% in the 3rd quarter. No Street GP LP now owns 835,000 shares of the company’s stock worth $31,087,000 after acquiring an additional 435,340 shares during the last quarter. Squarepoint Ops LLC increased its stake in shares of CarGurus by 1,457.7% in the 2nd quarter. Squarepoint Ops LLC now owns 403,447 shares of the company’s stock worth $13,503,000 after acquiring an additional 377,547 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in shares of CarGurus in the 3rd quarter worth $12,175,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

About CarGurus

CarGurus, Inc operates an online automotive marketplace designed to connect buyers and sellers of new and used vehicles. Through its proprietary search engine and data-driven pricing tools, the platform enables consumers to compare listings, assess fair market values and locate local dealers offering competitive deals. CarGurus also provides detailed vehicle history reports, dealer reviews and financing options to streamline the car-shopping process for both private parties and franchised dealerships.

The company’s core product offerings include Instant Market Value (IMV), which leverages pricing algorithms to help buyers identify over- or under-priced vehicles, as well as dealer subscription services that grant automotive retailers access to lead generation tools, targeted advertising and dynamic pricing insights.