CarGurus (NASDAQ:CARG) Announces Earnings Results

CarGurus (NASDAQ:CARG) issued its earnings results on Thursday. The company reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.02, FiscalAI reports. The business had revenue of $209.09 million during the quarter, compared to analysts’ expectations of $239.07 million. CarGurus had a net margin of 16.60% and a return on equity of 46.62%. The business’s revenue for the quarter was up 14.7% compared to the same quarter last year. During the same period in the previous year, the company earned $0.55 earnings per share. CarGurus updated its Q1 2026 guidance to 0.520-0.580 EPS.

Here are the key takeaways from CarGurus’ conference call:

• Strong 2025 financial performance — full-year revenue grew ~14% and Adjusted EBITDA rose ~25% year-over-year, Q4 revenue was $241M, and the company repurchased ~$350M of shares in 2025 and authorized a new $250M buyback.
• AI-driven product momentum — multiple new launches (Price Vantage, CG Discover, Dealership Mode, New Car Exposure) showed rapid engagement (Discover traffic 3.5x and leads 10x QoQ; Price Vantage users change prices 66% more) and management expects 2025 monetized dealer products to grow ~15x in 2026 to eight-figure revenue.
• Marketplace and dealer traction — global paying dealer count rose by ~2,399, add-on product adoption increased ~25%, retention hit a three-year high, Digital Deal scaled to 13,500 dealers with leads converting up to 4.7x, and international revenue grew ~27% for the year.
• 2026 outlook is growth-with-investment — management guides 2026 revenue growth of 10%–13% but expects non-GAAP Adjusted EBITDA margins to compress ~1.5–2.5 points as it increases product, tech, and AI investment (Q1 revenue guide +13%–16% YoY; Adj. EBITDA $72M–$80M).

CarGurus Price Performance

Shares of CARG stock opened at $30.17 on Friday. The company has a market cap of $2.88 billion, a price-to-earnings ratio of 19.46, a PEG ratio of 1.10 and a beta of 1.35. CarGurus has a 1 year low of $24.65 and a 1 year high of $39.42. The firm has a fifty day moving average price of $34.28 and a 200-day moving average price of $34.80.

CarGurus News Summary

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q4 EPS beat and strong profitability: CarGurus reported $0.63 EPS vs. $0.61 consensus and showed healthy margins and return on equity, giving confidence in earnings quality. MarketBeat: Q4 results
• Positive Sentiment: Raised revenue guidance for FY2026 and Q1: Management set FY revenue around $997.7M–$1.0B (above consensus ~$970.9M) and Q1 revenue guidance $240.5M–$245.5M (slightly above the $238.8M consensus), which supports top-line momentum. GlobeNewswire: Earnings release
• Positive Sentiment: Share buyback support: CarGurus repurchased ~ $350M in 2025 and announced a new $250M repurchase program for 2026 — a clear capital-return signal that can lift EPS and shareholder value. GlobeNewswire: Buyback details
• Positive Sentiment: AI and international growth narrative: Management is accelerating AI-driven product launches and emphasizing international expansion, which analysts highlight as multi-year growth drivers. Seeking Alpha: AI & guidance
• Neutral Sentiment: Mixed guidance nuance — EPS vs. revenue: Q1 EPS guide (0.520–0.580) centers near/barely under consensus (0.560), while revenue guidance is modestly above consensus — investors should watch upcoming quarters to see if EPS catches up to revenue strength. Company slide deck
• Negative Sentiment: Revenue miss in quarter: Reported Q4 revenue ($209.1M) came in well below the consensus (~$239M), which tempers the EPS beat and may worry revenue-focused investors. MarketBeat: Revenue details
• Negative Sentiment: Analyst price-target cuts: RBC and DA Davidson trimmed targets (RBC $40→$34; DA Davidson $37.50→$33.50), which can cap near-term upside despite some analysts retaining positive ratings. The Fly: RBC note
• Negative Sentiment: Data-security headline: An alleged breach (1.7M records) reported by ShinyHunters creates reputational and potential regulatory risk; investors may view this as a short-term headwind. MSN: Data-breach report

Wall Street Analysts Forecast Growth

Several research firms recently commented on CARG. Citigroup increased their price objective on CarGurus from $37.00 to $41.00 and gave the company a “neutral” rating in a research report on Tuesday, October 28th. BTIG Research dropped their price target on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings reissued a “hold (c+)” rating on shares of CarGurus in a report on Monday, December 29th. DA Davidson lowered their price objective on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a research report on Friday. Finally, Jefferies Financial Group raised their target price on shares of CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Five investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, CarGurus presently has an average rating of “Hold” and a consensus price target of $38.50.

Insider Buying and Selling

In related news, CEO Jason Trevisan sold 20,000 shares of CarGurus stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $37.00, for a total transaction of $740,000.00. Following the transaction, the chief executive officer directly owned 655,483 shares in the company, valued at approximately $24,252,871. The trade was a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Ismail Elshareef sold 1,645 shares of the firm’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $32.21, for a total value of $52,985.45. Following the completion of the transaction, the insider directly owned 91,822 shares in the company, valued at $2,957,586.62. This trade represents a 1.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 49,003 shares of company stock valued at $1,858,494. 16.99% of the stock is owned by company insiders.

Institutional Investors Weigh In On CarGurus

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP boosted its position in shares of CarGurus by 6.6% in the third quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company’s stock worth $358,773,000 after purchasing an additional 594,670 shares during the period. The Manufacturers Life Insurance Company lifted its stake in shares of CarGurus by 0.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,914,925 shares of the company’s stock valued at $64,093,000 after buying an additional 6,676 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of CarGurus by 11.1% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,888,766 shares of the company’s stock valued at $70,319,000 after buying an additional 188,856 shares in the last quarter. Invesco Ltd. boosted its holdings in CarGurus by 6.9% in the 2nd quarter. Invesco Ltd. now owns 1,717,321 shares of the company’s stock worth $57,479,000 after buying an additional 110,452 shares during the period. Finally, UBS Group AG increased its stake in 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 buying an additional 942,199 shares in the last quarter. Institutional investors 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.