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olivLaw · US equity research

CarGurus, Inc. CARG

Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)

36.52USD+8.14% · 1 dayClose 04 Nov 2026

CarGurus is a multinational automotive platform that connects car buyers and sellers with dealers, earning revenue from dealer subscriptions, advertising and financing partnerships. It reported revenue of 907.0 million USD for fiscal 2025, and has now completed the wind-down of CarOffer and reports a single segment.

At the close of 04 Nov 2026, CarGurus, Inc. (CARG) stock was 36.52 USD (+8.14% on the day), with P/E 19.8 on diluted EPS of 1.84 USD over the last 12 months, beta 1.00, 52-week range 26.96–39.03 USD. Latest reported quarter (Q2 2026): revenue of 251.0 m USD (+13.1% YoY), net income of 49.2 m USD (+120.2% YoY), diluted EPS 0.54 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
unavailable
P/E (TTM)
19.8
Diluted EPS TTM 1.84 · TTM to 30 Jun 2026
E/P (TTM)
5.04%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.00
Volatility (1y) 41%
52-week range
26.9639.03

Price history

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Technical reading

RSI (14)
72.1
overbought (≥ 70)
Bollinger (20, 2)
27.58 – 35.09
above the upper band · %B 1.19 · band width 24.0%
SMA 50 / 200
32.22 / 32.87
mixed trend
MACD (12, 26, 9)
0.71 / 0.08
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+24.4%−1.1%+25.5 pp—
3 months+0.3%−0.5%+0.8 pp—
6 months−2.4%+4.4%−6.8 pp—
Year to date−4.8%+12.3%−17.1 pp—
1 year+7.5%+13.5%−6.1 pp−19.2%
3 years+95.6%+76.4%+19.2 pp−18.1%
5 years−0.0%+63.7%−63.7 pp—
Max drawdown (1y)
−30.9%
23 Dec 2025 → 12 Feb 2026
Max drawdown (5y)
−75.4%
28 Feb 2022 → 07 Dec 2022
Compound annual growth (5y)
−0.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
251.0 m USD
+13.1% YoY
Net income
49.2 m USD
+120.2% YoY
Diluted EPS
0.54
+145.5% YoY
net / operating
19.6% / 25.1%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue204.6 m210.2 m212.2 m222.0 m231.7 m241.1 m243.6 m251.0 m
Cost of revenue25.1 m14.2 m14.3 m15.7 m16.9 m18.5 m18.9 m19.9 m
Gross profit179.5 m196.1 m197.9 m206.3 m214.7 m222.6 m224.6 m231.1 m
Research & development36.4 m30.5 m35.0 m33.7 m36.3 m31.3 m37.7 m38.1 m
Operating income27.4 m197.0 m50.7 m60.5 m54.7 m119.2 m40.1 m63.0 m
Depreciation & amortisation2.3 m7.0 m6.6 m3.7 m4.7 m7.8 m7.2 m3.7 m
Pre-tax income30.1 m199.1 m53.5 m63.1 m56.6 m120.3 m41.1 m63.5 m
Income tax7.5 m45.4 m11.4 m14.1 m11.9 m29.7 m8.9 m14.3 m
Net income22.5 m45.9 m39.0 m22.3 m44.7 m49.8 m32.2 m49.2 m
Diluted EPS0.210.430.370.220.450.510.340.54
Operating cash flow56.2 m ≈75.7 m67.9 m73.1 m ≈71.2 m ≈83.1 m69.8 m94.6 m ≈
Capex10.3 m ≈10.2 m2.2 m1.6 m ≈1.4 m ≈1.2 m391.0 k562.0 k ≈
Share repurchases3.7 m ≈0182.8 m1.8 m ≈110.3 m ≈57.0 m174.4 m27.7 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 3 percentile of its own 30-quarter history (min 18.5, median 58.8, max 295.9; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022⚠ 202320242025
Revenue454.1 m588.9 m551.5 m951.4 m1.7 bn698.4 m798.0 m907.0 m
Revenue YoY+43.3%+29.7%−6.4%+72.5%+74.0%—+14.3%+13.7%
Net income65.2 m42.1 m77.6 m109.2 m84.4 m36.9 m21.0 m155.9 m
Net income YoY+393.7%−35.3%+84.0%+40.9%−22.8%—−43.2%+643.4%
Diluted EPS0.570.370.680.000.620.190.201.55
Diluted EPS YoY+375.0%−35.1%+83.8%−100.0%unavailable—+5.3%+675.0%
net %14.4%7.2%14.1%11.5%5.1%5.3%2.6%17.2%
Free cash flow45.8 m58.9 m153.8 m90.6 m250.2 m100.0 m180.3 m288.9 m

The series breaks before 2023: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
190.5 m USD
Financial debt
0 USD
Net debt
-190.5 m USD
Equity
374.2 m USD
Total assets
661.9 m USD
Debt / equity
0.00x
Current ratio
2.81x
ROE
34.0%
ROA
21.0%
FCF margin
31.9%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
698.4 m
2024
798.0 m
2025
907.0 m

SEC (XBRL)· 19 Feb 2026verified

Cost of revenue
2023
61.8 m
2024
70.3 m
2025
65.5 m

SEC (XBRL)· 19 Feb 2026verified

Gross profit
2023
636.6 m
2024
727.7 m
2025
841.5 m

SEC (XBRL)· 19 Feb 2026verified

Research & development
2023
136.8 m
2024
139.0 m
2025
138.3 m

SEC (XBRL)· 19 Feb 2026verified

Operating income
2023
120.3 m
2024
157.1 m
2025
244.4 m

SEC (XBRL)· 19 Feb 2026verified

Depreciation & amortisation
2023
48.5 m
2024
25.4 m
2025
28.3 m

SEC (XBRL)· 19 Feb 2026verified

EBITDA
2023
168.8 m ≈
2024
182.5 m ≈
2025
272.8 m ≈

SEC (XBRL)· 19 Feb 2026derived

Pre-tax income
2023
139.1 m
2024
168.4 m
2025
252.8 m

SEC (XBRL)· 19 Feb 2026verified

Income tax
2023
46.7 m
2024
39.6 m
2025
56.1 m

SEC (XBRL)· 19 Feb 2026verified

Net income
2023
36.9 m
2024
21.0 m
2025
155.9 m

SEC (XBRL)· 19 Feb 2026verified

Diluted EPS
2023
0.19
2024
0.20
2025
1.55

SEC (XBRL)· 19 Feb 2026verified

Weighted average diluted shares
2023
114.2 m
2024
106.3 m
2025
100.4 m

SEC (XBRL)· 19 Feb 2026verified

Balance sheet · USD

Cash
2023
291.4 m
2024
304.2 m
2025
190.5 m

SEC (XBRL)· 19 Feb 2026verified

Receivables
2023
40.0 m
2024
38.3 m
2025
41.9 m

SEC (XBRL)· 19 Feb 2026verified

Inventories
2023
331.0 k
2024
338.0 k
2025
—

SEC (XBRL)· 20 Feb 2025verified

Current assets
2023
391.2 m
2024
391.2 m
2025
282.9 m

SEC (XBRL)· 19 Feb 2026verified

Property, plant & equipment, net
2023
83.4 m
2024
124.4 m
2025
133.0 m

SEC (XBRL)· 19 Feb 2026verified

Goodwill
2023
157.9 m
2024
26.6 m
2025
28.4 m

SEC (XBRL)· 19 Feb 2026verified

Intangibles (excl. goodwill)
2023
23.1 m
2024
4.0 m
2025
3.3 m

SEC (XBRL)· 19 Feb 2026verified

Total assets
2023
918.9 m
2024
824.5 m
2025
661.9 m

SEC (XBRL)· 19 Feb 2026verified

Accounts payable
2023
47.9 m
2024
21.8 m
2025
29.1 m

SEC (XBRL)· 19 Feb 2026verified

Long-term debt
2023
0
2024
0
2025
0

SEC (XBRL)· 19 Feb 2026verified

Current liabilities
2023
115.2 m
2024
93.1 m
2025
100.5 m

SEC (XBRL)· 19 Feb 2026verified

Total liabilities
2023
302.1 m
2024
282.8 m
2025
287.7 m

SEC (XBRL)· 19 Feb 2026verified

Equity
2023
616.9 m †
2024
541.7 m †
2025
374.2 m †

SEC (XBRL)· 19 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
124.5 m
2024
255.5 m
2025
295.3 m

SEC (XBRL)· 19 Feb 2026verified

Capex
2023
24.6 m
2024
75.2 m
2025
6.4 m

SEC (XBRL)· 19 Feb 2026verified

Free cash flow
2023
100.0 m ≈
2024
180.3 m ≈
2025
288.9 m ≈

SEC (XBRL)· 19 Feb 2026derived

Investing cash flow
2023
-61.6 m
2024
-73.0 m
2025
-29.3 m

SEC (XBRL)· 19 Feb 2026verified

Financing cash flow
2023
-253.6 m
2024
-168.6 m
2025
-383.8 m

SEC (XBRL)· 19 Feb 2026verified

Share repurchases
2023
208.5 m
2024
146.2 m
2025
351.9 m

SEC (XBRL)· 19 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
13.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
-18.2%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
10.5%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
55.6%
computed by olivLawFY 2025
Net income growth (YoY)
643.4%
computed by olivLawFY 2025
Net income CAGR 3Y
22.7%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
15.0%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
675.0%
computed by olivLawFY 2025
EPS CAGR 3Y
35.7%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
17.9%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
60.2%
computed by olivLawFY 2025

Profitability

Gross margin
92.3%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
31.0%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
28.6%
computed by olivLawTTM to 30 Jun 2026
Net margin
18.2%
computed by olivLawTTM to 30 Jun 2026
FCF margin
32.6%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
50.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
27.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
123.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROCE
62.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-122.1 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
-0.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
1.8x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
1.1x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
318.7 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
3.5 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
315.2 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
179.2%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
106.2%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
16 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
169 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
unavailable
input data missing
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
input data missing
P/E (TTM)
19.8x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
5.0%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
input data missing
P/S
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

36.52 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: unavailable

Key indicators

Market capitalisation
unavailable
input data missing
P/E (TTM)
19.8x
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
ROE
50.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
18.2%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
13.7%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 1414derived 104

Score by group

66% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/Salesunavailable · input data missing
  • Peers: EV/EBITDAunavailable · input data missing

no valuation method could be computed

Multiple comparisons use the SIC vertical: Services-Computer Processing & Data Preparation (SIC 7374)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
Gross margin · Quality92.3%100 (on a fixed band)16%
EBIT margin · Quality28.6%87 (vs peers)13%
FCF margin · Quality32.6%100 (on a fixed band)13%
Revenue CAGR 3Y · Growth-18.2%0 (on a fixed band)26%
Revenue growth (YoY) · Growth13.7%68 (vs peers)13%
Net debt / EBITDA · Balance sheet-0.4x67 (vs peers)10%
Current ratio · Balance sheet1.8x62 (on a fixed band)10%
EV/Sales · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet64/100 · 2/2 factors with a value
  • Growth23/100 · 2/2 factors with a value
  • Quality96/100 · 3/3 factors with a value
  • Returns· partialunavailable · 0/1 factors with a value
  • Valuation· partialunavailable · 0/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

CarGurus, Inc. (CARG). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 907.0 m USD in 2025; YoY growth 13.7%; net margin 18.2%; ROE 50.3%; net debt/EBITDA -0.4x.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Gross margin: 92.3%
  • EBIT margin: 28.6%
  • FCF margin: 32.6%

What contradicts it

  • Revenue CAGR 3Y: -18.2%

Not assessed (insufficient data or a ratio without meaning): EV/Sales, FCF yield, Shareholder yield (distributions).

Versus the vertical median

Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
19.8x
vertical median 22.1x
below median (−10.3%)
EV/EBITDA
—
vertical median 7.2x
P/S
—
vertical median 0.9x
P/B
—
vertical median 1.0x
ROE
50.3%
vertical median 11.8%
above median (+325.1%)
Net margin
18.2%
vertical median 5.9%
above median (+208.5%)
EBIT margin
28.6%
vertical median 3.2%
above median (+804.1%)
Revenue YoY
13.7%
vertical median 6.7%
above median (+102.4%)
Net debt/EBITDA
-0.4x
vertical median -0.3x
below median
Dividend yield
—
vertical median 2.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
ADPAutomatic Data Processing, Inc.119.8 bn27.777.0%20.1%+6.7%+19% / +32%
WDAYWorkday, Inc.44.4 bn40.916.0%12.3%+13.1%−6% / −25%
VRSKVerisk Analytics, Inc.25.9 bn30.1—29.3%+6.6%−12% / −18%
ATHMAutohome Inc.10.4 bn53.56.3%443.2%+11.1%−5% / −18%
DXCDxc Technology Company2.3 bn21.93.7%0.9%−1.8%+13% / −36%
EVTCEVERTEC, Inc.2.1 bn22.914.4%9.0%+10.2%+20% / −6%
INODInnodata Inc1.5 bn32.837.7%14.7%+47.6%−25% / +541%
CLVTClarivate PLC1.4 bn—-8.2%-15.1%−4.0%−44% / −73%
LZLegalZoom.com, Inc.1.1 bn56.012.1%2.6%+10.9%−26% / −40%
PLTKPlaytika Holding Corp.808.6 m——-9.9%+8.1%−48% / −76%
YEXTYext, Inc.775.0 m40.627.8%5.9%+6.1%−7% / +18%
NRDSNerdWallet, Inc.754.4 m13.318.2%7.6%+21.7%−21% / +1%
NXTTNext Technology Holding Inc.736.5 m—-59.4%-2,356.0%+545.3%−99% / −100%
CARSCars.com Inc.682.5 m22.47.4%4.7%+0.6%+10% / −32%
IBEXIBEX Limited593.6 m14.330.4%7.2%+15.4%+27% / +152%
SOPHSOPHiA GENETICS SA477.3 m—-110.0%-102.2%+18.6%+42% / +73%
GRVYGravity Co., Ltd.475.7 m0.016.5%17.0%−31.0%+19% / −6%
SOHUSohu.com Limited355.1 m1.035.8%67.4%−2.4%−12% / +70%
MOVECorvex, Inc.176.9 m—-9.6%-623.5%−57.3%−17% / −93%
SSTKShutterstock, Inc.161.1 m—-43.4%-22.9%+5.8%−79% / −90%
TRAKRepositrak, Inc.132.7 m18.714.9%32.5%+3.0%−46% / −29%
GMHSGamehaus Holdings Inc.51.4 m8.511.8%4.1%−11.3%−35% / −93%
DDIDoubleDown Interactive Co., Ltd.34.1 m0.311.4%28.5%+5.5%+48% / +72%
SJScienjoy Holding Corporation23.5 m—-66.6%-47.3%−4.9%+28% / −68%
DTSTData Storage Corporation6.5 m1.5113.7%1,248.8%+13.4%−37% / −14%

1- and 3-year price returns: for CARG from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Scenarios are not available. input data missing

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

CarGurus is a multinational automotive platform that connects car buyers and sellers with dealers, earning revenue from dealer subscriptions, advertising and financing partnerships. It reported revenue of 907.0 million USD for fiscal 2025, and has now completed the wind-down of CarOffer and reports a single segment.13

SWOT

Strengths

  • The platform has large traffic and inventory selection that attract consumers and dealers, and its gross margin remains high.
  • The company generates solid operating cash flow and has substantially reduced its shares outstanding through repurchases.
  • Its large volume of proprietary data allows the development of predictive tools for dealers.

Weaknesses

  • Most dealer contracts are on monthly terms with no obligation to stay beyond the committed period.
  • The company relied on a transaction segment that was abandoned, creating wind-down costs and impairments.
  • Dependence on search engine traffic could leave traffic exposed to changes in search algorithms.

Opportunities

  • AI products such as Discover and Guru could deepen consumer and dealer engagement.
  • Expansion in the U.K. and Canada, and growth in paying dealers outside the U.S., could support revenue.
  • Pricing and inventory-sourcing tools could increase the value of dealer subscriptions.

Threats

  • Dealer closures and consolidation could reduce demand for the company's products.
  • Regulation of artificial intelligence and data privacy could limit how data is collected and used.
  • Competitive pressure from established platforms and direct automaker sales could weigh on pricing.

Risks

  • Dealer dependencehigh

    A significant number of dealers ending their subscriptions would directly affect revenue and financial results.

  • Search engine dependencemedium

    Lower visibility in search results could reduce traffic and affect the business.

  • Innovation and adoptionmedium

    If new products are not widely adopted, investments in AI could fail to generate revenue.

  • Privacy and datamedium

    Legal limits on cookies and user tracking can restrict data collection and may lead to disputes.

  • Seasonality and volatilitylow

    Quarterly results can fluctuate, and marketing and acquisition costs can vary from period to period.

Investment thesis

What would need to be true (bull case)

  • If revenue growth stays within the 2026 guidance range, the company could show that its subscription model and data products support durable growth.
  • Substantial share repurchases and high operating cash flow could support long-term shareholder value.
  • International expansion and AI initiatives could deepen user engagement and strengthen competitive position.

What would break the thesis

  • If more U.S. dealers close or consolidate, demand for subscriptions could fall.
  • Dependence on search traffic and monthly subscription terms could make revenue harder to forecast.
  • The costs of AI investment and the CarOffer exit show that some initiatives may not deliver results quickly.

What to watch

  • Revenue and adjusted EBITDA guidance for the third quarterQ3 2026
  • Development of U.S. and international paying dealer countsQ3 2026
  • Results of adoption of AI products such as Guru and Discover2026
  • Pace of share repurchases and use of free cash flownext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

CarGurus describes its business as a two-sided marketplace that connects consumers with an extensive dealer network and offers dealers data-driven software products. Revenue comes from dealer subscription fees, advertising from auto manufacturers and other brand advertisers, and partnerships with financing services companies.1

The company operates marketplaces in the U.S., U.K. and Canada, and its products are grouped into four dealer pillars: inventory, marketing, conversion and data, supported by tools such as Sell My Car, PriceVantage and Dealer Dashboard.1

The wind-down of CarOffer means the company now focuses on AI-powered inventory intelligence, consumer vehicle sourcing and analytics that support smarter sourcing and pricing decisions rather than facilitating transactions.1

Segments

Consumer marketplace

The consumer platform covers research, comparison and purchase of new and used cars, using tools such as CG Discover, Deal Ratings and Digital Deal, plus Dealership Mode at the lot.1

Dealer solutions

Dealer products are grouped into four pillars, inventory, marketing, conversion and data, including Sell My Car, PriceVantage, Listings, Highlight and the Dealer Dashboard, all aimed at inventory and sales profitability.1

International operations

Operations in the U.K. and Canada include dealer marketplaces and the PistonHeads platform, and the number of paying dealers outside the U.S. has grown steadily in recent years.13

Market context

The market CarGurus serves is online car sales, where it competes with established U.S. platforms. The company says it is the most visited U.S. automotive shopping site, and its average monthly unique users reached 41,418 thousand in the fourth quarter of 2025.1

Revenue growth depends on the number of paying dealers and quarterly revenue per subscribing dealer, both of which rose over the last year, but could be affected by dealer closures and consolidation.13

Trends

  • Artificial intelligence in productsmixed

    CarGurus invests in AI-based products such as Discover and Guru, which could deepen dealer and consumer engagement, but involve high costs and regulatory uncertainty.

  • Dealer consolidationheadwind

    Dealer closures and consolidations can reduce demand for subscriptions, since combined entities often buy fewer services or pay less.

  • International growthtailwind

    Paying dealers and revenue per dealer in international regions rose over the last year, suggesting that expansion outside the U.S. may support growth.

  • Response to pricing pressuremixed

    The CarOffer exit shows that the transaction model was less effective in a volatile pricing environment, pointing to a shift toward analytics and data.

Competitive position

CarGurus compares itself directly with U.S. automotive platforms including Autotrader.com, Cars.com, TrueCar.com and CARFAX.com, which it uses as a reference group for claims about traffic and selection.1

Competition also comes from automakers developing direct-to-consumer sales and from other advertising and data platforms, which could reduce the number of independent dealers.1

  • Autotrader.com

    U.S. car listings platform, cited as a comparison point for traffic and selection.

  • Cars.com

    U.S. car marketplace included in the reference group for online traffic.

  • TrueCar.com

    U.S. automotive platform compared with CarGurus in company materials.

  • CARFAX.com

    Vehicle history service with its own listings, included in traffic comparisons.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / CarGurus, Inc. · 19 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / CarGurus, Inc. · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / CarGurus, Inc. · 06 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.