A heightened focus on affordability—driven by rising ownership costs, tariff concerns, and a late-model used supply crunch—defined the market in 2025, setting the stage for 2026 BOSTON, Dec. 11, 2025 (GLOBE NEWSWIRE) -- CarGurus, the No. 1 most visited automotive shopping site in the U.S.1, today released its 2025 Recap and 2026 Outlook, highlighting the year’s top influences on the automotive market and expectations heading into the new year. “If 2024 was defined by declining affordability, 2025 was the ye ...

The new position immediately becomes a hefty 9% portion of Alta Fox's portfolio.On Nov. 14, 2025, Alta Fox Capital Management, LLC disclosed a new position in CarGurus (CARG +4.66%), acquiring 1,098,700 shares valued at an estimated $40.90 million.What happenedAccording to a filing with the U.S. Securities and Exchange Commission filed on Nov. 14, 2025, Alta Fox Capital initiated a new position in CarGurus, purchasing 1,098,700 shares as of Sept. 30, 2025. The position was valued at $40.90 million as of the ...

Fueled by real-time data from the largest car shopping site in the U.S.1, PriceVantage arms dealers with advanced pricing guidance that boosts turn times and preserves margins BOSTON, Dec. 09, 2025 (GLOBE NEWSWIRE) -- CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited automotive shopping site in the U.S.1, today announced the launch of PriceVantage, the only used vehicle pricing solution powered by real-time consumer demand data from the nation’s most visited automotive platform. The predictive pricing guidan ...

Eighth Annual Consumer Insights Report finds shoppers are blending online convenience with in-person guidance, turning to AI and mobile tools to navigate the market confidently BOSTON, Dec. 03, 2025 (GLOBE NEWSWIRE) -- CarGurus, the No. 1 most visited automotive shopping site in the U.S.1, today released its U.S. Consumer Insights Report. The eighth annual study examines shopper preferences, challenges, and trends along the car buying and selling journey. Surveying over 3,000 recent car buyers and sellers, ...

Core Insights - The Q3 earnings season has been challenging for many companies, especially small- and mid-cap growth stocks due to tough macroeconomic conditions and high valuations leading to a risk-off sentiment in the markets [1] Group 1: Market Conditions - The current macroeconomic environment is difficult, contributing to a general risk-off attitude among investors [1] - Smaller-cap stocks are facing uncertainty, which is exacerbated by high valuations [1] Group 2: Analyst Background - Gary Alexander has extensive experience covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor to Seeking Alpha since 2017 and has been quoted in various publications, indicating a strong presence in the investment community [1]

Core Insights - CarGurus reported Q3 CY2025 results that exceeded market revenue expectations, with sales increasing by 3.2% year-on-year to $238.7 million, and non-GAAP profit of $0.57 per share, which was 3.7% above analysts' consensus estimates [1][3][5] Financial Performance - Revenue for Q3 CY2025 was $238.7 million, surpassing analyst estimates of $235 million, reflecting a 3.2% year-on-year growth and a 1.6% beat [5] - Adjusted EPS was $0.57, exceeding analyst estimates of $0.55 by 3.7% [5] - Adjusted EBITDA reached $78.67 million, with a margin of 33%, beating analyst estimates of $76.39 million [5] - Operating margin improved to 22.9%, up from 11.9% in the same quarter last year [5] - The number of paying dealers increased to 33,673, up by 1,989 year-on-year [5] - Market capitalization stands at $3.18 billion [5] Future Outlook - Guidance for Q4 CY2025 includes revenue of $238.5 million at the midpoint, which aligns with analyst expectations, and adjusted EPS guidance of $0.64, above analyst estimates of $0.61 [5] - EBITDA guidance for Q4 CY2025 is set at $87 million at the midpoint, exceeding analyst estimates of $84.27 million [5] - Management emphasized ongoing investments in AI-driven product innovation and deeper integration of software across dealer workflows as key to future performance [4] - The company aims to capture greater dealer wallet share and drive more efficient transactions through new offerings like PriceVantage and CG Discover [4] - While management is optimistic about sustaining double-digit growth rates, they acknowledged potential macroeconomic headwinds and changing consumer sentiment [4]

Core Insights - CarGurus aims to double its total addressable market by introducing AI-powered products beyond its current automotive shopping platform [1][2] - The company is expanding its addressable market to include $3.5 billion spent by U.S. dealers on marketplaces and an additional $4 billion on software and data products [2] Product Development - CarGurus has launched PriceVantage, a machine learning-based pricing solution for dealers that utilizes real-time consumer demand data [3][4] - PriceVantage helps dealers enhance pricing strategies, improve turn times, and increase profitability by providing data-driven recommendations [4] Performance Metrics - Early beta results for PriceVantage show that engaged dealers experienced a 5X improvement in turn-time compared to competitors, with price-drop recommendations leading to a 68% median increase in daily vehicle detail page views [5] - 77% of the recommendations from PriceVantage met or exceeded predicted sales velocity outcomes [5] Consumer-Focused Innovations - CarGurus introduced CG Discover, a generative AI-powered shopping assistant that personalizes vehicle recommendations based on consumer needs, with traffic to this tool tripling quarter over quarter [6] - Another tool, Dealership Mode, provides real-time support to consumers at dealerships, enhancing their experience by offering vehicle pricing, ratings, and financing calculators [6][7] Market Opportunity - Research indicates that 80% of consumers are open to using AI in their car-buying journey, highlighting significant growth potential for CarGurus' AI initiatives [6]

Core Insights - CarGurus reported revenue of $238.7 million for Q3 2025, a year-over-year increase of 3.2% and an EPS of $0.57 compared to $0.45 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1][2] Financial Performance - Revenue for the Marketplace segment was $231.65 million, surpassing the average estimate of $230.89 million, with a year-over-year growth of 13.5% [4] - Revenue from the Wholesale segment was $2.25 million, slightly above the average estimate of $2.2 million, but showed a significant year-over-year decline of 81.4% [4] - Product revenue was reported at $4.79 million, exceeding the average estimate of $2.01 million, reflecting a year-over-year decrease of 68.5% [4] Dealer Metrics - The number of Paying Dealers in the U.S. was 25,743, slightly below the estimated 25,756 [4] - International Paying Dealers totaled 7,930, exceeding the estimate of 7,638 [4] - Total Paying Dealers reached 33,673, above the average estimate of 33,394 [4] - Quarterly Average Revenue per Subscribing Dealer (QARSD) for the consolidated segment was $6,492, slightly below the estimate of $6,500.48 [4] - QARSD for International dealers was $2,375, above the estimate of $2,249.07, while for U.S. dealers it was $7,742, slightly above the estimate of $7,736.47 [4] Stock Performance - CarGurus shares have returned -2% over the past month, while the Zacks S&P 500 composite increased by 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Insights - CarGurus reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and up from $0.45 per share a year ago, representing an earnings surprise of +3.64% [1] - The company achieved revenues of $238.7 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.27% and increasing from $231.36 million year-over-year [2] - CarGurus has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise for the previous quarter was +5.56%, with actual earnings of $0.57 compared to an expected $0.54 [1] - The current consensus EPS estimate for the upcoming quarter is $0.60, with projected revenues of $237.28 million, and for the current fiscal year, the estimate is $2.17 on revenues of $932.17 million [7] Market Position - CarGurus shares have underperformed the market, losing about 6.8% since the beginning of the year, while the S&P 500 has gained 15.6% [3] - The Zacks Industry Rank places the Internet - Commerce sector in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current Zacks Rank for CarGurus is 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was $239 million, up 3% year-over-year [28] - Marketplace revenue was $232 million, reflecting a 14% year-over-year increase, driven by subscription-based listings revenue [29] - Non-GAAP gross profit was $214 million, an 11% increase year-over-year, with a non-GAAP gross margin of 90%, up about 650 basis points [30] - Adjusted EBITDA was approximately $79 million, up 21% year-over-year, with an adjusted EBITDA margin of 33%, up about 490 basis points [31] - Non-GAAP diluted earnings per share was $0.57, a 30% increase year-over-year [34] Business Line Data and Key Metrics Changes - U.S. CarSID grew 8% year-over-year, with 1,182 new paying U.S. dealers added [29] - International operations saw revenue growth of 27% year-over-year, with international CarSID up 15% year-over-year [29] - Digital Deal adoption surpassed 12,500 dealers, with significant growth in high-value actions such as financing applications and appointment scheduling [21] Market Data and Key Metrics Changes - The international market is showing strong growth, with CarGurus adding over 800 customers in Canada and the U.K. [54] - The company is maintaining lower pricing in international markets to build market share before increasing prices over time [54] Company Strategy and Development Direction - The company is focused on expanding its suite of data-driven solutions across dealer workflows to enhance profitability [11] - CarGurus aims to deepen monetization through scalable software and data solutions, expanding its addressable market significantly [9][10] - The strategy includes enhancing consumer engagement through innovations like CG Discover and Dealership Mode, which aim to streamline the car buying journey [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and growth of the marketplace, with expectations for continued investment in AI-centric innovations [37] - The company anticipates fourth-quarter marketplace revenue to be between $236 million and $241 million, representing a year-over-year increase of 12% to 15% [35] - Management highlighted the importance of maintaining a balance between innovation and disciplined execution to ensure sustainable growth [80] Other Important Information - The company is winding down the CarOffer transactions business, which will be accounted for as a discontinued operation in Q4 [30] - Total wind-down-related charges are expected to be in the range of $13 million to $15 million, lower than previously estimated [33] Q&A Session Summary Question: What is the trend regarding dealers using CarGurus? - Management noted that dealers are using fewer marketplace partners, with the average dropping from three to under two, indicating consolidation towards those offering the best ROI [41] Question: How is the ROI for Digital Deal perceived by dealers? - Management indicated that more consumers are engaging in high-value actions, which drives higher quality leads and further ROI for dealers, suggesting potential for future pricing power [45] Question: What are the growth prospects in international markets? - Management expressed pride in international growth, emphasizing the strategy of maintaining lower prices to build market share before increasing them over time [54] Question: How does CarSID growth relate to dealer rooftops? - Management explained that CarSID growth is mathematically related to the number of rooftops, with recent growth in rooftops acting as a headwind to CarSID growth [67] Question: What insights are generated from Dealership Mode? - Management highlighted that Dealership Mode provides valuable insights into consumer behavior at dealerships, enhancing the understanding of customer engagement [82]