Core Insights - CarGurus reported revenue of $234.03 million for the quarter ended June 2025, reflecting a 7% increase year-over-year and a surprise of +0.57% over the Zacks Consensus Estimate of $232.7 million [1] - The earnings per share (EPS) for the quarter was $0.57, compared to $0.41 in the same quarter last year, resulting in an EPS surprise of +5.56% against the consensus estimate of $0.54 [1] Performance Metrics - CarGurus' shares have returned -8.6% over the past month, while the Zacks S&P 500 composite increased by +1.2%, indicating underperformance relative to the broader market [3] - The total number of paying dealers in the U.S. was 25,478, exceeding the three-analyst average estimate of 25,322 [4] - International paying dealers totaled 7,617, surpassing the average estimate of 7,288 by three analysts [4] - The total number of paying dealers reached 33,095, above the average estimate of 32,611 by three analysts [4] Revenue Breakdown - The Quarterly Average Revenue per Subscribing Dealer (QARSD) for consolidated operations was $6,349.00, slightly below the average estimate of $6,389.77 [4] - The QARSD for international dealers was $2,309.00, exceeding the two-analyst average estimate of $2,107.40 [4] - The QARSD for U.S. dealers was $7,533.00, compared to the average estimate of $7,594.49 [4] - Marketplace revenue was reported at $222 million, slightly above the average estimate of $221.5 million, with a year-over-year change of +13.8% [4] - Wholesale revenue was $6.3 million, below the average estimate of $6.89 million, representing a year-over-year decline of -52% [4] - Product revenue was $5.8 million, exceeding the average estimate of $4.91 million, but showing a significant year-over-year decrease of -44.3% [4]

Core Viewpoint - CarGurus reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and showing an increase from $0.41 per share a year ago, indicating a positive earnings surprise of +5.56% [1][2] Financial Performance - The company achieved revenues of $234.03 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.57%, and up from $218.69 million in the same quarter last year [2] - Over the last four quarters, CarGurus has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance and Outlook - CarGurus shares have declined approximately 13% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.55, with projected revenues of $238.67 million, and for the current fiscal year, the estimate is $2.15 on revenues of $938.78 million [7] - The estimate revisions trend for CarGurus was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Commerce industry, to which CarGurus belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $234 million, up 7% year over year, slightly above the midpoint of guidance range [28] - Marketplace revenue was $222 million, up 14% year over year, driven by strength in subscription-based listings revenue [29] - Adjusted EBITDA was approximately $77 million, up 39% year over year, with an adjusted EBITDA margin of 33%, reflecting strong revenue growth and operating leverage [32][33] - Non-GAAP diluted earnings per share was $0.57, up 46% year over year [35] Business Line Data and Key Metrics Changes - Marketplace performance was a key contributor, with adjusted EBITDA growing 31% year over year [6] - International business revenue grew 28% year over year, with significant growth in Canada and the UK [7] - Wholesale revenue was approximately $6 million, down 52% year over year, driven by a 55% decrease in transaction volume [31] Market Data and Key Metrics Changes - The UK was the number one most downloaded automotive app in Q2, indicating rising consumer engagement [7] - CarGurus had nearly 85 million average monthly sessions and 34 million monthly unique visitors, with consumers spending 74% more total minutes on the site than the closest competitor [21] Company Strategy and Development Direction - The company is focusing on providing data-driven, scalable solutions to dealers, emphasizing technology and analytics for smarter sourcing and pricing [10] - A strategic reassessment led to the decision to wind down the CarOffer transactions business, while retaining the underlying technology for future sourcing strategies [10][26] - Future sourcing offerings will concentrate on AI-powered inventory intelligence and consumer vehicle sourcing at scale [27] Management's Comments on Operating Environment and Future Outlook - Management noted that while used inventory is up year over year, it has not returned to pre-COVID levels, indicating ongoing opportunities for dealers [50] - The macro environment remains uncertain, with high interest rates and elevated used car prices impacting dealer operations [58] - Management expressed confidence in the company's ability to grow engagement and provide value to dealers despite market challenges [59] Other Important Information - The company plans to execute against a clear set of priorities and invest in areas positioned for durable profitable growth [28] - A $150 million increase to the existing share repurchase program was approved, reinforcing the company's commitment to returning capital to shareholders [38] Q&A Session Summary Question: How should we think about dealer count or revenue per dealer? - Management indicated there is significant opportunity for existing products among the dealer base, with over 50% runway on most cross-sell products [44][46] Question: What's the outlook on increasing used supply as off-lease units come back? - Management noted that while used inventory is increasing, it is not at pre-COVID levels, and they see potential in sourcing intelligence to help dealers navigate the market [50][51] Question: Are dealers more willing to open their budgets with more certainty around tariffs? - Management acknowledged some easing of anxiety but emphasized ongoing uncertainty due to high interest rates and elevated used car prices [56][58] Question: How does the rise of AI tools affect the marketplace model? - Management highlighted the importance of their AI-driven tools like CG Discover, which enhance the consumer experience and engagement [63][66] Question: How do you plan to continue addressing the dealer-to-dealer side of the business? - Management confirmed plans to provide DDD capabilities through top dealer offers and emphasized the importance of predictive analytics for inventory management [83][84] Question: Will the company consider expanding beyond Canada and the UK? - Management stated that they will focus on current international markets where they are seeing strong performance [85]

Core Insights - CarGurus reported Q2 2025 GAAP revenue of $234.0 million, slightly exceeding analyst estimates of $232.7 million, with non-GAAP earnings per share of $0.57, surpassing expectations [1][2] - The company announced the winding down of its CarOffer transactions business due to underperformance, refocusing on its core Marketplace platform and data-driven dealer solutions [1][7] Financial Performance - Non-GAAP EPS increased by 46.2% year-over-year to $0.57, while GAAP revenue rose by 7% compared to Q2 2024 [2] - Gross profit (GAAP) reached $204.4 million, a 12.1% increase from the previous year, with gross margin improving to 87% [2][8] - Non-GAAP adjusted EBITDA grew by 39% to $77.3 million, reflecting a 33% margin, up from 25% in Q2 2024 [2][8] - Free cash flow (non-GAAP) surged by 61.6% year-over-year to $65.3 million [2][8] Business Segments - The Marketplace business generated $222.0 million in revenue, a 14% increase year-over-year, with operating income for the U.S. segment rising 40% to $58.8 million [5] - The number of U.S. paying dealers increased by 4% to 25,478, while international paying dealers grew by 10% to 7,617 [5][6] - The Digital Wholesale segment, primarily from CarOffer, saw a 49% revenue decline to $12.0 million, with transaction volumes dropping 55% [7] Strategic Focus - CarGurus is prioritizing technological innovation, particularly in AI and analytics tools to enhance dealer workflow and consumer experience [4] - The company plans to retain and expand its AI-powered dealer analytics and inventory intelligence offerings while improving core Marketplace functionalities [10] Market Outlook - For Q3 2025, management projects Marketplace revenue between $228–$233 million and non-GAAP EPS of $0.50–$0.58 [12] - Transition costs related to the CarOffer wind-down are expected to be between $14.0–19.0 million, primarily in the second half of 2025 [12] - The company emphasizes its competitive edge in data, technology, and dealer relationships amid increasing competition from other online auto platforms [11]

Financial Performance - Q2 2025 - Revenue for U S Marketplace & Other increased by 13 7% year-over-year, reaching $222 million[10] - Non-GAAP Gross Profit for U S Marketplace & Other was $206 4 million, with a margin of 93%[10] - Non-GAAP Adjusted EBITDA for U S Marketplace & Other grew by 30 8% year-over-year to $80 1 million, resulting in a 36% margin[10] - Digital Wholesale revenue was $12 million[10], with a Non-GAAP Gross Profit of $0 9 million and a Non-GAAP margin of 7%[10] - The company's Non-GAAP Adjusted EBITDA was $77 3 million, representing a 33% margin[10] Key Business Updates - Digital Deal adoption reached approximately 12,000 dealers, with Digital Deal Leads accounting for over 27% of email leads[15] - Max Margin adoption increased by approximately 70% quarter-over-quarter, while Merchandising Health grew by approximately 30% quarter-over-quarter[17] - Daily active users of the core dealer app functionality increased by 71% year-over-year[17] Dealer Base Growth - The U S paying dealer base grew by 8 5% year-over-year, an increase of 1,743 dealers[19] - The international paying dealer base increased by 19 3% year-over-year[19] - Average Quarterly Revenue per Subscribing Dealer (QARSD) in the U S increased to $7,533, while international QARSD reached $2,309[19] Q3 2025 Guidance - Marketplace Revenue is projected to be between $228 million and $233 million[38] - Non-GAAP Marketplace Adjusted EBITDA is expected to range from $76 5 million to $84 5 million[33]

PART I—FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements.) This section presents CarGurus, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and detailed accounting notes [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the Company's financial position, detailing assets, liabilities, and equity at specific dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | **Assets** | | | | Cash and cash equivalents | $231,233 | $304,193 | | Total current assets | $308,972 | $391,206 | | Total assets | $726,121 | $824,536 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $97,199 | $93,051 | | Total liabilities | $290,644 | $282,847 | | Total stockholders' equity | $435,477 | $541,689 | - Total assets decreased by **$98.4 million** from December 31, 2024, to June 30, 2025, primarily driven by a decrease in cash and cash equivalents[13](index=13&type=chunk) [Unaudited Condensed Consolidated Income Statements](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Income%20Statements) This section presents the Company's financial performance, detailing revenues, expenses, and net income (loss) for specified periods | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Total revenue | $234,033 | $218,692 | $459,191 | $434,488 | | Total cost of revenue | $29,651 | $36,248 | $55,102 | $77,083 | | Gross profit | $204,382 | $182,444 | $404,089 | $357,405 | | Total operating expenses | $179,538 | $276,028 | $333,490 | $424,705 | | Income (loss) from operations | $24,844 | $(93,584) | $70,599 | $(67,300) | | Net income (loss) | $22,343 | $(68,721) | $61,388 | $(47,420) | | Basic EPS | $0.23 | $(0.66) | $0.61 | $(0.45) | | Diluted EPS | $0.22 | $(0.66) | $0.60 | $(0.45) | - Net income significantly improved for both the three and six months ended June 30, 2025, compared to the prior year, moving from a net loss to positive net income, largely driven by a substantial decrease in impairment expenses[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the Company's comprehensive income (loss), including net income and other comprehensive income items for specified periods | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net income (loss) | $22,343 | $(68,721) | $61,388 | $(47,420) | | Foreign currency translation adjustment | $2,679 | $(203) | $3,917 | $(802) | | Comprehensive income (loss) | $25,022 | $(68,924) | $65,305 | $(48,222) | - Comprehensive income turned positive in 2025, primarily due to the shift from net loss to net income and a positive foreign currency translation adjustment, contrasting with a loss in 2024[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section details changes in the Company's stockholders' equity, including common stock, retained earnings, and comprehensive income for specified periods | Metric | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------------- | :----------------------------------- | | Total stockholders' equity | $435,477 | $541,689 | | Class A common stock shares outstanding | 84,738,943 | 89,002,571 | | Class B common stock shares outstanding | 14,216,250 | 14,986,745 | | Retained earnings | $418,642 | $375,119 | | Accumulated other comprehensive income (loss) | $1,370 | $(2,547) | - Total stockholders' equity decreased by **$106.2 million** from December 31, 2024, to June 30, 2025, primarily due to significant common stock repurchases (**$185.9 million**) and a decrease in additional paid-in capital, partially offset by net income and positive foreign currency translation adjustments[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the Company's cash inflows and outflows from operating, investing, and financing activities for specified periods | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Net cash provided by operating activities | $140,998 | $123,561 | | Net cash used in investing activities | $(15,476) | $(44,373) | | Net cash used in financing activities | $(200,537) | $(153,975) | | Net decrease in cash, cash equivalents, and restricted cash | $(72,880) | $(75,561) | | Cash, cash equivalents, and restricted cash at end of period | $233,349 | $218,365 | - Net cash provided by operating activities increased by **$17.4 million** YoY for the six months ended June 30, 2025. Net cash used in financing activities increased significantly due to higher common stock repurchases[21](index=21&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements, covering accounting policies, revenue, impairments, and debt [1. Organization and Business Description](index=11&type=section&id=1.%20Organization%20and%20Business%20Description) CarGurus, Inc. operates as a multinational online automotive platform, winding down CarOffer's transaction business to focus on AI-powered inventory intelligence - CarGurus is winding down its CarOffer Transactions Business (Dealer-to-Dealer and Instant Max Cash Offer products) due to its ineffectiveness in a volatile pricing environment, shifting focus to AI-powered inventory intelligence and consumer vehicle sourcing via 'Sell My Car - Top Dealer Offers'[23](index=23&type=chunk)[134](index=134&type=chunk) - The Company operates in the U.S. (CarGurus, Autolist, CarOffer), Canada (CarGurus), and the U.K. (CarGurus, PistonHeads), with two reportable segments: U.S. Marketplace and Digital Wholesale[24](index=24&type=chunk)[25](index=25&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) The unaudited financial statements conform to GAAP, with critical accounting estimates covering revenue recognition, asset impairment, and intangible asset valuation, including a Q2 2025 CarOffer impairment - The Company's critical accounting estimates involve sales allowance and variable consideration in revenue recognition, impairment and useful lives of long-lived assets, capitalization and useful lives of product, technology, and development costs, and valuation/recoverability of intangible assets and goodwill[34](index=34&type=chunk) - An interim impairment test for the CarOffer reporting unit was triggered in Q2 2025 due to sustained low transaction volume and delayed growth, resulting in a **full impairment of goodwill** and partial impairment of other long-lived assets[35](index=35&type=chunk)[61](index=61&type=chunk) - New accounting pronouncements, ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Income Tax Disclosures), are being evaluated for their impact on future consolidated financial statements[45](index=45&type=chunk)[46](index=46&type=chunk) [3. Revenue Recognition](index=14&type=section&id=3.%20Revenue%20Recognition) Revenue is disaggregated by marketplace, Dealer-to-Dealer, and IMCO services; marketplace revenue increased significantly, while Dealer-to-Dealer and IMCO revenues decreased in 2025 | Revenue Source | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Marketplace | $221,998 | $195,167 | $434,233 | $382,386 | | Dealer-to-Dealer | $7,682 | $15,492 | $15,847 | $33,991 | | Sell My Car - Instant Max Cash Offer | $4,353 | $8,033 | $9,111 | $18,111 | | Total | $234,033 | $218,692 | $459,191 | $434,488 | - Marketplace revenue increased by **13.7%** for the three months and **13.6%** for the six months ended June 30, 2025, compared to the same periods in 2024[47](index=47&type=chunk) - Dealer-to-Dealer and IMCO revenues both decreased by approximately **50%** for both the three and six months ended June 30, 2025, compared to the same periods in 2024[47](index=47&type=chunk) [4. Fair Value of Financial Instruments](index=15&type=section&id=4.%20Fair%20Value%20of%20Financial%20Instruments) The Company's recurring fair value assets primarily consist of cash equivalents in mutual funds, categorized as Level 1 inputs | Asset Type | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :----------- | :--------------------------------- | :----------------------------------- | | Mutual funds | $47,396 | $165,074 | | Total | $47,396 | $165,074 | - Cash equivalents in mutual funds decreased significantly from **$165.1 million** at December 31, 2024, to **$47.4 million** at June 30, 2025[55](index=55&type=chunk) [5. Property and Equipment, Net](index=16&type=section&id=5.%20Property%20and%20Equipment%2C%20Net) Property and equipment, net, remained stable, with capitalized software additions offset by write-offs and CarOffer-related impairments | Category | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :-------------------------- | :--------------------------------- | :----------------------------------- | | Capitalized internal-use software | $20,404 | $20,060 | | Capitalized website development | $53,276 | $56,877 | | Leasehold improvements | $85,890 | $95,691 | | Total Property and equipment, net | $130,299 | $130,010 | - Capitalized internal-use software increased by **$344k**, primarily due to **$3.3 million** in additions, partially offset by **$2.2 million** in write-offs of fully depreciated Digital Wholesale assets and **$769k** in impairments[56](index=56&type=chunk) - Capitalized website development costs decreased by **$3.6 million**, mainly due to **$13.4 million** in write-offs of fully depreciated Digital Wholesale assets and **$4.8 million** in impairments, offset by **$14.6 million** in additions[57](index=57&type=chunk) [6. Impairments](index=16&type=section&id=6.%20Impairments) The Company recognized a **$32.6 million** impairment for the CarOffer reporting unit in Q2 2025, including **$19.6 million** in goodwill, due to low transaction volume and delayed growth - A triggering event in Q2 2025 led to a **$32.6 million** impairment for the CarOffer reporting unit, including a **full impairment of goodwill ($19.6 million)** and partial impairments of other long-lived assets[61](index=61&type=chunk)[65](index=65&type=chunk)[85](index=85&type=chunk) | Impairment Type | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------------------- | :------------------------------------------ | :---------------------------------------- | | Capitalized website development (Cost of Revenue) | $2,919 | $2,919 | | Capitalized hosting arrangements (Operating Expense) | $291 | $291 | | Capitalized internal-use software (Operating Expense) | $769 | $769 | | Capitalized website development (Operating Expense) | $1,882 | $1,882 | | Intangible assets (Operating Expense) | $6,624 | $6,624 | | Goodwill (Operating Expense) | $19,568 | $19,568 | | Right-of-use assets (Operating Expense) | $499 | $499 | | Total Impairments | $32,552 | $32,552 | - The impairment charge reduced the carrying value of CarOffer reporting unit goodwill to **zero**[85](index=85&type=chunk) [7. Accrued Expenses, Accrued Income Taxes, and Other Current Liabilities](index=21&type=section&id=7.%20Accrued%20Expenses%2C%20Accrued%20Income%20Taxes%2C%20and%20Other%20Current%20Liabilities) Accrued expenses, income taxes, and other current liabilities decreased by **$4.1 million** due to 2024 bonus payouts, partially offset by new accruals | Category | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :---------------------------------------------------- | :--------------------------------- | :----------------------------------- | | Accrued bonus | $11,159 | $17,377 | | Accrued commissions | $5,244 | $4,818 | | Other accrued expenses, accrued income taxes, and other current liabilities | $15,490 | $13,780 | | Total | $31,893 | $35,975 | - Accrued bonus decreased by **$6.2 million**, mainly due to the payout of the remaining 2024 bonus, partially offset by new accruals[88](index=88&type=chunk) [8. Debt](index=21&type=section&id=8.%20Debt) The Company had no long-term debt as of June 30, 2025, maintaining a **$400.0 million** revolving credit facility with **$390.6 million** available capacity - No long-term debt outstanding as of June 30, 2025[89](index=89&type=chunk) - The 2022 Revolver provides **$400.0 million** in borrowing capacity, with **$9.4 million** in letters of credit outstanding as of June 30, 2025, reducing available capacity to **$390.6 million**[90](index=90&type=chunk)[93](index=93&type=chunk) - The Company was in compliance with all covenants of the Credit Agreement as of June 30, 2025[92](index=92&type=chunk) [9. Commitments and Contingencies](index=22&type=section&id=9.%20Commitments%20and%20Contingencies) The Company's commitments include letters of credit and restricted cash, with no pending litigation expected to have a material adverse effect - As of June 30, 2025, **$9.4 million** in letters of credit were outstanding, associated with the Company's leases[98](index=98&type=chunk) - Restricted cash amounted to **$2.1 million** as of June 30, 2025, related to pass-through payments from dealers in the Digital Wholesale business[99](index=99&type=chunk) - The Company is not currently subject to any pending or threatened litigation expected to have a material adverse effect on its business or financial results[101](index=101&type=chunk) [10. Stock-based Compensation and Common Stock Share Repurchases](index=23&type=section&id=10.%20Stock-based%20Compensation%20and%20Common%20Stock%20Share%20Repurchases) Stock-based compensation expense decreased in 2025, and the 2025 Share Repurchase Program was increased to **$350.0 million**, with **$184.5 million** repurchased in H1 2025 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Stock options | $65 | $555 | $136 | $1,146 | | Restricted stock units | $12,960 | $15,002 | $25,789 | $30,233 | | Total stock-based compensation expense | $13,025 | $15,557 | $25,925 | $31,379 | - Stock-based compensation expense decreased by **$2.5 million (16.3%)** for the three months and **$5.5 million (17.4%)** for the six months ended June 30, 2025, compared to the prior year[102](index=102&type=chunk) - The 2025 Share Repurchase Program was amended to increase authorization by **$150.0 million** to a total of **$350.0 million** and extended to July 31, 2026. During the six months ended June 30, 2025, the Company repurchased **5,930,439 shares** for **$184.5 million**[103](index=103&type=chunk)[106](index=106&type=chunk)[137](index=137&type=chunk) [11. Earnings Per Share](index=24&type=section&id=11.%20Earnings%20Per%20Share) Basic and diluted net income per share improved significantly in 2025, turning positive from prior year losses, with equivalent EPS for Class A and B common stock | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $22,343 | $(68,721) | $61,388 | $(47,420) | | Basic EPS | $0.23 | $(0.66) | $0.61 | $(0.45) | | Diluted EPS | $0.22 | $(0.66) | $0.60 | $(0.45) | | Basic weighted-average shares | 98,889,893 | 103,827,661 | 100,980,676 | 105,501,236 | | Diluted weighted-average shares | 100,184,067 | 103,827,661 | 102,614,441 | 105,501,236 | - Basic and diluted EPS turned positive in 2025, reflecting a significant improvement from losses in 2024, primarily due to increased net income[112](index=112&type=chunk) - Weighted-average shares outstanding decreased in 2025 compared to 2024, partly due to common stock repurchases[112](index=112&type=chunk) [12. Income Taxes](index=25&type=section&id=12.%20Income%20Taxes) The Company recognized an income tax provision in 2025 due to profitability, with effective tax rates lower than statutory, and the OBBBA is expected to provide material cash tax savings | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Provision for (benefit from) income taxes | $5,065 | $(21,702) | $14,571 | $(13,318) | | Effective tax rate | 18.5% | 24.0% | 19.2% | 21.9% | - The effective tax rate for Q2 2025 (**18.5%**) and YTD 2025 (**19.2%**) was lower than the statutory **21%** due to windfall tax benefits and R&D tax credits, partially offset by state/local taxes and executive compensation limitations[114](index=114&type=chunk) - The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, is expected to result in **material cash tax savings** over the next several years due to provisions like accelerated cost recovery and immediate R&D expensing[116](index=116&type=chunk)[200](index=200&type=chunk) [13. Segment and Geographic Information](index=26&type=section&id=13.%20Segment%20and%20Geographic%20Information) The Company operates U.S. Marketplace and Digital Wholesale segments; U.S. Marketplace revenue and income increased, while Digital Wholesale declined due to the CarOffer wind-down | Segment Revenue | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | U.S. Marketplace | $202,652 | $180,052 | $397,880 | $353,040 | | Digital Wholesale | $12,035 | $23,525 | $24,958 | $52,102 | | Other | $19,346 | $15,115 | $36,353 | $29,346 | | Total | $234,033 | $218,692 | $459,191 | $434,488 | | Segment Income (Loss) from Operations | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | U.S. Marketplace | $58,762 | $42,043 | $108,543 | $76,260 | | Digital Wholesale | $(37,041) | $(138,158) | $(42,820) | $(148,498) | | Other | $3,123 | $2,531 | $4,876 | $4,938 | | Total | $24,844 | $(93,584) | $70,599 | $(67,300) | - U.S. Marketplace revenue increased **13%** for both the three and six months ended June 30, 2025, while Digital Wholesale revenue decreased **49%** and **52%** respectively, reflecting the impact of the CarOffer wind-down[122](index=122&type=chunk)[125](index=125&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) [14. Subsequent Events](index=31&type=section&id=14.%20Subsequent%20Events) The Board decided to wind down CarOffer Transactions Business, expecting **$14.0 million to $19.0 million** in expenditures, and increased the 2025 Share Repurchase Program to **$350.0 million** - CarGurus will wind down the CarOffer Transactions Business, focusing on AI-powered inventory intelligence and consumer vehicle sourcing through 'Sell My Car - Top Dealer Offers'[134](index=134&type=chunk) - The wind-down is expected to incur total expenditures of **$14.0 million to $19.0 million**, mostly in H2 2025, with remaining payments in H1 2026[135](index=135&type=chunk) - The 2025 Share Repurchase Program was increased by **$150.0 million** to **$350.0 million** and extended to July 31, 2026. As of August 7, 2025, **$165.5 million** remained authorized for repurchase[137](index=137&type=chunk)[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and results, highlighting the CarOffer wind-down, key metrics, revenue, expenses, segment performance, liquidity, and critical accounting estimates [Company Overview](index=33&type=section&id=Company%20Overview) CarGurus is a multinational online automotive platform leveraging technology for vehicle transactions, operating across U.S., U.K., and Canada, with U.S. Marketplace and Digital Wholesale segments - CarGurus is an online automotive platform using proprietary technology, search algorithms, and data analytics to provide trust, transparency, and competitive pricing for vehicle shopping[142](index=142&type=chunk) - The Company operates CarGurus, Autolist, and PistonHeads brands, with CarOffer as a subsidiary, and has two reportable segments: U.S. Marketplace and Digital Wholesale[143](index=143&type=chunk)[144](index=144&type=chunk) | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :------------- | :----------------------------------------- | :----------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | $234.0 | $218.7 | $459.2 | $434.5 | | Net income (loss) | $22.3 | $(68.7) | $61.4 | $(47.4) | | Adjusted EBITDA | $77.3 | $55.6 | $143.6 | $106.0 | [Wind Down of CarOffer](index=34&type=section&id=Wind%20Down%20of%20CarOffer) CarGurus' Board decided to wind down the CarOffer Transactions Business due to market ineffectiveness, pivoting to AI-powered inventory intelligence, with **$14.0 million to $19.0 million** in expected expenditures - The CarOffer Transactions Business is being wound down as it proved less effective in a volatile pricing environment, with dealers requiring more flexibility and automation[149](index=149&type=chunk) - The Company will focus on AI-powered inventory intelligence and consumer vehicle sourcing through 'Top Dealer Offers' instead of facilitating transactions[149](index=149&type=chunk) - Wind-down activities are expected to be substantially completed in H2 2025, incurring **$14.0 million to $19.0 million** in expenditures, mostly in H2 2025 and H1 2026[150](index=150&type=chunk) [Key Business Metrics](index=35&type=section&id=Key%20Business%20Metrics) CarGurus monitors key metrics including unique users, sessions, paying dealers, transactions, and QARSD; GA4 adoption affects user/session comparisons, and Digital Wholesale transactions will cease | Metric | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------------- | :------------------------------------------ | :---------------------------------------- | | Average Monthly Unique Users (Total) | 44,294 | 44,969 | | Average Monthly Sessions (Total) | 105,895 | 106,919 | - Due to the transition to Google Analytics 4 (GA4) effective July 1, 2024, comparable monthly unique user and session data for periods prior to June 30, 2024, is unavailable[153](index=153&type=chunk)[155](index=155&type=chunk)[157](index=157&type=chunk) | Metric | As of June 30, 2025 | As of June 30, 2024 | | :-------------------------- | :------------------ | :------------------ | | Number of Paying Dealers (Total) | 33,095 | 31,352 | | U.S. QARSD | $7,533 | $6,942 | | International QARSD | $2,309 | $1,935 | | Consolidated QARSD | $6,349 | $5,848 | | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Transactions | 3,955 | 8,778 | 9,164 | 19,080 | - Transactions in the Digital Wholesale segment decreased by **55%** for the three months and **52%** for the six months ended June 30, 2025, compared to the prior year, and are expected to cease over time due to the CarOffer wind-down[160](index=160&type=chunk)[161](index=161&type=chunk) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Adjusted EBITDA | $77,296 | $55,556 | $143,592 | $105,954 | - Adjusted EBITDA increased by **39.1%** for the three months and **35.5%** for the six months ended June 30, 2025, compared to the prior year, indicating improved operating performance[170](index=170&type=chunk) [Components of Unaudited Condensed Consolidated Income Statements](index=40&type=section&id=Components%20of%20Unaudited%20Condensed%20Consolidated%20Income%20Statements) This section details the Company's revenue streams, cost of revenue, and operating expenses, explaining their composition, generation, and influencing factors - Marketplace revenue is primarily derived from dealer subscriptions (Listings, RPM, Digital Retail, Top Dealer Offers), advertising from auto manufacturers, and partnerships with financing companies[171](index=171&type=chunk)[172](index=172&type=chunk)[175](index=175&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[181](index=181&type=chunk) - Wholesale revenue comes from transaction fees on Dealer-to-Dealer and other marketplace vehicle sales, as well as inspection and transportation services. Product revenue is from the sale of vehicles acquired through IMCO transactions and arbitration[171](index=171&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk) - Cost of revenue includes expenses for supporting marketplace services, vehicle transportation/inspection, net losses on guarantees, and personnel for Digital Wholesale transactions. Product cost of revenue includes vehicle cost and transportation for IMCO and arbitration sales[187](index=187&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk) - Operating expenses include sales and marketing (personnel, advertising), product/technology/development (R&D personnel, software), general and administrative (executive, finance, legal, professional fees), impairments (CarOffer reporting unit), and depreciation/amortization[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) The Company experienced **7%** Q2 and **6%** YTD revenue growth driven by marketplace, offset by Digital Wholesale decline; net income improved substantially from lower impairment expenses | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change Amount (in thousands) | Change % | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :--------------------------- | :------- | | Marketplace Revenue | $221,998 | $195,167 | $26,831 | 14% | | Wholesale Revenue | $6,275 | $13,119 | $(6,844) | (52)% | | Product Revenue | $5,760 | $10,406 | $(4,646) | (45)% | | Total Revenue | $234,033 | $218,692 | $15,341 | 7% | | Total Cost of Revenue | $29,651 | $36,248 | $(6,597) | (18)% | | Impairments | $29,633 | $127,475 | $(97,842) | (77)% | | Net Income (Loss) | $22,343 | $(68,721) | $91,064 | NM | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change Amount (in thousands) | Change % | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :--------------------------- | :------- | | Marketplace Revenue | $434,233 | $382,386 | $51,847 | 14% | | Wholesale Revenue | $14,022 | $29,244 | $(15,222) | (52)% | | Product Revenue | $10,936 | $22,858 | $(11,922) | (52)% | | Total Revenue | $459,191 | $434,488 | $24,703 | 6% | | Total Cost of Revenue | $55,102 | $77,083 | $(21,981) | (29)% | | Impairments | $29,633 | $127,475 | $(97,842) | (77)% | | Net Income (Loss) | $61,388 | $(47,420) | $108,808 | NM | - Marketplace revenue growth was driven by increases in paying dealer count, QARSD, and advertising spend. Digital Wholesale revenue decline was primarily due to a **55%** decrease in Transactions for Q2 2025 and **52%** for YTD 2025[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) - U.S. Marketplace segment income from operations increased by **40%** for Q2 2025 and **42%** for YTD 2025. Digital Wholesale segment loss from operations decreased by **73%** for Q2 2025 and **71%** for YTD 2025, primarily due to lower impairment charges compared to the prior year[223](index=223&type=chunk)[224](index=224&type=chunk)[244](index=244&type=chunk)[246](index=246&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) The Company's liquidity stems from **$231.2 million** cash and **$390.6 million** available credit; operating activities generated **$141.0 million** in H1 2025, while financing used **$200.5 million** due to repurchases - As of June 30, 2025, the Company had **$231.2 million** in cash and cash equivalents and **$390.6 million** in available borrowing capacity under its **$400.0 million** revolving credit facility[247](index=247&type=chunk)[250](index=250&type=chunk) | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net cash provided by operating activities | $140,998 | $123,561 | | Net cash used in investing activities | $(15,476) | $(44,373) | | Net cash used in financing activities | $(200,537) | $(153,975) | | Net decrease in cash, cash equivalents, and restricted cash | $(72,880) | $(75,561) | - Net cash used in financing activities increased by **$46.6 million** YoY, primarily due to **$184.6 million** in common stock repurchases in H1 2025[261](index=261&type=chunk) - The wind-down of CarOffer is expected to incur **$14.0 million to $19.0 million** in expenditures, impacting future liquidity[255](index=255&type=chunk) [Critical Accounting Estimates](index=61&type=section&id=Critical%20Accounting%20Estimates) The Company's critical accounting estimates involve revenue recognition, asset impairment, development cost capitalization, and intangible asset valuation, with a Q2 2025 CarOffer impairment charge - Critical accounting estimates include sales allowance, variable consideration in revenue recognition, impairment and useful lives of long-lived assets, capitalization of website development, internal-use software, and hosting arrangements, and valuation/recoverability of intangible assets and goodwill[271](index=271&type=chunk) - An interim impairment test for the CarOffer reporting unit in Q2 2025, triggered by low transaction volume and delayed growth, resulted in a partial impairment charge[272](index=272&type=chunk) [Recently Issued Accounting Pronouncements](index=61&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Details on recently issued accounting pronouncements are provided in Note 2 of the Unaudited Condensed Consolidated Financial Statements - Refer to Note 2 for details on recently issued accounting pronouncements, including ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Income Tax Disclosures), which the Company is currently evaluating[274](index=274&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company is exposed to market risks from interest rates, inflation, and foreign currency exchange rates; past impacts have been immaterial, but these risks are continuously monitored - The Company's primary market risks are interest rate risk (related to its **$400.0 million** revolving credit facility and cash equivalents), inflation risk, and foreign currency exchange risk (British pound, Euro, Canadian dollar)[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk)[282](index=282&type=chunk) - Interest rate fluctuations and foreign currency exchange rate changes have not had a material effect on the Company's business, financial condition, or results of operations for the periods presented[279](index=279&type=chunk)[282](index=282&type=chunk) - Inflation has not materially affected the business, but potential future inflationary pressures could impact costs and vehicle purchasing behavior[281](index=281&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the period - Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of June 30, 2025[283](index=283&type=chunk)[284](index=284&type=chunk) - No material changes in internal control over financial reporting occurred during the period covered by the Quarterly Report[285](index=285&type=chunk) [PART II. OTHER INFORMATION](index=64&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes disclosures on legal proceedings, risk factors, equity security sales, other information, and exhibits [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings.) The Company is not currently subject to any pending or threatened litigation expected to have a material adverse effect on its business or financial results - The Company is not currently involved in any legal proceedings or claims that are believed to have a material adverse effect on its business or financial results[288](index=288&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors.) The CarOffer wind-down poses significant risks, including adverse business impacts and **$14.0 million to $19.0 million** in expenditures; future asset impairment and macroeconomic factors also present risks - The wind-down of CarOffer, including its transaction business, may adversely impact the Company's business, financial performance, and reputation, with expected expenditures of **$14.0 million to $19.0 million**[290](index=290&type=chunk)[291](index=291&type=chunk) - Risks associated with the CarOffer wind-down include inability to retain qualified personnel, operational disruptions, diversion of management attention, exposure to unknown liabilities, and potential failure to realize anticipated benefits[294](index=294&type=chunk) - Goodwill, intangible assets, and other assets are subject to future impairment, as evidenced by the **$32.6 million** impairment charge related to CarOffer in Q2 2025, which could materially affect financial results[296](index=296&type=chunk) - Tariffs, trade restrictions, and other changes in trade policy could lead to economic downturns, impacting consumer demand for automobiles and adversely affecting the Company's business[297](index=297&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company had no unregistered equity sales, repurchasing **11,004 Class A shares** for **$329,000** in Q2 2025; **$15.5 million** remained authorized under the program, later increased to **$350.0 million** - No unregistered sales of equity securities occurred[299](index=299&type=chunk) | Period | Total Number of Shares of Common Stock Purchased | Weighted Average Price Paid per Share of Common Stock | | :----------------------------------- | :--------------------------------------------- | :------------------------------------------ | | April 1, 2025 through April 30, 2025 | 6,423 | $29.15 | | May 1, 2025 through May 31, 2025 | 600 | $30.94 | | June 1, 2025 through June 30, 2025 | 3,981 | $30.92 | | Total (Q2 2025) | 11,004 | $29.89 | - As of June 30, 2025, **$15.5 million** remained authorized under the Original 2025 Share Repurchase Program, which was subsequently amended to **$350.0 million**[106](index=106&type=chunk)[301](index=301&type=chunk) [Item 5. Other Information](index=67&type=section&id=Item%205.%20Other%20Information) Jennifer Hanson, Chief People Officer, adopted a Rule 10b5-1 trading arrangement on June 4, 2025, to sell up to **27,978 Class A shares** by July 6, 2026, with no other similar arrangements by officers or directors - Jennifer Hanson, Chief People Officer, adopted a Rule 10b5-1 trading arrangement on June 4, 2025, to sell up to **27,978 shares** of Class A common stock by July 6, 2026[302](index=302&type=chunk) - The arrangement includes shares to be received upon future vesting of equity awards, net of taxes[305](index=305&type=chunk) [Item 6. Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed or incorporated by reference into the Quarterly Report, including offer letters, relocation agreements, certifications, and XBRL documents - Exhibits include offer letters, relocation agreements, certifications (e.g., 31.1, 32.1), and Inline XBRL documents[307](index=307&type=chunk) [Signatures](index=69&type=section&id=Signatures) The report is duly signed on behalf of CarGurus, Inc. by Jason Trevisan, Chief Executive Officer, on August 7, 2025 - The report was signed by Jason Trevisan, Chief Executive Officer, on August 7, 2025[312](index=312&type=chunk)

Exhibit 99.1 CarGurus Announces Second Quarter 2025 Results & Shares Plans to Wind Down CarOffer Transactions Business Sustained strong momentum in the Marketplace business, with revenue up 14% YoY Q2'25 Net Income of $22.3 million; Non-GAAP Adjusted EBITDA of $77.3 million, up 39% YoY Board approves additional $150 million share repurchase, increasing 2025 authorization to $350 million and extending it through July 2026 1 Second Quarter Financial Highlights Below are our second quarter financial highlights ...

Core Insights - CarGurus reported a strong performance in its Marketplace business, with revenue increasing by 14% year-over-year in Q2 2025, reaching $222 million [1][4] - The company achieved a net income of $22.3 million for Q2 2025, with a Non-GAAP Adjusted EBITDA of $77.3 million, reflecting a 39% increase year-over-year [1][4] - The Board of Directors approved an additional $150 million share repurchase program, raising the total authorization for 2025 to $350 million, which will extend through July 2026 [1][4] Financial Performance - Total revenue for Q2 2025 was $234 million, a 7% increase from the previous year, while total revenue for the first half of 2025 was $459.2 million, up 6% year-over-year [4][25] - Gross profit for Q2 2025 was $204.4 million, representing a 12% increase year-over-year, with a gross margin of 87% [4][25] - Operating expenses decreased by 35% in Q2 2025, totaling $179.5 million, contributing to improved profitability [4][25] Business Strategy - The company plans to wind down its CarOffer transactions business, focusing instead on enhancing technology and analytics to support smarter sourcing decisions [2][11] - CarGurus aims to continue delivering AI-powered inventory intelligence and consumer vehicle sourcing at scale through its existing platforms [11][12] - The wind-down of CarOffer is expected to incur costs between $14 million and $19 million, primarily in the second half of 2025 [12][13] Key Performance Indicators - The number of U.S. paying dealers increased by 4% to 25,478, while international paying dealers rose by 10% to 7,617, resulting in a total of 33,095 paying dealers, a 6% increase [5] - U.S. average monthly unique users reached 34.1 million, with average monthly sessions at 84.6 million [5] - The U.S. Marketplace segment revenue was $202.7 million, up 13% year-over-year, while the digital wholesale segment revenue decreased by 49% [5][27] Guidance - For Q3 2025, CarGurus expects Marketplace revenue to be between $228 million and $233 million, with Non-GAAP earnings per share projected between $0.50 and $0.58 [7][8] - The guidance reflects management's expectations based on current market trends and industry conditions [8][9]

Core Insights - CarGurus (CARG) is expected to report quarterly earnings of $0.54 per share, a 31.7% increase year-over-year, with revenues projected at $232.7 million, reflecting a 6.4% year-over-year increase [1] Earnings Projections - There have been no revisions in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [1][2] Revenue Estimates - The consensus estimate for 'Revenue- Marketplace' is $221.50 million, indicating a year-over-year increase of 13.5% [4] - The estimate for 'Revenue- Wholesale' is $6.89 million, showing a significant decline of 47.5% from the previous year [4] - Analysts predict 'Revenue- Product' to be $4.91 million, reflecting a year-over-year decrease of 52.8% [4] Dealer Metrics - The projected number of 'Paying Dealers - U.S' is 25,322, up from 24,446 in the same quarter last year [5] - 'Paying Dealers - International' is expected to reach 7,288, compared to 6,906 in the same quarter last year [5] - The total 'Paying Dealers' is forecasted to be 32,611, an increase from 31,352 in the same quarter last year [5] Stock Performance - CarGurus shares have decreased by 6.6% over the past month, contrasting with a 0.5% increase in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

The 11 annual program recognizes dealerships raising the bar for customer experience and digital retail innovation BOSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- CarGurus (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles, today announced its 11 annual Top Dealer Awards. The program recognizes dealerships across North America and the U.K. that consistently deliver exceptional customer service, value, and trust while embracing digital retail tools that ...