Core Insights - CarGurus reported a 14% year-over-year revenue growth for the full year 2025, marking the second consecutive year of such growth, driven by increased product adoption and dealer engagement [2][4] - The company achieved a GAAP net income of $196.7 million for 2025, reflecting a 53% increase year-over-year, alongside a non-GAAP adjusted EBITDA of $319.0 million, which is up 25% year-over-year [1][4] - CarGurus repurchased approximately $350 million worth of shares in 2025 and announced a new $250 million share repurchase program for 2026 [1][4] Financial Performance - For Q4 2025, CarGurus reported revenue of $241.1 million, a 15% increase from the prior year, and a full-year revenue of $907.0 million, up 14% year-over-year [4][28] - Gross profit for Q4 2025 was $222.6 million, a 14% increase year-over-year, with a gross margin of 92% [4][27] - Operating expenses for the year were $597.1 million, reflecting a 5% increase year-over-year, while GAAP net income for Q4 was $53.7 million, a 12% increase from the previous year [4][26] Key Performance Indicators - The number of U.S. paying dealers increased by 5% to 26,049, while international paying dealers grew by 14% to 8,360, resulting in a total of 34,409 paying dealers, a 7% increase [5] - The U.S. QARSD (Quality Adjusted Revenue per Dealer) was $7,938, an 8% increase, while international QARSD was $2,413, a 16% increase [5] Guidance for 2026 - For Q1 2026, CarGurus expects total revenue to be between $240.5 million and $245.5 million, with non-GAAP adjusted EBITDA projected between $72.0 million and $80.0 million [7][8] - The company anticipates a year-over-year revenue growth of 10% to 13% for the full year 2026, with a slight decrease in non-GAAP adjusted EBITDA margin [8][9] Strategic Developments - The company has decided to wind down its CarOffer business, which was deemed less effective in the current market environment, and will report financial results as a single reportable segment moving forward [11][14] - CarGurus emphasizes its commitment to innovation, particularly in AI-driven products, to enhance dealer and consumer engagement [2][4]

CarGurus, Inc. (NASDAQ:CARG) is among the best money-making stocks to buy right now. On February 5, Needham trimmed the price target on CarGurus, Inc. (NASDAQ:CARG) to $37 from $44 and maintained a Buy rating. This comes after the analyst’s participation in the National Automobile Dealers Association’s conference, and the analyst believes that concerns about the company being replaced or bypassed are exaggerated at this time. With dealers advised to adopt AI gradually, their focus should be on local brand ...

Core Viewpoint - CarGurus, Inc. is a leading online platform for vehicle transactions, operating in both U.S. and international markets, with a focus on affordability and value-driven models in the automotive sector [1][5]. Company Overview - CarGurus operates through two main segments: U.S. Marketplace and Digital Wholesale, providing services such as online listings for new and used cars, financing pre-qualification, and tools for consumers and dealers [1]. Market Trends - The automotive market in 2025 is influenced by affordability concerns due to rising ownership costs, tariffs, and a shortage of late-model used vehicles, with a noted demand for compact body styles, hybrids, and value-driven used models [3]. Price Target Analysis - The consensus price target for CarGurus' stock has fluctuated, decreasing from $42 to $37 over the last quarter, while the price target was $39.92 last year, indicating variability in analysts' expectations [2]. - Analyst Chris Pierce from Needham has set a higher price target of $52 for CarGurus, reflecting optimism about the company's future performance and market adaptability [4]. Investment Considerations - Investors should consider changes in consensus price targets alongside company news, financial performance, and broader market trends, as CarGurus' focus on affordability may position it well in the evolving automotive market [5].

Wall Street analysts forecast that CarGurus (CARG) will report quarterly earnings of $0.61 per share in its upcoming release, pointing to a year-over-year increase of 10.9%. It is anticipated that revenues will amount to $238.31 million, exhibiting an increase of 4.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Befo ...

Campaign underscores how the largest car shopping site in the U.S. helps shoppers find the best deal on their big deal – now with cutting-edge products that empower research and purchase decisions BOSTON, Feb. 11, 2026 (GLOBE NEWSWIRE) -- CarGurus, the No. 1 most visited automotive shopping site in the U.S.¹, today announced the expansion of its “Big Deal” brand campaign, a tribute to the financial and emotional decisions behind buying or selling a car. The newest product spots highlight CarGurus’ recently ...

Company Overview - CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the U.S. and internationally, emerging as a compelling investment after overcoming operational missteps, particularly the failed CarOffer venture [2][3] Competitive Positioning - CarGurus is a leading online used car classifieds platform in the U.S., with approximately 60% more monthly active users than its nearest competitor, demonstrating a strong competitive position and an ability to drive dealer leads efficiently [2][3] Dealer Engagement and Financial Performance - Dealers report that CarGurus provides superior lead volume at a lower cost-per-sale compared to competitors, making it essential for their sales operations [3] - The company has shown pricing power, increasing its quarterly annual subscription per dealer (QARSD) at a 15% CAGR since 2016 and around 10% CAGR post-COVID, while expanding its dealer count despite economic challenges [3] Market Conditions - The used car market is cyclical and is positioned for a rebound, with supply disruptions during COVID and higher interest rates having temporarily constrained inventory and financing, which suppressed online advertising spend and revenue growth for CarGurus [4] - With interest rates normalizing and the average age of U.S. used cars at record highs, the market is expected to see increased supply, supporting dealer engagement and revenue growth [4] Valuation and Growth Potential - CarGurus offers an attractive valuation at approximately 15x P/E and 10x EBITDA, with a 7% free cash flow yield [5] - The combination of mid-teens organic earnings growth, aggressive share repurchases (about 23% of float since December 2022), and potential cyclical recovery could drive high-teens to low-20% EPS CAGR [5] - Secular tailwinds, a declining share count, and market recognition of its dominant positioning suggest substantial upside potential [5]

Core Insights - CarGurus Inc. (NASDAQ:CARG) is considered one of the most undervalued stocks to buy and hold for five years, despite a slight reduction in 2026 margin forecasts due to increased investments aimed at sustaining higher growth rates [1] Company Overview - CarGurus Inc. operates as an online automotive platform for buying and selling vehicles, featuring a car listings marketplace, digital retail solutions, and the CarOffer digital wholesale platform [3] - The company has two main segments: the customer-facing U.S. Marketplace and the Digital Wholesale division, which provides dealer-to-dealer services and products sold on the CarOffer platform [3] Analyst Ratings and Price Targets - Following the Needham Growth Conference, J.P. Morgan analyst Rajat Gupta maintained a Hold rating on CarGurus Inc. with a price target of $43.00 [2] - BTIG raised its price target for CarGurus Inc. from $39 to $44 while maintaining a Buy rating, estimating the company's emerging solutions business to be worth approximately $100 million, or about $1 per share [2]

Core Viewpoint - CarGurus, Inc. will release its financial results for the quarter and fiscal year ended December 31, 2025, on February 19, 2026, after market close [1] Financial Results Announcement - The financial results will be discussed in a conference call and live webcast for investors and analysts at 5:00 p.m. Eastern Time on February 19, 2026 [2] - Access to the conference call can be made via specific phone numbers for U.S., Canada, and international callers, with a live webcast available on the company's investor website [2] Audio Replay and Archived Webcast - An audio replay of the conference call will be available starting at approximately 8:00 p.m. Eastern Time on February 19, 2026, until 11:59 p.m. Eastern Time on March 5, 2026 [3] - The archived webcast will also be accessible on the company's investor website [3] Company Overview - CarGurus is the leading multinational automotive platform, facilitating vehicle buying and selling for consumers and dealers [4] - Founded in 2006, CarGurus aims to enhance trust and transparency in car shopping, being the most visited automotive shopping site in the U.S. [4] - The company provides a data-driven platform that supports dealers in managing their businesses efficiently across various stages of inventory acquisition and sales [4] Market Presence - CarGurus operates online marketplaces in the U.S., U.K., and Canada, with brands including PistonHeads and Autolist [5]

Core Insights - CarGurus, Inc. is celebrating 20 years of innovation in the automotive shopping space, focusing on trust, transparency, and technology to enhance the car buying and selling experience [1][2] - The company is leveraging its leadership in consumer audience, vehicle inventory, and dealer network to introduce AI-driven products and real-time market intelligence [1][2] Company Overview - Founded in 2006, CarGurus has transformed the car buying and selling process by prioritizing data and customer trust, with early innovations like Instant Market Value and Deal Ratings [3] - CarGurus connects tens of millions of shoppers monthly with the largest selection of vehicles and dealer network in the U.S., translating its scale into a competitive advantage [4] Innovation and Technology - The company has introduced AI-powered products such as CarGurus Discover, which personalizes the car research experience, and PriceVantage, which provides predictive pricing recommendations based on real-time market data [7] - The most engaged users of PriceVantage see cars turn five times faster than their peers, indicating the effectiveness of the platform [7] Brand Development - CarGurus has launched an updated logo to reflect its commitment to innovation while maintaining a connection to its original brand identity [6][8] - The refreshed branding will be showcased at industry events, including the National Automotive Dealers Association's annual convention [8] Market Position - CarGurus is recognized as the No. 1 downloaded automotive marketplace app in the U.S., Canada, and the U.K. for eight consecutive quarters, highlighting its strong market presence [12] - The company operates online marketplaces in the U.S., U.K., and Canada, further solidifying its position as a leading automotive platform [10]

Core Insights - CarGurus is transitioning from a traditional marketplace model to a dealer-focused software and data business, emphasizing innovation and the integration of artificial intelligence across its platform [4][6][9] Product Development and Strategy - The launch of PriceVantage marks CarGurus' first standalone software product in the inventory category, aimed at helping dealers price inventory based on expected retail outcomes [1] - The company introduced more products in 2025 than in any previous year, focusing on four dealer "pillars" and enhancing the consumer shopping journey with AI as a foundation [2][4] - New products like Dealer Data Insights and consumer features such as Discover and Dealership Mode are designed to improve pricing, merchandising, and conversion for dealers [6][8] Market Expansion and Financial Outlook - Management estimates that the expansion into software and data could open an additional $4 billion in dealer spending, effectively doubling CarGurus' total addressable market [5][14] - The company anticipates a slight margin step-down in 2026 due to increased investments while remaining active in mergers and acquisitions and opportunistic buybacks [5][16] Consumer Behavior and Digital Retailing - Despite a rise in online demand, only low to mid-single digits of car purchases are completed fully virtually, with over 90% still involving in-person interactions [11] - More than 80% of consumers with an in-person component prefer to conduct more of their shopping online, highlighting a significant opportunity for CarGurus' Digital Deal feature [12] Financial Metrics and Capital Allocation - CarGurus' core marketplace is estimated to be an $800 million business, capturing about a quarter of the U.S. dealer spending on lead generation, which is approximately $3.5 billion [14] - The company has about 4.0 to 4.5 million vehicles listed on its marketplace at any given time, representing over 80% of U.S. inventory [15] - CarGurus has maintained a high margin, currently at the upper end of its long-term target of 30% to 35%, but expects a slight decrease in 2026 due to growth investments [15] Leadership and Company Background - CEO Jason Trevisan, who has been with the company for 10 years, emphasized the importance of innovation and the strategic shift towards a software and data-centric model [3][4] - CarGurus operates an online automotive marketplace that connects buyers and sellers of new and used vehicles, providing tools for pricing, lead generation, and financing options [18][19]