Financial Data and Key Metrics Changes - Revenue from continuing operations grew 14% year-over-year for the full year 2025, marking the second consecutive year of mid-teens growth [4][21] - Adjusted EBITDA from continuing operations increased by 25% year-over-year [4][23] - Fourth quarter revenue grew 15% year-over-year to $241 million, driven by strength in subscription-based listings revenue and international business [21] - Full-year non-GAAP net income per diluted share attributable to common stockholders was $2.28, up 31% year-over-year [25] Business Line Data and Key Metrics Changes - Consolidated QARSD grew 8% year-over-year, with global paying dealer count increasing by 2,399 [7][21] - Add-on product adoption rose nearly 25% year-over-year, indicating strong engagement and platform usage [7] - International revenue grew 27% year-over-year, with fourth quarter revenue up 32% year-over-year [22] Market Data and Key Metrics Changes - U.S. QARSD grew 8% year-over-year in the fourth quarter [21] - International QARSD grew 16% year-over-year in the fourth quarter [22] - The dealer count in international markets surged 14% year-over-year to 8,360 dealers [22] Company Strategy and Development Direction - The company aims to expand its suite of data-driven solutions across dealer workflows, enhancing profitability for dealers [7] - Focus on product innovation, with more new products launched in 2025 than in any prior year, embedding data and intelligence into dealer workflows [5][19] - The strategy includes moving into software and data across dealer workflow verticals, effectively doubling the total addressable market [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth rates due to strong visibility and no customer concentration [32] - The company anticipates continued investment in AI-driven innovation and product development, with expectations for new products to significantly contribute to revenue growth [19][35] - The outlook for 2026 includes revenue growth expectations of 10%-13% year-over-year, with a focus on long-term growth and healthy margins [28] Other Important Information - The company completed the wind down of CarOffer, presenting its financial results as discontinued operations [20] - A new $250 million share repurchase program has been authorized, reflecting the company's commitment to returning value to shareholders [26] Q&A Session Summary Question: Visibility of growth rate and new products' contribution - Management highlighted that strong growth is driven by QARSD and new dealer additions, with new products expected to enhance long-term growth [32][34] Question: Inclusion of Price Vantage in revenue guidance - Price Vantage and New Car Exposure are included in the revenue guidance, with significant potential in non-marketing verticals [39][40] Question: Margin outlook for 2026 - The company aims to optimize for long-term growth while maintaining healthy margins, with investments focused on product development and international expansion [41][49] Question: Contribution of dealer count and QARSD to revenue outlook - Management noted that while they do not break out revenue contributions, there is a relationship between dealer count growth and QARSD [55] Question: Factors driving improved dealer satisfaction and retention - Enhanced ROI for dealers, lead growth, and new software tools have contributed to record retention rates [57][59] Question: Traffic growth and consumer experience improvements - Investments in AI and brand campaigns have driven traffic growth, with a focus on enhancing the consumer experience [68]

Financial Data and Key Metrics Changes - Revenue from continuing operations grew 14% year-over-year for the full year 2025, marking the second consecutive year of mid-teens growth [4][21] - Adjusted EBITDA from continuing operations increased by 25% year-over-year [4][23] - Fourth quarter revenue grew 15% year-over-year to $241 million, driven by strength in subscription-based listings revenue and international business [21] - Full-year non-GAAP net income per diluted share attributable to common stockholders was $2.28, up 31% year-over-year [25] Business Line Data and Key Metrics Changes - Consolidated CarSid grew 8% year-over-year, with global paying dealer count increasing by 2,399 [7][21] - Add-on product adoption rose nearly 25% year-over-year, indicating strong engagement and platform usage [7] - International revenue grew 27% year-over-year, with fourth quarter revenue up 32% year-over-year [22] Market Data and Key Metrics Changes - U.S. CarSid grew 8% year-over-year, with 1,357 new paying U.S. dealers added [21] - International dealer count growth surged 14% year-over-year to 8,360 dealers [22] - CarGurus influenced 55% of all attributed vehicle sales in 2025, reinforcing its market position [10] Company Strategy and Development Direction - The company aims to expand its suite of data-driven solutions across dealer workflows, enhancing profitability for dealers [7] - Focus on product innovation, with more new products launched in 2025 than in any prior year, including Price Vantage and CG Discover [5][19] - The strategy includes leveraging AI-driven innovation to enhance product velocity and differentiation [4][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth rates due to strong visibility and no customer concentration [32] - The company anticipates revenue growth of 10%-13% year-over-year for 2026, with continued investment in product and technology [28] - Management highlighted the importance of trust and clarity in consumer decision-making, especially in the evolving AI landscape [18] Other Important Information - The company completed the wind down of CarOffer, presenting its financial results as discontinued operations [20] - A new $250 million share repurchase program was authorized, reflecting the company's commitment to returning value to shareholders [26] Q&A Session Summary Question: Visibility of growth rate and new products' contribution - Management indicated strong growth visibility due to effective execution on growth levers and new product introductions, which are expected to enhance long-term growth [32][34] Question: Inclusion of Price Vantage in revenue guidance - Price Vantage and New Car Exposure are included in the revenue guidance as they have been launched and are part of the operating plan [39] Question: Margin outlook and investment strategy - Management emphasized a focus on long-term growth and healthy margins, indicating that the 2026 margin guidance is not a new normal but rather a strategic investment phase [41][42] Question: Contribution of dealer count and CarSid to revenue - Management did not break out revenue outlook between CarSid and dealer count but noted the relationship between the two metrics [54] Question: Factors driving improved dealer satisfaction and retention - Improved dealer satisfaction is attributed to clear ROI, lead growth, and the introduction of new software and data tools that enhance profitability [57][59] Question: Traffic growth and consumer engagement - Traffic growth is driven by enhanced consumer experience and broader reach through marketing campaigns, including the Big Deal campaign [68]

Financial Data and Key Metrics Changes - Revenue from continuing operations grew 14% year-over-year for the full year 2025, marking the second consecutive year of mid-teens growth [3][19] - Adjusted EBITDA from continuing operations increased by 25% year-over-year [3][22] - Fourth quarter revenue grew 15% year-over-year to $241 million, driven by strength in subscription-based listings revenue and international business [19][20] - Full-year 2025 non-GAAP net income per diluted share attributable to common stockholders was $2.28, up 31% year-over-year [24] Business Line Data and Key Metrics Changes - Consolidated CarSid grew 8% year-over-year, with global paying dealer count increasing by 2,399 [5][19] - Add-on product adoption rose nearly 25% year-over-year, indicating strong engagement and platform usage [5] - Digital Deal leads with high-value actions increased 78% year-over-year, reflecting deeper shopper progression into transactions [12] Market Data and Key Metrics Changes - International revenue grew 27% year-over-year, with fourth quarter revenue up 32% year-over-year [20] - International dealer count grew 14% year-over-year to 8,360 dealers [20] Company Strategy and Development Direction - The company aims to expand its suite of data-driven solutions across dealer workflows, enhancing profitability for dealers [5][6] - Focus on product innovation, with more new products launched in 2025 than in any prior year, embedding data and intelligence into dealer workflows [4][17] - The strategy includes leveraging AI-driven innovation to enhance consumer engagement and streamline transactions [3][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth rates due to strong visibility and a diversified dealer base [31] - The company anticipates continued investment in product and technology to support long-term growth, with a focus on maintaining healthy margins [39][40] - Management highlighted the importance of trust and confidence in the consumer journey, which shapes their investment strategy [76] Other Important Information - The company completed the wind down of CarOffer, presenting its financial results as discontinued operations [18] - A new $250 million share repurchase program was authorized, emphasizing the commitment to return value to shareholders [25] Q&A Session Summary Question: Visibility of growth rate and new products' contribution - Management indicated strong growth visibility due to effective execution on growth levers and new product introductions, which are expected to enhance long-term growth [31][34] Question: Inclusion of Price Vantage in revenue guidance - Price Vantage and New Car Exposure are included in the revenue guidance as they have been launched and are expected to contribute to growth [37] Question: Margin outlook and investment strategy - Management clarified that the margin outlook reflects a balance between investing for growth and maintaining healthy margins, with a focus on long-term sustainability [39][40] Question: Factors driving improved dealer satisfaction and retention - Improved dealer satisfaction is attributed to clear ROI from lead growth and the introduction of new software and data tools that enhance profitability [56] Question: Traffic growth and consumer engagement - Traffic growth is driven by enhanced consumer experience and broader reach through marketing campaigns, leading to increased app downloads and active users [66]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was $239 million, up 3% year-over-year [27] - Marketplace revenue was $232 million, reflecting a 14% year-over-year increase, driven by subscription-based listings revenue [28] - Non-GAAP gross profit was $214 million, up 11% year-over-year, with a non-GAAP gross margin of 90%, an increase of about 650 basis points [29] - Adjusted EBITDA was approximately $79 million, up 21% year-over-year, with an adjusted EBITDA margin of 33%, up about 490 basis points [30] - Non-GAAP diluted earnings per share was $0.57, reflecting a 30% year-over-year increase [32] Business Line Data and Key Metrics Changes - U.S. CarSID grew 8% year-over-year, with 1,182 new paying U.S. dealers added, marking the seventh consecutive quarter of positive net dealer adds [28] - International operations saw revenue growth of 27% year-over-year, with international CarSID up 15% year-over-year [28] - Wholesale revenue was approximately $2 million, and product revenue was roughly $5 million, as the company ceased facilitating transactions in the CarOffer business [29] Market Data and Key Metrics Changes - The international market is showing strong growth, with a focus on building market share while maintaining competitive pricing [42][44] - The company is experiencing a trend of dealers using fewer marketplace partners, indicating consolidation in the market [37] Company Strategy and Development Direction - The company is expanding its suite of data-driven solutions across dealer workflows to enhance profitability [10] - New product innovations include Price Vantage, a machine learning-based pricing tool, and CG Discover, a GenAI-powered shopping assistant [10][16] - The strategy focuses on deepening monetization across four key pillars: inventory, marketing, conversion, and data [8][9] 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 [35] - The company anticipates capturing more dealer wallet share and deepening consumer engagement to support long-term growth [27][35] - Management noted that the combination of proprietary data and machine learning positions the company for new levels of intelligence and efficiency [26] Other Important Information - The company is winding down the CarOffer transactions business, which is expected to be accounted for as a discontinued operation in Q4 [29] - The company has approximately $55 million remaining on its share repurchase authorization [32] 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 [37] Question: How is the ROI for Digital Deal perceived by dealers? - Management highlighted that 80% of consumers want to engage more online, and the Digital Deal program is packaged into premium tiers, driving higher quality leads and ROI for dealers [39] Question: What are the growth prospects in international markets? - Management expressed pride in international growth, emphasizing the importance of lead quality and competitive pricing to attract dealers [42][44] Question: How does CarSID growth relate to dealer rooftops? - Management explained that CarSID growth is influenced by the number of rooftops, with a natural headwind when rooftops grow faster than CarSID [50] Question: What insights are generated from Dealership Mode? - Management indicated that Dealership Mode provides valuable consumer insights, helping dealers understand customer interests and financing needs [58][59]