CarGurus (NASDAQ:CARG) Announces Quarterly Earnings Results

CarGurus (NASDAQ:CARG) announced its quarterly earnings results on Thursday. The company reported $0.66 EPS for the quarter, beating the consensus estimate of $0.61 by $0.05, FiscalAI reports. The firm had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. CarGurus had a net margin of 18.06% and a return on equity of 59.79%. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. During the same period last year, the firm earned $0.57 EPS. CarGurus updated its Q3 2026 guidance to 0.630-0.690 EPS.

Here are the key takeaways from CarGurus’ conference call:

• Second-quarter results exceeded expectations: Revenue grew 13% year over year to $251 million, adjusted EBITDA rose 7% to $85 million, and free cash flow reached $88 million, representing 103% conversion of adjusted EBITDA.
• Dealers remained cautious about incremental spending amid margin pressure, lower days on lot, cost-cutting efforts, and FTC-mandated all-in pricing transparency. CarGurus reiterated its 2026 revenue growth outlook but expects a more measured pace of dealer decision-making in the third quarter.
• AI-driven products are increasing engagement and expanding CarGurus beyond its marketplace. Dealer platform sessions rose 28% year over year, PriceVantage bookings increased more than 50% sequentially, and Guru-driven U.S. leads rose 60% sequentially.
• Greater AI-enabled productivity and operating discipline led the company to raise its full-year profitability outlook, with adjusted EBITDA margin now expected to compress only 50–150 basis points versus 2025. CarGurus also repurchased $29 million of shares in the quarter and has $46 million remaining under its 2026 authorization.

CarGurus Trading Up 7.2%

Shares of NASDAQ:CARG traded up $2.61 during trading on Friday, reaching $38.99. The company had a trading volume of 2,180,161 shares, compared to its average volume of 1,018,019. The company has a fifty day moving average of $32.85 and a two-hundred day moving average of $32.65. The stock has a market capitalization of $3.52 billion, a P/E ratio of 21.19, a price-to-earnings-growth ratio of 1.33 and a beta of 1.17. CarGurus has a 12 month low of $26.39 and a 12 month high of $41.22.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on CARG shares. JPMorgan Chase & Co. increased their price objective on CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a research report on Friday, May 8th. Wall Street Zen upgraded CarGurus from a “hold” rating to a “buy” rating in a research report on Saturday, June 27th. Needham & Company LLC upped their target price on CarGurus from $43.00 to $44.00 and gave the stock a “buy” rating in a research note on Friday. UBS Group raised their price target on CarGurus from $37.00 to $40.00 and gave the company a “neutral” rating in a report on Friday. Finally, BTIG Research lifted their price target on CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $40.25.

Insider Transactions at CarGurus

In related news, General Counsel Javier Zamora sold 6,205 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $37.08, for a total value of $230,081.40. Following the completion of the transaction, the general counsel directly owned 80,260 shares in the company, valued at approximately $2,976,040.80. The trade was a 7.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Matthew Todd Quinn sold 3,824 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $35.03, for a total value of $133,954.72. Following the sale, the chief technology officer owned 233,146 shares in the company, valued at $8,167,104.38. The trade was a 1.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 31,764 shares of company stock valued at $1,071,649. Insiders own 18.19% of the company’s stock.

Institutional Trading of CarGurus

Several hedge funds and other institutional investors have recently bought and sold shares of CARG. Brown Brothers Harriman & Co. purchased a new stake in shares of CarGurus in the 3rd quarter valued at $46,000. EverSource Wealth Advisors LLC grew its holdings in shares of CarGurus by 491.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock valued at $55,000 after purchasing an additional 1,362 shares during the last quarter. Quantbot Technologies LP purchased a new position in CarGurus in the 2nd quarter worth $87,000. Parkside Financial Bank & Trust raised its position in CarGurus by 48.0% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,018 shares of the company’s stock worth $116,000 after purchasing an additional 979 shares during the period. Finally, Quadrant Capital Group LLC bought a new stake in CarGurus in the third quarter worth $148,000. Hedge funds and other institutional investors own 86.90% of the company’s stock.

CarGurus News Roundup

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q2 earnings beat expectations: CarGurus reported adjusted earnings of $0.66 per share, up from $0.57 a year earlier and above analysts’ estimates of approximately $0.61–$0.62. Revenue reached $251.0 million, slightly exceeding consensus expectations and increasing 13% year over year. CarGurus Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Strong profitability and cash generation: Second-quarter GAAP net income from continuing operations was $49.2 million. Adjusted EBITDA was $84.7 million, near the high end of company guidance, while operating cash flow was $94.6 million and free cash flow was $87.7 million. CarGurus Announces Second Quarter 2026 Results
• Positive Sentiment: Above-consensus Q3 outlook: CarGurus guided for third-quarter EPS of $0.63–$0.69, ahead of the $0.61 analyst consensus. Revenue guidance of $253.5 million–$258.5 million was broadly consistent with expectations, suggesting continued year-over-year growth. CarGurus Earnings Report
• Positive Sentiment: Share repurchases support per-share value: The company repurchased $29.2 million of stock during Q2. Since December 2022, cumulative repurchases have exceeded 30% of shares outstanding, which can support EPS and shareholder returns. CarGurus Q2 Results Presentation
• Neutral Sentiment: Revenue was only modestly above estimates, and the available report does not provide a clear updated full-year 2026 EPS target. Investors may therefore focus on future growth trends and the company’s ability to sustain its strong margins and cash flow.

CarGurus Company Profile

CarGurus, Inc operates an online automotive marketplace designed to connect buyers and sellers of new and used vehicles. Through its proprietary search engine and data-driven pricing tools, the platform enables consumers to compare listings, assess fair market values and locate local dealers offering competitive deals. CarGurus also provides detailed vehicle history reports, dealer reviews and financing options to streamline the car-shopping process for both private parties and franchised dealerships.

The company’s core product offerings include Instant Market Value (IMV), which leverages pricing algorithms to help buyers identify over- or under-priced vehicles, as well as dealer subscription services that grant automotive retailers access to lead generation tools, targeted advertising and dynamic pricing insights.