CarGurus (NASDAQ:CARG) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

CarGurus (NASDAQ:CARG) announced its quarterly earnings results on Thursday. The company reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.02, FiscalAI reports. CarGurus had a net margin of 16.41% and a return on equity of 41.31%. The firm had revenue of $209.09 million for the quarter, compared to analyst estimates of $239.07 million. During the same quarter in the previous year, the firm posted $0.55 EPS. The business’s revenue for the quarter was up 14.7% on a year-over-year basis. CarGurus updated its Q1 2026 guidance to 0.520-0.580 EPS.

Here are the key takeaways from CarGurus’ conference call:

• Strong 2025 financial performance — full-year revenue grew ~14% and Adjusted EBITDA rose ~25% year-over-year, Q4 revenue was $241M, and the company repurchased ~$350M of shares in 2025 and authorized a new $250M buyback.
• AI-driven product momentum — multiple new launches (Price Vantage, CG Discover, Dealership Mode, New Car Exposure) showed rapid engagement (Discover traffic 3.5x and leads 10x QoQ; Price Vantage users change prices 66% more) and management expects 2025 monetized dealer products to grow ~15x in 2026 to eight-figure revenue.
• Marketplace and dealer traction — global paying dealer count rose by ~2,399, add-on product adoption increased ~25%, retention hit a three-year high, Digital Deal scaled to 13,500 dealers with leads converting up to 4.7x, and international revenue grew ~27% for the year.
• 2026 outlook is growth-with-investment — management guides 2026 revenue growth of 10%–13% but expects non-GAAP Adjusted EBITDA margins to compress ~1.5–2.5 points as it increases product, tech, and AI investment (Q1 revenue guide +13%–16% YoY; Adj. EBITDA $72M–$80M).

CarGurus Stock Up 3.3%

Shares of NASDAQ:CARG traded up $0.97 during midday trading on Friday, reaching $30.17. 2,800,680 shares of the company were exchanged, compared to its average volume of 1,141,673. The firm has a market cap of $2.88 billion, a PE ratio of 20.52, a P/E/G ratio of 1.06 and a beta of 1.35. CarGurus has a fifty-two week low of $24.65 and a fifty-two week high of $39.42. The stock has a fifty day simple moving average of $34.44 and a two-hundred day simple moving average of $34.81.

Key CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q4 beat on EPS and strong full‑year results — CarGurus delivered $0.63 EPS (above estimates) and reported full‑year revenue and profitability gains, with GAAP net income and adjusted EBITDA rising materially year‑over‑year; management also said it repurchased roughly $350M in 2025 and launched a new $250M repurchase program for 2026. CarGurus Announces Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Growth outlook and AI push — management outlined 2026 revenue growth targets (roughly 10%–13%) and said it will accelerate AI‑driven product launches, which investors see as a catalyst for monetization and international expansion. CarGurus outlines 10%-13% revenue growth for 2026 while accelerating AI-driven product launches
• Neutral Sentiment: Q1 and FY guidance mixed vs. estimates — CarGurus gave Q1 2026 EPS guidance of $0.52–$0.58 (around consensus) and raised FY revenue guidance to about $997.7M–$1.0B (above consensus), a split that leaves near‑term EPS visibility slightly uncertain while supporting longer‑term top‑line expectations. Earnings Press Release / Slide Deck
• Neutral Sentiment: Quarterly revenue presentation is mixed — some outlets flagged the quarter’s revenue figure as below certain street estimates even as other summaries emphasize year‑over‑year revenue growth (~14%), creating ambiguity for short‑term sentiment. CarGurus Q4 Earnings Snapshot
• Negative Sentiment: Analyst price‑target trims — RBC cut its target from $40 to $34 (still “outperform”) and DA Davidson trimmed its target to $33.50 (now “neutral”), which may cap upside for the stock despite the beat and buybacks. RBC price target cut (The Fly)
• Negative Sentiment: Reported data‑security incident — a third‑party group is alleged to have taken ~1.7M CarGurus records, a development that could raise reputational, regulatory or remediation costs if confirmed. ShinyHunters data incident report

Insider Transactions at CarGurus

In other news, insider Jennifer Ladd Hanson sold 2,358 shares of the firm’s stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $38.10, for a total transaction of $89,839.80. Following the completion of the transaction, the insider directly owned 50,466 shares of the company’s stock, valued at $1,922,754.60. This trade represents a 4.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Ismail Elshareef sold 1,645 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $32.21, for a total transaction of $52,985.45. Following the transaction, the insider owned 91,822 shares of the company’s stock, valued at approximately $2,957,586.62. This represents a 1.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 49,003 shares of company stock valued at $1,858,494 over the last three months. Company insiders own 16.99% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Brown Brothers Harriman & Co. acquired a new position in CarGurus in the third quarter valued at about $46,000. EverSource Wealth Advisors LLC increased its holdings in CarGurus by 491.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock valued at $55,000 after buying an additional 1,362 shares during the period. Quantbot Technologies LP bought a new position in CarGurus in the 2nd quarter valued at about $87,000. Parkside Financial Bank & Trust raised its position in shares of CarGurus by 48.0% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,018 shares of the company’s stock valued at $116,000 after buying an additional 979 shares in the last quarter. Finally, Quadrant Capital Group LLC bought a new stake in shares of CarGurus during the 3rd quarter worth approximately $148,000. 86.90% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on CARG shares. Royal Bank Of Canada dropped their price target on CarGurus from $40.00 to $34.00 and set an “outperform” rating for the company in a report on Friday. Wall Street Zen cut CarGurus from a “buy” rating to a “hold” rating in a report on Sunday, February 15th. Citigroup raised their target price on CarGurus from $37.00 to $41.00 and gave the company a “neutral” rating in a research note on Tuesday, October 28th. Jefferies Financial Group upped their price target on shares of CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Finally, Needham & Company LLC decreased their price objective on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a report on Thursday, February 5th. Five analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, CarGurus presently has a consensus rating of “Hold” and an average price target of $38.50.

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.