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CARG

CarGurus, Inc.

CARG

CarGurus, Inc. • NASDAQ
$35.28 ▼ -1.70% (-0.61)
Market Cap $3.56 B
52w High $41.33
52w Low $24.65
Dividend Yield 0%
P/E 23.84
Volume 362.21K
Outstanding Shares 100.98M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $238.696M ▲ $158.858M ▼ $44.717M ▲ 18.734% ▲ $0.46 ▲ $63.923M ▲
Q2-2025 $234.033M ▲ $179.538M ▲ $22.343M ▼ 9.547% ▼ $0.23 ▼ $61.159M ▲
Q1-2025 $225.158M ▼ $153.952M ▲ $39.045M ▼ 17.341% ▼ $0.38 ▼ $52.309M ▼
Q4-2024 $228.538M ▼ $145.711M ▼ $45.881M ▲ 20.076% ▲ $0.44 ▲ $60.316M ▲
Q3-2024 $231.358M $155.117M $22.511M 9.73% $0.22 $39.638M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $178.834M ▼ $660.472M ▼ $285.023M ▼ $375.449M ▼
Q2-2025 $231.233M ▲ $726.121M ▲ $290.644M ▲ $435.477M ▲
Q1-2025 $172.862M ▼ $689.115M ▼ $287.065M ▲ $402.05M ▼
Q4-2024 $304.193M ▲ $824.536M ▲ $282.847M ▼ $541.689M ▲
Q3-2024 $246.748M $778.161M $294.688M $483.473M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $44.717M ▲ $71.165M ▼ $-7.156M ▲ $-118.451M ▼ $-54.494M ▼ $64.009M ▼
Q2-2025 $22.343M ▼ $73.119M ▲ $-7.845M ▼ $-9.06M ▲ $57.639M ▲ $65.274M ▲
Q1-2025 $39.045M ▼ $67.879M ▼ $-7.631M ▲ $-191.477M ▼ $-130.519M ▼ $60.248M ▼
Q4-2024 $45.881M ▲ $75.737M ▲ $-13.698M ▲ $-4.373M ▲ $55.488M ▲ $62.039M ▲
Q3-2024 $22.511M $56.196M $-14.895M $-10.281M $32.376M $56.615M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Marketplace
Marketplace
 $210.00M ▲$210.00M ▲$220.00M ▲$230.00M ▲
Product
Product
 $10.00M ▲$10.00M ▲$10.00M ▲$0 ▼
Wholesale
Wholesale
 $10.00M ▲$10.00M ▲$10.00M ▲$0 ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has been choppy: it surged a few years ago, then pulled back and has been roughly flat to slightly down more recently. Despite this, the core business still produces healthy gross profits, showing the underlying marketplace model remains attractive. Operating profits are positive but fairly modest, which suggests the company is balancing growth and investment with cost control. Net income has stayed in the black, but earnings per share have been volatile, hinting at mix shifts, one‑off items, and the impact of newer businesses like wholesale and digital retailing. Overall, the income statement tells a story of a profitable platform working through a transition from rapid expansion toward a more stable, quality‑of‑earnings phase.

Balance Sheet

Balance Sheet The balance sheet looks generally solid, with a sizable cash cushion relative to the overall size of the company. Debt is present but not dominant, and the company appears to be in a net cash or close‑to‑net cash position, which provides flexibility in a cyclical industry. Equity has built up over time, although it has edged down from peak levels, suggesting some combination of buybacks, investments, or fluctuations in retained earnings. Asset levels have been fairly steady, pointing to a business that does not require heavy physical investment to grow. In short, the financial foundation appears sturdy, giving the company room to pursue its strategy and absorb bumps in the auto market.

Cash Flow

Cash Flow CarGurus consistently generates positive cash from its operations, which is a strong sign that the business model converts revenue into actual cash rather than just accounting profits. Free cash flow has been positive in each of the past several years, even as the company invests in technology and platforms. Capital spending remains relatively light, reflecting a software‑ and data‑driven business that does not need major physical infrastructure. There was a dip in cash generation in the recent past, followed by a recovery, which matches the revenue and profit volatility seen in the income statement. Overall, the cash flow profile is a key strength, supporting ongoing innovation and optionality for capital allocation.

Competitive Edge

Competitive Edge CarGurus holds a strong competitive position in online auto marketplaces, built on large-scale listings, data-driven pricing, and a reputation for transparency. Its freemium model helps attract broad dealer participation, which in turn draws more shoppers and reinforces network effects. The brand is well known among car buyers, and its ranking and deal‑rating tools differentiate it from more traditional, pay‑to‑play listing sites. However, the company operates in a crowded field with well‑funded competitors, both legacy players and newer digital dealers and marketplaces. Its advantage relies on maintaining consumer trust, dealer value, and technological leadership as the industry shifts further online.

Innovation and R&D

Innovation and R&D Innovation is a central part of the CarGurus story. The company has long used proprietary pricing algorithms and is now layering on artificial intelligence, such as conversational search and dealer optimization tools, to make its platform more intelligent and personalized. Digital Deal extends the platform deeper into the transaction, allowing more of the buying process to happen online and aiming to increase the quality of leads for dealers. The CarOffer acquisition pushes CarGurus into wholesale and inventory optimization, tying together retail and wholesale flows in a more integrated ecosystem. The opportunity is substantial, but execution risk is real: success depends on seamless integration of these tools, dealer adoption, and staying ahead in a fast‑moving tech race within a cyclical auto environment.

Summary

CarGurus combines a data‑rich online marketplace with solid profitability and dependable cash generation, supported by a relatively strong balance sheet and meaningful cash reserves. The business has shifted from rapid top‑line expansion to a more mixed pattern of revenue, while still preserving positive margins and free cash flow. Strategically, the company is pushing beyond simple listings into end‑to‑end digital retailing and wholesale, using AI and proprietary data to deepen its role for both buyers and dealers. Its main strengths are network effects, brand trust, and a scalable, asset‑light model; its main challenges are revenue volatility, intense competition, dependence on auto market health, and the complexity of integrating and monetizing new platforms. Future performance will hinge on how well CarGurus can turn its innovation pipeline and ecosystem strategy into durable, stable growth without sacrificing the financial discipline that has underpinned its model so far.

NEWS

November 6, 2025 · 4:05 PM UTC

CarGurus Announces Third Quarter 2025 Results

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October 20, 2025 · 4:05 PM UTC

CarGurus To Report Third Quarter 2025 Financial Results

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October 6, 2025 · 9:00 AM UTC

CarGurus Report Finds Strength in Automotive Demand as Shoppers Lean Toward Value and Premium Options

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September 2, 2025 · 4:05 PM UTC

CarGurus to Present at the 2025 Goldman Sachs Communacopia + Technology Conference

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