CarGurus (NASDAQ:CARG – Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.05, FiscalAI reports. The business 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 firm’s quarterly revenue was up 7.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $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 Stock Performance
NASDAQ CARG traded up $2.61 on Friday, hitting $38.99. 2,180,161 shares of the stock traded hands, compared to its average volume of 1,018,019. The business’s fifty day moving average is $32.85 and its two-hundred day moving average is $32.65. CarGurus has a 12 month low of $26.39 and a 12 month high of $41.22. The firm has a market capitalization of $3.52 billion, a price-to-earnings ratio of 21.19, a PEG ratio of 1.33 and a beta of 1.17.
Key CarGurus News
- 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.
Insider Buying and Selling at CarGurus
In other news, insider Jennifer Ladd Hanson sold 2,499 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $34.56, for a total transaction of $86,365.44. Following the transaction, the insider owned 92,894 shares of the company’s stock, valued at $3,210,416.64. This represents a 2.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $35.03, for a total transaction of $133,954.72. Following the transaction, the chief technology officer owned 233,146 shares of the company’s stock, valued at $8,167,104.38. This represents a 1.61% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,764 shares of company stock worth $1,071,649 over the last ninety days. 18.19% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On CarGurus
A number of large investors have recently made changes to their positions in CARG. Invesco Ltd. raised its stake in shares of CarGurus by 1.5% during the 4th quarter. Invesco Ltd. now owns 1,702,402 shares of the company’s stock valued at $65,287,000 after purchasing an additional 24,788 shares during the period. Mercer Global Advisors Inc. ADV lifted its holdings in CarGurus by 35.4% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 12,936 shares of the company’s stock worth $496,000 after purchasing an additional 3,385 shares in the last quarter. Vident Advisory LLC grew its holdings in CarGurus by 1.4% during the 4th quarter. Vident Advisory LLC now owns 155,205 shares of the company’s stock valued at $5,952,000 after buying an additional 2,207 shares in the last quarter. XTX Topco Ltd bought a new stake in shares of CarGurus during the fourth quarter valued at about $900,000. Finally, Kensington Investment Counsel LLC purchased a new stake in shares of CarGurus in the fourth quarter worth about $1,182,000. 86.90% of the stock is owned by institutional investors.
Analyst Upgrades and Downgrades
A number of equities analysts have recently weighed in on the company. Wall Street Zen upgraded CarGurus from a “hold” rating to a “buy” rating in a research note on Saturday, June 27th. Piper Sandler reiterated a “sector weight” rating on shares of CarGurus in a report on Friday, June 12th. Weiss Ratings cut CarGurus from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 13th. UBS Group upped their price objective on CarGurus from $37.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday. Finally, BTIG Research upped their price objective on CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a research note on Friday. One equities research 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 company’s stock. According to MarketBeat.com, CarGurus has an average rating of “Moderate Buy” and an average target price of $40.25.
Check Out Our Latest Stock Report on CarGurus
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.
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