Brief: CarGurus Q2 Adjusted EBITDA USD 77.3 Million Vs. IBES Estimate USD 75.2 Million

CarGurus

07/08/2025 21:05

Overview

CarGurus Q2 Marketplace revenue up 14% YoY, reflecting strong business momentum

Adjusted EBITDA for Q2 beats analyst expectations, indicating operational efficiency

Co to wind down CarOffer transactions business, focusing on analytics and sourcing

Board approves additional $150 mln share repurchase, extending authorization to $350 mln

Outlook

CarGurus sees Q3 2025 Marketplace revenue between $228 mln and $233 mln

Company expects Q3 2025 non-GAAP EPS of $0.50 to $0.58

CarGurus projects Q3 2025 adjusted EBITDA of $76.5 mln to $84.5 mln

Result Drivers

MARKETPLACE REVENUE - Driven by strong business momentum, Marketplace revenue rose 14% YoY

CAROFFER WIND DOWN - Co to wind down CarOffer transactions business, focusing on analytics and sourcing

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
$22.30 mln
Q2 Adjusted EBITDA
Beat
$77.30 mln
$75.20 mln (14 Analysts)
Q2 Gross Profit
$204.40 mln
Q2 Operating Expenses
$179.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for CarGurus Inc is $40.00, about 20.5% above its August 6 closing price of $31.81

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX6970bP

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)