CarGurus 2025 revenue up 14%, announces $250 mln buyback

CarGurus

19/02/2026 21:27

Overview

U.S. automotive platform's full-year 2025 revenue grew 14% YoY

Q4 adjusted EBITDA beat analyst expectations

Company announces new $250 mln share repurchase program for 2026

Outlook

CarGurus expects first-quarter revenue between $240.5 mln and $245.5 mln

Company forecasts full-year 2026 revenue growth of 10% to 13%

CarGurus projects first-quarter non-GAAP EPS between $0.52 and $0.58

Result Drivers

PRODUCT ADOPTION - Revenue growth driven by expanding wallet share and accelerating product adoption, improving retention, and adding new dealers

AI-DRIVEN INNOVATION - AI-driven products enhanced customer engagement, contributing to financial performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
$49.80 mln
Q4 Adjusted EBITDA
Beat
$88.50 mln
$87.26 mln (14 Analysts)
Q4 Gross Profit
$222.60 mln
Q4 Operating Expenses
$153.50 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 $40.50, about 43.1% above its February 18 closing price of $28.30

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX31TjWh

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(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.)