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CarGurus Q2 adjusted EBITDA beats estimates

CarGurus Q2 adjusted EBITDA beats estimates


Overview

  • U.S. automotive marketplace's Q2 revenue rose 13% yr/yr

  • Adjusted EBITDA for Q2 beat analyst expectations

  • Company repurchased $29.2 mln in shares, over 30% of shares repurchased since Dec 2022


Outlook

  • CarGurus sees Q3 revenue between $253.5 mln and $258.5 mln

  • Company expects Q3 non-GAAP EPS from continuing operations of $0.63 to $0.69

  • CarGurus forecasts full-year revenue growth of 10% to 13% YoY


Result Drivers

  • AI-POWERED PRODUCTS - Co said expansion of data and predictive intelligence in dealer workflows through AI-powered solutions drove engagement

  • CONSUMER AI INITIATIVE - Launch of Guru, an AI layer for consumers, advanced strategy to become trusted guide and drove deeper engagement

  • INTERNATIONAL GROWTH - Co said continued momentum in international business contributed to revenue growth


Company press release: ID:nGNX79jNQM


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Net Income

$49.19 mln

Q2 Adjusted EBITDA

Beat

$84.70 mln

$81.56 mln (13 Analysts)

Q2 Gross Profit

$231.10 mln

Q2 Operating Expenses

$168.10 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 7 "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 $37.81, about 3.8% above its August 5 closing price of $36.41

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Aug 6 - Cars.com Q2 profit beats estimates, reaffirms 2026 outlook

  • Aug 6 - Germany's Scout24 Q2 revenue beats on B2B subscription growth

  • Aug 4 - Nextdoor Q2 revenue beats estimates as user engagement hits record


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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