CarGurus Q1 Adjusted EBITDA beats estimates, raises Q2 guidance

CarGurus

07/05/2026 22:10

Overview

U.S. automotive marketplace's Q1 revenue rose 15% yr/yr to $244 mln

Adjusted EBITDA for Q1 beat analyst expectations

Company repurchased $175 mln in shares during Q1, totaling 29% of shares since Dec 2022

Outlook

CarGurus sees Q2 revenue between $247 mln and $252 mln

Company expects Q2 non-GAAP EPS from continuing operations of $0.57 to $0.64

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

Result Drivers

AI-LED PRODUCT INNOVATION - Co said revenue growth was driven by investment in AI-led product innovation for dealers and consumers

INCREASE IN PAYING DEALERS - Growth in both U.S. and international paying dealers contributed to higher revenue

HIGHER OPERATING EXPENSES AND IMPAIRMENTS - Operating expenses rose 25% yr/yr, including $19.7 mln in impairments, impacting net income

Company press release: ID:nGNX5B8msy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
$32.23 mln
Q1 Adjusted EBITDA
Beat
$80.20 mln
$76.92 mln (14 Analysts)
Q1 Gross Profit
$224.60 mln
Q1 Operating Expenses
$184.50 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 $34.00, about 9.1% below its May 6 closing price of $37.41

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

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.)