CarGurus Q3 total net income jumps

CarGurus

06/11/2025 22:00

Overview

CarGurus Q3 Marketplace rev grows 14% yr/yr, above midpoint of co's guidance

Adjusted EBITDA for Q3 beats analyst expectations, indicating strong operational efficiency

Company repurchased $111 mln worth of shares in Q3, reflecting strategic focus

Outlook

CarGurus expects Q4 2025 Marketplace revenue between $236 mln and $241 mln

CarGurus sees full-year 2025 Marketplace revenue between $902 mln and $907 mln

Company projects Q4 2025 non-GAAP EPS between $0.61 and $0.67

Result Drivers

AI SOLUTIONS - CarGurus advanced AI-powered solutions, including PriceVantage and Dealership Mode, driving ROI across dealership operations

DEALER ADOPTION - Increased adoption of data-driven tools by dealers fueled Marketplace revenue growth, per CEO Jason Trevisan

SHARE REPURCHASE - Co repurchased $111 mln worth of shares in Q3, reflecting strategic focus

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
$44.7 mln
Q3 Adjusted EBITDA
Beat
$78.70 mln
$76.71 mln (11 Analysts)
Q3 Gross Profit
$213.50 mln
Q3 Operating Expenses
$158.90 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 14.8% above its November 5 closing price of $34.06

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

Press Release: ID:nGNXbq1mdq

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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.)