The earnings call presented a strong performance in the marketplace segment, international growth, and robust dealer and consumer engagement. However, it also highlighted significant challenges in the wholesale and product revenue segments, specifically with the CarOffer platform. While the highlights show promising growth and innovation, the lowlights indicate areas requiring strategic reassessment and improvement.

Company Guidance -

Q2 2025

During the CarGurus, Inc. First Quarter 2025 Earnings Conference Call, the company provided detailed guidance and metrics reflecting their strong performance and future outlook. The first quarter revenue was reported at $225 million, showing a 4% year-over-year increase, while marketplace revenue grew by 13% year-over-year to $212 million. International revenue also saw a significant rise of 20% year-over-year. The adjusted EBITDA increased by 32% year-over-year to $66.3 million, with a margin of 29%. The company added 734 paying US dealers year-over-year, marking the highest dealer growth since pre-pandemic times. QARSD grew by 10% year-over-year. For the second quarter of 2025, CarGurus anticipates total revenue to range from $222 million to $242 million, with marketplace revenue expected to grow between 12% and 15% year-over-year. Despite macroeconomic uncertainties, including tariffs, the company remains optimistic, projecting a low double-digit year-over-year growth rate by the end of 2025.

Marketplace Revenue Growth

Marketplace revenue grew 13% year-over-year, adding $25 million, driven by dealer count growth, subscription tier upgrades, and increased adoption of value-added products and services.

International Revenue Expansion

International revenue expanded 20% year-over-year, with significant growth in Canada and the UK, driven by a 22% year-over-year aggregate lead growth and continued product innovation.

Improved Marketplace Margins

Marketplace adjusted EBITDA grew 27% year-over-year with margins improving more than 340 basis points to nearly 33%.

Strong Dealer Engagement and Adoption

Dealer adoption of new products like VIN level targeting and Digital Deal has increased, with nearly 1,200 net new global dealer additions year-over-year.

Consumer Engagement and Brand Strength

CarGurus was Canada's most downloaded auto app in Q1, contributing to an 85% year-over-year increase in direct traffic and reinforcing brand strength.

CarGurus (CARG) Earnings, Revenues Date & History

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CARG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 07, 2025	2025 (Q2)	0.54 / -	0.41	―	―	―
May 08, 2025	2025 (Q1)	0.44 / 0.46	0.32	43.75% (+0.14)
Feb 20, 2025	2024 (Q4)	0.52 / 0.55	0.35	57.14% (+0.20)
Nov 07, 2024	2024 (Q3)	0.43 / 0.45	0.34	32.35% (+0.11)
Aug 08, 2024	2024 (Q2)	0.34 / 0.41	0.29	41.38% (+0.12)
May 09, 2024	2024 (Q1)	0.28 / 0.32	0.26	23.08% (+0.06)
Feb 26, 2024	2023 (Q4)	0.34 / 0.35	0.22	59.09% (+0.13)
Nov 07, 2023	2023 (Q3)	0.26 / 0.34	0.21	61.90% (+0.13)
Aug 09, 2023	2023 (Q2)	0.23 / 0.29	0.32	-9.38% (-0.03)
May 09, 2023	2023 (Q1)	0.16 / 0.26	0.36	-27.78% (-0.10)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

CARG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 08, 2025	$27.95	$31.08	+11.20%
Feb 20, 2025	$37.59	$31.15	-17.13%
Nov 07, 2024	$33.36	$34.81	+4.35%
Aug 08, 2024	$22.40	$26.94	+20.27%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.