The earnings call presented a strong overall performance, with significant growth in the Marketplace and international segments, increased dealer engagement, and successful product enhancements. However, the decision to wind down the CarOffer transactions business and the associated financial impact, along with declines in wholesale and product revenue, are notable challenges.

Company Guidance -

Q3 2025

During the CarGurus Second Quarter 2025 Earnings Call, the company reported strong financial performance, with total revenue reaching $234 million, representing a 7% increase year-over-year. Key contributors to this growth included a 14% year-over-year rise in Marketplace revenue, driven by the addition of 1,743 net new dealers globally and continued wallet share expansion. The international segment showed robust performance, with a 28% revenue increase year-over-year, particularly in Canada and the U.K. CarGurus also highlighted the decision to wind down its CarOffer transactions business due to market volatility, while retaining the underlying technology for smarter dealer sourcing solutions. The company ended the quarter above the midpoint of its forecasted guidance range for revenue and adjusted EBITDA, with Marketplace adjusted EBITDA growing 31% year-over-year. Looking ahead, CarGurus provided guidance for the third quarter, anticipating Marketplace revenue growth between 12% and 14% year-over-year, and adjusted EBITDA growth between 9% and 20% year-over-year.

Strong Financial Performance

CarGurus reported double-digit year-over-year revenue growth of 14% in the Marketplace segment, resulting in a $27 million increase. Adjusted EBITDA grew 31% year-over-year, demonstrating strong operating leverage.

International Business Success

The international segment saw revenue growth of 28% year-over-year, with notable success in Canada and the U.K. The company added 711 net new dealers year-over-year across these regions.

Increased Dealer Engagement

Dealer engagement with CarGurus tools has increased, with 18,500 dealers subscribed to the Next Best Deal Rating. Merchandising health rose nearly 30% quarter-over-quarter, and max margin grew approximately 70%.

Expansion of Digital Deal

Digital Deal adoption grew to approximately 12,000 dealers globally, with Digital Deal leads accounting for over 27% of the dealer's email leads. Appointments are up 60% year-over-year.

App and Product Enhancements

CarGurus launched several app and product enhancements, including a redesigned app interface and new capabilities like VIN level targeting and New Car Advantage, contributing to increased daily active users up 71% year-over-year.

Share Repurchase Program

The Board approved a $150 million increase to the existing share repurchase program, reinforcing the company's commitment to returning capital to stockholders.

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
Nov 11, 2025	2025 (Q3)	0.56 / -	0.45	―	―	―
Aug 07, 2025	2025 (Q2)	0.54 / 0.57	0.41	39.02% (+0.16)
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)

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
Aug 07, 2025	$31.41	$29.11	-7.32%
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%

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.