CarGurus (NASDAQ:CARG) Releases Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• CarGurus beat Q1 expectations, reporting EPS of $0.58 versus the $0.56 consensus and revenue of $243.6 million, which was slightly above estimates and up 8.2% year over year.
• On the conference call, management said Q1 revenue rose 15% YoY to about $244 million and adjusted EBITDA increased 17% to $80 million, while reaffirming full-year 2026 revenue growth guidance of 10% to 13%.
• Growth is being supported by AI-driven dealer products such as PriceVantage and Shopper Signals, along with strong international performance, as U.K. and Canada revenue climbed 39% year over year.

CarGurus (NASDAQ:CARG - Get Free Report) released its earnings results on Thursday. The company reported $0.58 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.02, FiscalAI reports. The firm had revenue of $243.56 million for the quarter, compared to analysts' expectations of $243.12 million. CarGurus had a return on equity of 48.98% and a net margin of 15.57%.The company's quarterly revenue was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.46 earnings per share. CarGurus updated its Q2 2026 guidance to 0.570-0.640 EPS.

Here are the key takeaways from CarGurus' conference call:

• Q1 revenue grew 15% YoY to $244 million and adjusted EBITDA rose 17% to $80 million with a 33% EBITDA margin; management reiterated 2026 revenue growth guidance of 10–13%.
• Dealer-facing AI products are driving adoption and engagement — PriceVantage reached several hundred paying dealers with top users seeing a 117% faster turn time and 47% higher VDP views, Shopper Signals engaged over 8,000 dealers since its April launch, and Discover leads grew 52% QoQ.
• International momentum was strong, with U.K. and Canada revenue up 39% YoY, which management says is driving share gains in those markets.
• The company repurchased about $175 million in Q1 under a $250 million program (leaving $72 million in cash) and expects full‑year adjusted EBITDA margins to compress ~1.5–2.5 percentage points as it increases product, tech and AI investments.

CarGurus Stock Performance

NASDAQ:CARG traded down $3.42 during trading hours on Friday, reaching $34.74. The company's stock had a trading volume of 1,907,451 shares, compared to its average volume of 988,883. The company has a market capitalization of $3.31 billion, a P/E ratio of 22.86, a price-to-earnings-growth ratio of 1.42 and a beta of 1.28. CarGurus has a 12 month low of $26.39 and a 12 month high of $39.42. The stock has a 50 day moving average price of $34.59 and a two-hundred day moving average price of $34.63.

Key Headlines Impacting CarGurus

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: CarGurus reported Q1 2026 EPS of $0.58, topping estimates, while revenue of $243.6 million was also slightly above expectations and up 8.2% year over year. Q1 Earnings Report and Conference Call
• Positive Sentiment: The company said Q1 adjusted EBITDA came in above the high end of guidance, and it repurchased $175 million of stock during the quarter, signaling strong cash generation and capital return. CarGurus Announces First Quarter 2026 Results
• Positive Sentiment: Needham raised its price target on CarGurus from $37 to $43 and kept a Buy rating, while JPMorgan also lifted its target from $36 to $38, reinforcing optimism around the stock. Analyst price target updates
• Neutral Sentiment: CarGurus’ Q2 guidance calls for EPS of $0.57 to $0.64 and revenue of $247 million to $252 million, which is broadly in line with Street expectations and suggests steady near-term growth. Q1 Results and Guidance
• Negative Sentiment: Despite the earnings beat, some market commentary noted the stock sold off after the report, suggesting investors may be focusing on guidance and valuation rather than just the headline beat. Market reaction article

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on CARG shares. Wall Street Zen lowered shares of CarGurus from a "buy" rating to a "hold" rating in a report on Sunday, February 15th. UBS Group lifted their price objective on shares of CarGurus from $33.00 to $37.00 and gave the company a "neutral" rating in a report on Friday. BTIG Research decreased their price objective on shares of CarGurus from $44.00 to $37.00 and set a "buy" rating for the company in a report on Friday, February 20th. Needham & Company LLC lifted their price objective on shares of CarGurus from $37.00 to $43.00 and gave the company a "buy" rating in a report on Friday. Finally, DA Davidson lowered their target price on CarGurus from $37.50 to $33.50 and set a "neutral" rating for the company in a report on Friday, February 20th. Five investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $38.14.

Insider Buying and Selling at CarGurus

In related news, CMO Dafna Sarnoff sold 5,445 shares of the business's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total value of $179,902.80. Following the completion of the transaction, the chief marketing officer owned 134,369 shares of the company's stock, valued at $4,439,551.76. The trade was a 3.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Kaufer acquired 30,766 shares of CarGurus stock in a transaction that occurred on Tuesday, March 3rd. The stock was acquired at an average cost of $32.50 per share, with a total value of $999,895.00. Following the purchase, the director directly owned 323,939 shares of the company's stock, valued at $10,528,017.50. This represents a 10.49% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders sold 12,852 shares of company stock worth $431,053. 16.99% of the stock is currently owned by corporate insiders.

Institutional Trading of CarGurus

A number of institutional investors have recently modified their holdings of the company. HighTower Advisors LLC boosted its holdings in shares of CarGurus by 7.8% in the 4th quarter. HighTower Advisors LLC now owns 7,094 shares of the company's stock valued at $272,000 after buying an additional 514 shares in the last quarter. Illinois Municipal Retirement Fund boosted its holdings in shares of CarGurus by 1.6% in the 4th quarter. Illinois Municipal Retirement Fund now owns 43,583 shares of the company's stock valued at $1,671,000 after buying an additional 679 shares in the last quarter. Parkside Financial Bank & Trust boosted its holdings in shares of CarGurus by 48.0% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,018 shares of the company's stock valued at $116,000 after buying an additional 979 shares in the last quarter. Zacks Investment Management boosted its holdings in shares of CarGurus by 3.6% in the 3rd quarter. Zacks Investment Management now owns 35,239 shares of the company's stock valued at $1,312,000 after buying an additional 1,220 shares in the last quarter. Finally, Brown Brothers Harriman & Co. bought a new stake in shares of CarGurus in the 3rd quarter valued at about $46,000. 86.90% of the stock is currently owned by institutional investors.

About CarGurus

CarGurus, Inc operates an online automotive marketplace designed to connect buyers and sellers of new and used vehicles. Through its proprietary search engine and data-driven pricing tools, the platform enables consumers to compare listings, assess fair market values and locate local dealers offering competitive deals. CarGurus also provides detailed vehicle history reports, dealer reviews and financing options to streamline the car-shopping process for both private parties and franchised dealerships.

The company's core product offerings include Instant Market Value (IMV), which leverages pricing algorithms to help buyers identify over- or under-priced vehicles, as well as dealer subscription services that grant automotive retailers access to lead generation tools, targeted advertising and dynamic pricing insights.

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