CarGurus, Inc.
- Open
- 35.82
- Day high
- 36.52
- Day low
- 35.60
- Prev close
- 35.66
- Volume
- 1.3M
- Mkt cap
- $3.2B
- P/E (TTM)
- 23.2
- EPS (TTM)
- $1.55
- P/B
- 13.7
- P/S
- 3.4
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$603K over the last 3 months (0 open-market buys, 7 sales)
- 🏛Institutions mixed (13F)
CarGurus, Inc. (CARG) is a Consumer Cyclical company listed on NASDAQ. The stock is up 8% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 7 sales (SEC Form 4).
CarGurus, Inc. (CARG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CARG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.56 | $0.58 | +3.6% | $244M | +0.2% |
| Feb 19, 2026 | $0.61 | $0.63 | +3.3% | $241M | +0.8% |
| Nov 6, 2025 | $0.55 | $0.57 | +3.6% | $239M | -0.2% |
| Aug 7, 2025 | $0.54 | $0.57 | +5.6% | $234M | +0.8% |
| May 8, 2025 | $0.42 | $0.46 | +9.5% | $225M | -3.4% |
| Feb 20, 2025 | $0.50 | $0.55 | +10.0% | $229M | -1.4% |
| Nov 7, 2024 | $0.42 | $0.45 | +7.1% | $231M | +0.1% |
| Aug 8, 2024 | $0.34 | $0.41 | +20.6% | $219M | +1.2% |
| May 9, 2024 | $0.29 | $0.32 | +10.3% | $216M | -0.5% |
| Feb 26, 2024 | $0.35 | $0.35 | +0.0% | $223M | +1.4% |
| Feb 28, 2023 | $0.10 | $0.22 | +120.0% | $287M | +1.9% |
| Feb 24, 2022 | $0.29 | $0.43 | +48.3% | $339M | +21.2% |
CARG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 6, 2026 | Zamora Javierofficer: General Counsel and Secretary | Sell | 3,533 | $36.06 |
| Jul 6, 2026 | Zales Samuelofficer: COO and President | Tax | 11,526 | $35.14 |
| Jul 6, 2026 | Hanson Jennifer Laddofficer: Chief People Officer | Sell | 567 | $35.03 |
| Jul 6, 2026 | Zales Samuelofficer: COO and President | Grant | 22,548 | — |
| Jul 6, 2026 | Quinn Matthew Toddofficer: Chief Technology Officer | Sell | 3,824 | $35.03 |
| Jul 2, 2026 | Hanson Jennifer Laddofficer: Chief People Officer | Sell | 2,499 | $34.56 |
| Jul 2, 2026 | Sarnoff Dafnaofficer: Chief Marketing Officer | Tax | 7,550 | $35.14 |
| Jul 2, 2026 | Elshareef Ismailofficer: Chief Product Officer | Tax | 2,106 | $35.14 |
| Jul 2, 2026 | Steinert Langleydirector, 10 percent owner, officer: Executive Chair | Tax | 12,654 | $35.14 |
| Jul 2, 2026 | Hanson Jennifer Laddofficer: Chief People Officer | Tax | 1,192 | $35.14 |
| Jul 2, 2026 | Hanson Jennifer Laddofficer: Chief People Officer | Tax | 1,039 | $34.09 |
| Jul 2, 2026 | Zamora Javierofficer: General Counsel and Secretary | Tax | 4,119 | $35.14 |
| Jul 2, 2026 | Quinn Matthew Toddofficer: Chief Technology Officer | Tax | 9,128 | $35.14 |
| Jul 2, 2026 | Trevisan Jasondirector, officer: Chief Executive Officer | Tax | 21,509 | $35.14 |
| Jul 1, 2026 | Zamora Javierofficer: General Counsel and Secretary | Sell | 3,532 | $34.08 |
Source: CARG SEC Form 4 filings, latest Jul 6, 2026. For informational purposes only — not investment advice.
See the full CARG insider & 13F page →CarGurus, Inc. company profile
Overview
CarGurus, Inc. (NASDAQ:CARG) is a leading online automotive marketplace that connects car buyers and sellers across multiple markets. Founded in 2005 and headquartered in Cambridge, Massachusetts, the company went public in October 2017. CarGurus operates primarily in the United States while maintaining international presence in Canada and the United Kingdom through its CarGurus brand, as well as operating Autolist and PistonHeads as independent brands. The company has evolved from a simple car listing platform into a comprehensive automotive marketplace that facilitates the entire car buying and selling process through technology-driven solutions.
Business
CarGurus operates in the online automotive marketplace industry, serving as an intermediary platform that connects car dealers with consumers looking to buy or sell vehicles. The company's core business revolves around providing digital solutions that make car shopping more transparent and efficient for both buyers and sellers. The company operates three main business segments: 1. Marketplace Business (~93% of revenue): This is CarGurus' primary revenue driver, generating approximately $821 million in 2024. The marketplace connects over 32,000 dealers globally with millions of car shoppers. Dealers pay subscription fees and advertising costs to list their inventory and reach qualified buyers. The platform provides advanced search capabilities, vehicle history information, pricing insights, and dealer ratings to help consumers make informed purchasing decisions. Key products include dealer subscriptions, enhanced listings, and lead generation services. 2. Digital Wholesale Business (~4% of revenue): Operating under the CarOffer brand, this segment generated approximately $57 million in 2024. This business facilitates wholesale transactions between dealers, allowing them to buy and sell inventory through an online auction platform. CarOffer provides vehicle inspections, transportation, and transaction facilitation services, earning revenue through transaction fees and service charges. 3. Digital Products Business (~3% of revenue): This smaller segment, generating about $42 million in 2024, includes various software solutions and tools for dealers such as inventory management systems, pricing analytics, and digital retail capabilities through their Digital Deal platform. The automotive marketplace industry serves as a critical digital infrastructure for the $1.2 trillion used car market in the United States. Unlike traditional classified advertising, modern automotive marketplaces provide sophisticated matching algorithms, financing integration, vehicle history reports, and transaction facilitation services that streamline the historically complex and time-consuming process of buying and selling cars.
Revenue model
CarGurus generates revenue through multiple complementary business models that monetize different aspects of the car buying and selling process. The Marketplace Business operates on a subscription and advertising model where car dealers pay monthly fees to access the platform and advertise their inventory. Dealers typically pay between $399 to $1,299 per month depending on their subscription tier, with additional costs for premium listing features, enhanced visibility, and lead generation tools. The company's Quarterly Average Revenue per Subscribing Dealer (QARSD) reached approximately $6,400 in 2024, reflecting successful upselling of higher-tier packages and add-on services. Revenue grows through expanding the dealer base, increasing average revenue per dealer, and cross-selling additional products like data insights and digital transaction tools. The Digital Wholesale Business earns transaction-based revenue by facilitating wholesale vehicle sales between dealers. CarOffer charges fees ranging from $200 to $500 per transaction plus additional service fees for inspections, transportation, and arbitration services. This model depends on transaction volume and average selling prices, making it sensitive to overall market conditions and dealer inventory turnover rates. The Digital Products Business generates revenue through software licensing and service fees for tools like Digital Deal, inventory management systems, and data analytics platforms. Several factors significantly impact CarGurus' margins and profitability. Positive margin drivers include the company's scalable technology platform that can serve additional users with minimal incremental costs, successful upselling of premium services to existing dealers, and the network effects that make the platform more valuable as more dealers and consumers join. The company's strong brand recognition and market leadership position allow for pricing power and reduced customer acquisition costs. Negative margin pressures come from intense competition with other automotive marketplaces and classified sites, requiring ongoing marketing investments to maintain market share. Economic downturns reduce car purchasing activity and dealer advertising budgets, directly impacting revenue. The digital wholesale business faces operational challenges including vehicle inspection costs, transportation expenses, and arbitration losses from disputed transactions. Additionally, the company must continuously invest in product development and technology infrastructure to maintain its competitive position, creating ongoing pressure on margins.
Competitive moat
CarGurus possesses a moderate but meaningful competitive moat built primarily on network effects and switching costs, though this moat faces ongoing challenges from well-funded competitors and changing market dynamics. The company's primary moat stems from its two-sided network effects. With over 32,000 dealers and millions of monthly visitors, CarGurus creates value that increases as more participants join each side of the marketplace. More dealers attract more car shoppers, while larger consumer audiences attract more dealers willing to pay for access. This creates a self-reinforcing cycle that makes it difficult for competitors to replicate CarGurus' scale and liquidity. Switching costs provide additional protection, particularly for dealers who have integrated CarGurus' tools into their daily workflows. The company's dealer data insights, inventory management systems, and Digital Deal platform become embedded in dealers' operations, making switching to competitors disruptive and costly. The learning curve associated with CarGurus' analytics and lead management tools also creates switching friction. Brand recognition and trust represent another defensive element. CarGurus has established itself as a trusted marketplace through transparent pricing, dealer ratings, and vehicle history integration. This reputation took years to build and provides some protection against new entrants. However, CarGurus' moat faces significant challenges. The automotive marketplace space remains highly competitive with well-funded rivals like AutoTrader, Cars.com, and potential new entrants including tech giants like Amazon. These competitors have substantial resources to invest in marketing, product development, and dealer acquisition. The relatively low technological barriers to entry mean that new platforms can be built relatively quickly, though achieving scale and liquidity remains challenging. The company's international expansion efforts face established local competitors with strong market positions, limiting CarGurus' ability to replicate its U.S. success globally. Additionally, the rise of direct-to-consumer sales models from manufacturers and the potential for disintermediation through dealer consolidation could threaten the traditional marketplace model over time. Overall, while CarGurus has built meaningful competitive advantages, its moat is not impregnable and requires continuous investment and innovation to maintain.
Risks & safety
CarGurus demonstrates a strong financial safety profile with solid cash generation, minimal debt, and reasonable valuation metrics, though some concerns exist around growth sustainability and competitive positioning. **Cash and Solvency:** - Strong cash position of $173 million with minimal debt (debt-to-equity ratio of 0.49) - Positive free cash flow generation of $180 million in 2024, providing substantial financial flexibility - Current ratio of 2.67 indicates solid short-term liquidity - No significant solvency risk given strong balance sheet and cash generation **Valuation Metrics:** - P/E ratio of 19.2x appears reasonable for a profitable technology company - EV/EBITDA of 14.5x is moderate for the sector - Price-to-book ratio of 7.5x reflects premium valuation but not excessive for a platform business - Graham number suggests potential undervaluation relative to conservative metrics **Other Considerations:** - Revenue growth has decelerated significantly from historical levels, raising questions about long-term growth sustainability - Digital wholesale business remains unprofitable and faces operational challenges - Competitive pressure from well-funded rivals could impact future margins and market share - Dependence on automotive market cycles creates some earnings volatility risk
Recent development
Over the past few years, CarGurus has undergone significant strategic evolution, transitioning from a simple automotive listings platform to a comprehensive transaction-enabled marketplace while navigating challenges in its wholesale business. The company's most significant strategic pivot involved expanding beyond basic marketplace services into end-to-end transaction facilitation. This included the development of Digital Deal, a platform that enables dealers to complete sales transactions digitally, and the launch of Top Dealer Offers, which helps consumers sell their cars directly through the platform. These initiatives represent CarGurus' attempt to capture more value from each transaction rather than simply facilitating initial connections between buyers and sellers. Artificial intelligence and data analytics have become central to CarGurus' product strategy. The company has invested heavily in AI-powered features including personalized search experiences, predictive analytics for dealers, and automated content generation. The launch of CarGurus.com/discover provides an AI-driven car shopping experience, while dealer-focused tools like Next Best Deal Rating and inventory recommendations help dealers optimize their operations using CarGurus' data insights. The digital wholesale business has been a major area of strategic focus and challenge. After acquiring CarOffer, CarGurus has struggled to achieve profitability in this segment, implementing multiple operational improvements including enhanced vehicle inspection processes, reduced arbitration rates, and refinements to the dealer experience. The company recently initiated a strategic assessment of this business model, exploring new approaches focused on insights and predictive analytics rather than pure transaction facilitation. International expansion has accelerated, with the company investing in go-to-market strategies across Canada and the United Kingdom. International revenue grew 26% in 2024, though these markets remain much smaller than the U.S. business. The company is gradually introducing successful U.S. products like Digital Deal and dealer data insights to international markets. Recent leadership changes and organizational investments have strengthened CarGurus' execution capabilities, with new hires in key executive positions and expanded teams focused on product development, dealer success, and consumer experience enhancement.
CARG company profile · for informational purposes only — not investment advice.
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