CarGurus, Inc. Q1 FY2026 earnings call

1. Following the playbook from the U.S., being ROI number one in the market with dealers, visitor base growing faster than competitors. 2. Data is a key enabler; from consumer journey perspective, Discover helps consumers determine car type, find and connect with dealer, and dealership mode helps understand dealer info. In conversational exchange, learn a lot about customers, use AI tools for memory, personalization. 3. PriceVantage product is a profit maximization predictive tool, selling to independent and franchise dealers, seeing success, with 47% VDP views and 117% faster closes vs top competition. 4. Think about using cash in three categories: investing back in business, M&A and powder for M&A, returning capital to shareholders. 5. AI tools: traffic and leads from LLMs are very small, top funnel, not substitute for marketplace, but embracing presence in LLMs and building own AI capabilities.

Not explicitly detailed in the transcript

1. Stock buyback: Remaining authorization is $75 million, will be aggressive when prices are more compelling. 2. Cash levels: Think about investing in business, M&A, and returning capital to shareholders, have line of credit for risk mitigation, no hard floor for minimum cash levels shared. 3. AI tools: Adoption is growing fast but traffic and leads from LLMs are very small, top funnel, not substitute for marketplace.

Not explicitly discussed in the transcript

Q: Asked about new ways to interact with consumers using data and AI, and weather impact on traffic.

A: Data helps create unique products, from consumer journey perspective, Discover and dealership mode help consumers, learn a lot from customers, AI tools have memory and personalization; visitor statistics rose year over year, weather was a general factor with other market factors.

Q: Asked about PriceVantage product, types of dealers, and stock buybacks.

A: PriceVantage sells to independent and franchise dealers, growth tripled quarter over quarter, profit is a huge outcome; remaining stock buyback authorization is $75 million, will be aggressive when prices are compelling.

Q: Asked about cash balance and minimum cash levels.

A: Think about cash use in three categories, have line of credit, no hard floor for minimum cash levels shared.

Q: Asked about conversion rates or acquisition costs for dealers with AI tools.

A: Traffic and leads from LLMs are very small, top funnel, not substitute for marketplace, early adopters get smarter and come to the site for the process.