# CarGurus, Inc. (CARG)

> Source: Nexqual · https://nexqual.com/CARG · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, CarGurus, Inc. (CARG), nexqual.com/CARG" · informational, not investment advice.

**Price:** USD 32.73 (+4.94% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 31.19 · day 31.22–32.8 · 52w 26.39–41.22 · market cap $2.92B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $967M, net income $176M (18.2% margin), free cash flow $315M (SEC filings).
- Valuation: P/E 16.6x (avg 94.8x at the last 3 fiscal year-ends).
- Analysts: Buy (mean 2.08 on a 1–5 scale) (13 analysts), mean target USD 41.27 (range 35–46).
- Total return with dividends: 1Y -9.6% vs S&P 500 +14.9%; 5Y -3.4% vs S&P 500 +80.3%.
- Next earnings: 2026-11-05, EPS estimate USD 0.66, revenue estimate $256M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $951M | $1.66B | $698M | $798M | $907M | $967M |
| Gross profit | $657M | $658M | $637M | $728M | $842M | — |
| Operating income | $148M | $108M | $120M | $157M | $244M | $277M |
| Net income | $109M | $84.4M | $36.9M | $21.0M | $156M | $176M |
| EPS (diluted) | $0.00 | $0.62 | $0.19 | $0.20 | $1.55 | — |
| Free cash flow | $90.6M | $250M | $100.0M | $180M | $289M | $315M |
| Gross margin | 69.1% | 39.7% | 91.2% | 91.2% | 92.8% | — |
| Operating margin | 15.6% | 6.6% | 17.2% | 19.7% | 27.0% | 28.6% |
| Net margin | 11.5% | 5.1% | 5.3% | 2.6% | 17.2% | 18.2% |
| Revenue growth | +72.5% | +74.0% | -57.8% | +14.3% | +13.7% | — |
| Cash + short-term investments | $232M | $470M | $312M | $304M | — | — |
| Total debt | $0K | $0K | $0K | $0K | $0K | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 16.6x · P/S 3.0x · P/FCF 9.2x · P/B 11.0x · FCF yield 10.81% · Earnings yield 6.03% · Buyback yield (TTM) 12.67%
P/E at fiscal year-ends: Dec 2025 24.7x, Dec 2024 185.1x, Dec 2023 74.7x.

## Analysts
Consensus Buy (mean 2.08 on a 1–5 scale), 13 analysts; mean target USD 41.27 (low 35, high 46).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-07 | UBS | Target lowered | Neutral | $40 → $35 |
| 2026-10-06 | Barclays | Target lowered | Overweight | $41 → $38 |
| 2026-08-14 | Citigroup | Target raised | Neutral | $32 → $39 |
| 2026-08-12 | Oppenheimer | Target raised | Outperform | $38 → $44 |
| 2026-08-10 | Barclays | Target raised | Overweight | $40 → $41 |
| 2026-08-07 | UBS | Target raised | Neutral | $37 → $40 |
| 2026-08-07 | RBC Capital | Target raised | Outperform | $35 → $42 |
| 2026-08-07 | Needham | Target raised | Buy | $43 → $44 |
| 2026-08-07 | BTIG | Target raised | Buy | $40 → $41 |
| 2026-07-22 | Barclays | Target raised | Overweight | $35 → $40 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -9.6% | -3.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -9.6% | -0.7% |
| Volatility (annualized) | 39.8% | 46.1% |
| Max drawdown | -30.9% (Dec 2025→Feb 2026) | -72.1% (Feb 2022→Dec 2022) |

## Peers (Internet Content & Information)
PPLI (People Incorporated) USD 39.58 +1.70% · ATHM (Autohome Inc.) USD 20.4 +2.26% · STUB (StubHub Holdings, Inc.) USD 6.1 +3.21% · RUM (RUM Group Inc.) USD 5.54 -4.81% · JOYY (JOYY Inc.) USD 83.42 -1.35% · DJT (Trump Media & Technology Group ) USD 6.61 -0.75%

## More
Full page: https://nexqual.com/CARG · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in CARG's own 10-K filed 2026-02-19 (https://www.sec.gov/Archives/edgar/data/1494259/000119312526059435/carg-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | CarOffer | "Digital Wholesale: Primarily derived revenue from our Dealer-to-Dealer and Instant Max Cash Offer services sold on our CarOffer platform." |
| Partner | Amazon (AMZN) | "e-commerce sites, such as the partnership between Amazon.com, or Amazon, and select original equipment manufacturers to sell cars on Amazon." |

## Revenue by business segment (quarter ended 2025-09-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States Marketplace | $210.4M | 88.2% | +12.4% |
| Digital Wholesale | $7.0M | 3.0% | -74.2% |
| Total revenue | $238.7M | 100% | — |
The lines above cover 91.1% of total revenue.

## Revenue by product line (quarter ended 2025-09-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Marketplace | $231.7M | 97.0% | +13.5% |
| Product | $4.8M | 2.0% | -68.5% |
| Instant Max Cash Offer | $3.6M | 1.5% | -73.3% |
| Dealer To Dealer | $3.5M | 1.4% | -75.1% |
| Wholesale | $2.2M | 0.9% | -81.4% |
| Total revenue | $238.7M | 100% | — |
The lines above cover 103% of total revenue.

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $226.3M | 90.2% | +11.7% |
| Non Us | $24.7M | 9.8% | +27.7% |
| Total revenue | $251.0M | 100% | — |

## Company outlook (8-K filed 2026-08-06)

- "The assumptions that are built into guidance for the third quarter and full-year 2026 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market trends and industry conditions."
- "Guidance for the third quarter and full-year 2026 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market trends or that cause us to enact measures to assist dealers."
- "Guidance also excludes any potential impact of future foreign currency exchange gains or losses."
- "CarGurus may incur charges, realize gains or losses, or experience other events or circumstances in 2026 that could cause any of these assumptions to change and/or actual results to vary from this guidance."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.66 | $0.63 | +5.9% | $256.5M | 11 |
| Next quarter (ends 2026-12-31) | $0.73 | $0.70 | +4.2% | $263.5M | 11 |
| Current fiscal year (ends 2026-12-31) | $2.62 | $2.51 | +4.3% | $1.01B | 11 |
| Next fiscal year (ends 2027-12-31) | $3.02 | $2.91 | +3.7% | $1.11B | 10 |