Cash conversion remains highly efficient, as evidenced by an OCF/NI ratio of 2.17 in 2026Q1, enabling the company to fund $174.4 million in share repurchases while maintaining minimal capital intensity.
| Cash from Operations | 297.25M | 295.28M | 255.49M | 124.53M | 256.11M | 98.29M | 156.74M | 70.12M | 51.72M | 25.69M | 20M | 12.91M |
| Operating CF Margin % | - | 31.45% | 28.57% | 13.62% | 15.47% | 10.33% | 28.42% | 11.91% | 11.39% | 8.11% | 10.1% | 13.1% |
| Operating CF Growth % | 41.41% | 15.57% | 105.17% | -51.38% | 160.56% | -37.29% | 123.55% | 35.56% | 101.33% | 28.43% | 54.89% | - |
| Net Income | 149.09M | 155.9M | 20.97M | 22.05M | 78.95M | 110.37M | 77.55M | 42.15M | 65.17M | 13.2M | 6.5M | -1.64M |
| Depreciation & Amortization | 28.96M | 28.35M | 25.36M | 48.47M | 45.33M | 40.48M | 10.19M | 7.82M | 5.03M | 3.79M | 2.07M | 1.12M |
| Stock-Based Compensation | 50.81M | 50.44M | 62.27M | 63.74M | 54.78M | 53.52M | 45.09M | 34.3M | 20.79M | 5.03M | 322K | 1.04M |
| Deferred Taxes | 30.33M | 25.89M | -33.35M | -37.86M | -22.11M | 6.16M | 22.23M | -3.73M | -39.04M | -1.12M | 782K | -649K |
| Other Non-Cash Items | 72.79M | 51.38M | 161.13M | 12.24M | 13.29M | 16.71M | 14.71M | 8.82M | 5.18M | 1.25M | -313K | 258K |
| Working Capital Changes | -34.73M | -16.68M | 19.11M | 15.89M | 85.86M | -128.96M | -13.04M | -19.23M | -5.41M | 3.54M | 10.64M | 12.78M |
| Change in Receivables | -6.05M | 675K | -4.87M | 10.97M | 152.95M | -174.77M | 3.89M | -9.61M | -1.91M | -7.04M | -1.43M | -716K |
| Change in Inventory | 691K | 338K | -112K | 1.96M | 14.37M | -17.32M | 0 | 0 | -9.06M | 2.9M | 1.89M | 1.65M |
| Change in Payables | 654K | 3.56M | -4.66M | 2.08M | -35.05M | 35.4M | -15.08M | 4.27M | 9.35M | 6.24M | 5.81M | 6.1M |
| Cash from Investing | -28.38M | -29.32M | -72.97M | -61.56M | 72.73M | -68.15M | -16.89M | -22.26M | -80.28M | -12.6M | -51.99M | -7.62M |
| Capital Expenditures | -4.53M | -6.38M | -75.17M | -24.56M | -5.92M | -7.71M | -2.95M | -11.21M | -7.48M | -7.37M | -7.22M | -7.62M |
| CapEx % of Revenue | 0.47% | 0.68% | 8.4% | 2.69% | 0.36% | 0.81% | 0.54% | 1.9% | 1.65% | 2.33% | 3.64% | 7.72% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -64.27M | -21.06M | -19.14M | 1.52M | 2.21M | 1.37M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -23.84M | -22.93M | -18.52M | -16.45M | -11.35M | -6.16M | -4.58M | -3.02M | -1.52M | -2.21M | -1.37M | -1.26M |
| Cash from Financing | -373.3M | -383.76M | -168.63M | -253.64M | -92.62M | 17.81M | -10.09M | -14.69M | -23.39M | 44.78M | 690K | 49.97M |
| Debt Issued (Net) | -81K | -81K | -75K | -70K | -68K | -14.29M | -37K | -30K | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -343.42M | -351.46M | -146.18M | -208.52M | -14.43M | 0 | 0 | 0 | 0 | 47.69M | 0 | 49.87M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -343.54M | -351.93M | -146.18M | -208.52M | -14.43M | 0 | 0 | 0 | -25.89M | 0 | -60M | -18M |
| Other Financing | -29.8M | -32.23M | -22.37M | -45.05M | -78.12M | 32.1M | -10.05M | -14.66M | -23.39M | -2.91M | 690K | 93K |
| Net Change in Cash | -103.66M | -115.71M | 12.3M | -190.21M | 235.85M | 47.35M | 130.2M | 33.16M | -51.99M | 58.03M | -31.34M | 55.27M |
| Free Cash Flow | 280.66M | 288.9M | 180.32M | 83.32M | 238.84M | 84.42M | 149.21M | 55.89M | 44.24M | 18.32M | 12.79M | 5.3M |
| FCF Margin % | 29.32% | 30.77% | 20.16% | 9.11% | 14.43% | 8.87% | 27.06% | 9.49% | 9.74% | 5.78% | 6.45% | 5.38% |
| FCF Growth % | 28% | 60.21% | 116.43% | -65.12% | 182.93% | -43.43% | 166.97% | 26.32% | 141.53% | 43.27% | 141.25% | - |
| FCF per Share | 2.95 | 2.99 | 1.70 | 0.73 | 1.86 | 0.72 | 1.31 | 0.49 | 0.39 | 0.17 | 0.12 | 0.11 |
| FCF Conversion (FCF/Net Income) | 1.88x | 1.89x | 12.18x | 4.00x | 1.32x | 0.90x | 2.02x | 1.66x | 0.79x | 1.95x | 3.08x | -7.89x |
| Interest Paid | 282K | 0 | 772K | 566K | 64K | 0 | 0 | 10.91M | 19K | 29K | 26K | 17K |
| Taxes Paid | 16.57M | 0 | 40.78M | 74.78M | 61M | 27.52M | 2.83M | 300K | 2.31M | 4.39M | 2.04M | 316K |
Traffic acquisition cost volatility
According to the latest quarterly data, CarGurus consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio of 2.17 in 2026Q1, suggesting that the company's reported earnings are conservative relative to its actual cash-generating capacity from core operations.
The persistent gap between net income and operating cash flow appears driven by non-cash charges and the underlying SaaS-like nature of the marketplace model. Investors should monitor whether this conversion efficiency remains sustainable as the company integrates more transactional wholesale components that may carry different working capital requirements.
As reported in financial statements, the company's free cash flow margin has demonstrated a strong upward trajectory, reaching 28.5% in 2026Q1 compared to the negative 8.0% margin observed in 2023Q4, signaling a significant improvement in the business's ability to convert revenue into discretionary cash.
This expansion suggests that the platform is successfully scaling its high-margin subscription revenue while tempering the capital-intensive nature of its earlier wholesale integration efforts. The trend indicates that the business model is becoming increasingly self-funding, which reduces the necessity for external financing to support ongoing platform development.
Based on reported figures, CarGurus maintains an exceptionally low capital intensity, with CapEx/Revenue ratios consistently below 1% in recent quarters, excluding the anomalous spikes seen in early 2024, which highlights the asset-light nature of its digital marketplace and software-driven business model.
The minimal requirement for physical infrastructure investment allows the company to direct the vast majority of its cash flow toward marketing and R&D. This capital-light profile appears to be a structural advantage that differentiates the firm from more asset-heavy competitors in the automotive retail space.
As indicated by recent SEC filings, the company has prioritized returning capital to shareholders, utilizing $174.4 million for share repurchases in 2026Q1 alone, which underscores management's confidence in the firm's cash-generating stability and its commitment to offsetting dilution from stock-based compensation.
The scale of these repurchases relative to quarterly free cash flow suggests a highly disciplined approach to capital allocation that favors shareholder yield over large-scale M&A. Analysts should monitor whether this pace of buybacks is sustainable without compromising the liquidity needed for future strategic investments in AI or platform expansion.
Quick answers to the most common questions about buying CARG stock.
CarGurus, Inc. (CARG) generated $295.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CarGurus, Inc. (CARG) generated $288.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
CarGurus, Inc. (CARG) spent $6.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, CarGurus, Inc. (CARG) spent $351.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.