Revenue grew 7.2% YoY to $251.0M in 2026Q2 with gross margin at 92.1%, while operating margin rebounded to 25.1% from a 10.6% trough in 2025Q2, reflecting strong operating leverage.
CarGurus, Inc. (CARG) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 993.99M | 938.98M | 894.38M | 914.24M | 1.66B | 951.37M | 551.45M | 588.92M | 454.09M | 316.86M | 198.14M | 98.59M |
| Revenue Growth % | 7.29% | 4.99% | -2.17% | -44.76% | 73.96% | 72.52% | -6.36% | 29.69% | 43.31% | 59.92% | 100.98% | - |
| Cost of Goods Sold | 83.27M | 103.44M | 155.44M | 262.79M | 997.48M | 294.01M | 42.71M | 36.3M | 24.81M | 17.61M | 9.57M | 4.23M |
| COGS % of Revenue | - | 11.02% | 17.38% | 28.74% | 60.27% | 30.9% | 7.74% | 6.16% | 5.46% | 5.56% | 4.83% | 4.29% |
| Gross Profit | 910.72M | 835.54M | 738.95M | 651.45M | 657.55M | 657.36M | 508.75M | 552.62M | 429.27M | 299.25M | 188.57M | 94.35M |
| Gross Margin % | 91.62% | 88.98% | 82.62% | 71.26% | 39.73% | 69.1% | 92.26% | 93.84% | 94.54% | 94.44% | 95.17% | 95.71% |
| Gross Profit Growth % | - | 13.07% | 13.43% | -0.93% | 0.03% | 29.21% | -7.94% | 28.73% | 43.45% | 58.7% | 99.85% | - |
| Operating Expenses | 651.66M | 641.14M | 725.53M | 618.83M | 549.08M | 509.09M | 410.99M | 518.29M | 406.08M | 283.98M | 180M | 96.88M |
| OpEx % of Revenue | - | 68.28% | 81.12% | 67.69% | 33.18% | 53.51% | 74.53% | 88.01% | 89.43% | 89.62% | 90.84% | 98.27% |
| Selling, General & Admin | 476.14M | 442.29M | 434.31M | 456.83M | 409.82M | 388.25M | 319.14M | 444.28M | 355.41M | 258.85M | 166.91M | 87.68M |
| SG&A % of Revenue | - | 47.1% | 48.56% | 49.97% | 24.76% | 40.81% | 57.87% | 75.44% | 78.27% | 81.69% | 84.24% | 88.93% |
| Research & Development | 149.69M | 155.72M | 144.43M | 146.17M | 123.77M | 106.42M | 85.73M | 69.46M | 47.87M | 22.47M | 11.45M | 8.23M |
| R&D % of Revenue | - | 16.58% | 16.15% | 15.99% | 7.48% | 11.19% | 15.55% | 11.79% | 10.54% | 7.09% | 5.78% | 8.35% |
| Other Operating Expenses | 4M | 43.12M | 146.79M | 15.83M | 15.48M | 14.41M | 6.12M | 4.55M | 10K | 563K | 1.63M | 969K |
| Operating Income | 259.32M | 194.4M | 13.41M | 32.63M | 108.48M | 148.27M | 97.76M | 34.32M | 23.19M | 15.27M | 8.57M | -2.53M |
| Operating Margin % | 26.09% | 20.7% | 1.5% | 3.57% | 6.55% | 15.58% | 17.73% | 5.83% | 5.11% | 4.82% | 4.33% | -2.56% |
| Operating Income Growth % | - | 1349.45% | -58.89% | -69.92% | -26.84% | 51.67% | 184.82% | 48% | 51.83% | 78.21% | 439.04% | - |
| EBITDA | 290.9M | 222.75M | 38.77M | 81.1M | 153.81M | 188.74M | 107.95M | 42.14M | 28.22M | 19.07M | 10.64M | -1.41M |
| EBITDA Margin % | 29.27% | 23.72% | 4.34% | 8.87% | 9.29% | 19.84% | 19.58% | 7.16% | 6.21% | 6.02% | 5.37% | -1.43% |
| EBITDA Growth % | 41.09% | 474.5% | -52.19% | -47.27% | -18.51% | 74.85% | 156.17% | 49.32% | 47.99% | 79.17% | 856.97% | - |
| D&A (Non-Cash Add-back) | 31.57M | 28.35M | 25.36M | 48.47M | 45.33M | 40.48M | 10.19M | 7.82M | 5.03M | 3.79M | 2.07M | 1.12M |
| EBIT | 243.52M | 202.8M | 147.91M | 51.69M | 111.36M | 149.36M | 97.76M | 34.32M | 25.48M | 15.87M | 8.57M | -2.53M |
| Net Interest Income | 5.44M | 9.15M | 12.19M | 18.43M | 3.85M | 120K | 1.07M | 2.98M | 2.28M | 840K | 390K | -12K |
| Interest Income | 5.44M | 9.15M | 12.19M | 18.43M | 3.85M | 120K | 1.07M | 2.98M | 2.28M | 869K | 416K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 29K | 26K | 12K |
| Other Income/Expense | -15.8M | 8.4M | 11.24M | 19.06M | 2.88M | 1.09M | 1.35M | 4.38M | 2.29M | 563K | 374K | -12K |
| Pretax Income | 243.52M | 202.8M | 24.66M | 51.69M | 111.36M | 149.36M | 99.11M | 38.7M | 25.48M | 15.84M | 8.95M | -2.54M |
| Pretax Margin % | 24.5% | 21.6% | 2.76% | 5.65% | 6.73% | 15.7% | 17.97% | 6.57% | 5.61% | 5% | 4.51% | -2.58% |
| Income Tax | 55.57M | 42.96M | 3.69M | 29.63M | 32.41M | 38.99M | 21.56M | -3.44M | -39.69M | 2.64M | 2.45M | -904K |
| Effective Tax Rate % | 22.82% | 21.18% | 14.95% | 57.33% | 29.1% | 26.1% | 21.75% | -8.89% | -155.73% | 16.66% | 27.37% | 35.59% |
| Net Income | 184.01M | 155.9M | 20.97M | 31.1M | 193.78M | 109.24M | 77.55M | 42.15M | 65.17M | 13.2M | 6.5M | -1.64M |
| Net Margin % | 18.51% | 16.6% | 2.34% | 3.4% | 11.71% | 11.48% | 14.06% | 7.16% | 14.35% | 4.17% | 3.28% | -1.66% |
| Net Income Growth % | 21.07% | 643.39% | -32.57% | -83.95% | 77.39% | 40.86% | 84.01% | -35.33% | 393.75% | 103.16% | 497.13% | - |
| Net Income (Continuing) | 187.95M | 159.84M | 20.97M | 22.05M | 78.95M | 110.37M | 77.55M | 42.15M | 65.17M | 13.2M | 6.5M | -1.64M |
| Discontinued Operations | -1000K | -3.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 36.75M | 162.81M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.04 | 1.55 | 0.20 | 0.19 | 1.51 | -0.00 | 0.68 | 0.37 | 0.57 | 0.12 | -0.25 | -0.03 |
| EPS Growth % | 34.69% | 675% | 5.26% | -87.42% | - | -100.19% | 83.78% | -35.09% | 375% | 148% | -633.14% | - |
| EPS (Basic) | - | 1.59 | 0.20 | 0.19 | 1.64 | -0.00 | 0.69 | 0.38 | 0.60 | 0.13 | -0.25 | -0.02 |
| Diluted Shares Outstanding | 90.12M | 96.76M | 106.26M | 114.19M | 128.15M | 117.14M | 113.85M | 113.43M | 113.36M | 108.26M | 106.75M | 48.02M |
| Basic Shares Outstanding | 89.1M | 95.29M | 104.54M | 113.24M | 118.47M | 117.14M | 112.85M | 111.45M | 108.83M | 101.66M | 102.69M | 102.69M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CARG stock.
For fiscal year 2025, CarGurus, Inc. (CARG) reported total revenue of $939.0M. This represents a 852.4% increase compared to $98.6M in 2015.
CarGurus, Inc. (CARG) is profitable, generating $155.9M in net income for the fiscal year ending 2025 with a net profit margin of 16.6%.
CarGurus, Inc. (CARG) reported an operating income of $194.4M, resulting in an operating profit margin of 20.7%. This margin reflects the operational efficiency of the business before interest and taxes.
CarGurus, Inc. (CARG) generated $835.5M in gross profit for the year, representing a gross profit margin of 89.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Wholesale volatility and EPS uncertainty
Metrics are mathematically derived from official filings.
Stabilizing Growth with International Momentum
Revenue grew 7.2% year-over-year in 2026Q2 to $251.0M, with international expansion cited as a key driver, though domestic marketplace maturation appears to temper overall acceleration.
The 7.2% growth in 2026Q2 marks a slight deceleration from the 8.2% in 2026Q1, suggesting a plateau in the core U.S. marketplace. However, the company's recent commentary highlights international strength, which may indicate that geographic diversification is beginning to offset domestic saturation. Investors should monitor whether this international momentum can sustain growth above the mid-single-digit range, as the sequential revenue increase of only $7.4M implies a modest pace.
Gross Margin Expansion Reflects Mix Shift
Gross margin reached 92.1% in 2026Q2, up from 87.3% a year earlier, driven by a favorable mix toward the high-margin marketplace segment and lower wholesale contribution.
The 480 basis point year-over-year gross margin improvement suggests that the lower-margin Digital Wholesale segment is becoming a smaller part of the revenue mix, or that wholesale margins are stabilizing. This structural shift enhances the overall profitability profile, but it also implies that the wholesale segment's volatility may be less impactful on consolidated results. The sustainability of this margin level depends on the company's ability to maintain marketplace growth without aggressive discounting.
Operating Leverage Recovering from Wholesale Shock
Operating margin rebounded to 25.1% in 2026Q2 from a trough of 10.6% in 2025Q2, as SG&A efficiency improved and gross profit scaled faster than operating expenses.
The operating income of $63.0M in 2026Q2 is the highest in the provided periods, reflecting a 154% increase from the depressed $24.8M in 2025Q2. This recovery appears to be driven by both gross margin expansion and disciplined cost control, with SG&A as a percentage of revenue declining to 50.1% from 47.6% in the prior year. The company seems to be leveraging its fixed-cost base effectively, though the elevated R&D spend in 2025Q3 (49.7M) suggests that investment cycles can temporarily disrupt this trend.
EPS Volatility Masks Underlying Profitability
Diluted EPS swung from -$0.66 in 2024Q2 to $0.54 in 2026Q2, but stock-based compensation of $13.4M in 2026Q2 remains a significant non-cash charge that investors should normalize.
The reported net income of $49.2M in 2026Q2 is robust, yet the SBC expense represents roughly 27% of operating income, indicating that GAAP earnings overstate cash generation. The 2024Q2 loss of -$68.7M appears to be an anomaly, likely related to impairment or restructuring charges, which distorts year-over-year comparisons. Investors should focus on cash-based metrics and the sustainability of the tax rate, as the effective tax rate implied by the net income to pre-tax income ratio is approximately 22%, which is reasonable.
SG&A Efficiency Drives Margin Recovery
SG&A as a percentage of revenue fell to 50.1% in 2026Q2 from 47.6% in 2025Q2, while R&D remained stable at around 15% of revenue, indicating a focus on marketing efficiency.
The decline in SG&A intensity suggests that the company is gaining more revenue per dollar of sales and marketing spend, possibly due to improved traffic acquisition efficiency or higher ARPD. R&D spending has been relatively flat in absolute terms, hovering around $35-38M in recent quarters, which may indicate a maturation of the platform development cycle. However, the spike in R&D in 2025Q3 to $49.7M highlights that investment can be lumpy, and investors should watch for any sustained increase that could pressure margins.
2024Q2 Loss Marks a Turning Point
The -$93.6M operating loss in 2024Q2, likely driven by wholesale-related charges, appears to have been a one-time reset that preceded a strong margin recovery to 25.1% by 2026Q2.
The 2024Q2 loss stands out as a clear inflection point, with operating income swinging from -$93.6M to positive territory in subsequent quarters. This suggests that the company took significant write-downs or restructuring charges related to its CarOffer integration, which have not recurred. The recovery to a 25.1% operating margin by 2026Q2 indicates that the underlying marketplace business remained healthy, and the company has since stabilized its wholesale operations. The lasting impact is a more disciplined approach to wholesale, as evidenced by the improved gross margins.
Wholesale Volatility and EPS Uncertainty
Despite strong margins, the unreported EPS relative to the $0.62 consensus and the volatile wholesale segment suggest that reported profitability may not be as predictable as headline numbers imply.
The absence of a disclosed EPS figure for 2026Q2, despite a revenue beat, introduces uncertainty about margin execution and cost discipline. The wholesale segment has shown significant swings, as seen in the gross margin fluctuations from 78.9% in 2024Q3 to 92.1% in 2026Q2, which could indicate that the company is managing mix to smooth results. Short-sellers might argue that the company's reliance on traffic acquisition makes it vulnerable to rising digital ad costs, and that the wholesale segment's lower margins could drag on profitability if it grows. Investors should monitor the sustainability of the current margin profile and the clarity of EPS reporting.