Revenue growth has stabilized at 8.2% in 2026Q1, supported by a structural shift that pushed gross margins to 92.2% from the 75.3% trough observed in 2023Q4.
| Sales/Revenue | 957.38M | 938.98M | 894.38M | 914.24M | 1.66B | 951.37M | 551.45M | 588.92M | 454.09M | 316.86M | 198.14M | 98.59M |
| Revenue Growth % | 5.93% | 4.99% | -2.17% | -44.76% | 73.96% | 72.52% | -6.36% | 29.69% | 43.31% | 59.92% | 100.98% | - |
| Cost of Goods Sold | 96.92M | 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 | 860.45M | 835.54M | 738.95M | 651.45M | 657.55M | 657.36M | 508.75M | 552.62M | 429.27M | 299.25M | 188.57M | 94.35M |
| Gross Margin % | 89.88% | 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 | 652.79M | 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 | 452.76M | 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 | 157.14M | 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 | 2M | 43.12M | 146.79M | 15.83M | 15.48M | 14.41M | 6.12M | 4.55M | 10K | 563K | 1.63M | 969K |
| Operating Income | 207.93M | 194.4M | 13.41M | 32.63M | 108.48M | 148.27M | 97.76M | 34.32M | 23.19M | 15.27M | 8.57M | -2.53M |
| Operating Margin % | 21.72% | 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 | 245.59M | 226.71M | 38.77M | 81.1M | 164.88M | 198.92M | 104.62M | 42.14M | 31.91M | 19.07M | 10.64M | -1.41M |
| EBITDA Margin % | 25.65% | 24.14% | 4.34% | 8.87% | 9.96% | 20.91% | 18.97% | 7.16% | 7.03% | 6.02% | 5.37% | -1.43% |
| EBITDA Growth % | 328.48% | 484.73% | -52.19% | -50.81% | -17.11% | 90.13% | 148.28% | 32.06% | 67.33% | 79.17% | 856.97% | - |
| D&A (Non-Cash Add-back) | 37.66M | 32.31M | 25.36M | 48.47M | 56.4M | 50.65M | 6.87M | 7.82M | 8.72M | 3.79M | 2.07M | 1.12M |
| EBIT | 240.6M | 202.8M | 147.91M | 32.63M | 111.36M | 149.36M | 97.76M | 34.32M | 25.48M | 15.87M | 8.57M | -2.53M |
| Net Interest Income | 7.72M | 9.15M | 12.19M | 18.43M | 3.85M | 120K | 1.07M | 2.98M | 2.28M | 840K | 390K | -12K |
| Interest Income | 7.72M | 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 | -12.53M | 8.4M | 11.24M | 19.06M | 2.88M | 1.09M | 1.35M | 4.38M | 2.29M | 563K | 374K | -12K |
| Pretax Income | 195.39M | 202.8M | 24.66M | 51.69M | 111.36M | 149.36M | 99.11M | 38.7M | 25.48M | 15.84M | 8.95M | -2.54M |
| Pretax Margin % | 20.41% | 21.6% | 2.76% | 5.65% | 6.73% | 15.7% | 17.97% | 6.57% | 5.61% | 5% | 4.51% | -2.58% |
| Income Tax | 42.37M | 42.96M | 3.69M | 29.63M | 32.41M | 38.99M | 21.56M | -3.44M | -39.69M | 2.64M | 2.45M | -904K |
| Effective Tax Rate % | 21.68% | 21.18% | 14.95% | 57.33% | 29.1% | 26.1% | 21.75% | -8.89% | -155.73% | 16.66% | 27.37% | 35.59% |
| Net Income | 149.09M | 155.9M | 20.97M | 31.1M | 193.78M | 109.24M | 77.55M | 42.15M | 65.17M | 13.2M | 6.5M | -1.64M |
| Net Margin % | 15.57% | 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 % | 285.08% | 643.39% | -32.57% | -83.95% | 77.39% | 40.86% | 84.01% | -35.33% | 393.75% | 103.16% | 497.13% | - |
| Net Income (Continuing) | 153.03M | 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) | 1.57 | 1.55 | 0.20 | 0.19 | 1.51 | -0.00 | 0.68 | 0.37 | 0.57 | 0.12 | -0.25 | -0.03 |
| EPS Growth % | 334.29% | 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 | 95.1M | 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 | 94.06M | 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 | - | - | - | - | - | - | - | - | - | - | - | - |
Digital traffic acquisition costs
As reported in recent financial statements, CarGurus achieved a revenue growth rate of 8.2% in 2026Q1, reflecting a stabilization in top-line performance following the volatile periods observed throughout 2024, where quarterly revenue growth fluctuated significantly between negative 22.2% and positive 5.4% year-over-year.
The recent acceleration suggests that the company is successfully navigating the transition toward a more transaction-oriented model. Investors should monitor whether this growth is driven by sustainable ARPD expansion or if it remains sensitive to the cyclical nature of the used-vehicle market.
According to the latest quarterly data, the company's gross margin reached 92.2% in 2026Q1, a notable improvement from the 75.3% trough recorded in 2023Q4, indicating a successful shift toward higher-margin software-driven revenue streams and improved cost management within the core marketplace segment.
This margin profile appears to validate the company's asset-light strategy, distinguishing it from more capital-intensive peers. The ability to maintain such high gross margins suggests significant pricing power, though it warrants further investigation into whether this is sustainable as the Digital Wholesale segment scales.
Based on the provided income statement data, operating income reached $59.3 million in 2026Q1, demonstrating a clear trend of operating leverage as the company scales its platform, particularly when contrasted with the significant operating losses reported in 2024Q2 and 2023Q4.
The improvement in operating margins to 24.3% suggests that management is effectively controlling SG&A expenses relative to revenue growth. This trend implies that the platform is reaching a level of maturity where incremental revenue contributes more meaningfully to the bottom line.
As indicated by the financial disclosures, stock-based compensation remains a consistent feature of the company's cost structure, with $13.3 million recorded in 2026Q1, which continues to act as a bridge between GAAP net income and the underlying cash-generating capability of the business.
While net income has shown recovery, the persistent level of SBC suggests that investors should focus on normalized earnings to assess true operational performance. The volatility in EPS, ranging from a loss of $0.66 in 2024Q2 to a profit of $0.51 in 2025Q4, highlights the impact of non-operating items and integration costs.
Despite the recent recovery, the company's reliance on high-intent traffic acquisition remains a critical vulnerability, as evidenced by the significant SG&A spend of $124.0 million in 2026Q1, which may be susceptible to competitive bidding pressures from larger search engine platforms.
Short-term margin expansion could be challenged if the cost of acquiring users increases, potentially forcing a trade-off between growth and profitability. Investors should monitor whether the 'Digital Deal' product can sufficiently offset these rising acquisition costs to maintain long-term margin stability.
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.