CarGurus (CARG) Q4 2025 earnings summary

Executive summary

• Full-year 2025 revenue from continuing operations increased 14% year-over-year to $907 million, marking a second consecutive year of mid-teens growth.

• Adjusted EBITDA from continuing operations grew 25% year-over-year to $319 million, with significant product innovation and expansion into software and data solutions.

• Completed the wind-down and abandonment of CarOffer in Q4 2025, now reporting as a single segment from Q4 2025 onward.

• Digital Deal adoption reached 13,500 dealers globally, with high-value leads up 78% year-over-year.

• Approximately $350 million in shares were repurchased in 2025, with a new $250 million share repurchase program announced for 2026.

Financial highlights

• Q4 2025 revenue was $241.1 million, up 15% year-over-year; full-year revenue was $907 million, up 14%.

• Q4 non-GAAP gross profit was $222.7 million (92% margin); full-year non-GAAP gross profit was $841.5 million (93% margin).

• Q4 non-GAAP Adjusted EBITDA was $88.5 million (37% margin); full-year Adjusted EBITDA was $319 million (35% margin).

• Q4 GAAP net income from continuing operations was $53.7 million (22% margin); full-year was $196.7 million (22% margin), up 53% year-over-year.

• Ended 2025 with $190.5 million in cash and cash equivalents; non-GAAP free cash flow for 2025 was $266 million.

Outlook and guidance

• Q1 2026 revenue expected between $240.5 million and $245.5 million; non-GAAP Adjusted EBITDA expected between $72 million and $80 million.

• Q1 2026 non-GAAP EPS guidance: $0.52 to $0.58, assuming 94.0 million diluted shares.

• Full-year 2026 revenue expected to grow 10%-13% year-over-year.

• Full-year 2026 non-GAAP Adjusted EBITDA margin expected to compress by 1.5-2.5 percentage points due to increased investment in product and AI innovation.

• Guidance assumes stable market trends and excludes major macroeconomic disruptions or foreign currency fluctuations.