CarGurus (CARG) Bank of America 2026 Global Technology Conference summary

Business performance and financial outlook

• Achieved 15% year-over-year growth in Q1, with several years of double-digit growth driven by product innovation and expansion.

• EPS from 2023 to 2025 grew at a CAGR above 50%, supported by significant share buybacks.

• Guidance maintained for double-digit growth in 2026, with some margin compression to support product innovation, especially in software and data.

• Revenue growth is primarily driven by QARSD (quarterly average revenue per subscribing dealer) and rooftop growth, with upselling and cross-selling as key contributors.

• Continued investment in innovation, M&A, and share repurchases, with $175 million bought back in Q1 and a $250 million repurchase approval for the year.

AI strategy and product innovation

• Building AI-native tools for both consumers and dealers, leading the industry in AI product development.

• AI is transforming the car shopping journey from curated information to expert-guided recommendations, reducing consumer effort and optimizing outcomes.

• Early integration with ChatGPT app marketplace, with LLM-driven traffic converting at twice the normal rate.

• AI-powered virtual assistant, Discover, enables deep consumer engagement and provides dealers with rich consumer profiles.

• New products like PriceVantage and New Car Exposure are expected to grow 15x this year, becoming significant revenue streams.

Dealer engagement and competitive positioning

• Over 50% penetration of the dealer market across the U.S., U.K., and Canada, with strong market share gains and best-in-class ROI for dealers.

• Dealer-focused products such as Shopper Signals and Digital Deal enhance lead conversion and transaction efficiency.

• Dealer Performance Partners team works directly with hundreds of dealers annually to maximize platform value and adoption of best practices.

• Data advantage includes proprietary, structured, and longitudinal data from 85% of U.S. inventory, creating a strong competitive moat.

• Trust and transparency are emphasized as key differentiators in both dealer and consumer relationships.