CarGurus (CARG) Q4 2025 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth for 2025, reaching $907 million, with Adjusted EBITDA up 25% and GAAP net income up 53% year-over-year.

• Completed the wind-down of CarOffer, transitioning to single-segment reporting from Q4 2025, with related financials presented as discontinued operations.

• Expanded product innovation, launching more new products than any prior year and embedding data and AI into workflows; Digital Deal adoption reached 13,500 dealers globally.

• Returned $350 million to shareholders via share repurchases in 2025 and authorized a new $250 million program for 2026.

• International revenue grew 27% year-over-year, driven by dealer acquisition and wallet share expansion.

Financial highlights

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

• 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–$245.5 million; non-GAAP Adjusted EBITDA guidance: $72 million–$80 million.

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

• Full-year 2026 revenue expected to grow 10%–13% year-over-year; Adjusted EBITDA margin expected to decrease by 1.5–2.5 percentage points due to increased investment in AI and product development.