CarGurus (NASDAQ:CARG) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

07 Nov 2026, 03:42 by Danessa Lincoln · The Markets Daily

CarGurus (NASDAQ:CARG – Get Free Report) posted its earnings results on Thursday. The company reported $0.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.04, FiscalAI reports. The business had revenue of $258.37 million during the quarter, compared to analysts’ expectations of $256.46 million. CarGurus had a return on equity of 62.88% and a net margin of 18.06%. CarGurus’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.57 EPS.

Here are the key takeaways from CarGurus’ conference call:

Q3 revenue rose 12% year over year to $258 million, at the high end of guidance, while adjusted EBITDA increased 9% to $89.7 million. The 35% adjusted EBITDA margin was down 90 basis points year over year, and results included a $1.3 million real-estate-tax benefit.
Dealer adoption beyond core listings continued to expand: U.S. paying dealers using at least one additional product grew about 16% year over year, and net U.S. dealer ads rose by 251 sequentially. CarGurus cited strong early adoption of VINMax and launched StockVantage to extend its inventory tools.
Dealer margins and consumer affordability remain under pressure, with higher borrowing costs contributing to cautious spending. Q4 revenue guidance implies 7.2%–9.3% year-over-year growth, and full-year adjusted EBITDA margin is expected to decline 20–80 basis points.
CarGurus said AI-related search has not materially cannibalized its traffic so far, while Guru usage rose 24% sequentially and Dealership Mode usage reached a record, up 105% from Q2. The company is positioning its proprietary data and shopping tools to reach consumers across newer AI interfaces.
Free cash flow was $74 million in Q3, and the company ended the quarter with $165 million in cash. Its board authorized a new $250 million share-repurchase program, effective through December 2027.

CarGurus Price Performance

NASDAQ:CARG traded down $2.41 during trading hours on Friday, reaching $33.74. 2,581,082 shares of the stock were exchanged, compared to its average volume of 1,483,843. The stock has a market cap of $3.01 billion, a PE ratio of 16.40, a PEG ratio of 1.20 and a beta of 1.22. CarGurus has a twelve month low of $26.39 and a twelve month high of $41.22. The firm has a 50 day moving average of $32.17 and a 200 day moving average of $32.85.

More CarGurus News

Here are the key news stories impacting CarGurus this week:

Positive Sentiment: Third-quarter revenue increased 12% year over year to $258 million, slightly topping estimates, while adjusted EPS of $0.70 beat the $0.66 consensus. Adjusted EBITDA was $89.7 million, near the high end of the company’s guidance range. CarGurus Announces Third Quarter 2026 Results
Positive Sentiment: The board authorized a $250 million share-repurchase program, which could support per-share results and signal confidence in the business. CarGurus Announces Third Quarter 2026 Results
Positive Sentiment: Paying U.S. dealers using CarGurus products beyond listings grew 16% year over year, suggesting continued traction in additional dealer services. CarGurus: 3 Key Takeaways for Long-Term Investors
Neutral Sentiment: Royal Bank of Canada lowered its price target from $42 to $41 but kept its “outperform” rating, retaining a favorable view while trimming its valuation outlook. Royal Bank of Canada recommendations
Negative Sentiment: Despite the quarterly beats, CarGurus’ revenue guidance for the next quarter came in slightly below expectations. That softer outlook is the clearest potential explanation for the stock’s weakness. Q3 sales beat estimates but quarterly revenue guidance slightly misses expectations

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on CARG shares. BTIG Research upped their price target on shares of CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a report on Friday, August 7th. Wall Street Zen upgraded shares of CarGurus from a “hold” rating to a “buy” rating in a report on Saturday, October 31st. B. Riley Financial reaffirmed a “buy” rating on shares of CarGurus in a research report on Friday, August 7th. Needham & Company LLC increased their target price on CarGurus from $43.00 to $44.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Finally, Barclays lowered their target price on CarGurus from $41.00 to $38.00 and set an “overweight” rating for the company in a report on Tuesday, October 6th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $39.85.

Check Out Our Latest Analysis on CarGurus

Insider Buying and Selling

In related news, COO Samuel Zales sold 10,000 shares of the stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $32.33, for a total transaction of $323,300.00. Following the completion of the transaction, the chief operating officer owned 419,735 shares in the company, valued at approximately $13,570,032.55. This represents a 2.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Dafna Sarnoff sold 7,234 shares of the firm’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $29.62, for a total transaction of $214,271.08. Following the completion of the transaction, the chief marketing officer directly owned 94,884 shares of the company’s stock, valued at approximately $2,810,464.08. This trade represents a 7.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 82,846 shares of company stock valued at $2,803,095 over the last ninety days. Insiders own 18.19% of the company’s stock.

About CarGurus

(Get Free Report)

CarGurus, Inc operates an online automotive marketplace that connects consumers with automobile dealers and private sellers. Its platform enables shoppers to search for new and used vehicles, compare listings, evaluate vehicle and dealer information, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital listing, advertising and marketing products designed to help them reach potential buyers.