Key Points
-
Interested in CarGurus, Inc.? Here are five stocks we like better.
-
Q3 results grew: Revenue rose 12% year over year to $258 million, while adjusted EBITDA increased 9% to $89.7 million and non-GAAP EPS climbed 17% to $0.70.
-
Dealer adoption strengthened: CarGurus added 251 U.S. dealers sequentially, and average revenue per subscribing dealer grew 7%, supported by add-on products and listing upgrades. The company also launched StockVantage, an AI-powered inventory tool.
-
Q4 outlook and capital returns: CarGurus forecast Q4 revenue of $258.5 million to $263.5 million and authorized a new $250 million share repurchase program.
CarGurus (NASDAQ:CARG) reported 12% year-over-year revenue growth in the <a href="https://bitcomme.com/solventum-reports-third-quarter-2026-financial-results/" title="Solventum Reports Third Quarter 2026 Financial Results”>third quarter of 2026 as more dealers subscribed to its products, even as pressure on vehicle affordability and dealer margins continued to weigh on spending.
Revenue reached $258 million, at the high end of the company’s guidance range. Adjusted EBITDA rose 9% to $89.7 million, with a margin of roughly 35%, while non-GAAP earnings per diluted share increased 17% to $0.70.
→ Apple’s Earnings Beat Comes With a Catch for Investors Heading Into the Holidays
Chief Executive Officer Jason Trevisan said the dealer environment had improved sequentially, but enthusiasm had not returned to 2025 levels, primarily because of margin pressure. He added that stretched consumer affordability and higher borrowing costs were contributing to deliberate dealer spending decisions.
Dealer Growth and New Products
CarGurus added a net 251 U.S. dealers sequentially, its strongest quarter for net additions this year. Its U.S. paying dealer base increased by 659 from a year earlier, while quarterly average revenue per subscribing dealer grew 7%, Chief Financial Officer Matt Mandel said.
→ Are the Fears Around Alphabet’s Search Slowdown Warranted?
-
CarGurus Stock is Set for a Rally This Quarter, Above all Peers
Growth in that revenue measure came primarily from adoption of add-on products, followed by listings upgrades, Mandel said. The number of U.S. paying dealers subscribing to at least one product outside the company’s core listings tiers rose approximately 16% year over year.
President and Chief Operating Officer Sam Zales attributed the improvement in dealer additions to a slightly better macroeconomic environment and a broader product offering. He said international markets faced stronger pressures, including inflation, affordability challenges and interest rates. The company has also lost some international dealers as it held firm on pricing, he said.
