Overview
CarGurus Q2 Marketplace revenue up 14% YoY, reflecting strong business momentum
Adjusted EBITDA for Q2 beats analyst expectations, indicating operational efficiency
Co to wind down CarOffer transactions business, focusing on analytics and sourcing
Board approves additional $150 mln share repurchase, extending authorization to $350 mln
Outlook
CarGurus sees Q3 2025 Marketplace revenue between $228 mln and $233 mln
Company expects Q3 2025 non-GAAP EPS of $0.50 to $0.58
CarGurus projects Q3 2025 adjusted EBITDA of $76.5 mln to $84.5 mln
Result Drivers
MARKETPLACE REVENUE - Driven by strong business momentum, Marketplace revenue rose 14% YoY
CAROFFER WIND DOWN - Co to wind down CarOffer transactions business, focusing on analytics and sourcing
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income | $22.30 mln | ||
Q2 Adjusted EBITDA | Beat | $77.30 mln | $75.20 mln (14 Analysts) |
Q2 Gross Profit | $204.40 mln | ||
Q2 Operating Expenses | $179.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for CarGurus Inc is $40.00, about 20.5% above its August 6 closing price of $31.81
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nGNX6970bP
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)