CarGurus 2025 revenue up 14%, announces $250 mln buyback

Reuters
Feb 20
CarGurus 2025 revenue up 14%, announces $250 mln buyback

Overview

  • U.S. automotive platform's full-year 2025 revenue grew 14% YoY

  • Q4 adjusted EBITDA beat analyst expectations

  • Company announces new $250 mln share repurchase program for 2026

Outlook

  • CarGurus expects first-quarter revenue between $240.5 mln and $245.5 mln

  • Company forecasts full-year 2026 revenue growth of 10% to 13%

  • CarGurus projects first-quarter non-GAAP EPS between $0.52 and $0.58

Result Drivers

  • PRODUCT ADOPTION - Revenue growth driven by expanding wallet share and accelerating product adoption, improving retention, and adding new dealers

  • AI-DRIVEN INNOVATION - AI-driven products enhanced customer engagement, contributing to financial performance

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Net Income

$49.80 mln

Q4 Adjusted EBITDA

Beat

$88.50 mln

$87.26 mln (14 Analysts)

Q4 Gross Profit

$222.60 mln

Q4 Operating Expenses

$153.50 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 $40.50, about 43.1% above its February 18 closing price of $28.30

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX31TjWh

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(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.)

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