CarGurus Announces Third Quarter 2026 Results

(NASDAQ:CARG) CarGurus, Inc. announced financial results for the third quarter ended September 30, 2026. Jason Trevisan, Chief Executive Officer of CarGurus, stated that the company delivered strong third-quarter results, with revenue up 12% year-over-year at the high end of guidance and Adjusted EBITDA near the high end. Revenue for the three months ended September 30, 2026 was $258.4 million, representing a 12% increase from the prior year. Gross profit for the quarter was $237.1 million, up 10% year-over-year, with a margin of 92%. Operating expenses for the quarter were $169.1 million, up 12% from the prior year. GAAP net income from continuing operations for the quarter was $52.8 million, a 2% increase, with a margin of 20%. Non-GAAP Adjusted EBITDA from continuing operations for the quarter was $89.7 million, up 9%, with a margin of 35%. Cash and cash equivalents at period end were $164.9 million, down 13% from December 31, 2025. For the nine months ended September 30, 2026, revenue was $752.9 million, up 13% year-over-year. Gross profit for the nine months was $692.8 million, up 12%, with a margin of 92%. Operating expenses for the nine months were $521.8 million, up 18%. GAAP net income from continuing operations for the nine months was $134.2 million, down 6%, with a margin of 18%. Non-GAAP Adjusted EBITDA from continuing operations for the nine months was $254.6 million, up 10%, with a margin of 34%. During the nine months ended September 30, 2026, CarGurus recognized $20.2 million of impairments, including $0.5 million in cost of revenue and $19.7 million in operating expenses. For the three months ended September 30, 2026, U.S. Paying Dealers totaled 26,402, up 3%; International Paying Dealers were 8,299, up 5%; and Total Paying Dealers were 34,701, up 3%. U.S. QARSD was $8,308, up 7%; International QARSD was $2,715, up 14%; and Consolidated QARSD was $6,955, up 7%. For the fourth quarter 2026, CarGurus provided guidance of total revenue between $258.5 million and $263.5 million, Non-GAAP Adjusted EBITDA from continuing operations between $93.0 million and $101.0 million, and Non-GAAP Earnings per Share from continuing operations between $0.73 and $0.79. For full-year 2026, guidance is total revenue between $1,011.5 million and $1,016.5 million, revenue change year-over-year between 11.5% and 12.1%, Non-GAAP Adjusted EBITDA from continuing operations between $347.5 million and $355.5 million, Non-GAAP Adjusted EBITDA margin change year-over-year between (0.8)% and (0.2)%, and Non-GAAP Earnings per Share from continuing operations between $2.66 and $2.72. Guidance for the fourth quarter and full-year 2026 non-GAAP earnings per share from continuing operations calculations assumes 90.0 million and 92.0 million, respectively, diluted weighted-average common shares outstanding. In August 2025, the Board of Directors of CarGurus approved the wind-down of CarOffer, LLC, which was completed as of December 31, 2025. No assets or liabilities were classified as discontinued operations as of September 30, 2026 or December 31, 2025. No results of operations were classified as discontinued operations for the three and nine months ended September 30, 2026. As of September 30, 2026, total assets were $589,053,000 and total liabilities and stockholders’ equity were $589,053,000. Accounts receivable, net of allowance for doubtful accounts, was $47,049,000 as of September 30, 2026. Prepaid expenses, prepaid income taxes, and other current assets were $19,573,000 as of September 30, 2026. Deferred contract costs were $14,845,000 as of September 30, 2026. Property and equipment, net, was $129,254,000 as of September 30, 2026. Intangible assets, net, were $2,500,000 as of September 30, 2026. Goodwill was $27,881,000 as of September 30, 2026. Operating lease right-of-use assets were $96,660,000 as of September 30, 2026. Deferred tax assets were $68,199,000 as of September 30, 2026. Deferred contract costs, net of current portion, were $12,831,000 as of September 30, 2026. Other non-current assets were $5,351,000 as of September 30, 2026. Accounts payable was $31,353,000 as of September 30, 2026. Accrued expenses, accrued income taxes, and other current liabilities were $40,487,000 as of September 30, 2026. Deferred revenue was $25,639,000 as of September 30, 2026. Operating lease liabilities were $10,089,000 as of September 30, 2026. CarGurus operates online marketplaces in the U.S., U.K., and Canada. The company’s network of brands includes PistonHeads and Autolist. CarGurus Ireland Limited is referenced as the owner of the PistonHeads trademark in the U.K. and the European Union.