CarGurus Revenue Growth Slows to 12% in Third Quarter

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter revenue reached $258.4 million, at the high end of the company’s range, as year-over-year growth cooled from 15% in the first quarter.

CarGurus, Inc. (CARG), the No. 1 visited automotive shopping site in the U.S., reported third-quarter revenue of $258.4 million, up 12% from a year earlier and at the high end of its guidance range.

That pace marked a further step-down from 13% growth to $251.0 million in the second quarter and 15% growth to $243.6 million in the first quarter. Chief Executive Officer Jason Trevisan said the company delivered strong results, with revenue at the high end of guidance and Adjusted EBITDA near the high end.

GAAP net income from continuing operations was $52.8 million, up 2% year over year. A year earlier, the company had recorded a $7.2 million net loss from discontinued operations during CarOffer’s wind-down; no results were classified as discontinued operations in the three months ended September 30, 2026. Non-GAAP Adjusted EBITDA from continuing operations was $89.7 million, up 9% year over year and near the high end of the company’s range. Adjusted EBITDA margin was 35%, down 89 basis points from a year earlier.

Gross profit was $237.1 million, with margin at 92%, down 92 basis points year over year. Operating expenses were $169.1 million. There was no impairment in operating expenses in the three months ended September 30, 2026.

U.S. revenue was $232.5 million and international revenue was $25.9 million. Total paying dealers were 34,701, up 3% year over year. U.S. paying dealers were 26,402 and international paying dealers were 8,299. Consolidated QARSD was $6,955, up 7% year over year. U.S. QARSD was $8,308 and international QARSD was $2,715.

GAAP net cash, cash equivalents, and restricted cash provided by operating activities was $80.8 million. Non-GAAP free cash flow was $73.9 million. Cash and cash equivalents at period end were $164.9 million. The company repurchased $22.9 million of common stock in the quarter.

Trevisan said the company is bringing products to market faster and building from its marketplace foundation into a broader set of AI-enabled solutions across the dealer workflow, including the launch of StockVantage. For consumers, he said, the company is meeting shoppers in the AI tools they already use as it works toward becoming the expert guide for car shopping in an AI-led world.

The Board of Directors authorized a $250.0 million share repurchase program.

For the fourth quarter of 2026, CarGurus guides to total revenue of $258.5 million to $263.5 million and non-GAAP Adjusted EBITDA from continuing operations of $93.0 million to $101.0 million. Full-year 2026 guidance is total revenue of $1,011.5 million to $1,016.5 million, or 11.5% to 12.1% year-over-year growth, and non-GAAP Adjusted EBITDA from continuing operations of $347.5 million to $355.5 million. Guidance for fourth-quarter and full-year non-GAAP earnings per share from continuing operations assumes 90.0 million and 92.0 million diluted weighted-average common shares outstanding, respectively. The company said the outlook is based on recent market trends, industry conditions, and management’s expectations as of November 5, 2026, and excludes macro-level industry issues that would cause dealers and consumers to materially change recent trends.