CARG earnings analysis
What we found in CARG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CarGurus reported strong Q1 2026 results with revenue increasing by 15% to $243.6 million compared to the same quarter last year, surpassing estimates. EPS beat expectations at $0.58, reflecting strong operational efficiency despite increased costs. Management anticipates revenue growth in Q2 2026 between $247 million and $252 million, guided by strategic enhancements and a focus on subscription growth.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Accelerates
- Q1 2026 revenue reached $243.6 million, a 15% increase from $212.2 million in Q1 2025.
- EPS Exceeds Expectations
- Reported diluted EPS of $0.58, outperforming the consensus estimate of $0.55.
- Strong Operating Cash Flow
- Operating cash flow increased to $69.8 million in Q1 2026, up from $67.9 million in Q1 2025.
- Share Buyback Program
- In Q1 2026, CarGurus repurchased $175 million of its stock, reducing the share count substantially.
- Adjusted EBITDA Rises
- Adjusted EBITDA from continuing operations grew to $80.2 million, up from $68.7 million year-over-year.
- Cost Management Improvements
- Despite increases in operating expenses, the gross margin improved to 92.2% from 93.1%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Impairment Charges
- Significant impairment charges of $19.2 million were recorded due to lower anticipated rental rates.
- Higher Operating Expenses
- Operating expenses increased sharply by 25% to $184.5 million, driven primarily by increased marketing and personnel costs.
- Decline in Net Income
- Net income from continuing operations fell to $32.2 million compared to $42.1 million a year prior.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.58
- Gross margin
- 92.2%
- Operating margin
- 16.5%
What they said about what is next.
Management expects Q2 2026 revenue between $247 million and $252 million, and EPS in the range of $0.57 to $0.64.
The filing reads better than the one before it.
What came before.
- 10-K · February 19, 2026
- CarGurus reports a recovery in 2025 with consolidated quarterly revenue of $225M, $234M, $239M and $209M (FY2025 TTM ≈ $907M), stronger margins, and materially improved free cash flow. Management completed the wind-down…
- 10-Q · August 7, 2025
- CarGurus reported Q2 revenue of $234.0M, up from $218.7M a year ago, with gross profit of $204.4M and gross margin of ~87.3%. The company returned to operating profitability with operating income of $24.8M (10.6%…
- 10-Q · May 8, 2025
- CarGurus reported quarterly revenue of $225,158,000, up from $215,796,000 a year ago, with gross profit rising to $199,707,000 and gross margin improving to ~88.7%. Operating income increased to $45,755,000 (from…
- 10-K · February 20, 2025
- CarGurus positions itself as a data‑driven, multi‑marketplace automotive platform focused on expanding from a listings marketplace into digital retail and wholesale (CarOffer). The 10‑K emphasizes scale — "29.3 million…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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