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Mar 31
Cargurus Q1 2025 Earnings Report
Reported First Quarter 2025 Results
Key Takeaways
CarGurus reported strong first-quarter 2025 results, with total revenue growing 4% year-over-year, driven by a 13% increase in Marketplace revenue. GAAP Net Income saw a significant increase of 83%, and Non-GAAP Adjusted EBITDA was up 32% year-over-year. The company also repurchased a substantial amount of shares.
Marketplace revenue increased by 13% year-over-year in Q1 2025.
GAAP Net Income for Q1 2025 was $39.0 million, an 83% increase compared to the prior year.
Non-GAAP Adjusted EBITDA reached $66.3 million, up 32% year-over-year.
The company repurchased $184.2 million worth of shares, representing 6% of outstanding capital.
Cargurus
Cargurus
Cargurus Revenue by Segment
Revenue by Segment
U.S. Marketplace Revenue
CapyFin.comDigital Wholesale Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
CarGurus provided guidance for the second quarter of 2025, expecting total revenue between $222.0 million and $242.0 million, Marketplace Revenue between $219.5 million and $224.5 million, Non-GAAP Adjusted EBITDA between $71.5 million and $79.5 million, and Non-GAAP Earnings per Share between $0.52 and $0.58.
Positive Outlook
- Anticipated growth in Total Revenue for Q2 2025.
- Expected increase in high-margin Marketplace Revenue in Q2 2025.
- Projected higher Non-GAAP Adjusted EBITDA for Q2 2025.
- Forecasted improvement in Non-GAAP Earnings per Share for Q2 2025.
- Guidance is based on recent positive market trends and industry conditions.
Challenges Ahead
- Guidance excludes potential impacts of future foreign currency exchange gains or losses.
- Guidance excludes any potential impact of future acquisitions.
- Guidance does not account for potential macro-level industry issues that could alter dealer and consumer behavior.
- Reconciliation of non-GAAP guidance to GAAP measures is not provided due to the inability to reasonably predict certain reconciling items.
- Uncertainty exists regarding the timing, amount, valuation, and number of future employee equity awards.
Revenue & Expenses
Visualization of income flow from segment revenue to net income