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Jun 30
Cargurus Q2 2025 Earnings Report
CarGurus announced its second quarter 2025 results, reporting sustained strong momentum in its Marketplace business and plans to wind down its CarOffer transactions business.
Key Takeaways
CarGurus delivered a strong second quarter in its Marketplace business, with revenue increasing by 14% year-over-year. The company reported a net income of $22.3 million and a non-GAAP Adjusted EBITDA of $77.3 million, up 39% year-over-year. Concurrently, CarGurus announced its strategic decision to wind down the CarOffer transactions business to focus on technology and analytics for smarter sourcing decisions.
Marketplace revenue grew by 14% year-over-year, demonstrating sustained strong performance in this core segment.
The company achieved a net income of $22.3 million and a significant 39% year-over-year increase in Non-GAAP Adjusted EBITDA to $77.3 million.
CarGurus' Board approved an additional $150 million share repurchase, increasing the 2025 authorization to $350 million and extending it through July 2026.
The strategic decision to wind down the CarOffer transactions business reflects a sharpened focus on technology and analytics for sourcing rather than transaction facilitation.
Cargurus
Cargurus
Cargurus Revenue by Segment
Revenue by Segment
U.S. Marketplace Revenue
CapyFin.comDigital Wholesale Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
For the third quarter of 2025, CarGurus expects Marketplace Revenue to be between $228.0 million and $233.0 million, and Non-GAAP Earnings per Share to be between $0.50 and $0.58. The company also anticipates incurring approximately $14.0 million to $19.0 million in expenditures primarily in the second half of 2025 due to the wind-down of the CarOffer transactions business.
Positive Outlook
- Anticipated Marketplace Revenue of $228.0 million to $233.0 million for Q3 2025, indicating continued strength in the core business.
- Projected Non-GAAP Earnings per Share of $0.50 to $0.58 for Q3 2025.
- Focus on technology and analytics for smarter sourcing and pricing decisions post-CarOffer wind-down.
- The wind-down of CarOffer allows for sharpening focus on core strengths.
- Guidance assumes continued positive market trends and industry conditions.
Challenges Ahead
- The wind-down of the CarOffer transactions business is expected to incur $14.0 million to $19.0 million in expenditures, primarily in the second half of 2025.
- Uncertainty in the timing, amount, valuation, and number of future employee equity awards makes GAAP reconciliation difficult for forward guidance.
- Potential for charges or cash expenditures not currently contemplated due to unanticipated events related to the CarOffer wind-down.
- Guidance excludes macro-level industry issues that could materially change dealer and consumer trends.
- The company operates in very competitive and rapidly changing environments, with new risks emerging over time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income