CarGurus Q1 Revenue Rises 15% to $243.6M, EBITDA Tops Guidance
CarGurus reported first-quarter revenue of $243.6 million, up 15% year-over-year, and non-GAAP adjusted EBITDA of $80.2 million, topping guidance's high end, while GAAP net income fell 23% to $32.2 million. The company repurchased $175 million of shares in Q1, totaling 29% of outstanding shares since December 2022.
1. First-Quarter Financial Results
CarGurus posted revenue of $243.6 million in Q1, a 15% year-over-year increase, with gross profit of $224.6 million (+14%) and a 92% margin. GAAP net income from continuing operations declined 23% to $32.2 million while non-GAAP adjusted EBITDA rose 17% to $80.2 million, representing a 33% margin.
2. Dealer Metrics and Cash Position
Total paying dealers reached 34,596, up 7%, driven by 9% growth in U.S. dealers and 17% internationally. Consolidated quarterly average revenue per dealer increased 8% to $6,647, and cash and equivalents ended at $72.0 million, down 62% year-over-year.
3. Capital Allocation and Share Repurchases
The company repurchased $175 million of common stock during Q1, bringing total buybacks since December 2022 to 29% of outstanding shares. This aggressive repurchase program reflects management’s commitment to returning capital to shareholders.
4. Q2 and Full-Year Guidance
CarGurus expects Q2 revenue between $247.0 million and $252.0 million, non-GAAP adjusted EBITDA of $77.5 million to $85.5 million, and EPS of $0.57 to $0.64. Full-year 2026 revenue growth is projected at 10%–13% with adjusted EBITDA margin declines of 1.5 to 2.5 percentage points.