CarGurus Q4 EPS Up 17%, Full-Year Revenue Hits $907M; $250M Buyback
In Q4, CarGurus reported U.S. QARSD growth of 8% with 1,357 new paying US dealers, delivering Q4 non-GAAP EPS of $0.63 (+17%) and full-year EPS of $2.28 (+31%). Full-year revenue rose 14% to $907 million and adjusted EBITDA climbed 25% to $319 million, supporting a new $250 million repurchase authorization.
1. Q4 and Full-Year Financial Highlights
GAAP net income per diluted share was $0.56 in Q4 and $1.96 for the full year, up 24% and 62% respectively, while non-GAAP EPS rose 17% to $0.63 in Q4 and 31% to $2.28 for 2025. Q4 revenue reached $241 million (+15%), with adjusted EBITDA of $88 million (+13%), and full-year revenue hit $907 million (+14%) with adjusted EBITDA of $319 million (+25%).
2. Dealer Network Expansion and Profitability
U.S. QARSD grew 8% year-over-year in Q4 with 1,357 new paying dealers, and global paying dealer count rose by 2,399 for the full year. Non-GAAP gross profit increased 14% to $223 million in Q4 and 14% to $842 million for 2025, driven by subscription-listing strength, advertising overperformance and international momentum.
3. AI-Driven Product Innovation
The company launched more products than ever in 2025, processing 500 million shopper signals daily to deliver real-time pricing and inventory insights. Early adopters of Price Vantage saw inventory turnover accelerate, with 80% active weekly, while CG Discover traffic grew 3.5x and leads 10x quarter-over-quarter, boosting session times nearly 20%.
4. CarOffer Wind Down and Capital Return
CarOffer was fully wound down in Q4 at a total cost of $13.3 million, including $5.4 million in one-time restructuring charges, and is now reported as discontinued operations. The company ended 2025 with $191 million in cash, repurchased $350 million of shares during the year and authorized a new $250 million share repurchase program through 2026.