Overview

* CarGurus ( CARG ) Q2 Marketplace revenue up 14% YoY, reflecting strong business momentum

* Adjusted EBITDA for Q2 beats analyst expectations, indicating operational efficiency

* Co to wind down CarOffer transactions business, focusing on analytics and sourcing

* Board approves additional $150 mln share repurchase, extending authorization to $350 mln

Outlook

* CarGurus sees Q3 2025 Marketplace revenue between $228 mln and $233 mln

* Company expects Q3 2025 non-GAAP EPS of $0.50 to $0.58

* CarGurus projects Q3 2025 adjusted EBITDA of $76.5 mln to $84.5 mln

Result Drivers

* MARKETPLACE REVENUE - Driven by strong business momentum, Marketplace revenue rose 14% YoY

* CAROFFER WIND DOWN - Co to wind down CarOffer transactions business, focusing on analytics and sourcing

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net $22.30

Income mln

Q2 Beat $77.30 $75.20

Adjusted mln mln (14

EBITDA Analysts

)

Q2 Gross $204.40

Profit mln

Q2 $179.50

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for CarGurus Inc ( CARG ) is $40.00, about 20.5% above its August 6 closing price of $31.81

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)