Summary
CarGurus: A Solid Buy As Product Scope Expands
CarGurus delivered a strong Q3 beat and guidance raise, driving a post-earnings rally and presenting an attractive entry point for investors. CARG benefits from its dominant position as the top U.S. used car marketplace, expanding software offerings, and supportive macro trends boosting dealer demand. The company is refocusing on its high-margin marketplace business, achieving ~90% gross margins and robust adjusted EBITDA growth, while trading at compelling valuation multiples.
CarGurus, Inc. (CARG) Q3 2025 Earnings Call Transcript
CarGurus, Inc. ( CARG ) Q3 2025 Earnings Call November 6, 2025 5:00 PM EST Company Participants Kirndeep Singh - VP & Head of Investor Relations Jason Trevisan - CEO, CFO, Principal Accounting Officer & Director Samuel Zales - COO & President Conference Call Participants Christopher Pierce - Needham & Company, LLC, Research Division Marvin Fong - BTIG, LLC, Research Division Vincent Kardos - Jefferies LLC, Research Division Jamesmichael Sherman-Lewis - Citigroup Inc., Research Division Ryan James Powell - B. Riley Securities, Inc., Research Division Rajat Gupta - JPMorgan Chase & Co, Research Division Presentation Operator Good day, and welcome to the CarGurus earnings call.
CarGurus Pursues $4 Billion Dealer Software Market With AI-Powered Products
CarGurus is looking to double its total addressable market by adding artificial intelligence-powered products that go beyond its existing automotive shopping site. The company's growing range of AI-powered solutions for car dealers will expand its addressable market to include not only the $3.5 billion that U.S.
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CarGurus, Inc. Profile
| Software Industry | Information Technology Sector | Jason M. Trevisan CEO | NASDAQ (NGS) Exchange | 141788109 CUSIP |
| US Country | 1,282 Employees | - Last Dividend | - Last Split | - IPO Date |
Overview
CarGurus, Inc. stands as a leading online automotive platform, facilitating the buying and selling of vehicles across the United States and internationally. With a foundational presence established in 2005 and headquartered in Cambridge, Massachusetts, the corporation transitioned from CarGurus LLC to CarGurus, Inc. in June 2015. It has segmented its operations into U.S. Marketplace and Digital Wholesale, aiming to streamline the connection between consumers and a wide array of automotive listings. Their model prioritizes accessibility and ease, offering a diverse range of vehicles while enhancing dealer visibility to a vast, informed audience.
Products and Services
- Online Automotive Marketplace
This flagship service provides a user-friendly interface for customers to search through new and used car listings from an extensive network of dealers. This platform facilitates both the purchase of vehicles by consumers and the sale of cars by dealers and other consumers, ensuring a comprehensive marketplace for automotive needs.
- Paid Listings Subscriptions
CarGurus offers enhanced access to its marketplace through paid subscriptions, allowing dealers to increase their visibility among a large audience of engaged consumers. This service caters to dealers looking to maximize their reach and attract more informed customers to their listings.
- Dealer and Non-dealer Advertising
The company extends its services beyond the marketplace, providing advertising options for dealers and non-dealers alike. These offerings are designed to amplify visibility across CarGurus’ websites and social media platforms, enabling broader exposure in the digital automotive space.
- International Online Marketplaces
Under the CarGurus brand, the company operates online marketplaces not only in the United States but also in Canada and the United Kingdom, augmenting its presence in the international automotive market. Additionally, it offers unique brands within the U.S., such as Autolist and CarOffer, and the PistonHeads brand in the United Kingdom, catering to the diverse preferences and needs of its global user base.
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