Cargurus sees 3Q adj EPS cont ops 63c to 69c, est. 63c

CarGurus (CARG) reported third-quarter 2025 adjusted earnings per share (EPS) from continuing operations in the range of $0.63 to $0.69, meeting the midpoint of the estimated $0.63 per share. The company's performance was driven by strong adoption of its AI-powered tools, including PriceVantage, Dealership Mode, and CG Discover, which contributed to improved dealer ROI and higher engagement metrics.

Marketplace revenue for the quarter grew 14% year-over-year to $232 million, exceeding the midpoint of management's guidance range. Non-GAAP Marketplace Adjusted EBITDA reached $82.4 million, up 18% year-over-year and also above the midpoint of guidance. The company's operating margin expanded significantly to 22.9%, compared to 11.9% in the same period the prior year.

CarGurus also continued its share repurchase program, repurchasing $111 million worth of shares in Q3 2025. Since the program's initiation in December 2022, the company has repurchased 23% of its outstanding shares.

Looking ahead, the company provided guidance for Q4 2025, with adjusted EPS expected to range between $0.61 and $0.67, with the midpoint at $0.64, slightly above analyst estimates. The company remains focused on expanding its international presence and optimizing its product offerings to drive long-term growth.