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CarGurus Winds Down CarOffer Business Amid Volatility: A Shift in Strategy for Enhanced Sourcing and Pricing Decisions.
ByAinvest
Friday, Aug 8, 2025 4:21 am ET1min read
CarGurus has announced the wind-down of its CarOffer transactions business due to market volatility, incurring costs of $14-$19 million. The company will focus on AI-powered inventory intelligence and consumer vehicle sourcing, aiming to enhance technology and analytics for smarter sourcing and pricing decisions. Q2 2025 financial results showed a 14% increase in Marketplace revenue and a net income of $22.3 million.
CarGurus, Inc. (Nasdaq: CARG), a leading digital auto platform, has announced the wind-down of its CarOffer transactions business. This decision, made following a broader strategic reassessment, is a response to market volatility and the need for more flexibility and broader automation in vehicle fulfillment. The company expects to incur costs ranging from $14.0 million to $19.0 million, primarily in the second half of 2025.The second quarter of 2025 saw CarGurus' Marketplace revenue increase by 14% year-over-year (YoY) to $222.0 million, while net income reached $22.3 million. The non-GAAP Adjusted EBITDA also showed a significant 39% YoY increase to $77.3 million [1].
The wind-down of CarOffer will allow CarGurus to redirect its efforts towards AI-powered inventory intelligence and consumer vehicle sourcing. The company aims to enhance its technology and analytics capabilities to facilitate smarter sourcing and pricing decisions, rather than focusing on transaction facilitation.
The company's guidance for the third quarter of 2025 projects Marketplace revenue between $228.0 million and $233.0 million, with non-GAAP Marketplace Adjusted EBITDA ranging from $76.5 million to $84.5 million [1].
CarGurus will continue to deliver AI-powered inventory intelligence through its insights platform and enable consumer vehicle sourcing at scale through Sell My Car - Top Dealer Offers. The company expects to substantially complete the wind-down activities in the second half of 2025.
The company will host a conference call and live webcast today, August 7, 2025, to discuss its second quarter 2025 financial results and business outlook, as well as its plan to wind down CarOffer [1].
References:
[1] https://investors.cargurus.com/news-releases/news-release-details/cargurus-announces-second-quarter-2025-results-shares-plans-wind
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