CarGurus (CARG) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 13% year-over-year to $251.0 million, driven by dealer network expansion, higher average revenue per dealer, and strong international momentum.

• Non-GAAP adjusted EBITDA reached $84.7 million at a 34% margin, with GAAP net income from continuing operations at $49.2 million.

• AI-driven product innovation, including the launch of Guru and other enhancements, fueled dealer and consumer engagement.

• Completed wind-down of CarOffer in December 2025; results now reported as a single segment.

• Share repurchases totaled $29.2 million in Q2, with over 30% of shares repurchased since December 2022.

Financial highlights

• Q2 2026 revenue: $251.0 million (+13% YoY); international revenue up 28% year-over-year.

• Gross profit for Q2: $231.1 million (92% margin); non-GAAP adjusted EBITDA: $84.7 million (34% margin).

• Net income from continuing operations: $49.2 million; non-GAAP net income: $60.4 million; non-GAAP diluted EPS: $0.66.

• Free cash flow conversion: 103% of adjusted EBITDA ($87.7 million); cash and equivalents at period end: $122.1 million.

• No long-term debt outstanding as of June 30, 2026.

Outlook and guidance

• Q3 2026 revenue guidance: $253.5–$258.5 million; non-GAAP adjusted EBITDA: $82–$90 million; non-GAAP EPS: $0.63–$0.69.

• Full-year 2026 revenue growth expected at 10–13% year-over-year; adjusted EBITDA margin to decline by 0.5–1.5 percentage points.

• Guidance excludes potential macroeconomic disruptions and foreign currency impacts.

• Management expects existing liquidity and revolver access to be sufficient for at least the next 12 months.