CarGurus Reports Q3 2026 Revenue Growth Driven by Dealer Subscriptions and Product Expansion
CarGurus (CARG) reported strong third-quarter results for 2026, with revenue rising 12% year-over-year to $258.4 million. The growth was primarily fueled by account expansions and new dealer subscriptions, alongside increased adoption of add-on products. Non-GAAP diluted earnings per share grew 17% to $0.70, supported by a robust EBITDA margin of 35%. The company is successfully pivoting toward a multi-product ecosystem, evidenced by a 16% increase in U.S. dealers subscribing to non-core products and significant engagement with AI search tools. Despite these gains, management noted macroeconomic headwinds, including high borrowing costs affecting consumer affordability and competitive pressures from Chinese EVs in international markets. Looking ahead, CarGurus provided Q4 revenue guidance between $258.5 million and $263.5 million. To return value to shareholders, the board authorized a new $250 million share repurchase program effective through late 2027.
Tickers: $CARG
Topics: EBITDA EPS Free Cash Flow Guidance Revenue Growth