What CarGurus (CARG) said on its Q3 earnings call. November 5, 2026 Key points. * Q3 results grew: Revenue rose 12% year over year to $258 million, while adjusted EBITDA increased 9% to $89.7 million and non-GAAP EPS climbed 17% to $0.70. * Dealer adoption strengthened: CarGurus added 251 U.S. dealers sequentially, and average revenue per subscribing dealer grew 7%, supported by add-on products and listing upgrades. The company also launched StockVantage, an AI-powered inventory tool. * Q4 outlook and capital returns: CarGurus forecast Q4 revenue of $258.5 million to $263.5 million and authorized a new $250 million share repurchase program. * MarketBeat previews top five stocks to own in December. CarGurus NASDAQ: CARG reported 12% year-over-year revenue growth in the third quarter of 2026 as more dealers subscribed to its products, even as pressure on vehicle affordability and dealer margins continued to weigh on spending. Revenue reached $258 million, at the high end of the company's guidance range. Adjusted EBITDA rose 9% to $89.7 million, with a margin of roughly 35%, while non-GAAP earnings per diluted share increased 17% to $0.70. Chief Executive Officer Jason Trevisan said the dealer environment had improved sequentially, but enthusiasm had not returned to 2025 levels, primarily because of margin pressure. He added that stretched consumer affordability and higher borrowing costs were contributing to deliberate dealer spending decisions. Dealer growth and new products. CarGurus added a net 251 U.S. dealers sequentially, its strongest quarter for net additions this year. Its U.S. paying dealer base increased by 659 from a year earlier, while quarterly average revenue per subscribing dealer grew 7%, Chief Financial Officer Matt Mandel said. Growth in that revenue measure came primarily from adoption of add-on products, followed by listings upgrades, Mandel said. The number of U.S. paying dealers subscribing to at least one product outside the company's core listings tiers rose approximately 16% year over year. President and Chief Operating Officer Sam Zales attributed the improvement in dealer additions to a slightly better macroeconomic environment and a broader product offering. He said international markets faced stronger pressures, including inflation, affordability challenges and interest rates. The company has also lost some international dealers as it held firm on pricing, he said. CarGurus launched StockVantage during the week of the call. Trevisan said the product uses artificial intelligence and marketplace data to help dealers identify vehicles with promising retail potential, including through auction listings and consumer trade-ins. Discover more Stock Rating Screener Dividend Screener Tool Track Stock Market Trevisan also highlighted the company's VINMax marketing product, saying boosted listings received roughly 57% more leads per day and 67% more vehicle detail page views per day than comparable non-boosted listings. He said boosted vehicles were 85% more likely to sell without a price reduction than similar non-boosted vehicles. AI shopping strategy. CarGurus is expanding its consumer-facing AI tools as shoppers increasingly encounter vehicle information through conversational platforms. Trevisan said unique usage of the company's Guru shopping tool rose 24% sequentially in the third quarter, while usage of its Dealership Mode feature more than doubled from the second quarter. Asked whether changes in search were affecting traffic, Trevisan said the company had not seen large language model search materially cannibalize its usual traffic. He said softer consumer demand was instead linked to factors including higher gas prices, higher interest rates and confusion related to pricing guidelines. Trevisan acknowledged a potential attribution issue when shoppers discover a listing through an AI service but contact the dealer directly rather than submitting a lead through CarGurus. In that case, the dealer would not credit CarGurus for the lead, though indirect attribution might be possible through third parties, he said. The company plans to develop Guru toward a more full-service automotive agent, initially focusing on research, information validation and helping shoppers narrow their choices. Trevisan said completing documents and financing would remain more human-supported. Outlook and share repurchases. For the fourth quarter, CarGurus expects revenue of $258.5 million to $263.5 million, representing year-over-year growth of 7.2% to 9.3%. It forecast adjusted EBITDA of $93 million to $101 million and non-GAAP earnings of $0.73 to $0.79 per share. For full-year 2026, the company expects revenue of $1.0115 billion to $1.0165 billion and adjusted EBITDA of $347.5 million to $355.5 million. Its non-GAAP earnings forecast is $2.66 to $2.72 per share. Third-quarter adjusted EBITDA benefited from a $1.3 million favorable real estate tax reassessment, Trevisan said. The company generated $74 million in free cash flow and ended the quarter with $165 million in cash and cash equivalents. Mandel said the board authorized a new $250 million share repurchase program effective November 4, 2026, through December 31, 2027. The company had $25 million remaining under its 2026 authorization at the end of the third quarter. About CarGurus (NASDAQ:CARG). CarGurus, Inc operates an online automotive marketplace that connects consumers with automobile dealers and private sellers. Its platform enables shoppers to search for new and used vehicles, compare listings, evaluate vehicle and dealer information, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital listing, advertising and marketing products designed to help them reach potential buyers. The company also offers tools intended to support automotive retailers' online operations, including inventory merchandising, lead generation and digital retailing capabilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider CarGurus, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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CarGurus (NASDAQ:CARG) stock price breaks above fifty day moving average - what's next? CarGurus, Inc. (NASDAQ:CARG - Get Free Report) shares crossed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $32.45 and traded as high as $32.75. CarGurus shares last traded at $32.50, with a volume of 1,169,132 shares traded. Wall street analyst weigh in. Several equities analysts have commented on CARG shares. BTIG Research raised their price target on shares of CarGurus from $40.00 to $41.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Oppenheimer upped their price objective on CarGurus from $38.00 to $44.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 12th. B. Riley Financial reiterated a "buy" rating on shares of CarGurus in a research note on Friday, August 7th. UBS Group decreased their target price on CarGurus from $40.00 to $35.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Finally, Needham & Company LLC boosted their target price on CarGurus from $43.00 to $44.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $39.95. CarGurus stock performance. The stock has a market capitalization of $2.87 billion, a price-to-earnings ratio of 17.49, a PEG ratio of 1.15 and a beta of 1.22. The business has a 50-day moving average of $32.35 and a 200-day moving average of $32.85. CarGurus (NASDAQ:CARG - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.66 EPS for the quarter, beating the consensus estimate of $0.61 by $0.05. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The firm had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. During the same quarter in the prior year, the firm earned $0.57 EPS. CarGurus's revenue for the quarter was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, research analysts predict that CarGurus, Inc. will post 2.17 earnings per share for the current fiscal year. Insider activity. In other CarGurus news, Director Greg Schwartz sold 10,000 shares of the company's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $36.07, for a total value of $360,700.00. Following the sale, the director owned 8,716 shares of the company's stock, valued at approximately $314,386.12. This represents a 53.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Samuel Zales sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $30.31, for a total transaction of $303,100.00. Following the transaction, the chief operating officer directly owned 429,735 shares of the company's stock, valued at approximately $13,025,267.85. This trade represents a 2.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 78,187 shares of company stock valued at $2,691,547 in the last quarter. Insiders own 18.19% of the company's stock. Hedge funds weigh in on CarGurus. Several hedge funds and other institutional investors have recently made changes to their positions in CARG. Prevatt Capital Ltd grew its holdings in shares of CarGurus by 12.5% during the first quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company's stock valued at $84,274,000 after buying an additional 275,000 shares in the last quarter. Congress Asset Management Co. lifted its stake in CarGurus by 7.6% in the 3rd quarter. Congress Asset Management Co. now owns 2,125,686 shares of the company's stock worth $66,236,000 after acquiring an additional 149,338 shares in the last quarter. Bessemer Group Inc. lifted its stake in CarGurus by 18.2% in the 1st quarter. Bessemer Group Inc. now owns 1,085,061 shares of the company's stock worth $36,945,000 after acquiring an additional 166,954 shares in the last quarter. Bank of America Corp DE boosted its position in CarGurus by 26.6% during the 1st quarter. Bank of America Corp DE now owns 586,346 shares of the company's stock worth $19,965,000 after acquiring an additional 123,364 shares during the period. Finally, Principal Financial Group Inc. boosted its position in CarGurus by 19.1% during the 1st quarter. Principal Financial Group Inc. now owns 573,406 shares of the company's stock worth $19,524,000 after acquiring an additional 91,755 shares during the period. Institutional investors and hedge funds own 86.90% of the company's stock. CarGurus company profile. CarGurus, Inc operates an online automotive marketplace that connects consumers with automobile dealers and private sellers. Its platform enables shoppers to search for new and used vehicles, compare listings, evaluate vehicle and dealer information, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital listing, advertising and marketing products designed to help them reach potential buyers. The company also offers tools intended to support automotive retailers' online operations, including inventory merchandising, lead generation and digital retailing capabilities. Receive News & Ratings for CarGurus Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CarGurus and related companies with MarketBeat.com's FREE daily email newsletter.

NYC slams CarGurus with major lawsuit for hiding thousands in secret fees. Cassandra Schilling Thu, October 22, 2026 at 4:25 PM PDT New York City is suing car selling platform CarGurus for allegedly deceiving their customers on the costs. According to the New York City Department of Consumer and Worker Protection (DCWP), CarGurus advertises "Good Deals," "Great Deals," and similar "bargains" on their website, making buyers think they're getting a discount. What the advertisements didn't display were the down payments, buyer requirements, and other mandatory fees. Many times, this added thousands to the customer's total price. The DCWP cited one example from June 2026. The platform advertised a "Great Deal" 2018 Honda for what looked like $2,212 under market price. Only at the very bottom of the ad was a list of other required costs. These hidden fees put the total price $1,473 above average - so the customer spent more than they would've elsewhere. The website also featured an AI bot sharing "deals" that didn't always exist as presented. Mass violations & fines demanded. "New Yorkers should be able to trust that a 'Great Deal' is actually a great deal," DCWP Commissioner Samuel A.A. Levine said. "Our lawsuit seeks to stop bait-and-switch pricing, eliminate hidden fees, and ensure customers aren't getting fleeced when making one of the biggest purchases of their lives." Per court documents, the DCWP is suing CarGurus for violating the New York City Consumer Protection Law on 2,000+ occasions. The law prohibits companies from deceiving customer to sell products. This includes false or deceptive advertisements, bargains with "hidden conditions," sham sales and similar tactics. FTC warnings. CarGurus has alleged making efforts to identify and remove deceptive listings. Despite this, the DCWP is accusing the platform of failing to "adequately enforce" its policies - which technically include disclosing all required costs. But it wasn't until June 2026 that the platform issued a deadline to sellers, and threatened consequences if they didn't meet it. CarGurus sent the notice in response to warnings from the Federal Trade Commission (FTC) - who sent letters to 97 platforms. The FTC threatened fines (up to $53,000 per violation) and legal action against dealers omitting fees from listings. CarGurus responds. "We are deeply disappointed that the New York City Department of Consumer and Worker Protection (DCWP) is bringing claims against CarGurus," CarGurus wrote in a statement. "We're also surprised they're taking this step given our history of leading the market in information transparency, our open collaboration with them, and our repeated efforts to engage productively with them." CarGurus is not the first car selling platform DCWP has gone after. The department said that in the past five years, it has looked into claims of deception from 106 used car dealerships, which CarGurus connects buyers with. These investigations have led to New Yorkers receiving $1.79 million back. Additionally, guilty dealerships were ordered to pay a total of $6.5 million. If you want more stories like this, follow Guessing Headlights on Yahoo so you don't miss what's coming next.