CarGurus (NASDAQ:CARG) Surprises With Q3 Sales, Stock Soars

Online car marketplace CarGurus (NASDAQ:CARG) bushed Wall Street’s gross expectations successful Q3 CY2025, with income up 3.2% twelvemonth connected twelvemonth to $238.7 million. Guidance for adjacent quarter’s gross was amended than expected astatine $238.5 cardinal astatine the midpoint, 0.6% supra analysts’ estimates. Its non-GAAP nett of $0.57 per stock was 3.7% supra analysts’ statement estimates.

Is present the clip to bargain CarGurus? Find retired successful our afloat probe report.

• Revenue: $238.7 cardinal vs expert estimates of $235 cardinal (3.2% year-on-year growth, 1.6% beat)

• Adjusted EPS: $0.57 vs expert estimates of $0.55 (3.7% beat)

• Adjusted EBITDA: $78.67 cardinal vs expert estimates of $76.39 cardinal (32,957% margin, important beat)

• Revenue Guidance for Q4 CY2025 is $238.5 cardinal astatine the midpoint, astir successful enactment with what analysts were expecting

• Adjusted EPS guidance for Q4 CY2025 is $0.64 astatine the midpoint, supra expert estimates of $0.61

• EBITDA guidance for Q4 CY2025 is $87 cardinal astatine the midpoint, supra expert estimates of $84.27 million

• Operating Margin: 22.9%, up from 11.9% successful the aforesaid 4th past year

• Free Cash Flow Margin: 26.8%, down from 27.9% successful the erstwhile quarter

• Paying Dealers: 33,673, up 1,989 twelvemonth connected year

• Market Capitalization: $3.38 billion

“We delivered different 4th of beardown Marketplace gross maturation arsenic dealers person progressively adopted our data-driven tools,” said Jason Trevisan, Chief Executive Officer astatine CarGurus.

Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is simply a integer marketplace wherever car dealers tin link with imaginable customers and wherever car buyers tin browse, purchase, and get financing.

A company’s semipermanent income show is 1 awesome of its wide quality. Even a atrocious concern tin radiance for 1 oregon 2 quarters, but a top-tier 1 grows for years. CarGurus struggled to consistently make request implicit the past 3 years arsenic its income dropped astatine a 18.4% yearly rate. This wasn’t a large effect and is simply a pugnacious starting constituent for our analysis.

This quarter, CarGurus reported humble year-on-year gross maturation of 3.2% but bushed Wall Street’s estimates by 1.6%. Company absorption is presently guiding for a 4.4% year-on-year summation successful income adjacent quarter.

Looking further ahead, sell-side analysts expect gross to turn 3.9% implicit the adjacent 12 months. While this projection implies its newer products and services volition substance amended top-line performance, it is inactive beneath mean for the sector.

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