Key Highlights

● Second-quarter Revenue from continuing operations was US$251.0 million, up 13%.

● Adjusted EBITDA rose 7% to US$84.7 million, a 34% margin.

● Paying dealers rose 5% to 34,629, with quarterly revenue per dealer at US$6,771.

● First-half Buybacks of US$202.1 million cut cash to US$122.1 million.

Latest verified development

CarGurus, Inc. (NASDAQ:CARG), the online automotive marketplace, last reported on 6 August 2026 for the quarter ended 30 June. Revenue from continuing operations was US$251.0 million, up 13% year on year, and six-month revenue was US$494.5 million, up 14%. Chief executive Jason Trevisan described the quarter as strong, citing the 13% growth.

Reporting is now cleaner than it was a year ago because the CarOffer wholesale Business was wound down by 31 December 2025 and is presented as discontinued operations. The figures below therefore relate to the continuing marketplace business, in the United States and internationally.

Earnings and margins

GAAP Net Income was US$49.2 million, flat on the prior year, while diluted Earnings per share from continuing operations were US$0.54 against US$0.49. On a non-GAAP basis, earnings per share were US$0.66 against US$0.57. Adjusted EBITDA rose 7% to US$84.7 million, a 34% margin, which was 199 basis points lower than a year earlier.

That Margin pattern, with revenue growing faster than profit, is consistent with the company's full-year framework. Management guides for 2026 revenue growth of 10% to 13% and an adjusted EBITDA margin that is 0.5 to 1.5 percentage points lower than in 2025.

The six-month results also included US$20.2 million of impairments, mostly within operating expenses. For the half-year, GAAP net income of US$81.4 million was 11% lower than a year earlier, whereas adjusted EBITDA of US$165.0 million was 11% higher, so the two measures diverged.

Dealers, pricing and cash

The marketplace model depends on dealer subscriptions. Paying dealers rose 5% to 34,629, comprising 26,151 in the United States, up 3%, and 8,478 internationally, up 11%. Quarterly average revenue per subscribing dealer, the company's QARSD measure, rose 7% to US$6,771, with the United States at US$8,134, up 8%.

U.S. revenue was US$226.3 million against US$202.7 million, and international revenue was US$24.7 million against US$19.3 million. Operating Cash Flow was US$94.6 million and non-GAAP free cash flow US$87.7 million. Cash and equivalents fell 36% from year-end to US$122.1 million, reflecting buybacks of US$202.1 million in the first half according to the cash flow statement. That is a large share of cash generation and explains the lower balance.

Third-quarter guidance and buyback capacity

Dealer growth in the United States was 3%, against 11% internationally, so the international business is outpacing the core market, while buybacks continue as cash balances fall. Quarterly average revenue per dealer is another gauge of pricing power. Second-quarter repurchases were put at US$29.2 million in the headline and US$27.7 million in the cash flow statement.

For the third quarter, management guides to revenue of US$253.5 million to US$258.5 million, adjusted EBITDA of US$82.0 million to US$90.0 million and non-GAAP earnings per share of US$0.63 to US$0.69, assuming 90.0 million diluted shares. The revenue range sits only modestly above the second quarter's US$251.0 million.