CarGurus delivered a robust third quarter 2026, with total revenue reaching $258.4 million, exceeding the top end of its own guidance and analyst expectations. The company demonstrated strong operational efficiency and monetization improvements, leading to a significant expansion in revenue per dealer despite the ongoing wind-down of its legacy wholesale operations.
Key Highlights
- Revenue grew 12% year-over-year to $258.4 million, primarily driven by marketplace subscription growth.
- The Board of Directors authorized a new $250.0 million share repurchase program, supported by $73.9 million in quarterly free cash flow.
- Consolidated Quarterly Average Revenue per Subscribing Dealer (QARSD) increased 7% year-over-year to $6,955.
- International momentum continued with paying dealers increasing 5% and International QARSD surging 14% to $2,715.
- Total paying dealers reached 34,701, reflecting a 3% year-over-year expansion in the U.S. and 5% internationally.