Key Highlights

  • CARG shares traded down 1.55% at $31.17, with the 50-day moving average moving below the 200-day average.
  • Second-quarter revenue rose 13% year over year to $251.0 million, and paying dealers increased 5% to 34,629.
  • Adjusted EBITDA rose 7% to $84.7 million, while the margin fell 199 basis points to 34%.
  • Third-quarter revenue is guided to $253.5 million to $258.5 million, and full-year revenue growth to 10% to 13%.
  • Cash was $122.1 million, down 36% from year-end, after $29.2 million of second-quarter share repurchases.

CarGurus (NASDAQ:CARG) shares are trading down 1.55% at $31.17, and the stock's 50-day simple moving average has moved below its 200-day, a pattern technical analysts call a death cross. The company has a market capitalization of $2.78 billion.

The signal is derived from past prices and does not reflect operating results. CarGurus operates an online automotive marketplace that connects car shoppers with dealers, and it reported second-quarter results on August 6.

Revenue Growth Reflects Dealer and Pricing Gains

Revenue was $251.0 million, up 13% from $222.0 million, and first-half revenue was $494.5 million, up 14%. U.S. revenue was $226.3 million and international revenue was $24.7 million, up from $19.3 million.

Paying dealers totaled 34,629, up 5%, with 26,151 in the United States, up 3%, and 8,478 internationally, up 11%. Quarterly average revenue per subscribing dealer was $6,771, up 7%, led by $8,134 in the United States, up 8%.

Earnings Rise While Margin Narrows

GAAP net income from continuing operations was $49.2 million, flat from a year earlier, and diluted earnings per share were $0.54, against $0.49. Non-GAAP diluted earnings per share from continuing operations were $0.66, against $0.57.

Adjusted EBITDA was $84.7 million, up 7%, at a 34% margin that was 199 basis points lower. The CarOffer wind-down was completed on December 31, 2025, and its results are shown as discontinued operations, including a $26.6 million net loss in the year-earlier quarter.

Guidance Points to a Lower Margin as Buybacks Draw Down Cash

For the third quarter, the company guided to revenue of $253.5 million to $258.5 million and adjusted EBITDA of $82.0 million to $90.0 million. Non-GAAP earnings per share are guided to $0.63 to $0.69, assuming 90.0 million diluted shares.

For 2026, it expects revenue growth of 10% to 13% and an adjusted EBITDA margin change of negative 0.5% to negative 1.5% year over year. The chief executive described the second quarter as strong, with 13% revenue growth.

Cash was $122.1 million at June 30, down 36% from December 31, 2025. The company repurchased $29.2 million of stock in the second quarter, and total repurchases since December 2022 exceed 30% of shares outstanding.

The release does not report monthly unique users. The release does not itemize other uses of cash.

Signal Versus Growth and Margin

The death cross reflects past price action, while the reported figures show double-digit revenue growth, rising dealer counts and a narrower adjusted EBITDA margin. The next report will show whether revenue lands within the guided range and how the margin tracks against the full-year outlook. This review is limited to reported results and company guidance and does not assess valuation.