Q4 2025 CarGurus Inc Earnings Call Transcript
Key Points
- CarGurus Inc (CARG) reported a 14% revenue growth for the full year 2025, marking the second consecutive year of mid-teens growth.
- Adjusted EBITDA from continuing operations grew 25% year over year, indicating strong profitability.
- International revenue grew by 27% year over year, driven by accelerated dealer acquisition and strong lead growth.
- The company launched more new products in 2025 than in any prior year, enhancing dealer workflows and consumer decision-making.
- CarGurus Inc (CARG) expanded its digital deal capabilities to 13,500 dealers globally, reflecting growing consumer demand for online transaction workflows.
- The company decided to wind down its car offer business, incurring $13.3 million in total expenditures related to the wind-down.
- Non-GAAP gross margin for the fourth quarter decreased by about 90 basis points year over year.
- Non-GAAP adjusted EBITDA margin for the fourth quarter was about 60 basis points lower year over year.
- The company expects non-GAAP adjusted EBITDA margins to compress by approximately 1.5 to 2.5 percentage points in 2026.
- CarGurus Inc (CARG) faces challenges in maintaining high growth rates amidst increasing competition and market consolidation.
Good day and welcome to the CarGurru's 4th quarter and full year 2025 earnings conference call. Please note this event is being recorded. I would now like to turn the call over to Kurdeep Singh, Vice President and head of investor relations. Please go ahead.
Good afternoon and thank you for joining us. With me on the call today are Jason Trevison, Chief Executive Officer, and SAM Zales, President and Chief Operating Officer. We will be making forward-looking statements which are based on our current expectations and beliefs. These statements are subject to risks and uncertainties, and their actual results may differ materially. Information concerning those risks and uncertainties is discussed in our SEC filings. We undertake no obligation to update forward-looking statements except as required by law. Please refer to our press release and our investor presentation on the investor relations section of our website for a reconciliation of GAAP to non-GAAP measures. I'll now turn the call over
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