CarGurus, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with total revenue reaching $907.0 million, a 14% increase from $798.0 million in 2024. The company also achieved a net income from continuing operations of $196.7 million, compared to $128.7 million in the previous year. Adjusted EBITDA from continuing operations was $319.0 million, up from $255.6 million in 2024. This growth was primarily driven by an increase in dealer subscription revenue, attributed to new dealer sign-ups, subscription tier upgrades, and broader adoption of add-on products.
In a strategic shift, CarGurus decided to wind down its CarOffer business, which was deemed less effective in the current volatile pricing environment. This decision was made on August 6, 2025, and the wind-down was completed by December 31, 2025. The financial results of CarOffer have been classified as discontinued operations in the consolidated financial statements. The company incurred total expenditures of $13.3 million related to this wind-down, which included one-time restructuring costs.
Operationally, CarGurus reported a total of 34,409 paying dealers as of December 31, 2025, an increase from 32,010 in 2024. The average monthly unique users on its platforms reached 41.4 million, reflecting a growing consumer base. The company also noted a quarterly average revenue per subscribing dealer (QARSD) of $6,616, indicating a positive trend in revenue generation per dealer. The company’s employee headcount stood at 1,218 as of the end of the fiscal year.
Looking ahead, CarGurus has authorized a new share repurchase program, allowing for the purchase of up to $250.0 million of its Class A common stock, which is expected to enhance shareholder value. The company anticipates that its existing liquidity, including cash reserves and access to a revolving credit facility, will be sufficient to fund operations for at least the next 12 months. However, it acknowledges potential risks from macroeconomic factors that could impact future revenue and operational performance.
About CarGurus, Inc.
CarGurus is a leading online automotive platform connecting consumers and dealers for buying, selling, and financing vehicles. It offers comprehensive listings, data-driven pricing, and digital retail solutions across the U.S., U.K., and Canada. The company provides tools for vehicle valuation, trade-in, and wholesale transactions, leveraging proprietary algorithms and data analytics to enhance transparency, trust, and efficiency in automotive commerce.
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