Detailed financial statements for CarGurus, Inc. (CARG): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
CarGurus, Inc., established in Boston, Massachusetts, in 2005, manages a prominent online ecosystem for vehicle transactions, serving both buyers and sellers across the United States and internationally. The company's operations are divided into two main segments: the U.S. Marketplace and Digital Wholesale. Essentially, CarGurus offers an expansive digital automotive marketplace where individuals can search for new and pre-owned vehicle listings from numerous dealerships.
Analysis Summary
CarGurus, Inc. reported revenue of $939.0M in the most recent fiscal year, growing at a 5-year CAGR of 11.2%. Net income reached $155.9M, with a 15.0% 5-year CAGR.
Trailing-twelve-month margins: gross margin 91.1%, operating margin 25.3%, net margin 18.1%. Free cash flow grew at 14.1% CAGR over 5 years.
At the current price of $29.35, CARG trades at a P/E of 16.05 and an ROE of 56.25%. Market capitalisation stands at $2.8B.
Balance sheet quality for CARG: current ratio of 2.8, net debt of $315,000. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $288.9M represents 185% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $198.1M | $316.9M | $454.1M | $588.9M | $551.5M | $951.4M | $1.66B | $914.2M | $894.4M | $939.0M |
| Cost of Revenue | $9.6M | $17.6M | $24.8M | $36.3M | $42.7M | $294.0M | $997.5M | $262.8M | $155.4M | $103.4M |
| Gross Profit | $188.6M | $299.3M | $429.3M | $552.6M | $508.7M | $657.4M | $657.6M | $651.5M | $738.9M | $835.5M |
| Research & Development | $11.5M | $22.5M | $47.9M | $69.5M | $85.7M | $106.4M | $123.8M | $146.2M | $144.4M | $155.7M |
| Selling, General & Admin | $166.9M | $258.9M | $355.4M | $444.3M | $319.1M | $388.3M | $409.8M | $456.8M | $434.3M | $442.3M |
| Operating Expenses | $180.0M | $284.0M | $406.1M | $518.3M | $411.0M | $509.1M | $549.1M | $618.8M | $725.5M | $641.1M |
| Operating Income | $8.6M | $15.3M | $23.2M | $34.3M | $97.8M | $148.3M | $108.5M | $32.6M | $13.4M | $194.4M |
| EBITDA | $10.6M | $19.1M | $28.2M | $42.1M | $104.6M | $200.0M | $167.8M | $100.2M | $173.3M | $235.1M |
| Interest Expense | $26,000 | $29,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pre-tax Income | $8.9M | $15.8M | $25.5M | $38.7M | $99.1M | $149.4M | $111.4M | $51.7M | $24.7M | $202.8M |
| Income Tax | $2.4M | $2.6M | -$39.7M | -$3.4M | $21.6M | $39.0M | $32.4M | $29.6M | $3.7M | $43.0M |
| Net Income | $6.5M | $13.2M | $65.2M | $42.1M | $77.6M | $109.2M | $193.8M | $31.1M | $21.0M | $155.9M |
| EPS | $-0.25 | $0.13 | $0.60 | $0.38 | $0.69 | $-0.00 | $1.64 | $0.19 | $0.20 | $1.59 |
| EPS (Diluted) | $-0.25 | $0.12 | $0.57 | $0.37 | $0.68 | $-0.00 | $1.51 | $0.19 | $0.20 | $1.55 |
| Shares Outstanding (Diluted) | $106.7M | $108.3M | $113.4M | $113.4M | $113.8M | $117.1M | $128.2M | $114.2M | $106.3M | $96.8M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $238.7M | $241.1M | $243.6M | $251.0M |
| Gross Profit | $213.5M | $217.9M | $224.6M | $231.1M |
| Operating Income | $54.7M | $69.1M | $59.3M | $63.0M |
| EBITDA | $63.9M | $82.0M | $53.1M | $78.6M |
| Net Income | $44.7M | $49.8M | $32.2M | $49.2M |
| EPS | $0.46 | $0.52 | $0.34 | $0.55 |
| EPS (Diluted) | $0.45 | $0.51 | $0.34 | $0.54 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $29.5M | $87.7M | $34.9M | $59.9M | $190.3M | $231.9M | $469.5M | $291.4M | $304.2M | $190.5M |
| Short-term Investments | $44.8M | $50.0M | $122.8M | $111.7M | $100.0M | $90.0M | 0 | $20.7M | 0 | 0 |
| Receivables | $6.7M | $12.6M | $13.6M | $22.1M | $18.2M | $189.3M | $46.8M | $40.0M | $44.2M | $41.9M |
| Inventory | 0 | 0 | $16.1M | 0 | 0 | $19.7M | $5.3M | $331,000 | $338,000 | 0 |
| Total Current Assets | $85.5M | $157.2M | $194.9M | $219.0M | $332.0M | $563.1M | $557.4M | $391.2M | $391.2M | $282.9M |
| Property, Plant & Equipment | $12.8M | $16.6M | $24.3M | $87.9M | $88.3M | $92.8M | $97.0M | $253.1M | $251.5M | $248.4M |
| Goodwill | 0 | 0 | 0 | $15.2M | $29.1M | $158.3M | $157.5M | $157.9M | $46.2M | $28.4M |
| Intangible Assets | 0 | 0 | 0 | $3.9M | $10.9M | $83.9M | $53.1M | $23.1M | $11.8M | $3.3M |
| Total Assets | $100.3M | $176.6M | $268.3M | $393.6M | $502.3M | $931.6M | $927.1M | $918.9M | $824.5M | $661.9M |
| Accounts Payable | $16.4M | $23.9M | $34.3M | $36.7M | $21.6M | $66.2M | $32.5M | $47.9M | $26.4M | $29.1M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $29.1M | $43.0M | $63.5M | $73.8M | $66.5M | $170.7M | $98.7M | $115.2M | $93.1M | $100.5M |
| Long-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $35.6M | $49.6M | $74.2M | $136.8M | $128.7M | $251.9M | $155.7M | $302.1M | $282.8M | $287.7M |
| Retained Earnings | -$71.7M | -$58.5M | $9.7M | $51.9M | $129.4M | $129.3M | $323.0M | $354.1M | $375.1M | $362.4M |
| Total Equity | $64.7M | $127.0M | $194.1M | $256.9M | $373.6M | $516.8M | $734.6M | $616.9M | $541.7M | $374.2M |
| Total Debt | 0 | 0 | 0 | $69.6M | $69.9M | $70.7M | $66.4M | $194.4M | $192.7M | $190.8M |
| Net Debt | -$74.2M | -$137.7M | -$157.7M | -$102.0M | -$220.4M | -$251.2M | -$403.1M | -$117.7M | -$111.4M | $315,000 |
| Working Capital | $56.5M | $114.2M | $131.4M | $145.2M | $265.4M | $392.4M | $458.6M | $276.0M | $298.2M | $182.4M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $178.8M | $190.5M | $72.0M | $122.1M |
| Total Assets | $660.5M | $661.9M | $519.6M | $555.1M |
| Total Liabilities | $285.0M | $287.7M | $282.5M | $290.8M |
| Total Equity | $375.4M | $374.2M | $237.1M | $264.4M |
| Total Debt | $193.3M | $190.8M | $188.0M | $185.1M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $6.5M | $13.2M | $65.2M | $42.1M | $77.6M | $110.4M | $79.0M | $22.1M | $21.0M | $155.9M |
| Depreciation & Amortization | $2.1M | $3.8M | $5.0M | $7.8M | $10.2M | $40.5M | $45.3M | $48.5M | $25.4M | $28.3M |
| Stock-based Compensation | $322,000 | $5.0M | $20.8M | $34.3M | $45.1M | $53.5M | $54.8M | $63.7M | $62.3M | $50.4M |
| Change in Working Capital | $10.6M | $3.5M | -$5.4M | -$19.2M | -$13.0M | -$129.0M | $85.9M | $15.9M | $19.1M | -$16.7M |
| Operating Cash Flow | $20.0M | $25.7M | $51.7M | $70.1M | $156.7M | $98.3M | $256.1M | $124.5M | $255.5M | $295.3M |
| Capital Expenditure | -$7.2M | -$7.4M | -$7.5M | -$14.2M | -$7.5M | -$13.9M | -$17.3M | -$41.2M | -$75.2M | -$6.4M |
| Acquisitions | $1.4M | $2.2M | $1.5M | -$19.1M | -$21.1M | -$64.3M | 0 | 0 | 0 | 0 |
| Stock Repurchased | -$60.0M | 0 | -$25.9M | 0 | 0 | 0 | -$14.4M | -$208.5M | -$146.2M | -$351.9M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $12.8M | $18.3M | $44.2M | $55.9M | $149.2M | $84.4M | $238.8M | $83.3M | $180.3M | $288.9M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $71.2M | $83.1M | $69.8M | $94.6M |
| Capital Expenditure | -$7.2M | -$1.2M | -$391,000 | -$562,000 |
| Free Cash Flow | $64.0M | $81.9M | $69.5M | $94.0M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $12.6M | $11.9M | $13.3M | $13.4M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +59.9% | +43.3% | +29.7% | -6.4% | +72.5% | +74.0% | -44.8% | -2.2% | +5.0% | |
| Net Income Growth (YoY) | +103.2% | +393.7% | -35.3% | +84.0% | +40.9% | +77.4% | -83.9% | -32.6% | +643.4% | |
| EPS Growth (YoY) | +152.0% | +361.5% | -36.7% | +81.6% | -100.2% | +126,253.8% | -88.4% | +5.3% | +695.0% | |
| Shares Change (YoY) | +1.4% | +4.7% | +0.1% | +0.4% | +2.9% | +9.4% | -10.9% | -6.9% | -8.9% | |
| FCF Growth (YoY) | +43.3% | +141.5% | +26.3% | +167.0% | -43.4% | +182.9% | -65.1% | +116.4% | +60.2% | |
| Gross Margin | 95.2% | 94.4% | 94.5% | 93.8% | 92.3% | 69.1% | 39.7% | 71.3% | 82.6% | 89.0% |
| Operating Margin | 4.3% | 4.8% | 5.1% | 5.8% | 17.7% | 15.6% | 6.6% | 3.6% | 1.5% | 20.7% |
| EBITDA Margin | 5.4% | 6.0% | 6.2% | 7.2% | 19.0% | 21.0% | 10.1% | 11.0% | 19.4% | 25.0% |
| Net Margin | 3.3% | 4.2% | 14.4% | 7.2% | 14.1% | 11.5% | 11.7% | 3.4% | 2.3% | 16.6% |
| FCF Margin | 6.5% | 5.8% | 9.7% | 9.5% | 27.1% | 8.9% | 14.4% | 9.1% | 20.2% | 30.8% |
| Effective Tax Rate | 27.4% | 16.7% | -155.7% | -8.9% | 21.8% | 26.1% | 29.1% | 57.3% | 14.9% | 21.2% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.12 | $0.17 | $0.39 | $0.49 | $1.31 | $0.72 | $1.86 | $0.73 | $1.70 | $2.99 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $102.7M | $101.7M | $108.8M | $111.5M | $112.9M | $117.1M | $118.5M | $113.2M | $104.5M | $95.3M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 56.25% |
| Return on Invested Capital | 41.98% |
| Return on Assets | 31.69% |
| Gross Margin | 91.06% |
| Operating Margin | 25.25% |
| Net Margin | 18.06% |
Financial Health
| Debt / Equity | 0.70 |
| Current Ratio | 1.85 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 11.11 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -110.32 | 230.62 | 56.22 | 92.58 | 45.99 | -25,876.92 | 8.54 | 127.16 | 182.70 | 24.12 |
| P/B | 43.76 | 23.99 | 18.91 | 15.26 | 9.59 | 7.62 | 2.26 | 4.44 | 7.05 | 9.77 |
| P/S | 14.29 | 9.62 | 8.08 | 6.66 | 6.49 | 4.14 | 1.00 | 2.99 | 4.27 | 3.89 |
| Gross Margin | 95.2% | 94.4% | 94.5% | 93.8% | 92.3% | 69.1% | 39.7% | 71.3% | 82.6% | 89.0% |
| Operating Margin | 4.3% | 4.8% | 5.1% | 5.8% | 17.7% | 15.6% | 6.6% | 3.6% | 1.5% | 20.7% |
| Net Margin | 3.3% | 4.2% | 14.4% | 7.2% | 14.1% | 11.5% | 11.7% | 3.4% | 2.3% | 16.6% |
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