CarGurus Is Quietly Becoming the Auto Marketplace to Beat

"On average, last year, we ingested approximately 0.5 billion first-party shopper signals each day, translating them into real-time consumer demand, pricing and inventory insights our dealer customers are leveraging for measurably improved performance. This demonstrates CarGurus' ability to convert massive data volumes into actionable dealer intelligence."

"PriceVantage, the company's AI-powered inventory pricing tool, launched in October and is already showing results. Nearly 80% of adopting dealers are active weekly on the PriceVantage suite, and early adopters reported five times faster vehicle turn times and a 71% increase in daily shopper connections."

"Full-year 2025 gross profit hit $841.5 million, up nearly 14% year-over-year, while operating income exploded. Free cash flow came in at $265.96 million, up 47.49% for the year. This is what the core marketplace business looks like without subsidizing a money-losing wholesale operation."

CarGurus has diverged positively from market declines, gaining 12.4% since Q4 earnings while SPY dropped 2.11%. The completion of CarOffer's wind-down on December 31, 2025, eliminated a long-standing financial drag from the volatile wholesale vehicle business. Full-year 2025 results demonstrate the strength of the core marketplace: gross profit reached $841.5 million, up 14% year-over-year, while free cash flow surged 47.49% to $265.96 million. The company launched more new AI products in 2025 than any prior year, with compelling early adoption metrics. PriceVantage, an AI-powered inventory pricing tool, achieved nearly 80% weekly active adoption among dealers, delivering five times faster vehicle turnover and 71% increased daily shopper connections. CG Discover, a conversational AI search tool, experienced 3.5x traffic growth and 10x lead growth quarter-over-quarter.

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