CarGurus, Inc.(CARG)Stock Analysis
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Rank #498 of 2,879 stocksTOP 25%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
CARG Stock Analysis & AI Quality Score
AI stock analysis and institutional research for CarGurus, Inc. (CARG), a Technology sector company. 13F Pro's AI-powered ranking engine scores CARG at 66.8/100 on a 32-signal composite quality model, placing it at rank #498 of 2,879 stocks — the top 25% of the AI-ranked universe. CARG scores in the top quartile across balance sheet strength (97.1), free cash flow (85.5), profitability (83.1). Areas of concern include revenue growth (39.1), which score below median versus the broader universe. Shareholder dilution risk is elevated at 24.3/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), CarGurus, Inc. reports quarterly revenue of $243.6M, net income of $32.2M, free cash flow of $69.5M. Top institutional holders of CARG by reported 13-F value include BlackRock,, WELLINGTON MANAGEMENT GROUP LLP, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. CARG trades on the Nasdaq exchange and files with the SEC under CIK 1494259. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CARG daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CarGurus, Inc. directly from SEC EDGAR. CarGurus, Inc.'s 13F Pro composite quality score has ranged between 8 and 72 since 2021, currently 66.8 — a stable long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving CARG's Business? Latest 10-Q Breakdown
✓ 40/40 datapoints verifiedAI-extracted from CarGurus, Inc.'s 10-Q filed 2026-05-07 — Q1 2026 (three months ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
CarGurus Q1 2026 revenue grew 15% YoY to $243.6M, but net income fell 23% to $32.2M due to $19.2M lease impairment charge.
Biggest Revenue Drivers
Total revenue: $243.6M+15% YoY
Growth driven by signing new dealers at market rates, subscription tier upgrades, and adoption of add-on products including Digital Deal and Sell My Car.
Non-dealer advertising from auto manufacturers and brand advertisers sold on CPM and CPC basis.
Partnerships with financing services companies enabling consumer pre-qualification.
Largest Expense Items
Increase driven by $7.3M higher advertising/marketing spend, $3.1M personnel costs, $1.1M software/consulting, and $1.0M commissions.
Increase due to $1.6M consulting and $1.5M personnel costs from headcount additions and merit increases.
Increase driven by $1.3M professional services, $0.7M stock-based comp, and $1.1M general expenses, offset by $1.5M tax decrease.
Non-cash impairment of 121 First Street lease: $14.7M operating lease ROU asset and $4.5M leasehold improvements due to lower anticipated rental recovery rates.
Margins: Gross margin was 92% in Q1 2026 vs. 93% in Q1 2025, declining 100 bps due to higher amortization, data center/hosting costs, and advertising campaign spending. Operating margin declined significantly to 16% from 24% YoY, primarily driven by the $19.2M lease impairment charge.
Watch Items from the Filing
- Cash declined $118.5M to $72.0M as of March 31, 2026 (from $190.5M Dec 31, 2025), driven by $175.0M share repurchases; only $75.0M of $250M 2026 repurchase authorization remains.
- Q1 2026 net income from continuing operations fell 23% to $32.2M despite 15% revenue growth, due to $19.2M non-cash lease impairment related to 121 First Street sublease.
- International revenue represented $23.6M (10% of total) vs. $17.0M YoY; International AMMU declined to 8.6M from 10.6M YoY, partly due to U.K. privacy law consent requirements limiting user tracking.
- Paying dealers grew to 34,596 (26,116 U.S., 8,480 International) with QARSD increasing to $6,647 consolidated (U.S. $7,996), showing strong dealer retention and monetization.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$243.6M
Net Income
Q1 2026
$32.2M
Free Cash Flow
Q1 2026
$69.5M
D/E Ratio
Q1 2026
0.00
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+13.7% YoYNet Income
+643.4% YoYOperating Income
+55.6% YoYEPS (Diluted)
+675.0% YoYTotal Assets
-19.7% YoYTotal Debt
Op. Cash Flow
+15.6% YoY| Metric | FY 2025 | FY 2024 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|
| Revenue | $907.0M +13.7% | $798.0M +44.7% | $551.5M -6.4% | $588.9M +29.7% | $454.1M +43.3% | $316.9M |
| Net Income | $155.9M +643.4% | $21.0M -73.0% | $77.6M +84.0% | $42.1M -35.3% | $65.2M +393.7% | $13.2M |
| Operating Income | $244.4M +55.6% | $157.1M +60.8% | $97.8M +184.8% | $34.3M +48.0% | $23.2M +51.8% | $15.3M |
| EPS (Diluted) | $1.55 +675.0% | $0.20 -70.6% | $0.68 +83.8% | $0.37 -35.1% | $0.57 +375.0% | $0.12 |
| Total Assets | $661.9M -19.7% | $824.5M +64.2% | $502.3M +27.6% | $393.6M +46.7% | $268.3M +51.9% | $176.6M |
| Total Debt | $0.00 | $0.00 | — | — | — | — |
| Operating Cash Flow | $295.3M +15.6% | $255.5M +63.0% | $156.7M +123.5% | $70.1M +35.6% | $51.7M +101.3% | $25.7M |
AI Insight: CARG Financial Trends
Revenue growth has stagnated with Q1 2026 at $244M versus $225M in Q1 2025, while equity has declined sharply from $542M to $237M.
• Revenue increased only 8.4% year-over-year from $225M in Q1 2025 to $244M in Q1 2026.
• Operating cash flow remained stable around $70M range across recent quarters.
• Company maintains zero debt position throughout the entire period.
⚠ Equity dropped dramatically from $542M in Q4 2024 to $237M in Q1 2026.
⚠ Revenue declined 12.6% quarter-over-quarter from $239M in Q3 2025 to $209M in Q4 2025.
AI Insight: CARG Ratio Trends
CarGurus delivered exceptional Q4 2025 operating leverage with 57.0% margin before moderating to 16.5% in Q1 2026.
• Operating margin surged from 22.9% in Q3 2025 to 57.0% in Q4 2025 before normalizing to 16.5% in Q1 2026.
• ROIC strengthened consistently from 22.8% in Q2 2025 to 67.6% in Q1 2026, indicating improving capital efficiency.
• Company maintains zero debt across all periods with D/E ratio of 0.00 throughout the measurement window.
⚠ Operating margin volatility with 40.5pp swing from Q4 2025 peak to Q1 2026 suggests potential seasonality or lumpy revenue recognition.
⚠ Net profit margin compressed from 23.8% in Q4 2025 to 13.2% in Q1 2026, tracking the operating margin decline.
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Top Institutional Holders of CARG
BlackRock, Inc.
$409.0M12,012,595 shWELLINGTON MANAGEMENT GROUP LLP
$202.5M5,945,970 shVANGUARD PORTFOLIO MANAGEMENT LLC
$157.8M4,634,701 shVANGUARD CAPITAL MANAGEMENT LLC
$119.1M3,497,076 shSTATE STREET CORP
$105.4M3,094,522 shPrevatt Capital Ltd
$84.3M2,475,000 shOrbis Allan Gray Ltd
$79.4M2,333,259 shCONGRESS ASSET MANAGEMENT CO /MA
$71.9M2,110,537 shGEODE CAPITAL MANAGEMENT, LLC
$71.6M2,101,036 shDIMENSIONAL FUND ADVISORS LP
$60.9M1,787,448 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $409.0M | 12,012,595 |
| WELLINGTON MANAGEMENT GROUP LLP | $202.5M | 5,945,970 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $157.8M | 4,634,701 |
| VANGUARD CAPITAL MANAGEMENT LLC | $119.1M | 3,497,076 |
| STATE STREET CORP | $105.4M | 3,094,522 |
| Prevatt Capital Ltd | $84.3M | 2,475,000 |
| Orbis Allan Gray Ltd | $79.4M | 2,333,259 |
| CONGRESS ASSET MANAGEMENT CO /MA | $71.9M | 2,110,537 |
| GEODE CAPITAL MANAGEMENT, LLC | $71.6M | 2,101,036 |
| DIMENSIONAL FUND ADVISORS LP | $60.9M | 1,787,448 |
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Popular Research
Is CARG a good stock to buy?
13F Pro's AI-powered analysis of CarGurus, Inc. (CARG) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for CARG are available on the CARG stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own CARG?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling CARG. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of CarGurus, Inc.'s investment landscape.