Short answer
CarGurus, Inc. (CARG) filed its fiscal 2025 10-K annual report with the SEC on Feb 19, 2026. It reported revenue of $907M (+1.4% year over year) and net income of $156M.
- Top risk flagged: Regulatory risk from discretionary credits in advertising contracts requiring monthly revenue deferral reviews impacting recognition policies
FY2025 key financial metrics · XBRL
- Revenue
- $907M
- +1.4% YoY
- Net income
- $156M
- +643.4% YoY
- Operating margin
- 27.0%
- +25.5 pp YoY
- Gross margin
- 92.8%
- +10.2 pp YoY
- EPS (diluted)
- $1.55
- +675.0% YoY
- ROE
- 41.7%
- +37.8 pp YoY
- Operating cash flow
- $295M
- +15.6% YoY
Source: XBRL data from the CarGurus, Inc. (CARG) FY2025 10-K on SEC EDGAR. USD.
CarGurus, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Multinational automotive platform connecting car shoppers and dealers via a data-driven marketplace with dealer software solutions
- Strategic shift: Wind-down of CarOffer digital wholesale segment completed in 2025; consolidation to single reportable segment focusing on AI-powered inventory intelligence and smarter sourcing
- New product emphasis: Launch of CG Discover, a GenAI-powered shopping assistant enhancing consumer search and vehicle selection process
- Quantitative highlight: Completion of CarOffer abandonment by Dec 31, 2025; reporting now unified under one segment starting Q4 2025
- Noteworthy fact: Introduction of Digital Deal and Dealership Mode features to increase transparency and lead conversion in online-to-offline car purchases
Management Discussion & Analysis
- Revenue $907.0M, up 14% YoY from $798.0M in 2024
- Net income from continuing operations $196.7M vs $128.7M, Adjusted EBITDA $319.0M vs $255.6M in 2024
- Single reportable segment post-CarOffer wind-down, wind-down cost $13.3M, completed Dec 31, 2025
- Paying dealers 34,409 (up from 32,010); Quarterly average revenue per dealer $6,616 vs $6,144 in 2024
- OBBBA tax act materially reduced 2025 and expected 2026 cash taxes; management focusing on AI and analytics for smarter sourcing
Risk Factors
- Regulatory risk from discretionary credits in advertising contracts requiring monthly revenue deferral reviews impacting recognition policies
- Macroeconomic exposure to higher interest rates, inflation, and labor disruptions affecting vehicle sales volume and consumer spending
- Operational risk from judgment in capitalizing website development and software costs leading to material impacts on amortization expense
- Competitive threat from continued investment in software and data products to counter evolving dealer marketing behaviors and consumer engagement shifts
- Financial risk due to significant repurchases of Class A common stock totaling $351.9 million under 2025 Share Repurchase Program
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