CarGurus, Inc.

First quarter revenue grew 15% year over year to $244 million. Non-GAAP gross profit was $225 million, up 14% year over year, and non-GAAP gross margin was 92%, down about 80 basis points year over year. Non-GAAP adjusted EBITDA was $80 million, up 17% year over year, with a 33% margin, up about 60 basis points year over year. Non-GAAP EPS was $0.58, up 21% year over year. On the balance sheet, CarGurus ended Q1 with $72 million in cash and cash equivalents after approximately $175 million of share repurchases. For Q2 2026, management guided revenue to $247 million to $252 million, adjusted EBITDA to $77.5 million to $85.5 million, and non-GAAP EPS to $0.57 to $0.64. For full-year 2026, revenue is expected to grow 10% to 13% year over year, and adjusted EBITDA margin is expected to compress by about 1.5 to 2.5 percentage points versus 2025.

Jason Trevisan framed the quarter as validation of CarGurus’ strategy to embed AI and proprietary data deeper into dealer workflows and the consumer journey. He emphasized three priorities: expanding into dealer workflow tools, building an AI-led shopping experience, and maintaining disciplined capital deployment. His tone was constructive and confident, but he also said 2026 is an investment year and that those investments should modestly weigh on margins in the near term.

Jason Trevisan covered the financials with specific emphasis on top-line growth, dealer monetization, and margins. He cited U.S. QARSD up 9%, 963 more paying U.S. dealers year over year, international revenue up 39%, non-GAAP gross margin at 92%, adjusted EBITDA of $80 million, and cash of $72 million after $175 million in buybacks. He also reiterated that 2026 remains an investment year, with higher product, technology, development, sales, and marketing spend expected to compress full-year adjusted EBITDA margin by 1.5 to 2.5 points.

Analysts pressed on why Q1 margins came in better than expected, and management said the beat was mainly helped by a retroactive Canadian tax-law item plus a few smaller timing items, not by a structural change, which is why guidance was reiterated. Questions also focused on AI/Agentic AI and dealer adoption of digital tools; management said current AI use is still early and mostly internal or top-of-funnel, but products like pricing, inventory, Discover, Shopper Signals, and dealership mode are already showing traction. On cash and buybacks, management said there is no fixed minimum cash floor disclosed and that repurchases will continue opportunistically, with the remaining $75 million authorization deployed when shares look compelling.