$CARG

CarGurus, Inc.

CIK:0001494259|SEC Filings

Unaudited Condensed Consolidated Income Statements - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Revenue

Revenue

$ 250,971

$ 221,998

$ 494,526

$ 434,233

Cost of revenue

^[1],[2]

19,873

15,677

38,807

30,020

Gross profit

231,098

206,321

455,719

404,213

Operating expenses

Sales and marketing

97,635

82,587

195,119

166,256

Product, technology, and development

38,137

33,725

75,808

68,753

General and administrative

28,209

25,266

54,690

50,051

Impairments

450

499

19,651

499

Depreciation and amortization

3,685

3,695

7,390

7,451

Total operating expenses

168,116

145,772

352,658

293,010

Income from continuing operations

62,982

60,549

103,061

111,203

Other income, net

Interest income

956

2,134

2,627

5,232

Other (expense) income, net

(448)

430

(1,054)

128

Total other income, net

508

2,564

1,573

5,360

Income from continuing operations before income taxes

63,490

63,113

104,634

116,563

Provision for income taxes

14,297

14,124

23,213

25,500

Net income from continuing operations

49,193

48,989

81,421

91,063

Net loss from discontinued operations, net of tax benefits

(26,646)

(29,675)

Consolidated net income

$ 49,193

$ 22,343

$ 81,421

$ 61,388

Basic

Continuing operations

$ 0.55

$ 0.50

$ 0.88

$ 0.90

Consolidated

0.55

0.23

0.88

0.61

Diluted

Continuing operations

0.54

0.49

0.87

0.89

Consolidated

$ 0.54

$ 0.22

$ 0.87

$ 0.60

Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders

Basic

90,131,442

98,889,893

92,082,411

100,980,676

Diluted

91,076,449

100,184,067

93,075,457

102,614,441

[1]	For the three months ended June 30, 2026 and 2025 and for the six months ended June 30, 2025, there was no impairment recorded in cost of revenue. For the six months ended June 30, 2026, cost of revenue includes impairment of $0.5 million.
[2]	For the three months ended June 30, 2026 and 2025 and for the six months ended June 30, 2026 and 2025, cost of revenue includes depreciation and amortization expense of $4.2 million, $2.1 million, $7.7 million, and $4.0 million, respectively.

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Consolidated net income	$ 81,421	$ 61,388
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	15,099	13,236
Currency loss (gain) on foreign denominated transactions	165	(457)
Deferred taxes	4,693	(13,330)
Provision for doubtful accounts	1,486	1,123
Stock-based compensation expense	26,630	25,925
Amortization of deferred financing costs	258	258
Amortization of deferred contract costs	9,749	7,814
Impairments	20,161	32,552
Changes in operating assets and liabilities
Accounts receivable	(3,410)	2,223
Inventory	0	(373)
Prepaid expenses, prepaid income taxes, and other assets	12,997	8,894
Deferred contract costs	(9,716)	(9,429)
Accounts payable	6,525	6,692
Accrued expenses, accrued income taxes, and other liabilities	(182)	(3,204)
Deferred revenue	1,411	1,686
Lease obligations	(2,847)	6,000
Net cash provided by operating activities	164,440	140,998
Investing Activities
Purchases of property and equipment	(953)	(3,823)
Capitalization of website development costs	(12,649)	(11,653)
Net cash used in investing activities	(13,602)	(15,476)
Financing Activities
Proceeds from issuance of common stock upon exercise of stock options	55	404
Payment of withholding taxes on net share settlements of restricted stock units	(13,596)	(15,330)
Repurchases of common stock	(202,135)	(184,608)
Payment of excise tax for repurchase of common stock	(2,654)	(682)
Payment of finance lease obligations	(43)	(40)
Change in gross advance payments received from third-party transaction processor	0	(281)
Net cash used in financing activities	(218,373)	(200,537)
Impact of foreign currency on cash, cash equivalents, and restricted cash	(847)	2,135
Net decrease in cash, cash equivalents, and restricted cash	(68,382)	(72,880)
Cash, cash equivalents, and restricted cash at beginning of period	190,518	306,229
Cash, cash equivalents, and restricted cash at end of period	122,136	233,349
Supplemental disclosure of cash flow information
(Refunds) or cash paid for income taxes, net	(356)	17,269
Cash paid for operating lease liabilities	11,531	8,997
Cash paid for interest	309	316
Supplemental noncash disclosure of cash flow information
Unpaid purchases of property and equipment and capitalized hosting arrangements	1,040	842
Capitalized stock-based compensation expense in website development and internal-use software costs and hosting arrangements	2,919	3,496
Unpaid repurchases of common stock	2,170	0
Unpaid excise tax on repurchases of common stock	1,676	1,402
Obtaining a right-of-use asset in exchange for an operating lease liability	$ 0	$ 201

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 122,136	$ 190,518
Accounts receivable, net of allowance for doubtful accounts of $850 and $600, respectively	43,745	41,936
Prepaid expenses, prepaid income taxes and other current assets	21,433	35,259
Deferred contract costs	15,279	15,235
Total current assets	202,593	282,948
Property and equipment, net	129,550	132,952
Intangible assets, net	2,740	3,253
Goodwill	27,933	28,397
Operating lease right-of-use assets	97,960	115,481
Deferred tax assets	76,080	81,201
Deferred contract costs, net of current portion	13,392	13,563
Other non-current assets	4,879	4,102
Total assets	555,127	661,897
Current liabilities
Accounts payable	36,063	29,115
Accrued expenses, accrued income taxes and other current liabilities	38,652	38,393
Deferred revenue	24,960	23,562
Operating lease liabilities	9,846	9,469
Total current liabilities	109,521	100,539
Operating lease liabilities	175,296	181,364
Deferred tax liabilities	0	442
Other non–current liabilities	5,954	5,354
Total liabilities	290,771	287,699
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	6,764	10,297
Retained earnings	257,376	362,380
Accumulated other comprehensive income	126	1,426
Total stockholders’ equity	264,356	374,198
Total liabilities and stockholders' equity	555,127	661,897
Class A Common Stock
Stockholders' equity
Common stock	76	81
Class B Common Stock
Stockholders' equity
Common stock	$ 14	$ 14