CarGurus, Inc. announced its financial results for the second quarter ended June 30, 2025, on August 7, 2025, reporting robust performance in its core Marketplace business with revenue up 14% year-over-year. The company achieved a Q2 2025 Net Income of $22.3 million and Non-GAAP Adjusted EBITDA of $77.3 million, a 39% increase year-over-year.
Total revenue for the quarter was $234 million, representing a 7% year-over-year increase, surpassing analyst expectations. Non-GAAP earnings per share reached $0.57, also exceeding consensus estimates. The Board of Directors approved an additional $150 million for share repurchases, increasing the 2025 authorization to $350 million and extending it through July 2026.
In a significant strategic decision, CarGurus announced its plan to wind down the CarOffer transactions business over the balance of 2025. This decision was made after a strategic reassessment concluded that CarOffer's current structure was less effective in today's volatile market conditions, which require greater flexibility and automation.
Following the wind-down, CarGurus will focus on delivering AI-powered inventory intelligence through its insights platform and enabling consumer vehicle sourcing via 'Sell My Car - Top Dealer Offers.' The company expects to incur total expenditures related to the wind-down in the range of $14.0 million to $19.0 million, primarily in the second half of 2025.
For the third quarter of 2025, CarGurus provided guidance for Marketplace revenue between $219.5 million and $224.5 million, indicating continued growth of 12% to 15% year-over-year. This strategic pivot aims to sharpen the company's focus on its higher-margin core business and data-driven solutions.
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