Post-earnings recap
Reported
Thu, Aug 6, 2026
EPS actual
$0.66
EPS est.
$0.50
EPS surprise
+32.00%
1-day move
-0.08%
CarGurus reported a strong EPS beat, indicating better-than-expected profitability, but the stock saw a slight decline of 0.08%. The company experienced solid revenue growth, particularly in international markets, which may position it well for future performance. The strong dealer engagement and free cash flow conversion suggest operational efficiency, although the lack of specific guidance may leave investors cautious.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $0.66 | N/A | +32.00% |
| Revenue | $251 million | N/A | N/A |
| Adjusted EBITDA | $85 million | N/A | +7% |
| Free Cash Flow | $88 million | N/A | N/A |
Management expressed optimism about the company's growth, particularly in international markets. They highlighted strong dealer engagement and solid free cash flow conversion.
International revenue grew significantly, driven by strong performance in Canada and the U.K.
Dealer engagement on the platform rose due to enhanced AI functionalities.
CarGurus, Inc. is a leading online automotive marketplace that connects buyers and sellers of vehicles. Operating in the Communication Services sector, it plays a crucial role in the interactive media and services industry, leveraging technology to enhance the car buying experience.
Last quarter
In Q1 2026, CarGurus reported an EPS of $0.58, exceeding expectations by 27.47%. The stock reacted positively, gaining 2.00% the following day.
Management promises and guidance
EPS beat streak
8Q
EPS beat rate
100%
Avg EPS surprise
+36.29%
Avg 1-day reaction
-0.04%
Investors are generally optimistic about CarGurus' upcoming earnings, especially given its strong track record of beating EPS estimates.
Bull case
If CarGurus continues its trend of exceeding EPS expectations, it could signal strong operational performance and user engagement.
Bear case
Conversely, if the company fails to meet expectations, it may raise concerns about its growth trajectory and market competition.
The print will turn on these.
Q1
What will be the EPS for Q2-2026?
Given the company's history of beating EPS estimates, this figure will be crucial in determining market sentiment.
Q2
How has user growth changed compared to last quarter?
User growth is a key indicator of the company's market position and future revenue potential.
—
Est. EPS
$1.48
Est. Rev
$3.3B
Impl. Move
±16.9%
Why consensus could be wrong
The Street may be underestimating CarGurus' ability to leverage new partnerships for user growth, which could significantly boost revenue.
Supporting evidence
The company has consistently beaten EPS estimates, indicating stronger performance than anticipated.
User engagement metrics have shown improvement, suggesting a robust platform.
Options pricing indicates a higher expected move, reflecting market uncertainty.
Key risk
If user growth significantly outpaces expectations, it could lead to a reassessment of the company's growth potential.
Pre-commit to what would confirm each case.
The market is debating whether CarGurus can maintain its growth momentum amidst increasing competition.
Bull confirmed if
EPS of $0.60 or higher would confirm strong operational performance.
Bear confirmed if
An EPS below $0.50 could indicate declining profitability.
What the market is pricing for the move.
Implied Move
±10.52%
Historical Avg
±1.7%
The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings report.
Options are pricing ±10.5% while CARG has averaged ±1.7% over the last 8 prints — setup is pricing rich.
ATM IV
0.5%
30d HV
46.8%
Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.
Bought
$0.00
0 sh
0 insiders
Sold
$406,712.22
13,731 sh
3 insiders
Net
$406,712.22
Net selling
Most Active Insiders· 3 open-market trades
$214,271.08
Net selling
Smart-money positioning from the most recent 13F filings.
Institutional
109.11%
of float
Insider
2.77%
of float
Holders
514
institutions
Top Holders· as of Jun 2026
Blackrock Inc.
11,803,358 sh · $339.6M
15.67%
-1.7%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If CarGurus beats expectations, history suggests the stock could rise by around 0.14% on the next trading day, confirming strong performance.
In line / cautious
If results are in line with expectations, the stock may experience muted movement as investors await further guidance.
Miss
A miss could lead to a decline, with historical patterns indicating a potential drop of around 1.85%.
The lines on the call that would change the story.
$113,266.88
Net selling
$79,174.26
Net selling
Recent Transactions
Oct 2, 2026 · @ $29.62
7,234 sh
$214,271.08
Oct 2, 2026 · @ $29.62
3,824 sh
$113,266.88
Oct 2, 2026 · @ $29.62
2,673 sh
$79,174.26
Open-market trades only (Form 4 codes P/S). Awards, exercises, and tax-withholding excluded as routine compensation noise.
Vanguard Portfolio Management LLC
4,715,273 sh · $135.7M
6.26%
1.7%
Vanguard Capital Management LLC
3,302,216 sh · $95.0M
4.38%
-5.6%
Wellington Management Group, LLP
3,255,283 sh · $93.7M
4.32%
-45.3%
Manufacturers Life Insurance Co.
3,110,647 sh · $89.5M
4.13%
83.3%
13F filings updated quarterly. Position deltas show change in shares vs. the prior quarter.