CarGurus (CARG) Reports 14% Annual Revenue Growth to $907M Following Record Dealer Network Expansion

CarGurus Inc. (NASDAQ:CARG) is one of the best stocks for beginners with little money in 2026. On February 19, CarGurus reported financial results for Q4 and the full year 2025. The full year was characterized by a 14% increase in annual revenue to $907 million, whereas quarterly revenue stood at $241.09 million and rose 5.49% year-over-year. This growth was supported by a record expansion of the dealer network, adding 1,357 paying US dealers and achieving a 14% increase in international accounts.

The company decided to wind down the ‘car offer’ business in Q4, which resulted in $13.3 million in related expenditures. Despite this, international revenue jumped 32% in the quarter, and the company launched more new products than in any previous year to enhance dealer workflows and consumer digital deal capabilities. The focus remains on long-term growth and doubling the TAM through new software and data intelligence tools. These investments in product technology and AI-driven efficiency are intended to solidify CarGurus’ role as an integral partner in dealer operations.

For 2026, CarGurus provided a positive revenue guidance for Q1, projecting a growth range of 13% to 16%. However, the company anticipates a margin compression of 1.5 to 2.5 percentage points as it prioritizes investments in international expansion, account management, and technology over short-term margin maximization.

CarGurus Inc. (NASDAQ:CARG) operates an online automotive platform for buying and selling vehicles in the US and internationally. The company offers dealer subscription fees, advertising from auto manufacturers & other brand advertisers, and partnerships with financing services companies.

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