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CarGurus, Inc.

Rank #4Capital Return

CARG · Nasdaq · Communication Services

CarGurus, Inc. (CARG) — Rank #4 by gross profitability (GP/assets 1.52) · ROE 59.0% · Piotroski F-Score 7 / 9.

As-of 2026-09-28 · CIK 0001494259 · all metrics point-in-time as of the filing date.

About

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally.

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The company offers dealer subscription fees, advertising from auto manufacturers and other brand advertisers, and partnerships with financing services companies. It provides an online automotive marketplace that connects large audience of car shoppers with extensive network of dealers, anchoring integrated suite of products. It also offers Digital Deal which allows consumers the option to start their vehicle purchase process online for eligible listings; Dealership Mode which provides consumers with on-the-lot support during visits to participating dealers through the CarGurus app; Sell My Car – Top Dealer Offers which allows dealers to make tailored trade-in offers; and IMV Scan enables dealers to scan a VIN using their smartphone to access IMV data; and PriceVantage, an advanced pricing software powered by machine learning that leverages real-time consumer demand. In addition, the company provides auto manufacturers and others advertiser products, such as brand reinforcement, category sponsorship, automobile segment exclusivity, and consumer segment exposure; Autolist, an online automotive marketplace through mobile applications and a website; and PistonHeads which is an automotive marketplace, auction platform, and editorial site for automotive enthusiasts. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc.

was founded in 2005 and is headquartered in Boston, Massachusetts.

Industry
Internet Content & Information
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,218

Industry

Internet Content & Information

Exchange

Nasdaq

Signal Flags

4 green1 yellow
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
1.52
Return on equity
59.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.10
Current ratio
1.85×
Net cash
$122.14M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
5.6%

Growth

2/2 pass
Revenue growth
13.7%
Piotroski F-Score
7 / 9
Share dilution
-5.5%

Terry Smith quality gate

Passes 4/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

1.52

Primary signal (Novy-Marx).

2nd of 14 SIC 7374 peers

Return on equity

59.0%

Gross margin

92.8%

1st of 14 SIC 7374 peers

Revenue growth (YoY)

13.7%

RPO growth (YoY)

21.4%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-18.2%

Revenue CAGR (5Y)

10.5%

Earnings CAGR (3Y)

22.7%

FCF CAGR (3Y)

4.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.10

6th of 12 SIC 7374 peers (best = lowest)

Current ratio

1.85×

6th of 14 SIC 7374 peers

Quick ratio

1.51×

Net cash

$122.14M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$288.90M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.85

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Value
Hypergrowth
Decline
Capital Return
View full financial statements →