Filing Flows › CarGurus (CARG) › Q1 2026
CarGurus (CARG) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 7, 2026
CarGurus (CARG) reported revenue of $244M for the first quarter 2026 (Q1 2026), +15% from a year earlier and +1% from the quarter before. Operating margin was 16.5%, net earnings $32.2M (13.2% of revenue).
CarGurus, Q1 2026: revenue $244M (+15% year over year), operating margin 16.5%, net earnings $32.2M, operating cash flow $69.8M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $244M | +1% | +15% |
| Gross profit | $225M | +0.9% | +14% |
| Operating profit | $40.1M | -66% | -21% |
| Net earnings | $32.2M | -35% | -17% |
| Operating cash flow | $69.8M | -16% | +3% |
| Free cash flow | $69.5M | -15% | +6% |
What changed
Revenue was $243.6M in Q1 2026, up 15% year over year and up 1% from the previous quarter.
Gross margin was 92.2%, down 1.0 points from Q1 2025. Operating profit was $40.1M, a 16.5% margin (down 7.4 points year over year). Operating profit fell $10.6M even though revenue rose $31.3M versus Q1 2025, so costs grew faster than sales. Operating expenses grew 25% against revenue growth of 15%. The fastest-growing cost line was Other operating costs (+510%). Net earnings were $32.2M, down 17% year over year. The effective tax rate was 21.7%.
Operating cash flow was $69.8M (up 3% year over year), 217% of net earnings. Non-cash charges added back $7.2M of depreciation and amortization and $13.3M of share-based compensation. Working capital and other items added $17.2M. Capital expenditures of $391K left free cash flow of $69.5M.
Questions
What was CarGurus' revenue in the first quarter 2026?
CarGurus (CARG) reported revenue of $244M for the first quarter 2026 (Q1 2026), +15% from a year earlier and +1% from the quarter before.
Was CarGurus profitable in the first quarter 2026?
Operating profit was $40.1M (16.5% of revenue) and net earnings $32.2M.
Source: CarGurus 10-Q on SEC EDGAR.