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CarGurus (CARG) Q2 2025 earnings results (second quarter 2025)

10-Q filed Aug 7, 2025

CarGurus (CARG) reported revenue of $234M for the second quarter 2025 (Q2 2025), +7% from a year earlier and +4% from the quarter before. Operating margin was 10.6%, net earnings $22.3M (9.5% of revenue).

Revenue$234M
Year over year+7%
Quarter over quarter+4%
Operating margin10.6%
Net earnings$22.3M

CarGurus, Q2 2025: revenue $234M (+7% year over year), operating margin 10.6%, net earnings $22.3M, operating cash flow $73.1M. The chart follows the revenue to costs, profit and cash.

Q2 2025AmountQ/QY/Y
Revenue$234M+4%+7%
Gross profit$206M+4%+14%
Operating profit$24.8M-46%—
Net earnings$22.3M-43%—
Operating cash flow$73.1M+8%+2%
Free cash flow$71.5M+9%+57%

What changed

Revenue was $234.0M in Q2 2025, up 7% year over year and up 4% from the previous quarter.

Gross margin was 88.2%, up 5.6 points from a year earlier. Operating profit was $24.8M, a 10.6% margin (up 53.4 points year over year). Operating expenses fell 34% while revenue rose 7%. Net earnings were $22.3M. The effective tax rate was 18.5%.

Operating cash flow was $73.1M (up 2% year over year), 327% of net earnings. Non-cash charges added back $6.7M of depreciation and amortization and $13.0M of share-based compensation. Working capital and other items added $31.1M. Capital expenditures of $1.6M left free cash flow of $71.5M.

Questions

What was CarGurus' revenue in the second quarter 2025?

CarGurus (CARG) reported revenue of $234M for the second quarter 2025 (Q2 2025), +7% from a year earlier and +4% from the quarter before.

Was CarGurus profitable in the second quarter 2025?

Operating profit was $24.8M (10.6% of revenue) and net earnings $22.3M.

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Source: CarGurus 10-Q on SEC EDGAR.