Filing Flows › CarGurus (CARG) › Q3 2025
CarGurus (CARG) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 6, 2025
CarGurus (CARG) reported revenue of $232M for the third quarter 2025 (Q3 2025), +0.1% from a year earlier and -1% from the quarter before. Operating margin was 23.6%, net earnings $44.7M (19.3% of revenue).
CarGurus, Q3 2025: revenue $232M (+0.1% year over year), operating margin 23.6%, net earnings $44.7M, operating cash flow $71.2M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $232M | -1% | +0.1% |
| Gross profit | $215M | +4% | +20% |
| Operating profit | $54.7M | +120% | +99% |
| Net earnings | $44.7M | +100% | +99% |
| Operating cash flow | $71.2M | -3% | +27% |
| Free cash flow | $69.8M | -2% | +52% |
What changed
Revenue was $231.7M in Q3 2025, roughly flat year over year and down 1% from the previous quarter.
Gross margin was 92.7%, up 15.1 points from a year earlier. Operating profit was $54.7M, a 23.6% margin (up 11.7 points year over year). Of the extra revenue versus a year earlier, 9234% reached operating profit, above the 12% margin then. Operating expenses grew 5% against flat revenue. The fastest-growing cost line was Sales & marketing (+10%). Net earnings were $44.7M, up 99% year over year. The effective tax rate was 20.9%.
Operating cash flow was $71.2M (up 27% year over year), 159% of net earnings. Non-cash charges added back $7.4M of depreciation and amortization and $12.6M of share-based compensation. Working capital and other items added $6.5M. Capital expenditures of $1.4M left free cash flow of $69.8M.
Questions
What was CarGurus' revenue in the third quarter 2025?
CarGurus (CARG) reported revenue of $232M for the third quarter 2025 (Q3 2025), +0.1% from a year earlier and -1% from the quarter before.
Was CarGurus profitable in the third quarter 2025?
Operating profit was $54.7M (23.6% of revenue) and net earnings $44.7M.
Source: CarGurus 10-Q on SEC EDGAR.