Earnings Call Intelligence Subscribe
Home › Call Sheets › CARG › Q4'25
Call sheet · Q4'25

CarGurus (CARG)

Q4'25 earnings call · held February 19, 2026 · compared with the Q3'25 call · management-credibility review
10/12
Disclosure score
1 medium, 5 low flags
Financial quality
Bottom line
The sleeper story is international becoming a genuine growth engine with 2x QARSD upside as they take share from monopolistic competitors, not just another geographic expansion play. Everyone will focus on the margin compression, but that's telegraphed investment in a TAM expansion that's finally showing real traction with 8-figure new product revenue guidance. The binding constraint isn't demand or competition, it's execution risk as they try to build multiple software products simultaneously while maintaining marketplace growth. Most revealing quote: 'We're testing different price points' for PriceVantage, showing monetization is still being figured out despite the confident growth targets. My view changes if Q1 shows new products contributing less than $2-3M revenue or if international QARSD growth decelerates below 10%.

The 30-second version

  • THE SLEEPER: International is becoming a genuine growth driver with a 2x QARSD gap to close
  • New product portfolio finally hitting real scale, but margin compression signals heavy reinvestment mode
  • AI traffic conversion advantage is measurable but still microscopic to overall business

What changed this quarter

MetricQ3'25Q4'25Change
Total Revenue$231M (+13% YoY)$241M (+15% YoY)+200bps acceleration
US QARSD Growth8% YoY8% YoYStable but decelerating from double-digits
International QARSD Growth15% YoY16% YoY+100bps acceleration
International Revenue Growth27% YoY32% YoY+500bps acceleration
US Dealer Adds1,182 net adds1,357 net adds+175 dealers QoQ acceleration
International Dealer Adds807 net adds1,042 net adds (14% YoY)+235 dealers QoQ surge
Adjusted EBITDA$82M (36% margin)$88M (37% margin)+100bps margin expansion
Non-GAAP EPS$0.57$0.63+17% YoY growth
2026 Revenue GuideNot provided10-13% growthDecelerating from 14% in 2025
2026 EBITDA Margin Guide35% actual150-250bps compressionSignificant margin investment cycle

Accountability tracked

6 new promises made4 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full CARG Q4'25 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.