CarGurus, Inc. (NASDAQ: CARG)

CarGurus is a multinational automotive platform that helps consumers and dealers buy and sell vehicles with greater trust and transparency. The company operates online marketplaces in the United States, Canada and the United Kingdom, connecting a large audience of car shoppers with an extensive network of dealers. Its platform provides tools for research, consideration, purchase and post‑sale activities, supported by data‑driven insights and AI‑powered features.

CarGurus generates revenue primarily from three sources: dealer subscription fees for marketplace and software products, advertising fees paid by auto manufacturers and other brand advertisers, and partnerships with financing services companies that fund consumer loans. Additional revenue comes from fees for digital retailing tools such as Digital Deal and from financing pre‑qualification arrangements with lending partners.

The company operates through the following segments:

• U. S. Marketplace: This segment derives revenue from marketplace services provided to dealer customers located within the United States, including subscription fees, advertising and financing partnership income.

• Digital Wholesale: This segment primarily derived revenue from the Dealer‑to‑Dealer and Instant Max Cash Offer services sold on the CarOffer platform, which facilitated wholesale vehicle transactions between dealers.

CarGurus holds a leading position in the U. S. online automotive marketplace, ranking as the No. 1 visited automotive shopping site with the largest inventory selection and dealer network. It competes with major platforms such as AutoTrader.com, Cars.com, TrueCar.com and CARFAX.com, as well as sites like Edmunds.com, KBB.com and Carvana.com. Competitive advantages include a large and highly engaged user base, transparent pricing and deal ratings, AI‑driven search and recommendation tools, and a suite of data analytics that help dealers optimize inventory, pricing and marketing decisions.

The company serves a diverse customer base that includes individual consumers searching for new or used vehicles, franchise and independent auto dealers seeking inventory sourcing, marketing and conversion solutions, auto manufacturers looking to advertise their vehicles, and financing partners that provide loan pre‑qualification services to shoppers.