CarGurus, Inc. (CARG) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day and welcome to the CARGurus second quarter 2026 earnings conference call. Please note this event is being recorded. I would now like to turn the call over to Javier Zamora, General Counsel and Corporate Secretary. Please go ahead. Good afternoon and thank you for joining us. With me on the call today are Jason Trevisan, Chief Executive Officer, and Sam Zales, President and Chief Operating Officer. We will be making forward-looking statements which are based on our current expectations and beliefs. These statements are subject to risks and uncertainties and our actual results may differ materially. Information concerning those risks and uncertainties is discussed in our SEC filings. We undertake no obligation to update forward-looking statements except as required by law. Please refer to our press release and our investor presentation on the investor relations section of our website for reconciliation of gap to non-gap measures. I'll now turn the call over to Jason. Good afternoon. We delivered strong second quarter results with revenue growing 13% year-over-year to $251 million, above the midpoint of our guidance range, including another robust quarter in our international business, which grew 28% year-over-year. Adjusted EBITDA increased 7% year-over-year to $85 million at the high end of the guidance range at a 34% margin, reflecting disciplined investment. We also generated strong cash flow, converting 103% of our adjusted EBITDA, or $88 million, to free cash flow in the quarter. In the first half of this year, dealers have taken a more deliberate approach to incremental spending decisions. We believe market trends like dealer margin pressure and fewer days on lot coupled with one-time developments like recent FTC-mandated all-in price transparency requir...