CarGurus, Inc. (CARG)
Vertical SaaSSaaS Metrics & Investor Data — Q1 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
CarGurus is demonstrating a robust growth inflection, with trailing revenue reaching $0.94B in Q1 2026, representing a YoY growth acceleration to 18.0% from 13.7% in Q4 2025. This marks a clear upward trajectory after a period of mid-teen expansion, suggesting the company is successfully scaling its digital wholesale and marketplace offerings. Gross margins remain best-in-class at 89.5% (Q1 2026), though slightly compressed from the 92.8% peak in Q4 2025, likely reflecting a mix shift toward lower-margin wholesale revenue. Cash generation is exceptional, with Q1 2026 free cash flow (FCF) margin of 23.6%, down from the 31.9% level in Q4 2025, but still indicating a highly capital-efficient model that converts a significant portion of revenue into cash.
Operational & Go-to-Market (GTM) Efficiency
The company’s Rule of 40 score remains strong at 41.6 in Q1 2026, a slight dip from 45.5 in Q4 2025 but still comfortably above the critical 40% threshold that signals a healthy balance of growth and profitability. This metric is supported by the high gross margin and disciplined cost structure. While Net Revenue Retention (NRR) and CAC Payback data are unavailable—a common gap for marketplace-centric models—the accelerating revenue growth implies strong dealer retention and effective customer acquisition. The slight margin compression suggests the company is reinvesting into growth initiatives (e.g., wholesale technology or product features), which appears to be yielding improved top-line momentum without sacrificing overall efficiency.
Market Valuation & Sentiment
Trading at 2.7x EV/Revenue in Q1 2026, CarGurus commands a reasonable multiple relative to its 18% growth rate and nearly 90% gross margins. This valuation is a discount from the 3.8x level seen in Q3 2025, potentially reflecting market concerns over margin normalization or broader SaaS sector compression. Insider activity is notably absent, with zero buys and only net selling of -$2.3M in the last 10 filings, signaling a lack of insider conviction at current levels. However, Wall Street remains broadly bullish with a consensus Buy rating (15 Buys, 7 Holds) and an average price target of $37.92, implying significant upside from current levels. The disconnect between insider caution and analyst optimism suggests the market is pricing in a recovery narrative that has yet to fully materialize in internal confidence.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
CarGurus, Inc. (CARG) is a Vertical SaaS SaaS company with a market cap of N/A as of Q1 2026. The company trades at N/A EV/Revenue and has delivered +18.0% revenue growth year-over-year. With a gross margin of 89% and FCF margin of 23.6%, CarGurus, Inc. scores 42 on the Rule of 40 — placing it in the upper half of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
Rule of 40 is 41.6% (sector median: 30.2%) — outperforming peers by 11.4%.
Revenue Growth is 18.0% (sector median: 15.5%) — outperforming peers by 2.5%.
Gross Margin is 89.5% (sector median: 74.1%) — outperforming peers by 15.4%.
FCF Margin is 23.6% (sector median: 11.9%) — outperforming peers by 11.7%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
Insider Trading Activity
90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 5 sell transactions (totaling $664K) with zero buys. Last activity on Jun 1, 2026.
Analyst Ratings
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