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CarGurus’ 28% International Surge Opens A New Growth Engine!

CarGurus reported a 13% year-over-year revenue increase to $251 million in the second quarter of 2026, slightly surpassing the midpoint of its guidance. The international segment outperformed with 28% revenue growth, driven by listings and “Sell My Car” initiatives in Canada and advertising in the UK. Adjusted EBITDA rose 7% to $85 million with a 34% margin, reflecting disciplined investment and operating leverage despite a modest margin compression compared to the prior year. The company converted 103% of adjusted EBITDA into free cash flow, ending the quarter with $122 million in cash, demonstrating strong cash generation capabilities. Share repurchases continued with $29 million spent in the quarter, bringing year-to-date buybacks to $204 million and over 30% of shares outstanding repurchased since 2022. Dealer engagement remains a focus amid some short-term headwinds, including margin pressures and inventory turnover dynamics exacerbated by recent FTC pricing transparency requirements.