CarGurus is a Cambridge, Massachusetts-based online auto marketplace operating as the No. 1 visited automotive shopping site in the U.S., and the company is in the middle of a fiscal second quarter that demonstrates the kind of Guru-AI launch and international momentum the online auto marketplace cohort has been waiting for. Q2 2026 revenue of $251.0 million was 13 percent above the prior-year quarter's $222.0 million, the Q2 2026 GAAP net income from continuing operations of $49.2 million was approximately flat with the prior-year quarter, the Q2 2026 non-GAAP Adjusted EBITDA from continuing operations of $84.7 million was 7 percent above the prior-year quarter, and the Q2 2026 cash flow from operations of $94.6 million was the cleanest single-sentence read on the cash-generation profile the company is producing. The combination of the 13 percent revenue growth, the $94.6 million of operating cash flow, the launch of Guru as the consumer-facing AI layer, the continued international momentum, and the $29.2 million of share repurchases in Q2 2026 is the cleanest single read on what the online auto marketplace business model is producing, and the combination is the source of the operating-leverage spread the equity offers the buy-side.
The numbers tell the story with the kind of operational detail the online auto marketplace equity has been waiting for. The Q2 2026 gross profit of $231.1 million was 12 percent above the prior-year quarter's $206.3 million, and the Q2 2026 gross margin of 92 percent was 86 basis points below the prior-year quarter's 93 percent. The H1 2026 gross profit of $455.7 million was 13 percent above the prior-year period's $404.2 million. The Q2 2026 operating expenses of $168.1 million were 15 percent above the prior-year quarter's $146.2 million, with the operating expense growth above the revenue growth, reflecting the international expansion and the Guru-AI launch investment.
The Q2 2026 GAAP net income from continuing operations of $49.2 million was approximately flat with the prior-year quarter's $48.9 million, and the H1 2026 GAAP net income from continuing operations of $81.4 million was 11 percent below the prior-year period's $91.1 million. The Q2 2026 non-GAAP Adjusted EBITDA from continuing operations of $84.7 million was 7 percent above the prior-year quarter's $79.0 million, and the H1 2026 non-GAAP Adjusted EBITDA from continuing operations of $165.0 million was 11 percent above the prior-year period's $148.5 million.
The $29.2 million of share repurchases in Q2 2026, bringing total repurchases since December 2022 to over 30 percent of shares outstanding, is the cleanest single read on the capital-return profile the company is producing, and the share repurchases are the source of the per-share earnings growth the company is producing. The cash and cash equivalents position of $122.1 million at quarter-end was 36 percent below the prior-year quarter-end position.
The Q3 2026 guidance is for total revenue of $253.5 million to $258.5 million and non-GAAP Adjusted EBITDA from continuing operations of $82.0 million to $90.0 million, and the full-year 2026 guidance is for revenue change of 10 percent to 13 percent year over year and non-GAAP Adjusted EBITDA from continuing operations margin change of -0.5 percent to -1.5 percent year over year. The full-year 2026 guidance is the cleanest single read on the management confidence in the operating profile the company is producing.
The question the next four quarters resolve is whether the company can sustain the 13 percent revenue growth and the international momentum, and whether the Guru-AI launch produces the consumer engagement and the dealer adoption the company is positioning for. A Q3 2026 print that delivers the guided $253.5 million to $258.5 million revenue range would confirm the operating profile is sustainable. A Q3 2026 print that misses the guided revenue range or the Guru-AI launch does not produce the consumer engagement would force the market to reprice the equity for a more modest terminal value.