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Forensic Analysis · Software & SaaS · as of Nov 9, 2026

CarGurus, Inc. (CARG)

A forensic read on CarGurus, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

A · High-quality compounder
Forensic grade
Safe
Financial health
7.4
Distress distance
Clean
Earnings quality
2
Forensic signals
34.0%
ROE
13.7%
Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

CarGurus, Inc. earns an A (High-quality compounder) forensic quality grade, and its balance-sheet distress test reads 7.4, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by shareholder returns.

What the filings flag

132% of FCF
FY2025
Shareholder returns. Returned $352M to shareholders (buybacks + dividends) in FY2025 — 132% of free cash flow. That is $86M (32%) more than free cash flow covered, and more than operating cash flow as well. Over FY2025 total debt held, so that line did not fund the gap. The FY2025 cash-flow statement filed $474,000 from shares issued; net cash used in investing activities of $29M; net cash used in financing activities of $384M. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $50M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 151%.
$115M
FY2024
Goodwill impairments. Took $115M of goodwill writedowns across 1 year (FY2024 ($115M)) — about 549% of net income over the span. A large writedown means an acquisition turned out worth far less than was paid — a real mark against M&A discipline.

Key fundamentals

Latest Revenue$907.0M
Revenue Growth YoY+13.7%
Revenue CAGR (2yr)+14.0%
Net Margin17.2%
Free Cash Flow$266.0M
Return on Equity34.0%
Debt / Equity0.00x

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Data from SEC EDGAR public filings · metrics as of Nov 9, 2026. Forensic signals flag probability, not certainty.

See a wrong number? Report an error with the filing it should match.