CarGurus CEO Jason Trevisan spoke at the 28th Annual Needham Growth Conference, outlining an accelerated product rollout and a broader strategy focused on dealer software and artificial intelligence. Trevisan, in a conversation with Needham's Chris Pierce, stated that 2025 was defined by faster innovation, moving the company beyond its traditional marketplace model into data and software tools supporting dealer workflows.
Trevisan highlighted the launch of PriceVantage, described as CarGurus's first standalone software product for inventory management. He said the tool helps dealers price inventory based on expected retail outcomes rather than wholesale book values. He cited the company's visibility into retail signals from billions of annual vehicle page views as an advantage for predictive intelligence.
He also pointed to growing adoption of Dealer Data Insights, a product aiding dealers with sourcing, merchandising, lead conversion, and market intelligence. On the consumer side, Trevisan described two AI-driven initiatives: Discover, an AI virtual assistant for shoppers unsure of what car they want, and Dealership Mode, an in-app experience designed to help consumers navigate the in-dealership process to improve conversion.
Trevisan discussed a strategic change regarding CarOffer, a prior acquisition for wholesale. He said CarGurus wound down the transaction portion of that wholesale business, calling it lower margin and operationally complex. The company now aims to help dealers source inventory through technology, analytics, and AI-driven predictive intelligence instead of running wholesale transactions.
For 2026, Trevisan said the company expects continued expansion from marketing into inventory, conversion, and data intelligence, positioning CarGurus as "a software and a data business for dealers." He called Dealer Data Insights a "Trojan horse" due to daily dealer engagement and noted 2026 will be the first full year for PriceVantage, which he said has strong early adoption.
On the market environment, Trevisan noted some normalization since COVID-era disruptions but said "few things in auto have been normal since COVID." He cited affordability as a key theme, with used car prices higher than a year ago, inventory higher, and time-on-lot increased. He also referenced uncertainty around tariffs and trade policy.
Regarding consumer behavior, Trevisan said only "low to mid-single digits" of car purchases are completed fully virtually, with over 90% involving in-person interaction. However, he said most shoppers want to do more online, describing this as CarGurus's "sweet spot." He pointed to Digital Deal, now used by about half of CarGurus dealers, which enables consumers to handle financing, trade-ins, deposits, and appointments online.
Trevisan emphasized that CarGurus is "not just a lead gen marketplace business anymore." He said dealer surveys typically show CarGurus as the highest lead provider with the best ROI, supporting retention. Dealers using CarGurus's data and insights "are discernibly performing better on our marketplace," he added, supporting upsell opportunities.
On market size, Trevisan estimated U.S. dealer spending on marketplace lead generation at about $3.5 billion, with CarGurus's core business at roughly $800 million. He said expanding into software and data products opens "another about $4 billion of spend," effectively doubling the company's total addressable market with dealers.
He provided dealership metrics, stating CarGurus typically lists 4.0 million to 4.5 million vehicles, estimated as "north of 80%" of U.S. inventory, split about evenly between new and used. In the U.S., he cited 42,000 to 45,000 rooftops total, with about 26,000 paying rooftops and over 30,000 including free dealers. The average dealer pays about $2,500 per month, he said, with smaller dealers under $1,000 and the largest paying "six figures a month."
On financials, Trevisan said CarGurus has grown margin for several years and is at the high end of its long-term marketplace margin target of 30% to 35%. He said the company expects "a slight step down in margin" in 2026 due to increased investment intended to maintain a higher growth rate, describing the trade-off as supporting long-term sustainable growth.
In capital allocation, Trevisan said the company will balance investment needs, potential mergers and acquisitions, and shareholder returns. He said CarGurus remains active in evaluating acquisitions, particularly across dealer workflow areas like inventory, conversion, and market intelligence. On share repurchases, he said the company has used buybacks "really effectively," with roughly $55 million remaining on its approved program at the end of the third quarter, and intends to be "aggressive" when it believes the stock is undervalued.