CarGurus (CARG) as of March 31, 2026 presents a thin but positive nominal equity position of $237.1M, but under a liquidation lens the recovery to equity is negative. Total assets of $519.6M are dominated by non-recoverable or deeply haircut items: goodwill ($28.0M, zero recovery), finite-lived intangibles ($3.0M, zero recovery), operating lease ROU assets ($99.2M, zero recovery under winding-up since the associated lease liabilities survive at face value), deferred tax assets ($80.2M, zero recovery as they extinguish on cessation), and PP&E gross $189.9M with accumulated depreciation of $60.4M leaving net book value of $129.5M (recoverable at 50-70%, i.e., ~$65-91M). Liquid assets are limited: cash $72.0M (100% recovery), net AR $44.6M (90-95% recovery, ~$40-42M). The deferred contract cost assets (current $15.1M, non-current $13.3M) have negligible liquidation value. Total liabilities at face value are $282.5M, anchored by operating lease liabilities of $187.9M (current $9.6M + non-current $178.4M) which do not extinguish on windup and represent the single largest balance-sheet liability. Current liabilities total $98.0M; there is no long-term debt outstanding. The 2022 Revolver has $390.6M of undrawn capacity but zero drawn balance. Applied recovery rates yield roughly: cash ~$72M + AR ~$41M + PP&E ~$65-91M + other minor tangibles ~$5M = ~$183-209M in recoverable assets against $282.5M of liabilities at face, yielding estimated negative equity recovery of roughly -$75M to -$100M. The MFFAIS CLV confirms at -$204M (cash liquidation basis), reflecting the lease liability drag. The key structural change this period is a $19.7M impairment charge (XBRL: AssetImpairmentCharges $19.7M; OperatingLeaseImpairmentLoss $14.7M) on the 121 First Street lease, which has reduced the ROU asset but left the full associated lease liability on-balance-sheet at face. Cash fell sharply from $190.5M at December 31, 2025 to $72.0M at March 31, 2026, driven by $174.4M in share repurchases under the 2026 Share Repurchase Program. The filing does not separately XBRL-tag the post-impairment carrying value of the 121 First Street ROU asset versus other ROU assets, limiting granular recovery assessment of that specific lease. The 2022 Revolver Sub-facility has $9.4M in letters of credit outstanding associated with leases, which constitutes a contingent liability not separately tagged in XBRL.
▼ Community Notes