TLDR
- Carvana’s board has greenlit a historic 5-for-1 stock split, awaiting shareholder approval on May 5.
- Following shareholder approval, split-adjusted trading will commence on May 7 with ticker symbol “CVNA.”
- The company aims to increase stock accessibility for retail investors and team members through this split.
- Shares climbed approximately 3% during premarket hours following the news.
- Year-to-date, the stock has declined 31%, while posting a 62% gain over the trailing twelve months.
Carvana has announced board approval for a 5-for-1 forward stock split, marking a first-time event in the company’s corporate history. Following the news, shares advanced roughly 3% in premarket activity to approximately $302.
Shareholder approval remains a prerequisite before implementation. Stockholders will cast their votes during the Annual Meeting scheduled for May 5, 2026. Upon approval, owners of both Class A and Class B common stock as of the May 6 market close will be allocated four additional shares per existing share held. Split-adjusted trading will launch on May 7.
Implementation requires an amendment to Carvana’s Certificate of Incorporation.
CFO Mark Jenkins highlighted the company’s exceptional 2025 performance as the rationale behind this strategic decision. The organization achieved historic milestones in both unit sales volume and profitability while outpacing industry competitors in growth metrics.
CEO Ernie Garcia emphasized the employee-centric motivation behind the split. Every full-time team member qualifies for equity compensation tied to length of service, with additional access to a discounted Employee Stock Purchase Plan.
“We’re proud to have an incredible team that truly owns outcomes,” Garcia said in a statement.
A Stock That’s Been Through It
Carvana debuted on public markets in 2017 with a $15 share price. The stock surged beyond $300 during 2021’s pandemic-driven automotive buying surge, only to plummet to approximately $5 by late 2022. That year saw the company record a $1.6 billion deficit.
The subsequent recovery has been remarkable. Carvana achieved profitability once again, delivering rapid expansion in both revenue and earnings while capturing greater market share within the fragmented pre-owned vehicle industry. Shares reached an all-time closing peak of $478.45 on January 22, 2026.
The current year has presented challenges. CVNA has fallen 31% year-to-date. February brought a lackluster quarterly earnings release alongside a short-seller publication claiming undisclosed related-party transactions. Carvana rejected these claims as “inaccurate and intentionally misleading.”
Looking at the past twelve months, CVNA has delivered 62% returns.
2025 By The Numbers
Carvana’s retail unit sales approached 600,000 vehicles throughout 2025. The organization achieved an 11% total EBITDA margin alongside record-setting net income of $1.9 billion annually.
CEO Garcia restated the company’s ambitious long-range objective last month: reaching 3 million annual retail vehicle sales with a 13.5% adjusted EBITDA margin, targeting achievement between 2030 and 2035.
Based on the current premarket valuation near $302, the post-split share price would land around $60.40.
