Key Highlights

  • First quarter revenue reached $6.43 billion, representing a 52% year-over-year increase and surpassing Wall Street’s $6.12 billion projection
  • Earnings per share reached $1.69, compared to $1.51 in the prior-year period; adjusted EBITDA totaled $672 million versus expectations of $646 million
  • The company moved 187,393 retail vehicles, a 40% year-over-year increase, exceeding analyst projections of 181,839 units
  • Profitability metrics showed weakness with adjusted EBITDA margin declining to 10.4% from 11.5%, while gross profit per unit decreased $155 year-over-year
  • Shares retreated approximately 3% during early market hours following the report, erasing a 6% premarket gain

Carvana delivered robust first-quarter performance metrics — yet investors responded with selling pressure that erased early enthusiasm.

The digital used-vehicle platform announced Q1 revenue of $6.43 billion, marking a 52% climb from $4.2 billion in the comparable prior-year period and exceeding the consensus forecast of $6.12 billion. The company recorded net income of $405 million, up from $373 million during the same quarter last year.

Adjusted EBITDA totaled $672 million, surpassing analyst expectations of $646 million. Earnings per share came to $1.69, compared to $1.51 in the year-ago quarter.


CVNA Stock Card
Carvana Co., CVNA

The company delivered 187,393 retail vehicles throughout the quarter — representing a 40% year-over-year increase and exceeding Wall Street’s projection of 181,839 units.

CVNA shares climbed over 6% during premarket activity following Wednesday evening’s announcement, though momentum reversed course sharply. Early Thursday trading saw the stock hovering around $387, representing a decline of roughly 3%.

Profitability Metrics Draw Investor Attention

While revenue figures impressed, margin performance triggered concerns. The adjusted EBITDA margin registered 10.4%, down from the 11.5% achieved a year earlier.

Gross profit per vehicle sold reached $6,783 — falling marginally short of analyst estimates and representing a $155 decline from the $6,938 figure posted in Q1 2025.

Elevated vehicle reconditioning expenses emerged as a primary headwind. Reduced shipping revenue combined with lower wholesale gross profit further compressed per-unit margins.

Wells Fargo analyst David Lantz recognized the margin pressure while maintaining a balanced perspective, observing the company is “making progress on centralizing planning and decision-making, building better tools, leveraging AI and strengthening training and workforce development.”

Carvana announced the deployment of AI-integrated internal systems alongside enhanced labor training programs to address reconditioning cost challenges. “So far in Q2, we are beginning to see the impact of these efforts,” the company stated.

Forward Outlook

Looking to Q2, Carvana projected sequential growth in both retail units sold and adjusted EBITDA. The company maintained its full-year guidance calling for “strong growth” across both categories.

Management reiterated its extended-horizon objective: achieving 3 million annual retail vehicle sales at a 13.5% adjusted EBITDA margin, with a target timeframe between 2030 and 2035.

Gordon Haskett analyst Robert Mollins characterized the results as “a solid quarter from a topline perspective,” noting that management should “sustain topline growth well above publicly traded dealership peers over the next few years.”

Ahead of the earnings release, Morgan Stanley identified potential challenges including inflation, interest rates, labor market softness, and rising fuel costs.

The pre-owned vehicle sector has demonstrated resilience throughout these conditions. Given average new vehicle prices remaining near $50,000, consumer demand has consistently favored the used-car market.

CVNA shares have appreciated 67% during the trailing 12-month period while showing a 6% year-to-date decline. Leading up to the earnings announcement, the stock had surged 36% over the preceding month.

A 5-for-1 stock split, authorized by the board during March, aims to enhance accessibility for retail investors and company employees.