Core Insights - Carvana reported a revenue of $5.6 billion for the quarter ended December 2025, marking a 58% increase year-over-year, with an EPS of $4.22 compared to $0.56 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $5.22 billion by 7.32%, and the EPS surpassed the consensus estimate of $1.13 by 274.35% [1] Financial Performance Metrics - Retail vehicle unit sales reached 163,522, slightly above the average estimate of 158,132 [4] - Per retail unit gross profit for total sales was $6,427, lower than the average estimate of $6,781.18 [4] - Per retail unit gross profit for retail vehicles was $2,990, compared to the estimated $3,198.55 [4] - Sales and operating revenues from retail vehicle sales were $4.16 billion, exceeding the average estimate of $3.82 billion, reflecting a year-over-year increase of 62.9% [4] - Wholesale sales and revenues amounted to $988 million, surpassing the average estimate of $950.96 million, with a year-over-year change of 45.7% [4] Market Performance - Carvana's shares have declined by 20.7% over the past month, while the Zacks S&P 500 composite decreased by 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - In 2025, Carvana achieved a record retail units sold of 596,641, representing a 43% increase year-over-year [12][14] - Revenue for Q4 was $5.603 billion, an increase of 58% compared to the previous year [14] - Net income reached $951 million, up from $159 million, with a net income margin of 17.0%, an increase from 4.5% [18] - Adjusted EBITDA was $511 million, a 42% increase year-over-year, with an adjusted EBITDA margin of 9.1%, down from 10.1% [18][19] - The company ended 2025 with $2.3 billion in cash and equivalents, reducing net debt to trailing twelve-month adjusted EBITDA ratio to 1.3x, marking its strongest financial position ever [19] Business Line Data and Key Metrics Changes - Non-GAAP retail GPU decreased by $255, primarily due to higher non-vehicle costs and lower shipping distances [15] - Non-GAAP wholesale GPU decreased by $148, driven by faster growth in retail units sold compared to wholesale marketplace units [15] - Non-GAAP other GPU increased by $49, attributed to improvements in cost of funds and higher finance and VFC attach rates [16] Market Data and Key Metrics Changes - Carvana holds approximately 1.6% market share of the used vehicle retail market, indicating significant growth potential as e-commerce adoption in non-automotive retail verticals is around 20% [17] - The company integrated 10 additional ADESA locations and expanded digital auction capabilities nationwide [12][14] Company Strategy and Development Direction - Carvana aims to reach 3 million retail units sold annually and an adjusted EBITDA margin of 13.5% [8][9] - The company is focused on scaling its operational infrastructure, particularly in vehicle reconditioning, to support growth [10][11] - Investments in technology and automation are expected to enhance efficiency and customer experience [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant growth in retail units sold and adjusted EBITDA in 2026, assuming a stable environment [20] - The company is committed to maintaining its three key objectives from 2025 while emphasizing profitable growth at scale [19][20] - Management acknowledged challenges in reconditioning but remains optimistic about overcoming these issues in the near term [23][26] Other Important Information - The company has entered into a fourth loan purchase agreement for up to $4 billion, bringing total new partner loan purchase agreements to $12 billion over the next two years [16] - Management clarified that Carvana does not sell loans to related parties, addressing concerns raised in recent short reports [48][49] Q&A Session Summary Question: Can you discuss the challenges in reconditioning as you grow? - Management acknowledged that scaling reconditioning is operationally challenging, especially with rapid growth and new site openings, but they are addressing these issues [23][24] Question: What are the early uses of AI in your operations? - Management highlighted that AI tools have improved customer interactions, allowing 30% of retail customers to complete transactions without human contact, enhancing customer experience [28][29] Question: How do you view the depreciation environment and its impact on GPU? - Management expects a sequential increase in retail GPU despite cost headwinds, indicating confidence in overcoming challenges [37] Question: Can you clarify the related party transactions regarding loans? - Management confirmed that all related party transactions are disclosed and that they do not sell loans to related parties, countering inaccuracies in recent reports [48][49] Question: How is Carvana addressing affordability for customers? - Management emphasized their focus on improving operational efficiency to lower costs and enhance customer affordability, while also monitoring market trends like EV pricing [80][82]

Carvana (NYSE:CVNA) Q4 2025 Earnings call February 18, 2026 05:30 PM ET Company ParticipantsErnie Garcia - CEOMark Jenkins - CFOMeg Kehan - VP of Investor RelationsConference Call ParticipantsBrian Nagel - Equity Research AnalystChris Pierce - Equity Research AnalystDaniela Haigian - Equity Research AnalystJeff Lick - Equity Research AnalystJoe Spak - Equity Research AnalystJohn Babcock - Equity Research AnalystLee Horowitz - Equity Research AnalystMarvin Fong - Equity Research AnalystRajat Gupta - Equity R ...

Financial Data and Key Metrics Changes - In 2025, Carvana achieved a record net income of $951 million, an increase of $792 million from the previous year, with a net income margin of 17.0%, up from 4.5% [15] - Adjusted EBITDA reached $511 million, an increase of $152 million, with an adjusted EBITDA margin of 9.1%, down from 10.1% [15] - Revenue for Q4 was $5.603 billion, a 58% increase, driven by improved customer offerings and increased inventory selection [12] Business Line Data and Key Metrics Changes - Retail units sold grew by 43% in 2025, totaling 596,641 units, with Q4 retail units sold also increasing by 43% to 163,522 units [11][12] - Non-GAAP retail gross profit per unit (GPU) decreased by $255, while non-GAAP wholesale GPU decreased by $148, attributed to higher non-vehicle costs and faster retail unit growth [12] - Non-GAAP other GPU increased by $49, driven by improvements in cost of funds and higher finance attach rates [13] Market Data and Key Metrics Changes - Carvana holds approximately 1.6% market share of the used vehicle retail market, indicating significant growth potential as e-commerce adoption in non-automotive retail verticals is around 20% [14] - The company integrated 10 additional ADESA locations and expanded digital auction capabilities nationwide, contributing to growth [11] Company Strategy and Development Direction - Carvana aims to reach 3 million retail units sold annually and achieve a 13.5% adjusted EBITDA margin, with a focus on scaling operations and improving customer experience [6][7] - The company is investing in technology and operational efficiency, particularly in vehicle reconditioning, to support growth and maintain competitive advantages [8][9] - Carvana's strategy includes leveraging fixed cost efficiencies and enhancing customer offerings to drive long-term growth [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving significant growth in retail units sold and adjusted EBITDA in 2026, assuming a stable environment [16] - The company acknowledged challenges in reconditioning operations but emphasized a commitment to improving efficiency and scaling production [20][53] - Management highlighted the importance of maintaining a strong customer experience and operational excellence to differentiate from competitors [26][79] Other Important Information - Carvana ended 2025 with $2.3 billion in cash and equivalents, having retired $709 million in corporate notes, and reduced net debt to trailing twelve-month adjusted EBITDA ratio to 1.3x [16] - The company released a valuation allowance against tax assets, resulting in a significant deferred tax benefit in Q4, positively impacting net income [83] Q&A Session Questions and Answers Question: Can you discuss the challenges faced in reconditioning as you grow? - Management acknowledged that scaling reconditioning is operationally challenging, especially with new locations and management changes, but expressed confidence in addressing these issues [20][53] Question: What are the early uses of AI in your operations? - Management highlighted that 30% of retail customers complete the process without human interaction, thanks to intuitive systems powered by AI, improving customer experience and efficiency [25][26] Question: How do you view the depreciation environment and its impact on GPU? - Management expects a sequential increase in retail GPU despite cost headwinds, emphasizing ongoing efforts to drive strong growth in both top and bottom lines [34][39] Question: Can you clarify related party transactions regarding loans? - Management confirmed that Carvana does not sell loans to related parties and that all related party transactions are disclosed in financial statements [45] Question: What is the company's approach to customer affordability? - Management stated that while affordability is a concern, the focus is on improving the quality of offerings and operational efficiency to provide better value to customers [77][79]

Carvana (CVNA) came out with quarterly earnings of $4.22 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +274.35%. A quarter ago, it was expected that this company would post earnings of $1.33 per share when it actually produced earnings of $1.03, delivering a surprise of -22.56%.Over the last four quarters, the company has s ...

Core Viewpoint - Carvana has shown significant growth in revenue and unit sales, but its stock has experienced volatility, presenting potential investment opportunities as it approaches its next earnings report [3][12][23]. Financial Performance - Carvana reported record revenue of $5.65 billion and an income of $0.5 billion, with unit sales increasing by nearly 50% year-over-year [3]. - The stock price has fluctuated, recently trading around $361, which is a 24% decrease from its previous high of approximately $470 [12][23]. Market Comparison - Carvana's price-to-earnings (PE) ratio is significantly higher at 82 compared to CarMax's 15, indicating a faster growth trajectory for Carvana [4][12]. - Carvana is positioned as a disruptive force in the used car market, operating primarily as an online platform, which reduces overhead costs compared to traditional dealerships [21]. Consumer Sentiment - Consumer feedback regarding Carvana is generally positive, with a preference for the convenience and transparency of online purchasing over traditional haggling at car lots [8][9][17]. - The company has been successful in creating a customer-friendly experience, which is reflected in their higher margins compared to competitors [14][19]. Growth Potential - Carvana is currently selling around 600,000 units annually, while the total used car market in the U.S. sees about 40 million units sold, indicating substantial growth potential [20]. - The company's strategy focuses on improving efficiency and scaling operations, which has started to yield positive results [7][10]. Market Challenges - Moderating used car prices may impact margins, and there are concerns regarding the legitimacy of some financial practices, which could affect investor confidence [14][18]. - The company has faced scrutiny over its financial practices, including high-interest loans taken during a near-bankruptcy situation in late 2022 [14].

Supplemental Financial Tables Q4 2025 February 2026 ©2026 Carvana, LLC Supplemental Financial Tables ©2023 Carvana, LLC Confidential Document © 2026 Carvana, LLC 2 Quarterly Units | | Q12023 Q22023 Q32023 Q42023 Q12024 Q22024 Q32024 Q42024 Q12025 Q22025 Q32025 Q42025 | | --- | --- | | Retail units sold | 79,240 76,530 80,987 76,090 91,878 101,440 108,651 114,379 133,898 143,280 155,941 163,522 | | Wholesale vehicle units sold | 35,110 46,453 40,886 34,096 44,155 50,368 56,487 48,770 63,454 72,770 80,369 81, ...

Group 1 - Carvana's shares fell approximately 20% in after-hours trading following the release of its outlook for the upcoming year, which lacked specific details [1] - The company experienced a significant surge in sales growth over the past year, indicating a strong performance prior to the outlook announcement [1]

Carvana posted strong profit growth in the fourth quarter that still missed Wall Street’s estimates due to higher-than-expected operating costs https://t.co/qx36ZEVnyu ...

The used-car marketplace recorded revenue growing 58%, to $5.6 billion, up from $3.55 billion a year earlier. ...