Carvana Draws New Institutional Backing After Strong Q2 and Long-Term Growth Target

Investor letters point to a 3 million‑unit, 13.5% margin target as evidence of durable momentum.

Overview

Optimist Fund’s Q2 2025 letter called Carvana’s quarter exceptional, citing retail units up 46%, revenue up 38%, and an all‑time high adjusted EBITDA margin of 11.5%.
Management reiterated its near‑term outlook and outlined a long‑term goal of 3 million annual retail units at a 13.5% EBITDA margin within 5–10 years.
Optimist interpreted the target as implying over 40% annualized unit growth if achieved at the low end of the timeframe.
Sands Capital’s Select Growth Strategy initiated a position in Q2, saying Carvana is gaining share in the large, fragmented used‑car market.
Shares have climbed 138.95% over the past 12 months, closing at $365.35 on September 15, 2025, for a market capitalization of $42.727 billion.