Overview
- Carvana reported record second‑quarter adjusted EBITDA of $769 million and $1.4 billion for the first half, with revenue of $7.38 billion and vehicle sales up 38% to 197,325 units.
- Management gave full‑year adjusted EBITDA guidance of $2.7 billion to $3.0 billion, a range that implies second‑half EBITDA roughly in line with the strong first half rather than accelerating profit gains.
- Profitability metrics showed strain as adjusted EBITDA margin fell to 10.4% and gross profit per retail unit declined about 5.5% overall with wholesale GPU down roughly 15.5%, signaling pressure on per‑vehicle economics.
- Shares plunged about 20% in after‑hours trading on the announcement before moderating as investors weighed rapid top‑line and volume growth against slowing margin expansion.
- Management reiterated long‑term goals to reach 3 million annual car sales and a 13.5% adjusted EBITDA margin by 2030–2035 and said expansion into new‑vehicle channels such as Stellantis dealerships is central to its plan; investors will watch Q3 unit trends and GPU for signs scale is improving per‑unit profits.