Overview
- Carvana, which reported results Wednesday, posted $6.432 billion in revenue, $405 million in net income, $672 million in adjusted EBITDA, and 187,393 retail units sold.
- Shares jumped after hours then fell about 3% Thursday morning as adjusted EBITDA margin slipped to 10.4% from 11.5% and gross profit per vehicle declined $155 to $6,783 due to higher reconditioning costs and weaker shipping and wholesale profit.
- The company said it expects a sequential increase in retail units and adjusted EBITDA in Q2, which it said would set new company records on both measures.
- Management highlighted cost work that is underway, including AI‑driven internal tools and training aimed at lowering reconditioning expenses, and an ADESA Syracuse build‑out that adds inspection and repair capacity and about 200 jobs in New York.
- Analysts struck a cautiously optimistic tone, with Morgan Stanley keeping an overweight rating while flagging consumer‑credit and fuel‑price risks, as Carvana targets strong 2026 growth and longer‑term scale in a used‑car market that has held up better than new‑car pricing.