Carvana Co. - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did CVNA Beat Earnings? Q1 2025 Results
Carvana posted a record-breaking first quarter, delivering a sweeping beat across every major financial metric and signaling that its turnaround has firmly matured into sustained operational dominance. The online used-car retailer earned $1.51 per share against a consensus estimate of $0.75, a 102.14% positive surprise, while revenue climbed 38.3% year-over-year to $4.23 billion, topping the $4.00 billion analyst estimate by 5.75%. The core driver behind the profitability surge was a dramatic improvement in per-unit economics, with total GPU reaching $6,938 on a GAAP basis, as the company sold 133,898 retail units, up 46% year-over-year, while simultaneously reducing per-unit SG&A across every cost component. GAAP operating income hit a company record $394 million at a 9.3% margin, with Adjusted EBITDA reaching $488 million, roughly double the industry average among public peers. Looking ahead, management expects sequential records in both retail units and Adjusted EBITDA in Q2 2025, and outlined a long-term objective to reach 3 million annual retail units at a 13.5% Adjusted EBITDA margin within five to ten years.
- 46% YoY retail unit growth to record 133,898 units driven by strong demand and excellent customer experience
- Per-unit SG&A reductions across all components: operations expense down $192/unit, advertising down $50/unit, overhead down $449/unit
- Selling 35% more cars per team member than at previous retail unit record in Q2 2022
- Non-GAAP Total GPU of $7,140 per unit, a first-quarter record
- Net income included $158 million benefit from fair value of Root warrants
- Customer Net Promoter Scores at highest levels in nearly three years
- Adjusted EBITDA margin of 11.5% is approximately 2x the industry average among public automotive retailers
“In Q1, Carvana set a new record for retail units while also driving record profitability and hitting our highest customer net promoter score in nearly three years. We are incredibly well positioned for the path ahead and have very clear visibility to even stronger financial performance, much larger scales, and even better customer experiences. As Carvana grows larger and more efficient, we look forward to making our offering even faster and more convenient, and sharing the value we create with our customers as we continue our mission of changing the way people buy and sell cars.”
Carvana CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Carvana expects a sequential increase in both retail units sold and Adjusted EBITDA, leading to all-time company records on both metrics. The company remains on track to deliver significant growth in both retail units sold and Adjusted EBITDA in full-year 2025. Carvana has set a new long-term management objective to sell 3 million retail units per year at an Adjusted EBITDA margin of 13.5% within 5 to 10 years, with approximately 90% of Adjusted EBITDA expected to convert into GAAP operating income. Management expects a couple of additional points of Adjusted EBITDA margin expansion over time as fixed costs are leveraged across larger volumes, and plans to prioritize growth over margin within reasonable ranges.
CVNA YoY Financials
CVNA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.