Carvana Co. - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did CVNA Beat Earnings? Q2 2025 Results
Carvana delivered a <a href="https://247wallst.com/investing/2025/07/30/live-will-carvanas-nyse-cvna-q2-earnings-continue-its-epic-rally/">blowout second quarter</a>, posting earnings per share of $1.28 against a consensus estimate of $1.14, a 12.30% beat, while revenue of $4.84 billion topped expectations by 5.46% and soared 41.9% year-over-year. The online used-car retailer set all-time records across every key financial metric, with net income surging to $308 million and Adjusted EBITDA reaching $601 million at a 12.4% margin, a figure management described as an industry record. The primary engine behind the results was a 41% year-over-year jump in retail units sold to 143,280, fueled by a 50% expansion in inventory driven by the integration of ADESA auction sites into Carvana's reconditioning network. Operating leverage was equally striking, with operations expense per retail unit falling approximately $150 year-over-year to $1,549. Looking ahead, management raised full-year 2025 Adjusted EBITDA guidance to a range of $2.00 billion to $2.20 billion, up sharply from $1.38 billion in 2024, and expects a sequential increase in retail units in Q3, even as a major insider has been steadily trimming his stake through a pre-arranged trading plan.
- 41% year-over-year growth in retail units sold to 143,280
- Inventory selection grew approximately 50% year-over-year with total inventory pools increasing to 30
- Operations expense per retail unit declined ~$150 year-over-year to $1,549
- Sales per customer service advocate increased 23% year-over-year
- Inbound transport distances reduced 20% and outbound transport miles reduced 10% year-over-year
- SG&A expenses per retail unit (non-GAAP) declined from $3,845 to $3,385 year-over-year
- Transitory tariff-driven demand benefit estimated at ~$100 per unit in Retail GPU in Q2
“Our record Q2 results further validate the strength and differentiation of the Carvana model. Carvana's industry-leading growth is the result of delivering an experience that customers love, and our industry-leading profitability is driven by our unique, efficient, and vertically integrated business model. As we tackle the enormous opportunity ahead, we continue to unlock the scale benefits of our model, driving profitable growth and even better customer experiences.”
Carvana CEO, on the earnings call
Forward Guidance & Outlook
Carvana expects a sequential increase in retail units sold in Q3 2025 compared to Q2 2025, and full-year 2025 Adjusted EBITDA of $2.0 to $2.2 billion, up from $1.38 billion in 2024, contingent on a stable environment. Retail revenue per retail unit sold is expected to increase noticeably in Q3 due to a modified contract structure with a large retail marketplace partner (shifting from net to gross revenue treatment) and a mix shift into more expensive vehicles. The company plans to increase advertising spend in Q3, including a new brand campaign. Longer-term, Carvana targets selling 3 million retail units per year at a 13.5% Adjusted EBITDA margin within 5 to 10 years.
CVNA YoY Financials
CVNA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.