Carvana Co. - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.25%.
Did CVNA Beat Earnings? Q4 2025 Results
Carvana delivered a blowout fourth quarter to cap a landmark year, posting earnings per share of $4.22 against a consensus estimate of just $1.09, a beat of 287.16%, while revenue of $5.60 billion topped expectations by 6.10% and surged 58.0% year over year. The standout result was powered by record retail unit sales of 163,522 vehicles in the quarter, up 43% from a year ago, as Carvana's expanded inventory pool network and 16 integrated ADESA production facilities gave it a meaningful structural advantage in the used car market. A $618 million non-cash tax benefit inflated the headline net income figure of $951 million, though underlying GAAP operating income still rose sharply to $424 million from $260 million a year prior, underscoring genuine operational momentum. The company crossed $20 billion in annual revenue for the first time in 2025, a milestone <a href="https://247wallst.com/investing/2026/02/18/live-analysis-will-carvana-soar-after-earnings-tonight/">investors had been watching closely</a>. Looking ahead, management expects continued sequential growth in retail units and Adjusted EBITDA through 2026, with a long-term target of 3 million annual units at 13.5% Adjusted EBITDA margins by 2030 to 2035.
- 43% year-over-year growth in retail units sold to 163,522 in Q4
- Revenue per retail unit increased 13.9% YoY to $25,416
- Operations expense per unit down $118 year-over-year for full year
- Overhead expense per unit down $355 year-over-year for full year
- SG&A expenses per retail unit decreased from $4,319 to $3,834 year-over-year in Q4
- Expanded inventory pools from 24 to 34 locations reducing shipping distance and delivery times
- Average delivery times reduced by 1 full day year-over-year
- Word of mouth: ~70% of car buyers influenced by friend or family recommendation
“In 2025, Carvana grew 43% year-over-year, delivered record unit economics, and passed significant value back to customers through better selection, faster delivery times, and lower costs. Achieving all of this at once is rare and speaks to the powerful positive feedback our model generates as we grow. Carvana is still very small relative to our opportunity, but with 5 million cumulative customer transactions and counting, we are actively changing the way people buy and sell cars.”
Carvana CEO, on the earnings call
Forward Guidance & Outlook
Carvana expects significant growth in both retail units sold and Adjusted EBITDA in full year 2026, including a sequential increase in both retail units sold and Adjusted EBITDA in Q1 2026, assuming the environment remains stable. In 2026, the company plans to maintain its priorities of growth, unit economics improvement, and foundational capability development while placing additional weight on driving significant profitable growth at scale. The company plans 6-8 new ADESA integrations and will begin full buildouts at select ADESA locations at an average cost of $30-$35 million per site, unlocking ~40,000 units of annual production capacity per site, with first production expected in early 2027. The company reiterated its long-term goal of selling 3 million retail units annually at 13.5% Adjusted EBITDA margins by 2030 to 2035.
CVNA YoY Financials
CVNA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.