Carvana (NYSE:CVNA) Releases Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Carvana beat Q1 expectations, reporting $1.69 EPS vs. $1.52 est and revenue of $6.43B vs. $6.01B, while selling a record 187,393 retail units and delivering GAAP operating income of $581M and adjusted EBITDA of $672M.
• Management says it has fixed prior reconditioning issues and improved labor efficiency, expects sequential Q2 records, and reiterated a long-term goal of selling 3 million cars per year at a 13.5% adjusted EBITDA margin by 2030–2035.
• Near-term pressures remain: the company expects an approximate $100–$200 per-unit YoY headwind to retail gross profit in Q2 from a tariff-benefit anniversary, lower shipping fees and narrower spreads, and the stock pulled back after recent gains despite an upcoming 5-for-1 split.

Carvana (NYSE:CVNA - Get Free Report) posted its earnings results on Wednesday. The company reported $1.69 earnings per share for the quarter, topping analysts' consensus estimates of $1.52 by $0.17, FiscalAI reports. Carvana had a return on equity of 50.96% and a net margin of 6.92%.The company had revenue of $6.43 billion during the quarter, compared to the consensus estimate of $6.01 billion.

Here are the key takeaways from Carvana's conference call:

• Record quarter — Carvana sold 187,393 retail units, reported $6.432B revenue, GAAP operating income of $581M and adjusted EBITDA of $672M, and cut net debt/TTM adjusted EBITDA to 1.1x.
• Management says it remedied prior recon execution issues by deploying new data integrations and manager tools with on‑site testing, driving labor efficiency to near all‑time best levels in April, though financial benefit will lag due to accounting timing.
• The company expects a ≈$100–$200 year‑over‑year headwind to retail GPU in Q2 from last year’s tariff benefit anniversary, lower shipping fees and narrower industry wholesale‑to‑retail spreads, and noted other GPU fell after giving customers lower interest rates.
• Carvana achieved meaningful SG&A leverage with a <$strong>170 decline in non‑GAAP SG&A per unit, but advertising rose <$strong>92 per unit and overheads were elevated this quarter due to share‑based comp vesting, weather costs and technology/AI investments.
• Outlook remains constructive — management expects sequential Q2 records in retail units and adjusted EBITDA and reiterates the long‑term target of selling 3 million cars per year at a 13.5% adjusted EBITDA margin by 2030–2035.

Carvana Price Performance

CVNA stock traded down $9.48 during midday trading on Wednesday, reaching $396.94. The company had a trading volume of 3,244,462 shares, compared to its average volume of 3,590,655. The company has a market capitalization of $86.87 billion, a price-to-earnings ratio of 49.37 and a beta of 3.61. The stock has a 50 day moving average price of $335.67 and a 200-day moving average price of $371.79. Carvana has a 1-year low of $229.40 and a 1-year high of $486.89. The company has a debt-to-equity ratio of 1.15, a current ratio of 4.31 and a quick ratio of 2.73.

Carvana's stock is set to split before the market opens on Thursday, May 7th. The 5-1 split was announced on Friday, March 13th. The newly issued shares will be issued to shareholders after the market closes on Wednesday, May 6th.

More Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana beat revenue and EPS expectations for Q1 — EPS $1.69 vs. consensus ~$1.42–1.52 and revenue $6.43B vs. ~$6.01B, signaling better-than-expected top- and bottom-line execution. Carvana (CVNA) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Record retail unit sales: Carvana sold a record ~187,393 retail units (up ~40% YoY), showing strong demand and scaling of its marketplace. This drove the beat and improves revenue momentum. Carvana stock pops as used car retailer reports record first-quarter results
• Positive Sentiment: Improved profitability metrics: company reported positive net margin (~6.9%) and high return on equity (~51%) for the quarter, indicating operational leverage as volumes scale. Carvana Press Release / Shareholder Letter
• Positive Sentiment: Analyst support: Evercore nudged its price target slightly higher, reflecting continued analyst confidence as fundamentals improve. Evercore adjusts Carvana price target
• Neutral Sentiment: Strategic capacity expansion: Carvana is adding inspection and reconditioning center capabilities at ADESA Syracuse, which should support inventory, throughput and delivery times over time. Carvana Brings Inspection and Reconditioning Center Capabilities to ADESA Syracuse
• Neutral Sentiment: Institutional interest: Lone Pine Capital holds Carvana as a long-term position, which is supportive for liquidity and sentiment but is not an immediate catalyst. Stephen Mandel Is Bullish on This Stock
• Negative Sentiment: Short-term profit-taking and volatility risk: after a strong April rally and the post-earnings move, the stock is pulling back as traders lock in gains; Carvana’s high beta amplifies intraday moves.

Wall Street Analysts Forecast Growth

CVNA has been the subject of a number of research reports. DA Davidson dropped their target price on Carvana from $470.00 to $320.00 and set a "neutral" rating for the company in a report on Thursday, February 19th. Gordon Haskett dropped their target price on Carvana from $350.00 to $335.00 and set a "hold" rating for the company in a report on Monday, April 6th. Argus upgraded shares of Carvana to a "strong-buy" rating in a research report on Tuesday, March 3rd. Evercore lifted their price target on shares of Carvana from $390.00 to $400.00 in a research report on Tuesday. Finally, Wedbush dropped their price target on shares of Carvana from $500.00 to $425.00 and set an "outperform" rating for the company in a research report on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Carvana has an average rating of "Moderate Buy" and an average target price of $437.86.

Insider Buying and Selling at Carvana

In other Carvana news, VP Stephen R. Palmer sold 1,000 shares of the business's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $393.04, for a total transaction of $393,040.00. Following the completion of the transaction, the vice president directly owned 37,192 shares in the company, valued at $14,617,943.68. The trade was a 2.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director J Danforth Quayle sold 2,900 shares of the business's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $309.97, for a total transaction of $898,913.00. Following the transaction, the director owned 41,913 shares of the company's stock, valued at approximately $12,991,772.61. This represents a 6.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 56,170 shares of company stock valued at $20,020,204. 15.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its holdings in shares of Carvana by 40.8% during the first quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock worth $6,243,000 after buying an additional 8,654 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in shares of Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock worth $53,000 after buying an additional 181 shares in the last quarter. Cerity Partners LLC increased its holdings in shares of Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock worth $1,847,000 after buying an additional 1,226 shares in the last quarter. AXA S.A. increased its holdings in shares of Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company's stock worth $1,433,000 after buying an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC increased its holdings in shares of Carvana by 9.1% during the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock worth $3,334,000 after buying an additional 825 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana's model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.

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