Carvana (CVNA) Financials

Carvana’s latest quarter shows a business that has dramatically improved from the deep losses and liquidity stress seen in 2022 and early 2023, but it is now operating with a much heavier debt load and still meaningful volatility in cash flow and quarterly earnings.

In Q1 2026, Carvana posted $6.43 billion in revenue, up from $5.60 billion in Q4 2025 and $4.23 billion in Q1 2025. Gross profit also improved to $1.27 billion, while operating income rose to $581 million. Net income attributable to common shareholders was $250 million, or $1.69 diluted EPS. That is a big improvement versus the company’s loss-making periods in 2022 and early 2023.

At the same time, the balance sheet still reflects a leveraged company. Total debt remains high, with $308 million in short-term debt and $4.85 billion in long-term debt at the end of Q1 2026. Total liabilities of $9.14 billion remain well above common equity of $3.72 billion. Carvana does have a sizable cash position, with $2.41 billion in cash and equivalents and $102 million in restricted cash, which gives it more breathing room than it had two years ago.

Cash generation was positive in Q1 2026, but modest relative to earnings and debt. Operating cash flow was $107 million, while the company used $51 million for capex and $11 million for acquisitions. Financing activity was essentially flat overall, as debt repayment and new borrowing largely offset each other. The quarter added $83 million to cash and equivalents.

Looking at the multi-year trend, the turnaround is clear:

• Revenue growth has accelerated, rising from $3.06 billion in Q1 2024 to $6.43 billion in Q1 2026.
• Gross profit and operating income have expanded sharply, showing better unit economics and operating leverage.
• The company is now consistently profitable on a quarterly basis in the most recent periods.
• Cash and equivalents reached $2.41 billion, giving Carvana a much stronger liquidity position than in 2022.
• Operating cash flow stayed positive in Q1 2026 at $107 million.
• Noncontrolling interests remain large, which means a meaningful portion of earnings does not flow to common shareholders.
• Carvana’s asset base is still heavily tied to inventory and receivables, which can create working-capital swings quarter to quarter.
• Debt is still very high, with nearly $5.2 billion of short- and long-term debt combined.
• Interest expense remains material, limiting how much of the company’s operating profit drops to the bottom line.
• Quarterly cash flow can be lumpy, especially because changes in operating assets and liabilities have a big impact on operating cash flow.

Bottom line: Carvana’s financial statements show a real turnaround from its distressed 2022 profile. Revenue, profitability, and liquidity have all improved meaningfully. However, the stock still carries a high-risk balance sheet, and investors should watch debt reduction, sustained operating cash flow, and whether current profit levels can hold up if the used-car market softens.