Carvana Stock Earnings Reports

Carvana reported a very strong Q1 2026: retail units sold were a company record at 187,393 (up 40% YoY), revenue was $6.432 billion (up 52%), GAAP operating income was a record $581 million and adjusted EBITDA was a record $672 million. Management emphasized operational recovery and improvements in reconditioning (Recon) after a late-quarter bump, describing new data and manager tools being rolled out across facilities that have driven rapid improvement in throughput and labor efficiency. Wholesale volumes and gross profit were strong in Q1 but management flagged near-term headwinds to retail GPU from lower shipping fees, higher non-vehicle costs, and approximately $100–$200 of impact from narrower wholesale-to-retail spreads versus the prior year. SG&A per retail unit improved meaningfully (driven by scale and operations leverage), though advertising spend per unit increased as the company continues to invest in awareness and adoption. Carvana reduced its net debt / trailing 12-month adjusted EBITDA to 1.1x (its strongest credit ratio ever) and reiterated Q2 expectations for sequential increases in retail units and adjusted EBITDA, as well as the long-term target of selling 3 million cars per year and achieving 13.5% adjusted EBITDA margin by 2030–2035. CapEx strategy prioritizes low-capex capacity expansion (staffing existing facilities, integrating and expanding ADESA sites) with greenfield builds not a near-term priority.