Carvana Co. (NYSE: CVNA) reported record fourth-quarter and full-year 2025 outcomes, reflecting robust development in retail unit sales, increased revenue and a pointy enchancment in profitability, in accordance with the corporate’s earnings launch for the quarter and yr ended Dec. 31, 2025.
Key factors
- Full-yr retail items bought reached 596,641, up 43% yr on yr
- Full-yr revenue rose to $20.3 billion, up 49% yr on yr
- Full-yr internet revenue reached $1.9 billion; adjusted EBITDA totaled $2.2 billion
- Q4 retail items bought elevated 43% yr on yr to 163,522
- Q4 revenue rose 58% yr on yr to $5.60 billion
- The corporate expects development in retail items and adjusted EBITDA in FY 2026
Q4 2025 efficiency
Fourth-quarter revenue rose to $5.60 billion, in contrast with $3.55 billion in Q4 2024, representing 58% yr-on-yr development. Retail items bought reached 163,522, up 43% yr on yr, reflecting increased conversion, quicker supply instances and broader stock availability.
GAAP working revenue reached $424 million, in contrast with $260 million a yr earlier. Adjusted EBITDA elevated to $511 million, in contrast with $359 million in Q4 2024. Web revenue reached $951 million within the quarter, supported by working leverage and non-money tax-associated advantages, lifting the internet revenue margin to 17.0%.
Full-yr 2025 efficiency
For full-year 2025, revenue elevated to $20.3 billion, in contrast with $13.7 billion in 2024, reflecting a 49% yr-on-yr enhance. Retail items bought rose to 596,641, in contrast with 416,660 within the prior yr, supported by development in reconditioning capability and digital public sale throughput.
Web revenue reached $1.9 billion, in contrast with $404 million in 2024, whereas adjusted EBITDA elevated to $2.24 billion from $1.38 billion a yr earlier. GAAP working revenue rose to $1.88 billion, reflecting increased gross revenue per unit and working leverage as mounted prices have been absorbed throughout increased volumes.
Unit economics and working drivers
The corporate reported record unit economics in 2025, supported by enhancements in logistics effectivity, reconditioning throughput and sourcing prices. Growth of built-in reconditioning facilities and digital public sale capabilities supported quicker stock turns and supply lead instances. Buyer expertise metrics improved through the yr, with multi-yr highs in internet promoter scores cited within the presentation.
Liquidity and capital construction
The corporate mentioned profitability and money era improved materially in 2025. Adjusted EBITDA margin reached 11.0% for the total yr, in contrast with 10.1% in 2024. Web revenue included non-money tax-associated advantages related to the discharge of valuation allowances on deferred tax property and honest-worth actions associated to warrants, as disclosed within the earnings supplies.
Outlook and sector context
Administration expects continued development in retail items bought and adjusted EBITDA in FY 2026, with sequential will increase anticipated within the first quarter, topic to steady market situations. The web used-automobile retail market stays aggressive, with pricing influenced by automobile provide, shopper demand and financing situations. Scale, reconditioning capability and logistics effectivity stay key aggressive elements.
Abstract
Carvana delivered record revenue and profitability in Q4 and full-year 2025, pushed by a pointy enhance in retail items bought and improved unit economics. Yr-on-yr topline development in each the quarter and full yr mirrored working leverage and expanded platform capability. The corporate enters 2026 with steering for continued development in volumes and adjusted earnings, supported by enhancements in buyer expertise and infrastructure utilization.
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