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Carvana Q4 Earnings Beat on Higher-Than-Expected Vehicle Sales
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Key Takeaways
CVNA reported Q4 EPS of $4.22, topping estimates as revenues climbed 58% year over year.
Retail unit sales jumped 43% to 163,522, driving a 62.9% surge in retail vehicle revenues.
Carvana expects strong 2026 growth in retail units and adjusted EBITDA, with Q1 gains ahead.
Used car e-retailer Carvana (CVNA - Free Report) reported fourth-quarter 2025 earnings of $4.22 per share, which surpassed the Zacks Consensus Estimate of $1.13 and rose from the year-ago quarter’s earnings of 56 cents. Better-than-expected revenues across all segments led to the outperformance. Revenues of $5.6 billion beat the Zacks Consensus Estimate of $5.22 billion and rose 58% year over year.
Total gross profit amounted to $1.05 billion, up 38% year over year. Total gross profit per unit (GPU) was $6,427, which decreased from $6,671 in the year-ago period. SG&A expenses were $627 million, up 26.9% year over year. Carvana achieved an adjusted EBITDA of $511 million for the fourth quarter of 2025. Adjusted EBITDA margin in the quarter under review was 9.1%, down from 10.1% in the fourth quarter of 2024.
Segmental Performance
Retail vehicle sales totaled $4.16 billion in the quarter, which rose 62.9% year over year and topped our estimate of $3.4 billion amid higher-than-expected unit sales. In the reported quarter, the number of vehicles sold to retail customers rose 43% to 163,522 from the prior-year period and exceeded our estimate of 150,868 units. Gross profit amounted to $489 million, up 32.5% year over year. Gross profit per unit came in at $2,990, which fell from $3,226 generated in the year-ago period and missed our expectation of $3,178.
In the fourth quarter, wholesale vehicle sales totaled $988 million, up 45.7% year over year. Sales topped our estimate of $944.8 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 66.2% to 81,050 from the prior-year period and exceeded our estimate of 70,339 units. Gross profit came in at $103 million, up 33.8% from the corresponding quarter of 2024. GPU came in at $630, which declined 6.5% year over year and missed our expectation of $525.
In the period under consideration, other sales and revenues rose 44.8% year over year to $459 million and beat our forecast of $385.2 million. Gross profit was $459 million, up 44.8% year over year. GPU came in at $2,807, up 1.3% year over year. It, however, fell short of our estimate of $3,503.
Financial Position & Outlook
Carvana had cash and cash equivalents of $2.33 billion as of Dec. 31, 2025, compared with $1.72 billion as of Dec. 31, 2024. Long-term debt was $4.83 billion as of Dec. 31, 2025, compared with $5.26 billion recorded as of Dec. 31, 2024.
CVNA projects strong growth in retail units sold and adjusted EBITDA for full-year 2026, with sequential gains in both metrics expected in the first quarter, assuming stable conditions.
CVNA’s Zacks Rank & Key Picks
Carvana carries a Zacks Rank #3 (Hold) at present.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 85 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. EPS estimates for fiscal 2026 and 2027 have improved $1.01 and 48 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.3% and 39.5%, respectively. EPS estimates for 2026 and 2027 have improved a penny and 2 cents, respectively, in the past seven days.
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Carvana Q4 Earnings Beat on Higher-Than-Expected Vehicle Sales
Key Takeaways
Used car e-retailer Carvana (CVNA - Free Report) reported fourth-quarter 2025 earnings of $4.22 per share, which surpassed the Zacks Consensus Estimate of $1.13 and rose from the year-ago quarter’s earnings of 56 cents. Better-than-expected revenues across all segments led to the outperformance. Revenues of $5.6 billion beat the Zacks Consensus Estimate of $5.22 billion and rose 58% year over year.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Key Highlights
Total gross profit amounted to $1.05 billion, up 38% year over year. Total gross profit per unit (GPU) was $6,427, which decreased from $6,671 in the year-ago period. SG&A expenses were $627 million, up 26.9% year over year. Carvana achieved an adjusted EBITDA of $511 million for the fourth quarter of 2025. Adjusted EBITDA margin in the quarter under review was 9.1%, down from 10.1% in the fourth quarter of 2024.
Segmental Performance
Retail vehicle sales totaled $4.16 billion in the quarter, which rose 62.9% year over year and topped our estimate of $3.4 billion amid higher-than-expected unit sales. In the reported quarter, the number of vehicles sold to retail customers rose 43% to 163,522 from the prior-year period and exceeded our estimate of 150,868 units. Gross profit amounted to $489 million, up 32.5% year over year. Gross profit per unit came in at $2,990, which fell from $3,226 generated in the year-ago period and missed our expectation of $3,178.
In the fourth quarter, wholesale vehicle sales totaled $988 million, up 45.7% year over year. Sales topped our estimate of $944.8 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 66.2% to 81,050 from the prior-year period and exceeded our estimate of 70,339 units. Gross profit came in at $103 million, up 33.8% from the corresponding quarter of 2024. GPU came in at $630, which declined 6.5% year over year and missed our expectation of $525.
In the period under consideration, other sales and revenues rose 44.8% year over year to $459 million and beat our forecast of $385.2 million. Gross profit was $459 million, up 44.8% year over year. GPU came in at $2,807, up 1.3% year over year. It, however, fell short of our estimate of $3,503.
Financial Position & Outlook
Carvana had cash and cash equivalents of $2.33 billion as of Dec. 31, 2025, compared with $1.72 billion as of Dec. 31, 2024. Long-term debt was $4.83 billion as of Dec. 31, 2025, compared with $5.26 billion recorded as of Dec. 31, 2024.
CVNA projects strong growth in retail units sold and adjusted EBITDA for full-year 2026, with sequential gains in both metrics expected in the first quarter, assuming stable conditions.
CVNA’s Zacks Rank & Key Picks
Carvana carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Modine Manufacturing Company (MOD - Free Report) , Strattec Security Corporation (STRT - Free Report) and Ford Motor Company (F - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 85 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. EPS estimates for fiscal 2026 and 2027 have improved $1.01 and 48 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.3% and 39.5%, respectively. EPS estimates for 2026 and 2027 have improved a penny and 2 cents, respectively, in the past seven days.