NEW YORK, July 29, 2026, 19:01 EDT – Carvana NYSE:CVNA stock fell after the company’s latest guidance indicated profit growth would lose momentum in the latter half of the year.
- The stock dropped 8.1% to $60.95 in extended after-hours trading.
- Revenue was 7.5% above consensus, though adjusted EBITDA margin decreased by two points.
- The midpoint of the guidance suggests adjusted EBITDA for the second half will be 2.2% lower than in the first half.
Carvana stock declined by 8.1% in after-hours trading on Wednesday as investors concentrated on the company’s full-year outlook, which signals limited profit growth in the latter half of the year. New York trading closed earlier, but after-hours transactions were ongoing.
The adjusted EBITDA guidance midpoint is set at $2.85 billion, implying $1.409 billion for the period from July to December. This figure is 2.2% under the $1.441 billion recorded for the first half of the year. The calculation reflects an estimate rather than distinct guidance from the company.
The discrepancy stands out. Carvana projects higher retail sales in the third quarter compared to the second. However, its adjusted EBITDA margin dropped to 10.4% from 12.4%.
The quarter set a record and showed broad strength. Revenue climbed 52%, with a 38% increase in retail unit sales. Adjusted EBITDA rose at a slower pace, up 28%.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $7.376 billion | $4.840 billion | +52% |
| Retail units sold | 197,325 | 143,280 | +38% |
| Net income attributable to Carvana Co. | $310 million | $183 million | +69% |
| Diluted earnings per share | $0.42 | $0.26 | +62% |
| Adjusted EBITDA | $769 million | $601 million | +28% |
| Adjusted EBITDA margin | 10.4% | 12.4% | -2.0 points |
Revenue exceeded the $6.86 billion analyst consensus by $516 million, representing a 7.5% increase. Consolidated net income totaled $513 million, with $310 million attributable to Carvana Co.
Guidance metrics now outweigh the quarter’s results in importance. Carvana did not separate its annual outlook into first and second halves. The second-half numbers below are estimated calculations.
| Full-year scenario | 2026 adjusted EBITDA | First-half actual | Implied second half | H2 compared to H1 |
|---|---|---|---|---|
| Low end | $2.700 billion | $1.441 billion | $1.259 billion | -12.6% |
| Midpoint | $2.850 billion | $1.441 billion | $1.409 billion | -2.2% |
| High end | $3.000 billion | $1.441 billion | $1.559 billion | +8.2% |
The midpoint continues to suggest 22.7% growth in the second half of 2025. Adjusted EBITDA rose by 32.3% in the first half. This means the projected growth rate declines by 9.6 percentage points.
Gross profit per unit (GPU) highlights some of the cautious outlook. Overall GAAP GPU dropped 5.5% to $7,014. All major non-GAAP GPU components registered decreases as well.
| Metric per retail unit | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Total GPU, GAAP | $7,014 | $7,426 | -5.5% |
| Retail GPU, non-GAAP | $3,629 | $3,734 | -2.8% |
| Wholesale GPU, non-GAAP | $861 | $1,019 | -15.5% |
| Other GPU, non-GAAP | $2,635 | $2,827 | -6.8% |
| SG&A expense, GAAP | $3,568 | $3,846 | -7.2% |
| Overhead expense | $978 | $1,250 | -21.8% |
Cost leverage helped ease that pressure. Selling, general and administrative expense per unit declined by 7.2%. Overhead was down 21.8%, while operations expense increased due to higher fuel prices.
Chief Executive Ernie Garcia stated “our model gets better as we get bigger.” The results from the quarter back up the scalability argument, but also highlight continued gross-profit pressure.
The stock approached earnings with recent momentum, climbing 10.2% in the past five sessions. Trading volume during regular hours was 67% higher than its 65-day average.
| Market measure | Wednesday reading | Comparison |
|---|---|---|
| Regular close | $66.32 | Up 0.38% |
| Delayed after-hours price | $60.95 | Down 8.10% |
| Regular-session volume | 18.08 million | 1.67 times the average |
| Five-day performance | Up 10.18% | Prior to earnings impact |
| Year-to-date performance | Down 21.43% | As of regular close |
The decline after hours wiped out much of the five-day gain, but the move did not completely undo the advance. At the close of regular trading on Wednesday, the stock was still down 21.4% for 2026.
The next comprehensive test is set for Thursday at 9:30 a.m. EDT when markets open. The U.S. jobs report for July will be released August 7 at 8:30 a.m. EDT. Trends in employment may influence demand for vehicles and impact borrower performance.
Risks persist. The outlook is based on steady conditions. Variables such as consumer demand, used-vehicle pricing, fuel expenses, tariffs, credit outcomes and reconditioning processes could push results beyond the projected range.
