Phoenix, April 29, 2026, 14:02 (MST)
- Carvana posted first-quarter revenue of $6.432 billion, the highest on record, and sold 187,393 retail vehicles—both figures jumping significantly from the prior year.
- The online used-car retailer’s shares jumped roughly 10% in after-hours after it reported stronger profits, citing ongoing demand for preowned vehicles.
- There was a catch to the beat: adjusted EBITDA margin dropped to 10.4%, down from 11.5%. Gross profit per retail unit also edged lower.
Shares of Carvana jumped in after-hours trading Wednesday, after the online used-car dealer posted record quarterly revenue and stronger profit. Vehicle sales climbed 40% from the prior year, beating Wall Street forecasts.
Investors are paying close attention, trying to figure out if Carvana can hold onto its margin improvements as growth picks up again. Revenue jumped 52% to $6.43 billion, up from $4.23 billion a year ago and beating the roughly $6.12 billion analysts had penciled in. Adjusted EBITDA landed at $672 million, earnings measured before interest, taxes, depreciation and amortization, with certain items excluded.
The quarter arrived while U.S. consumers continued hunting for less expensive options than new cars—Reuters notes average new-vehicle prices are stuck near $50,000. Demand for used vehicles has stayed steady as a result.
Carvana posted net income of $405 million for the quarter ended March 31, up from $373 million a year ago. Profit came in at $1.69 per Class A share, calculated on 148 million shares.
Founder and CEO Ernie Garcia pointed to Carvana’s sixth straight quarter with at least 40% year-over-year retail unit growth in Q1. Garcia described the integrated model as designed to make used-car trading “easier, faster, more efficient, and more fun.” Carvana Investors
Retail vehicle sales jumped to $4.83 billion, up from $2.98 billion in the same period last year. Wholesale sales and revenues climbed as well, reaching $1.08 billion. Sales from other segments—including finance and related products—brought in $526 million.
The company is forecasting sequential gains in both retail units sold and adjusted EBITDA for the second quarter—potentially setting fresh company records, provided the operating environment holds steady. For the full year, management reiterated it’s still pacing toward strong growth in both metrics.
There’s a snag here. Total gross profit per retail unit slipped to $6,783 from $6,938. Adjusted EBITDA margin also tightened, now at 10.4%, down from 11.5%. Reuters flagged higher vehicle reconditioning costs and softer shipping fees for the company. Carvana, meanwhile, pointed to internal changes—upgraded labor training and some AI-driven tools—as factors already making an impact this quarter.
Morgan Stanley’s Daniela Haigian told investors ahead of the results to “be opportunistic on near-term volatility,” highlighting concerns around consumer health, fuel prices, and subprime loan spreads. While Haigian said Carvana may “maintain its growth trajectory,” she also cautioned that an extended oil-price shock could squeeze lower-income buyers and weigh on the stock’s valuation. TheStreet
Competition’s thick in this space. Carvana’s filings flag the U.S. used-car market as highly fragmented, listing CarMax, online players like CarGurus and AutoTrader, plus automakers such as Ford, General Motors, and Tesla—either already competitors or likely to be.
Carvana flagged potential trouble from tariffs, the Iran conflict, and wider economic headwinds, warning that persistent jumps in gasoline prices threaten to squeeze disposable income and drive up transport and logistics expenses. Still, the company said these pressures hadn’t had a material impact on its first-quarter numbers.
