Carvana surges on earnings beat and record profit

Investing.com -- Carvana Co reported first-quarter results that exceeded analyst expectations, driving shares up 8% in after-hours trading Wednesday as the online used-car retailer posted record profitability alongside strong unit sales growth.

The company reported adjusted earnings per share of $1.69, beating the analyst estimate of $1.56 by $0.13. Revenue reached $6.43 billion, surpassing the consensus estimate of $6.02 billion and marking a 52% increase from $4.23 billion in the same quarter last year. Carvana sold a record 187,393 retail units in the quarter, representing 40% YoY growth.

Net income for the quarter totaled $405 million, or 6.3% of revenue, while adjusted EBITDA reached a record $672 million with a 10.4% margin. GAAP operating income hit a record $581 million.

"In Q1, Carvana delivered our sixth consecutive quarter of 40% or greater year-over-year retail unit growth while driving record financial results," said Ernie Garcia, Carvana founder and CEO. "The used vehicle industry is designed to help customers trade cars with one another, and our vertically integrated model is built to make that process easier, faster, more efficient, and more fun."

For the second quarter, Carvana expects sequential increases in both retail units sold and adjusted EBITDA, which would result in all-time company records for both metrics. The company did not provide specific numerical guidance ranges for the quarter. Carvana said it remains on track to deliver significant growth in both retail units sold and adjusted EBITDA for fiscal year 2026.

The strong results come as Carvana continues to scale its vertically integrated e-commerce platform for buying and selling vehicles.

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