Carvana (NYSE:CVNA) Issues Earnings Results

Carvana (NYSE:CVNA) announced its earnings results on Wednesday. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.03, FiscalAI reports. Carvana had a net margin of 6.26% and a return on equity of 39.91%. The company had revenue of $7.38 billion for the quarter, compared to analysts’ expectations of $6.90 billion. During the same quarter in the previous year, the company posted $1.51 EPS. The firm’s quarterly revenue was up 52.4% on a year-over-year basis.

Here are the key takeaways from Carvana’s conference call:

• Record growth and profitability: Q2 retail units rose 38% year over year to 197,325, revenue increased 52% to $7.376 billion, and adjusted EBITDA reached a record $769 million. Net income was $513 million, while adjusted EBITDA exceeded a $3 billion annualized run rate for the first time.
• Strong regional inventory feedback loop: Carvana said regions with the largest production-capacity additions saw inventory growth of 57% and sales growth of 54%, reinforcing management’s view that greater selection, faster delivery, and more efficient marketing can compound demand. The company believes this supports its long-term goal of selling 3 million vehicles annually at a 13.5% adjusted EBITDA margin by 2030–2035.
• Inventory remains an execution constraint: Inventory growth lagged sales growth during the quarter, pressuring conversion and potentially forcing a trade-off between unit growth and profitability. Management said reconditioning costs have recovered and inventory growth began improving in mid-Q2, but new operational tools are still being rolled out and the company expects to invest more in advertising in Q3.
• Per-unit economics faced pressure: Non-GAAP retail GPU fell $105 and other GPU declined $192 year over year, primarily due to lapping tariff-related benefits, higher fuel and benchmark rates, and lower customer financing rates. Adjusted EBITDA margin decreased to 10.4% from 12.4%, although management cited approximately $300 per vehicle of underlying efficiency gains that partially offset these headwinds.
• Guidance and balance sheet strengthened: Carvana expects Q3 retail units to increase sequentially and projects full-year 2026 adjusted EBITDA of $2.7 billion–$3.0 billion, up from $2.24 billion in 2025. Net debt to trailing 12-month adjusted EBITDA improved to 1.0 times, while management emphasized that strong returns on operating assets favor continued investment in the company’s growth infrastructure rather than near-term capital returns.

Carvana Trading Up 0.8%

NYSE:CVNA traded up $0.46 on Friday, hitting $61.90. The stock had a trading volume of 5,906,753 shares, compared to its average volume of 15,004,861. The company has a fifty day moving average price of $66.97 and a two-hundred day moving average price of $70.85. Carvana has a 1-year low of $54.46 and a 1-year high of $97.38. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. The stock has a market cap of $67.90 billion, a price-to-earnings ratio of 34.14, a PEG ratio of 14.89 and a beta of 3.46.

Key Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record Q2 2026 performance, including $7.38 billion in revenue, $513 million in net income and $769 million in adjusted EBITDA. Retail unit sales increased 38%, while revenue grew 52.4% year over year. Carvana Announces Record Second Quarter 2026 Results
• Positive Sentiment: Management highlighted continued platform expansion, inventory growth and increased use of automation, including an AI customer-service agent designed to reduce operating costs. Same-day delivery also expanded to the Fort Myers area. Carvana Slashes Customer Service Costs Through AI Agent
• Positive Sentiment: Needham reaffirmed its buy rating and set a $120 price target, arguing that the post-earnings weakness could provide an attractive entry point. Barclays, BTIG Research and Citizens JMP also maintained favorable ratings, although each reduced its target. Needham says Carvana stock could double
• Neutral Sentiment: Carvana forecast full-year adjusted EBITDA of $2.7 billion to $3.0 billion. While this represents substantial profitability, the midpoint was below Wall Street expectations and implies a slower second-half earnings trajectory than investors had anticipated. Carvana posts record quarterly profits
• Negative Sentiment: Investors were concerned that gross profit per vehicle and adjusted EBITDA margins are compressing. The projected full-year margin of roughly 10.2% raises questions about whether Carvana can sustain growth while expanding profitability, particularly given its premium valuation. Carvana Profit Compression Makes This Stock Tougher To Bank On
• Negative Sentiment: Several analysts lowered their price targets, including BNP Paribas Exane, which cut its target to $69 and adopted a neutral rating. The widespread target reductions reinforced concerns that the record quarter did not fully offset the cautious outlook. Analyst price-target changes

Insider Buying and Selling at Carvana

In other news, Director J Danforth Quayle sold 14,525 shares of Carvana stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total transaction of $1,016,750.00. Following the sale, the director owned 214,960 shares of the company’s stock, valued at approximately $15,047,200. The trade was a 6.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $68.34, for a total value of $4,356,675.00. Following the completion of the transaction, the chief financial officer owned 1,029,580 shares in the company, valued at $70,361,497.20. This represents a 5.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 278,212 shares of company stock worth $19,343,496. Insiders own 15.19% of the company’s stock.

Hedge Funds Weigh In On Carvana

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new position in shares of Carvana during the second quarter worth $38,000. Geneos Wealth Management Inc. increased its holdings in shares of Carvana by 251.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock valued at $53,000 after acquiring an additional 181 shares during the last quarter. GW&K Investment Management LLC raised its position in shares of Carvana by 155.6% during the 4th quarter. GW&K Investment Management LLC now owns 138 shares of the company’s stock worth $58,000 after acquiring an additional 84 shares in the last quarter. Greenline Wealth Management LLC acquired a new stake in shares of Carvana during the 4th quarter worth about $60,000. Finally, CIBC Private Wealth Group LLC lifted its stake in Carvana by 147.2% during the fourth quarter. CIBC Private Wealth Group LLC now owns 178 shares of the company’s stock worth $75,000 after purchasing an additional 106 shares during the last quarter. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

CVNA has been the topic of several research reports. Citigroup reissued a “market outperform” rating on shares of Carvana in a research note on Thursday. Argus dropped their price objective on shares of Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. BNP Paribas Exane cut their price objective on shares of Carvana from $86.00 to $69.00 and set a “neutral” rating for the company in a report on Thursday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $80.00 target price on shares of Carvana in a research note on Friday. Finally, Royal Bank Of Canada set a $82.00 target price on Carvana and gave the stock an “outperform” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, Carvana presently has an average rating of “Moderate Buy” and an average price target of $86.00.

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.