Carvana Co. (NYSE: CVNA) reported report fourth-quarter and full-year 2025 outcomes, reflecting robust progress in retail unit gross sales, larger income and a pointy enchancment in profitability, based on the corporate’s earnings launch for the quarter and yr ended Dec. 31, 2025.
Key factors
Full-year retail items offered reached 596,641, up 43% yr on yr
Full-year income rose to $20.3 billion, up 49% yr on yr
Full-year web earnings reached $1.9 billion; adjusted EBITDA totaled $2.2 billion
This autumn retail items offered elevated 43% yr on yr to 163,522
This autumn income rose 58% yr on yr to $5.60 billion
The corporate expects progress in retail items and adjusted EBITDA in FY 2026
This autumn 2025 efficiency
Fourth-quarter income rose to $5.60 billion, in contrast with $3.55 billion in This autumn 2024, representing 58% year-on-year progress. Retail items offered reached 163,522, up 43% yr on yr, reflecting larger conversion, sooner supply occasions and broader stock availability.
GAAP working earnings reached $424 million, in contrast with $260 million a yr earlier. Adjusted EBITDA elevated to $511 million, in contrast with $359 million in This autumn 2024. Web earnings reached $951 million within the quarter, supported by working leverage and non-cash tax-related advantages, lifting the online earnings margin to 17.0%.
Full-year 2025 efficiency
For full-year 2025, income elevated to $20.3 billion, in contrast with $13.7 billion in 2024, reflecting a 49% year-on-year improve. Retail items offered rose to 596,641, in contrast with 416,660 within the prior yr, supported by progress in reconditioning capability and digital public sale throughput.
Web earnings reached $1.9 billion, in contrast with $404 million in 2024, whereas adjusted EBITDA elevated to $2.24 billion from $1.38 billion a yr earlier. GAAP working earnings rose to $1.88 billion, reflecting larger gross revenue per unit and working leverage as fastened prices had been absorbed throughout larger volumes.
Unit economics and working drivers
The corporate reported report unit economics in 2025, supported by enhancements in logistics effectivity, reconditioning throughput and sourcing prices. Growth of built-in reconditioning facilities and digital public sale capabilities supported sooner stock turns and supply lead occasions. Buyer expertise metrics improved through the yr, with multi-year highs in web promoter scores cited within the presentation.
Liquidity and capital construction
The corporate mentioned profitability and money era improved materially in 2025. Adjusted EBITDA margin reached 11.0% for the total yr, in contrast with 10.1% in 2024. Web earnings included non-cash tax-related advantages related to the discharge of valuation allowances on deferred tax property and fair-value actions associated to warrants, as disclosed within the earnings supplies.
Outlook and sector context
Administration expects continued progress in retail items offered and adjusted EBITDA in FY 2026, with sequential will increase anticipated within the first quarter, topic to steady market situations. The web used-vehicle retail market stays aggressive, with pricing influenced by automobile provide, shopper demand and financing situations. Scale, reconditioning capability and logistics effectivity stay key aggressive components.
Abstract
Carvana delivered report income and profitability in This autumn and full-year 2025, pushed by a pointy improve in retail items offered and improved unit economics. Yr-on-year topline progress in each the quarter and full yr mirrored working leverage and expanded platform capability. The corporate enters 2026 with steering for continued progress in volumes and adjusted earnings, supported by enhancements in buyer expertise and infrastructure utilization.
