Carvana (CVNA) 45th Annual William Blair Growth Stock Conference summary

Recent performance and growth

• Achieved record Q1 with 133,898 retail units sold and over $4 billion in revenue, with net income of $373 million and an 8.8% net income margin in Q1 2025.

• Adjusted EBITDA margin reached 11.5% in Q1, with Adjusted EBITDA of $488 million and GAAP operating income near $400 million.

• Retail units sold grew 46% year-over-year, outpacing industry peers and doubling average industry margins.

• Four consecutive quarters within long-term financial model range for Adjusted EBITDA margins of 8–13.5%.

• Over 80% of Adjusted EBITDA converted to GAAP operating income in Q1.

Key drivers of growth

• Seamless, vertically integrated online customer experience drives strong demand and loyalty.

• Significant opportunity remains in increasing awareness and trust in online car buying, with auto e-commerce penetration still at 1-2%.

• Expanding selection and inventory pools, along with logistics network density, create positive feedback loops, improving advertising efficiency and delivery speeds.

• Ongoing improvements in unit economics, technology, AI, and customer experience expected to fuel future growth.

• National infrastructure footprint, bolstered by the ADESA acquisition and addition of 6 new production locations year-to-date, supports scalable operations.

Strategic objectives and operational plans

• New medium-term goal: sell 3 million cars per year within 5-10 years at 13.5% Adjusted EBITDA margin.

• Plan to achieve this by executing the current business model and expanding customer reach, not by changing segments.

• Scaling production capacity by integrating more ADESA sites, increasing output per location, and adding 6 new production locations with a target of 34–36 by year-end.

• Estimated $1 billion in capital expenditures needed to reach 3 million annual capacity, with over 30 locations to integrate heading into 2026.

• Continued investment in customer experience, selection, and operational efficiency to sustain profitable growth.