Carvana (CVNA) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 results with 187,393 retail units sold, up 40% year-over-year, and total revenue of $6.43B, marking the sixth consecutive quarter of 40% or greater retail unit growth.

• Adjusted EBITDA reached $672M (10.4% margin), up from $488M in Q1 2025 and $511M in Q4 2025, representing industry-leading profitability.

• Net income for Q1 2026 was $405M (6.3% margin), up from $373M in Q1 2025, though impacted by a $42M warrant-related loss.

• Maintained operational focus on scaling, resilience, and rapid response to challenges, with improvements in reconditioning and technology adoption.

• On track to achieve long-term goals of 3 million cars sold annually and 13.5% adjusted EBITDA margin by 2030-2035.

Financial highlights

• Q1 2026 revenue was $6.43B, up 52% year-over-year, with retail vehicle sales at $4.83B and wholesale sales at $1.08B.

• Gross profit grew to $1.27B, with total gross profit per retail unit at $6,783.

• Adjusted EBITDA was $672M (10.4% margin), and net income margin was 6.3%, both down from prior year but at record levels.

• SG&A expense per retail unit sold decreased to $3,682 (GAAP) and $3,325 (Non-GAAP), reflecting improved leverage.

• Cash and cash equivalents stood at $2.41B as of March 31, 2026.

Outlook and guidance

• Management expects sequential increases in retail units sold and Adjusted EBITDA in Q2 2026, with potential for new company records.

• Full-year 2026 guidance anticipates significant growth in both retail units sold and Adjusted EBITDA.

• Retail GPU expected to increase sequentially in Q2 but decrease year-over-year due to prior tariff benefits and narrower wholesale-retail spreads.

• Liquidity resources of $6.91B are expected to fund operations and growth for at least the next 12 months.

• Wholesale GPU will be reported on a consolidated basis going forward, reflecting integration of wholesale vehicle and marketplace operations.