Carvana (CVNA) Q2 2024 earnings summary

Executive summary

• Achieved net income of $48 million and a net income margin of 1.4% in Q2 2024, reversing a net loss of $105 million and margin of -3.5% in Q2 2023.

• Sold 101,440 retail units in Q2 2024, up 33% year-over-year, generating $3.41 billion in revenue, a 15% increase.

• Set a record with a 10.4% Adjusted EBITDA margin, the highest among public automotive retailers.

• Maintained a disciplined focus on unit economics, operational efficiency, and leveraging existing capacity for future growth.

• Continued to prioritize customer experience, technology-driven operations, and scalable infrastructure.

Financial highlights

• Adjusted EBITDA reached $355 million, more than double the $155 million from Q2 2023, with a margin of 10.4%.

• GAAP operating income was $259 million, up from $42 million in the prior year quarter.

• Retail vehicle sales revenue grew 22.9% year-over-year to $2.41 billion, offsetting a 7.2% decline in average selling price to $23,768.

• Non-GAAP total GPU reached $7,344, up $314; retail GPU hit $3,539, up $677; both are company records.

• SG&A expenses were stable at $455 million, with SG&A per retail unit sold down $1,160 year-over-year.

Outlook and guidance

• Expects a sequential increase in retail units sold in Q3 2024, assuming stable market conditions.

• Full-year 2024 Adjusted EBITDA guidance raised to $1.0–$1.2 billion, up from $339 million in 2023.

• Liquidity resources, including cash and credit facilities, are expected to be sufficient to fund operations and capital needs for at least the next 12 months.

• Focus remains on profitable growth, further deleveraging, and reinvesting efficiency gains into customer value and growth.

• The company plans to invest in technology, logistics, and product development to support scalable growth in retail units sold.