Carvana (CVNA) Q4 2025 earnings summary

Executive summary

• Achieved record full year retail units sold of 596,641, up 43% year-over-year, and record revenue of $20.3 billion, up 49% year-over-year; Q4 retail units sold were 163,522, up 43%, with revenue of $5.603 billion, up 58%.

• Adjusted EBITDA margin reached a record 11% for the year ($2.2 billion), with Q4 Adjusted EBITDA at $511 million and margin at 9.1%.

• Net income for the year was $1.9 billion, up more than $1 billion year-over-year, with a 9.3% margin; Q4 net income was $951 million, boosted by a significant non-cash tax benefit.

• Continued focus on scaling infrastructure, especially reconditioning centers, with 34 locations now operational and investments supporting future growth.

• Customer experience improved, with Net Promoter Score at multi-year highs and 30% of retail customers completing transactions fully online.

Financial highlights

• Full year GAAP operating income was $1.88 billion (9.3% margin); Q4 GAAP operating income was $424 million (7.6% margin).

• Net income in FY 2025 included a net non-cash benefit of $621 million from deferred tax asset valuation allowance release and tax receivable agreement liability; Q4 net income included a $685 million non-cash tax benefit.

• Adjusted EBITDA: $511 million in Q4, up $152 million year-over-year; margin at 9.1% (down from 10.1% due to revenue mix).

• Ended 2025 with $2.3 billion in cash and equivalents; net debt to trailing twelve-month Adjusted EBITDA ratio improved to 1.3x.

• Gross profit (GAAP) for Q4 2025 was $1,051 million, with total gross profit per unit (GAAP) at $6,427.

Outlook and guidance

• Expects significant growth in retail units sold and Adjusted EBITDA in FY 2026, with sequential increases in Q1 2026, assuming stable conditions.

• Maintaining focus on profitable growth, operational efficiency, and foundational capability development.

• Path to 3 million retail units per year and 13.5% Adjusted EBITDA margin remains clear, with fixed cost leverage expected to add 2 points to margin over time.

• Operational efficiencies and cost leverage on retail unit growth are expected to continue driving margin improvements.

• Advertising spend is increasing, but offset by scale benefits in other SG&A areas.