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 2025 saw 163,522 retail units sold (+43%), $5.6 billion in revenue (+58%), and net income of $951 million with a 17.0% margin.

• Adjusted EBITDA for the year was $2.2 billion, up over $850 million year-over-year, with an 11.0% margin; Q4 Adjusted EBITDA was $511 million.

• Net income in Q4 2025 was positively impacted by a ~$685 million release of valuation allowance on deferred tax assets, partially offset by a ~$67 million negative impact from warrant fair value changes.

• Customer Net Promoter Score reached multi-year highs, reflecting strong satisfaction.

Financial highlights

• Full year GAAP operating income was $1.88 billion, with an operating margin of 9.3%; Q4 GAAP operating income was $424 million, with a 7.6% margin.

• Net income for 2025: $1.9 billion, up more than $1 billion year-over-year, including a $685 million non-cash tax benefit.

• Adjusted EBITDA margin improved to 11.0% for the year and 9.1% for Q4.

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

• Long-term goal to sell 3 million retail units annually at a 13.5% Adjusted EBITDA margin by 2030–2035.

• Focus remains on profitable growth at scale, leveraging fixed costs and operational efficiencies.

• 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.