Carvana delivers record Q2 as revenue jumps 52% to $7.38 billion

Carvana reported record Q2 revenue of $7.38 billion, up 52% from a year earlier, as retail unit sales rose 38%.

"We sold almost 200,000 cars during the quarter, nearly double our volume from two years ago," Chief Executive Officer Ernie Garcia said. He said the company's market share remains about 2% of the used-car market.

Net income reached $513 million, up from $308 million a year earlier, while GAAP operating income hit $680 million. Adjusted EBITDA margin was 10.4%, compared with 12.4% in the prior year, with the decline attributed partly to a gross-revenue treatment change that increased retail revenue per unit. Non-GAAP SG&A expense per retail unit fell $157, driven by a $272 reduction in overhead costs.

Carvana's annualized adjusted EBITDA run rate exceeded $3 billion for the first time. The company forecast 2026 adjusted EBITDA of $2.7 billion to $3.0 billion, up from $2.24 billion in 2025, and expects a sequential increase in retail units sold in the third quarter.

Growth was tied to inventory expansion. In the Midwest and Northeast, where Carvana added the most retail production capacity, inventory increased 57% and sales rose 54% in the second quarter. In the West and Southeast, where less capacity was added, inventory increased 17% and sales grew 30%.

Chief Financial Officer Mark Jenkins said revenue growth exceeded unit growth partly because of a gross-revenue treatment change for certain vehicles acquired from a large retail marketplace partner, higher industry vehicle prices and a mix shift toward newer vehicles. He said the change will no longer affect year-over-year comparisons beginning in the third quarter.

Non-GAAP retail gross profit per unit declined $105 from a year earlier, primarily because the company lapped an approximately $100 benefit from tariff-related effects. Non-GAAP wholesale GPU declined $158, while non-GAAP Other GPU declined $192, driven by Carvana's decision to offer customers lower interest rates and by higher benchmark rates.

Carvana's long-term target remains selling 3 million vehicles annually at a 13.5% adjusted EBITDA margin between 2030 and 2035. Garcia said the company now needs to grow to less than four times its current scale to reach that target, compared with about six times when the goal was introduced in early 2025.

The guidance raise shows Carvana expects operating leverage to continue improving as it scales. Investors will watch third-quarter unit sales and GPU trends for confirmation that the company can sustain its margin trajectory.

This article is for informational purposes only and does not constitute investment advice.