Carvana Announces Record Third Quarter 2025 Results
Record 156k retail units drive industry-leading
Record
Industry-leading Net income of
Record Adjusted EBITDA of
For Q4, Carvana expects retail units sold over 150k; for full year 2025, Carvana expects Adjusted EBITDA at or above the high end of previous
“In Q3, Carvana once again drove industry-leading growth and profitability while crossing over
Q3 2025 Highlights
In Q3 2025, Carvana sold 155,941 retail units (+
-
Net income of
$263 million 4.7% -
Adjusted EBITDA of
$637 million 11.3% -
GAAP Operating income of
$552 million 9.8%
Outlook
Looking toward the fourth quarter, Carvana expects the following as long as the environment remains stable:
- Retail units sold above 150,000, and
-
Adjusted EBITDA at or above the high end of its previously communicated range of
$2.0 $2.2 billion
Conference Call Details
Carvana will host a conference call today, Oct. 29, 2025, at 5:30 p.m. ET (2:30 p.m. PT) to discuss financial results. To participate in the live call, analysts and investors should dial (833) 255-2830 or (412) 902-6715. A live audio webcast of the conference call, along with supplemental financial information, will also be accessible on the company's website at investors.carvana.com. Following the webcast, an archived version will also be available on the Investor Relations section of the company’s website. A telephonic replay of the conference call will be available until Wednesday, November 5, 2025, by dialing (877) 344-7529 or (412) 317-0088 and entering passcode 2325331#.
____________________ |
1 Net income in Q3 2025 included a negative |
2 In order to clearly demonstrate our progress and highlight the most meaningful drivers within our business, we continue to use forecasted Non-GAAP financial measures, including forecasted Adjusted EBITDA. We have not provided a quantitative reconciliation of forecasted GAAP measures to forecasted Non-GAAP measures within this communication because we are unable, without making unreasonable efforts, to forecast fair value changes or calculate one-time or restructuring expenses. These items could materially affect the computation of forward-looking Net Income. Forecasted results and future objectives may be impacted by factors outside Carvana’s control. See “Forward Looking Statements” herein. |
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana’s current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, strategy, future performance, and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning.
Forward-looking statements include all statements that are not historical facts, including expectations regarding growth drivers; our strategy, expected gross profit per unit; forecasted results, including forecasted Adjusted EBITDA and forecasted retail units sold; all mid-term and long-term financial and other objectives and goals; expected production capacity, including through expected additional locations and potential infrastructure capacity utilization; efficiency operational gains and opportunities to improve our results, including opportunities to increase our margins and reduce our expenses, trends or expectations regarding inventory, expected customer patterns and demand; expectations on anticipated timing of increased production output; potential benefits from and expectations regarding new technology, including the use of artificial intelligence; anticipated benefits of uses of our ADESA real estate; unexpected macroeconomic conditions, including geopolitical, trade, and regulatory uncertainty and commodity prices, including future effects of tariffs; and growth opportunities. Such forward-looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Among these factors are risks related to: the larger automotive ecosystem, including consumer demand, global supply chain challenges, and other macroeconomic issues (including recent imposition of new and increased tariffs and effects of the
There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Carvana does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial measures, which are prepared and presented in accordance with GAAP, we also refer to the following non-GAAP measures in this press release: Adjusted EBITDA and Adjusted EBITDA Margin.
Adjusted EBITDA is defined as Net income plus (minus) income tax (benefit), interest expense, net, other expense, net, loss on debt extinguishment, other operating expense, net, depreciation and amortization expense in cost of sales and SG&A expenses, and share-based compensation expense in cost of sales and SG&A expenses, minus revenue related to our Root Warrants. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenues.
We believe that these metrics are useful measures to us and to our investors because they exclude certain financial, capital structure, and non-cash items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations, in part because they may vary widely across time and within our industry independent of the performance of our core operations. We believe that excluding these items enables us to more effectively evaluate our performance period-over-period and relative to our competitors.
| Three Months Ended September 30, |
|||||||
| (dollars in millions) | 2024 |
2025 |
|||||
| Net income | $ |
148 |
|
$ |
263 |
|
|
| Income tax benefit |
|
(1 |
) |
|
(4 |
) |
|
| Interest expense, net |
|
157 |
|
|
125 |
|
|
| Other expense, net |
|
29 |
|
|
154 |
|
|
| Loss on debt extinguishment |
|
4 |
|
|
14 |
|
|
| Operating income | $ |
337 |
|
$ |
552 |
|
|
| Other operating expense, net |
|
1 |
|
|
1 |
|
|
| Depreciation and amortization expense in cost of sales |
|
33 |
|
|
27 |
|
|
| Depreciation and amortization expense in SG&A expenses |
|
40 |
|
|
38 |
|
|
| Share-based compensation expense in cost of sales |
|
1 |
|
|
- |
|
|
| Share-based compensation expense in SG&A expenses |
|
23 |
|
|
24 |
|
|
| Root warrant revenue |
|
(6 |
) |
|
(5 |
) |
|
| Adjusted EBITDA | $ |
429 |
|
$ |
637 |
|
|
| Total revenues | $ |
3,655 |
|
$ |
5,647 |
|
|
| Net income margin |
|
4.0 |
% |
|
4.7 |
% |
|
| Adjusted EBITDA margin |
|
11.7 |
% |
|
11.3 |
% |
|
About Carvana (NYSE: CVNA)
Carvana’s mission is to change the way people buy and sell cars. Since launching in 2013, Carvana has revolutionized automotive retail and delighted millions of customers with an offering that is fun, fast, and fair. With Carvana, customers can find a car, get financing, trade in, and complete a purchase entirely online with the convenience of delivery or local pickup as soon as the same day. Carvana’s unique offering is powered by its passionate team, differentiated national infrastructure, and purpose-built technology.
For more information, please visit www.carvana.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251029486602/en/
Investors:
Carvana
Mike McKeever
investors@carvana.com
or
Media:
Carvana
press@carvana.com
Source: Carvana
