Carvana 8-K
PositiveEarningsNew guidance
Broader vehicle selection fueled retail growth; FTC dealer-fee guidance and higher benchmark rates weighed on other gross profit.
Filed 2026-07-29 16:05 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 and FY2026 outlook. Revenue grew 52% and retail unit sales 38%, marking Carvana’s 10th consecutive quarter of industry-leading growth and profitability. Management attributed progress to execution and expanding inventory selection, while noting that lower gross profit per unit and a lower Adjusted EBITDA margin offset some of the scale benefits.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $7.38B | $4.84B | 52.4% |
| Gross profit | $1.38B | $1.06B | 30.1% |
| Operating income | $680M | $511M | 33.1% |
| Net income | $513M | $308M | 66.6% |
| Adjusted EBITDA, non-GAAP | $769M | $601M | 28% |
| Net income attributable to Carvana Co. | $310M | $183M | 69.4% |
| Diluted EPS | $0.42 | $0.26 | 61.5% |
| Retail vehicle unit sales | 197,325 | 143,280 | 37.7% |
- Net income margin rose to 7.0% from 6.4%, while Adjusted EBITDA margin fell to 10.4% from 12.4%. GAAP total gross profit per retail unit was $7,014, down $412 Y/Y; non-GAAP total gross profit per retail unit was $7,125, down $455. Carvana cited higher industry retail prices following FTC guidance on advertised dealer fees and higher benchmark rates, which weighed on other gross profit; customer-facing interest rates stayed stable.
- H1 net income was $918M vs $681M; operating cash flow was $345M vs $261M. Cash was $2.63B at 6/30/2026; total liquidity resources, including borrowing capacity and unpledged securitization interests, were $7.02B.
- Carvana integrated production capabilities at three more ADESA locations, bringing the total to 19. Its current footprint has fully built-out annual capacity for ≈1.5M retail units, with real estate to support 3M; its first full ADESA buildout is expected to begin producing vehicles in early 2027.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Retail units sold | Q3 2026 | Sequential increase vs Q2 | — | — |
| Adjusted EBITDA, non-GAAP | FY2026 | $2.7B-$3.0B | — | — |
| Cars sold annually | 2030-2035 | 3M | — | — |
| Adjusted EBITDA margin, non-GAAP | 2030-2035 | 13.5% | — | — |
Investor Takeaways
- Q3 retail-unit sales and FY2026 Adjusted EBITDA will show whether recent growth and profitability can be sustained.
- Progress at the new ADESA buildout and continued production expansion will test execution against Carvana’s longer-term scale goals.
The summary is written by an AI model reading the filing.
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