Carvana (CVNA) is a leading U.S. e-commerce platform that has revolutionized the used vehicle market by shifting the entire buying and selling process online. The company is famous for its multi-story “Car Vending Machines,” which serve as automated pick-up points for customers. By leveraging a proprietary technology platform and a nationwide logistics network, including the strategic acquisition of ADESA in 2022, Carvana offers a seamless experience that includes financing, trade-ins, and as-soon-as-next-day delivery.
Founded in 2012 and headquartered in Tempe, Arizona, the company operates 39 car vending machines, providing next-day delivery in over 300 markets nationwide.
Carvana stock is showing some volatility amid an impressive recovery from its previous lows. CVNA stock has posted a 59% gain over the last 52 weeks, rebounding from a yearly low of $148.25 to a peak of $486.89 in early 2026. While the share price recently dipped following a late January short report and subsequent accounting allegations, and despite a 16% decline over the last month, Carvana remains a high-beta favorite among retail and institutional investors.
Carvana concluded fiscal 2025 with a strong performance, reporting record full-year revenue of $20.3 billion, a 49% year-over-year (YOY) increase. In the fourth quarter alone, revenue surged 58% to $5.6 billion, significantly beating the $5.24 billion analyst estimate. This growth was driven by a record 163,522 retail units sold in Q4, representing a 43% jump compared to the same period last year. The company achieved a massive earnings beat with diluted EPS of $4.22, far exceeding the $1.11 consensus estimate.
Despite the top-line success, the quarter revealed some margin pressure as adjusted EBITDA came in at $511 million, slightly missing the $535.7 million consensus. This led to a brief stock plunge as investors reacted to rising vehicle reconditioning costs, which management noted might persist into early 2026.
Nevertheless, Carvana maintains a strong financial position with $2.33 billion in cash and a positive outlook for the current year. Management projects a sequential increase in both units sold and adjusted EBITDA for Q1 2026, reaffirming its long-term “moonshot” goal of reaching 3 million annual vehicle sales with double-digit profit margins by 2030.
