Carvana demonstrated strong growth in retail units and revenue, achieving record profitability and expanding market share. The company focused on improving customer experience and operational efficiencies, while also investing in infrastructure to support future growth towards its long-term unit sales goals.
Revenue increased 58% year-over-year to $5.603 billion in Q4 and 49% year-over-year to $20.322 billion for the full year.
positiveRetail units sold increased 43% year-over-year in Q4 to 163,522 and 43% year-over-year for the full year to 596,641.
positiveAchieved record company-level profitability with Net income of $1.895 billion for the full year, a significant increase from $404 million in the prior year.
positiveAdjusted EBITDA margin improved to 11.0% for the full year, up from 10.1% in the prior year.
positiveTotal liquidity resources increased to $6.739 billion as of December 31, 2025.
positiveTotal Gross profit per unit (GPU) decreased by $244 year-over-year in Q4 to $6,427, and by $354 on a non-GAAP basis to $6,562.
attentionWholesale marketplace gross profit decreased 18.2% year-over-year in Q4 to $27 million.
attentionReconditioning costs came in higher than expected in Q4, particularly in locations with lower management tenure.
attentionRetail depreciation rates increased sequentially more than the prior year, impacting Retail GPU.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
2025 was another exceptional year full of exciting results and significant milestones, growing retail units by 43% and exceeding $20 billion in annual revenue.
Our success is driven by a simple principle: everything we do starts with the customer, and we work backward from there.
We are the most profitable automotive retailer by a factor of two and the fastest growing by a long way.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.