CVNA Q2 2025 Earnings

Call Details

• Call Title: Carvana Q2 2025 Earnings Call
• Date: July 30, 2025 at 9:30 PM UTC
• Management Team:
  • Ernie Garcia (Chief Executive Officer)
  • Mark Jenkins (Chief Financial Officer)
  • Meg Kehan (Investor Relations)

Call Summary

Financial Performance

• Retail units sold were 143,280 in Q2, up 41% year over year and a new company record.
• Revenue was $4.84B in Q2, up 42% year over year and a new company record.
• Non-GAAP retail GPU increased by $195 year over year, largely driven by reductions in reconditioning and inbound transport costs and an approximately $100 tariff-related benefit.
• Non-GAAP wholesale GPU decreased by $85 year over year, primarily due to faster retail growth versus wholesale marketplace units and lower wholesale vehicle depreciation rates.
• GAAP operating income was $511M in Q2, up $252M year over year, and GAAP operating margin was 10.6%, up 3 percentage points year over year.
• Adjusted EBITDA was $601M in Q2, up $246M year over year, and adjusted EBITDA margin was 12.4%, with approximately 85% of adjusted EBITDA converting into GAAP operating income in Q2 versus 73% in Q2 2024.
• Net income was $308M in Q2, up $260M year over year, and net income margin was reported at 6.4%.

Guidance

• The company expects a sequential increase in retail units sold in Q3 provided the environment remains stable.
• Full year 2025 adjusted EBITDA is expected to be $2.0B to $2.2B versus $1.38B in 2024.
• Management expects a larger sequential increase in advertising spend in Q3 versus Q2 to invest in awareness, understanding, and trust.
• The company expects GAAP operating income to grow faster than adjusted EBITDA over time due to existing fixed expense base and operating leverage.
• Long-term targets remain selling 3 million cars per year and achieving a 13.5% adjusted EBITDA margin over the next 5 to 10 years.
• Near-term guidance is contingent on the macro environment remaining stable and the company executing on planned investments and operational plans.