Carvana Co. (NYSE: CVNA) reported record fourth-quarter and full-year 2025 results, reflecting strong growth in retail unit sales, higher revenue and a sharp improvement in profitability, according to the company’s earnings release for the quarter and year ended Dec. 31, 2025.
Key points
Full-year retail units sold reached 596,641, up 43% year on year
Full-year revenue rose to $20.3 billion, up 49% year on year
Full-year net income reached $1.9 billion; adjusted EBITDA totaled $2.2 billion
Q4 retail units sold increased 43% year on year to 163,522
Q4 revenue rose 58% year on year to $5.60 billion
The company expects growth in retail units and adjusted EBITDA in FY 2026
Q4 2025 performance
Fourth-quarter revenue rose to $5.60 billion, compared with $3.55 billion in Q4 2024, representing 58% year-on-year growth. Retail units sold reached 163,522, up 43% year on year, reflecting higher conversion, faster delivery times and broader inventory availability.
GAAP operating income reached $424 million, compared with $260 million a year earlier. Adjusted EBITDA increased to $511 million, compared with $359 million in Q4 2024. Net income reached $951 million in the quarter, supported by operating leverage and non-cash tax-related benefits, lifting the net income margin to 17.0%.
Full-year 2025 performance
For full-year 2025, revenue increased to $20.3 billion, compared with $13.7 billion in 2024, reflecting a 49% year-on-year increase. Retail units sold rose to 596,641, compared with 416,660 in the prior year, supported by growth in reconditioning capacity and digital auction throughput.
Net income reached $1.9 billion, compared with $404 million in 2024, while adjusted EBITDA increased to $2.24 billion from $1.38 billion a year earlier. GAAP operating income rose to $1.88 billion, reflecting higher gross profit per unit and operating leverage as fixed costs were absorbed across higher volumes.
Unit economics and operating drivers
The company reported record unit economics in 2025, supported by improvements in logistics efficiency, reconditioning throughput and sourcing costs. Expansion of integrated reconditioning centers and digital auction capabilities supported faster inventory turns and delivery lead times. Customer experience metrics improved during the year, with multi-year highs in net promoter scores cited in the presentation.
Liquidity and capital structure
The company said profitability and cash generation improved materially in 2025. Adjusted EBITDA margin reached 11.0% for the full year, compared with 10.1% in 2024. Net income included non-cash tax-related benefits associated with the release of valuation allowances on deferred tax assets and fair-value movements related to warrants, as disclosed in the earnings materials.
Outlook and sector context
Management expects continued growth in retail units sold and adjusted EBITDA in FY 2026, with sequential increases anticipated in the first quarter, subject to stable market conditions. The online used-vehicle retail market remains competitive, with pricing influenced by vehicle supply, consumer demand and financing conditions. Scale, reconditioning capacity and logistics efficiency remain key competitive factors.
Summary
Carvana delivered record revenue and profitability in Q4 and full-year 2025, driven by a sharp increase in retail units sold and improved unit economics. Year-on-year topline growth in both the quarter and full year reflected operating leverage and expanded platform capacity. The company enters 2026 with guidance for continued growth in volumes and adjusted earnings, supported by improvements in customer experience and infrastructure utilization.
