CVNA Q2 Earnings Beat Estimates on Higher Y/Y Deliveries

Used car e-retailer Carvana CVNA reported second-quarter earnings of $1.28 per share, which breezed past the Zacks Consensus Estimate of $1.10 per share and the year-ago quarter’s earnings of 14 cents per share. Better-than-expected revenues across all segments led to the outperformance. Revenues of $4.84 billion beat the Zacks Consensus Estimate by 5.62% and rose 42% year over year.

Key Highlights

Total gross profit amounted to $1.06 billion, up 49% year over year. Total gross profit per unit (GPU) was $7,426, rising from $7,049 in the year-ago period. SG&A expenses were $551 million, up 21.1% year over year. Carvana achieved an adjusted EBITDA of $601 million for the second quarter of 2025. Adjusted EBITDA margin in the quarter under review was 12.4%, up from 10.4% in the second quarter of 2024.

Carvana Co. Price, Consensus and EPS Surprise

Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote

Segmental Performance

Retail vehicle sales totaled $3.41 billion in the quarter, rising 41.2% year over year and beating our estimate of $3.25 billion on the back of higher-than-expected sales volume. In the reported quarter, the number of vehicles sold to retail customers rose 41.2% to 143,280 from the prior-year period and exceeded our estimate of 135,750 units. Gross profit amounted to $521 million, up 50.1% year over year. Gross profit per unit came in at $3,636, which rose from $3,421 generated in the year-ago period but missed our expectation of $3,664.

In the second quarter, wholesale vehicle sales totaled $1.02 billion, up 42.2% year over year. Sales topped our estimate of $766.9 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 44.5% to 72,770 from the prior-year period and exceeded our estimate of 66,091 units. Gross profit came in at $132 million, up 48.3% from the corresponding quarter of 2024. GPU came in at $921, up 4.9% year over year.

In the period under consideration, other sales and revenues rose 47.3% year over year to $411 million and beat our forecast of $344.3 million. Gross profit was $411 million, up 47.3% year over year. GPU came in at $2,869, up 4.3% year over year. It fell short of our estimate of $3,212.

Financial Position

Carvana had cash and cash equivalents of $1.86 billion as of June 30, 2025, compared with $1.72 billion as of Dec. 31, 2024. Long-term debt was $5.32 billion as of June 30, 2025, compared with $5.26 billion recorded on Dec. 31, 2024.

Outlook

For the third quarter of 2025, Carvana expects a sequential rise in retail unit sales. It expects full-year 2025 adjusted EBITDA in the range of $2-$2.2 billion, up from $1.38 billion in 2024.

Zacks Rank & Other Stocks to Consider

CVNA currently carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Ferrari N.V. RACE, PHINIA Inc. PHIN and XPeng Inc. XPEV. While RACE and PHIN sport a Zacks Rank #1 (Strong Buy) each at present, XPEV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for RACE’s fiscal 2025 sales and earnings indicates year-over-year growth of 13.6% and 12.1%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 5 cents each over the past 30 days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 12.44%, respectively. EPS estimates for 2025 and 2026 have improved by 23 cents and 19 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for XPEV’s 2025 sales and earnings indicates year-over-year growth of 102% and 66.7%, respectively. EPS estimates for 2025 have improved 7 cents in the past 90 days. The EPS estimate for 2026 has increased a penny in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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