Carvana Co.

Carvana said Q2 retail units sold totaled 197,325, up 38% year over year, and revenue was $7.376 billion, up 52%. Net income was $513 million, up $205 million, and net income margin was 7%, up from 6.4%. Adjusted EBITDA was a record $769 million, up $168 million year over year, with adjusted EBITDA margin at 10.4% versus 12.4% a year ago. GAAP operating income was $680 million, also a company record, and net debt to trailing 12-month adjusted EBITDA improved to 1.0x. For the rest of 2026, management expects Q3 retail units sold to increase sequentially from Q2 and reiterated full-year adjusted EBITDA of $2.7 billion to $3.0 billion.

Ernie Garcia framed the quarter as evidence that Carvana’s “machine” is compounding: more inventory leads to better conversion, better marketing efficiency, faster delivery, and then more demand. He emphasized that the company’s midterm goal remains 3 million cars sold per year at a 13.5% adjusted EBITDA margin by 2030 to 2035, and said the path to that target looks clearer than when it was first announced. His tone was confident and highly focused on execution, with repeated emphasis that Carvana is still “just getting started.”

Mark Jenkins highlighted record retail units, revenue, gross profit, SG&A leverage, GAAP operating income, and adjusted EBITDA. He said retail GPU fell by $105 mainly because of last year’s tariff-related benefit, wholesale GPU declined by $158, and other GPU declined by $192 as lower customer rates and higher benchmark rates more than offset some cost and funding benefits. He also noted SG&A expense per retail unit sold improved by $157, adjusted EBITDA reached $769 million, and the company ended Q2 with net debt to trailing 12-month adjusted EBITDA at 1.0x. On outlook, he said revenue growth should be more in line with retail unit growth in Q3 and that the company expects a sequential increase in retail units in Q3 and full-year adjusted EBITDA of $2.7 billion to $3.0 billion.

Analysts focused on the drivers of retail GPU and other GPU changes, including reconditioning improvements, used-car pricing, benchmark rates, and the decision to hold consumer rates steady. Management said recent retail strength was partly tied to FTC guidance affecting dealer pricing disclosures, while other GPU reflected roughly 100 basis points of rate given back to customers offset by about $300 of fundamental gains. Questions also centered on inventory being below desired levels, the rollout of Roll Call and Leader Hub, new-car dealerships, and whether the second half of 2026 would be weaker or simply more conservative in guidance. Management’s answer was consistent: the key variable is execution, inventory needs to catch up, and the company is still early in several operational initiatives.