Carvana Q1 2026 Earnings Show Record Profit
Carvana Q1 2026 earnings showed record profit and 40% retail-unit growth, supporting positioning for sequential unit gains and higher adjusted EBITDA.
KEY TAKEAWAYS
- Carvana reported record net income of $405 million and $6.4 billion revenue.
- Retail units rose 40% to 187,393, marking the sixth consecutive quarter of at least 40% growth.
- Management guided sequential increases in retail units and adjusted EBITDA for Q2, targeting company records.
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Carvana Co. (CVNA) reported record Q1 2026 earnings on April 29, 2026, citing stronger retail sales growth and profitability. Management expects sequential increases in retail units sold and adjusted EBITDA in Q2, assuming a stable environment.
Record Sales and Profit Growth
Carvana sold 187,393 retail units in the quarter, a 40% year-over-year increase that outpaced an industry with roughly flat retail sales. Management described this as the sixth consecutive quarter of at least 40% retail-unit growth. Founder and CEO Ernie Garcia said, "In Q1, Carvana delivered our sixth consecutive quarter of 40% or greater year-over-year retail unit growth while driving record financial results." The company also reported its ninth straight quarter as both the fastest-growing and most profitable automotive retailer.
Revenue rose 52% year over year to $6.4 billion. Net income reached $405 million, including a $42 million negative impact from warrant fair-value changes, resulting in a net margin of 6.3%, down from 8.8% in Q1 2025. Adjusted EBITDA increased 38% to $672 million, with a margin of 10.4%, compared with 11.5% a year earlier. Earnings per share were $1.69, beating the consensus forecast of $1.56.
GAAP operating income was $581 million. Gross profit rose 37% to $1.3 billion, while gross profit per unit declined $155 to $6,783. Operating cash flow totaled $107 million. Wholesale vehicle sales increased 31.7% to 83,574 units.
Liquidity, Capacity, and Outlook
As of March 31, 2026, Carvana held $2.4 billion in cash and cash equivalents and $6.9 billion in total liquidity, including $2.1 billion available under short-term revolving credit facilities. Total debt stood at $5.1 billion.
Management outlined a capacity trajectory tied to these results. The current run rate is about 750,000 annual retail units. Completed capital spending supports scaling to 1.5 million units annually, with additional real estate available to expand toward 3 million units. Long-term targets include 3 million annual retail units and a 13.5% adjusted EBITDA margin. Management framed the quarter as evidence that rapid unit growth is translating into stronger earnings momentum even as investments continue to expand capacity.
For Q2 2026, the company expects sequential increases in retail units sold and adjusted EBITDA, aiming for all-time company records on both metrics, contingent on a stable environment.
