Carvana Co delivers record Q4 revenue and full-year 2025 profit as unit sales increase
Carvana Co. (NYSE: CVNA) reported record results for the fourth quarter and full year 2025, showing strong growth in retail unit sales, higher revenue and sharp improvement in profits, according to the company’s earnings release for the quarter and year ended Dec. 31, 2025.
Important points
- Annual sales units sold achieved 596,641up 43% per year
- Full year revenue rose to $20.3 billionup 49% per year
- Annual income is achieved $1.9 billion; adjusted EBITDA is net $2.2 billion
- Q4 sales units grew 43% per year to 163,522
- Q4 revenue is up 58% per year to $5.60 billion
- The company expects growth in unit sales and adjusted EBITDA in FY 2026
Q4 2025 performance
The fourth quarter revenue rose to $5.60 billioncompared to $3.55 billion in Q4 2024representing 58% year-on-year growth. Retail units have been reached 163,522up 43% per yearfeaturing high conversions, fast delivery times and extensive inventory.
GAAP operating income totaled $424 millioncompared to $260 million a year earlier. Adjusted EBITDA increased to $511 millioncompared to $359 million in Q4 2024. Total revenue reached $951 million per quarter, supported by operating profit and non-tax-related benefits, to raise Average income up to 17.0%.
Performance of the year 2025
In the full year 2025, revenue increased to $20.3 billioncompared to $13.7 billion by 2024to show a 49% growth year on year. Sales units are up 596,641compared to 416,660 in the prior year, supported by growth in refurbishing volume and digital auction exits.
Total revenue reached $1.9 billioncompared to $404 million in 2024, when Adjusted EBITDA rose to $2.24 billion from $1.38 billion a year earlier. GAAP operating income rose to $1.88 billionindicating higher gross profit per unit and operating ratio as fixed costs were incurred at higher volumes.
Economic unit and performance drivers
The company reported record of the economic unit in 2025supported by improvements in material efficiency, restructuring of output and acquisition costs. The expansion of integrated remanufacturing centers and digital auction capabilities is supported by faster inventory turnover and delivery lead times. Customer experience metrics improved during the year, with multi-year highs in developer scores noted in the presentation.
Liquidity and capital structure
The company said profitability and profitability improved materially in 2025. Adjusted EBITDA limit reached. 11.0% year round, comparatively 10.1% in 2024. Net income included non-cash tax gains related to the release of valuation allowances on deferred tax assets and fair value movements related to guarantees, as disclosed in earnings.
Outlook and industry context
Management is waiting continued growth in sales units sold and adjusted EBITDA in FY 2026with sequential increases expected in the first quarter, subject to stable market conditions. The online used car sales market remains competitive, with prices influenced by vehicle supply, consumer demand and financial conditions. Scale, repair capacity and material efficiency remain key competitive factors.
Summary
Carvana delivered record revenues and profits in Q4 and the full year 2025, driven by a sharp increase in sales units and improved unit economics. Higher year-over-year growth in both the quarter and full year reflected operational strength and increased platform capacity. The company enters 2026 with guidance for continued growth in volumes and adjusted earnings, supported by improved customer experience and infrastructure utilization.
