NYSE: CVNA · Automotive Retail
Carvana
Carvana sells used vehicles online, with home delivery or pickup at its car vending machines, and buys cars from consumers. It reconditions vehicles at its own sites, including ADESA auction locations acquired in 2022. It originates auto loans and sells them to buyers such as Ally, and runs a wholesale marketplace. 2025 revenue was $20.3 billion (+49%) on 596,641 retail units (+43%), and operating income was $1.9 billion. Net income attributable to Carvana was $1.4 billion. That figure includes a $2.2 billion valuation-allowance release and is offset by $2.2 billion of tax receivable agreement expense. In Q3 2026, retail units grew about 39% to 217,385, its first quarter above 200,000.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 18, 2026
Built on10-K FY2025 · filed 2026-02-1810-Q (quarter ended 2026-09-30) · filed 2026-10-28
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 29.5%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 9.3%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +9.2 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 1.2x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 0.74x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- —
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 6.4x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.91
Higher than 94% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 24% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 70% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 40% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 3% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$76.80close on 2026-11-04
Market cap$10.92B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 6.4x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 3.2x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 6.3x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 8.1%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- —
At FY2025 year-end: 10.0x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 3.5x
Book value at FY2025 year-end
At FY2025 year-end: 6.8x
EBITDA for FY2025
At FY2025 year-end: 7.4%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$5.65B → $8.04B (vs. a year earlier)↑ +42.4%$5.65B → $8.04B (vs. a year earlier)
- Operating margin9.8% → 8.9% (vs. a year earlier)↓ −0.9 pts9.8% → 8.9% (vs. a year earlier)
- Net income$151M → $289M (vs. a year earlier)↑ +91.4%$151M → $289M (vs. a year earlier)
- Cash$2.63B → $3.05B (vs. previous quarter-end)↑ +15.9%$2.63B → $3.05B (vs. previous quarter-end)
- Long-term debt$5.17B → $5.18B (vs. previous quarter-end)→ +0.1%$5.17B → $5.18B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 28, 2026.
Key changes
Retail units 217,385, up 39%. Source sentence
Retail units sold totaled 217,385, an increase of 39%
Gross profit $1.521B, up 32%. Source sentence
Total Gross profit was $1.521 billion, an increase of 32%
Net income margin 6.0% versus 4.7%. Source sentence
Net income margin was 6.0%, an increase from 4.7%
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- CARVANA CO.
- Headquarters
- TEMPE, AZ
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: CVNA
- Industry
- Automotive Retail
- CIK
- 1690820
- Website
- https://www.carvana.com/ ↗
Workforce (as of FY2025 year-end)
Employees
23,100
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 49–53 days after quarter end (Feb 18, 2026; Feb 19, 2025; Feb 22, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 28–53 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 28, 2026 (+28 days) | Oct 28, 2026 10-Q (+28 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 29, 2026 (+29 days) | Jul 29, 2026 10-Q (+29 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 29, 2026 (+29 days) | Apr 29, 2026 10-Q (+29 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 18, 2026 (+49 days) | Feb 18, 2026 10-K (+49 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Oct 29, 2025 10-Q (+29 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 30, 2025 (+30 days) | Jul 30, 2025 10-Q (+30 days) |
| Q1 FY2025 | Mar 31, 2025 | May 7, 2025 (+37 days) | May 7, 2025 10-Q (+37 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 19, 2025 (+50 days) | Feb 19, 2025 10-K (+50 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 30, 2024 (+30 days) | Oct 30, 2024 10-Q (+30 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 31, 2024 (+31 days) | Jul 31, 2024 10-Q (+31 days) |
| Q1 FY2024 | Mar 31, 2024 | May 1, 2024 (+31 days) | May 1, 2024 10-Q (+31 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 22, 2024 (+53 days) | Feb 22, 2024 10-K (+53 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Retail
Online car buying
Examples: Home delivery, car vending machines
596,641 retail units in 2025.
Financing
Auto loans
Originated and sold to third parties.
Wholesale
ADESA auction sites
Examples: 56 locations
16 had been built out with reconditioning capability by the end of 2025.
Figures are from the FY2025 Form 10-K.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Online used vehicle retail
U.S. used vehicle retail transactions (about 37 million in 2024, per Cox Automotive)
U.S. share
~1.6%
Company-disclosedCarvana's own estimate of its share; it calls itself one of the largest and fastest growing U.S. used auto retailers.
Worldwide share
—
Not disclosed
Sources:
07
Recent strategic focusSite analysis
2025–2026 developments.
Tax items in 2025
Carvana released $2.2B of its valuation allowance (total income tax benefit $2.8B) and recorded $2.2B of tax receivable agreement expense.
Source: Form 10-K (FY2025) MD&A
Refinancing
In August 2026 Carvana took out a $1.66B senior secured Term Loan B due 2033 to repay its 9%/11%/13% cash/PIK senior secured notes due 2030.
Source: 8-K filed 2026-08-14
Q3 2026
Retail units rose about 39% to 217,385. Net income was just under $500M and Adjusted EBITDA about $800M (6% and 10% margins). Ally's commitment to buy finance receivables was raised to up to $8B through July 2027.
Source: Q3 2026 shareholder letter; Form 10-Q (quarter ended 2026-09-30)
Capex ÷ D&A (FY2025)
0.53x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$147M ÷ $275M = 0.53x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$2.36B
Latest year: $160M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $360M in FY2020 to $147M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$20.32B
As reported in the 10-K
Revenue CAGR (5 years)
+29.5%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($20,322M ÷ $5,587M) ^ (1÷5) − 1 = 29.5%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
9.3%
formulaoperating income ÷ revenue × 100
e.g.$1,881M ÷ $20,322M × 100 = 9.3%
ROE (FY2025)
59.9%▲favorable
6-year average: 1.2%
As reported in the 10-K
P/B (FY2025 end)
3.49x
formulafiscal year-end closing price ÷ book value per share
e.g.$84.40 ÷ $24.19 = 3.49x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
6.8x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($12,005M + $4,918M − $2,327M) ÷ ($1,881M + $275M) = 6.8x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +29.5% a year over 5 years (strong growth)
From $5.59B in FY2020 to $20.32B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Equity ratio is 26.1% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▼
Free cash flow was positive in 3 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▼
ROE averaged 1.2% over 6 years (latest: 59.9%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- Ally Financial
- DriveTime (Garcia family)
- Ally Financial (supplier)
07 · what it does
Key activities
- Inspection and reconditioning
- Online sales, hub-and-spoke delivery
- Loan origination and sale
06 · what it draws on
Key resources
- Vehicles bought from consumers and auctions
- Reconditioning capacity of about 1.5M vehicles per year
02 · why customers buy
Value propositions
- Buying, financing and selling used cars online, enabled by a vertically integrated model that Carvana says provides significant competitive advantages.
04 · how it keeps them
Customer relationships
- Strong customer focus intended to drive loyalty, repeat purchases and referrals.
03 · how it reaches them
Channels
- Its website and app with home delivery or pickup; ADESA sites for wholesale.
01 · who it serves
Customer segments
- Retail car buyers; dealers (wholesale)
09 · where money goes
Cost structure
FY2025, share of revenue ($20.32B)
- Cost of revenue79.4%
- Selling, general & administrative11.4%
Operating profit left: 9.3% of revenue. Depreciation & amortization (inside the costs above): $275M. Capital spending: $147M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Retail vehicle sales $14.5B
- Wholesale $4.1B
- Other $1.7B
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Customers buy and finance vehicles online. Carvana earns gross profit on the vehicle, on financing (by selling the loans it originates), on add-on products and on wholesale sales of acquired vehicles.
01 what it draws on
Inputs & resources
- Vehicles bought from consumers and auctions
- Reconditioning capacity of about 1.5M vehicles per year
02 what it does
Activities
- Inspection and reconditioning
- Online sales, hub-and-spoke delivery
- Loan origination and sale
03 who it serves
Customers
- Retail car buyers; dealers (wholesale)
04 how money comes in
How it earns
- Retail vehicle sales $14.5B
- Wholesale $4.1B
- Other $1.7B
How the business makes money
- Total gross profit per retail unit was $7,026 in 2025.
- The wholesale marketplace transacted about 1.0M units in 2025.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Carvana says tariffs did not materially affect 2025 results.
Trade & export rules
Tariffs and trade rules
Tariffs did not materially affect 2025 results.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Retail vehicle sales
14,537 (72%)Wholesale sales and revenues
4,052 (20%)Other sales and revenues
1,733 (9%)
Source: Form 10-K (FY2025) — consolidated statements of operations Carvana reports one segment; these are revenue lines.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Carvana sells the loans it originates. Under its agreement with Ally, Ally committed to buy up to $4.0B of finance receivables between April 2025 and April 2026.
Ally Master Purchase and Sale Agreement
Up to $4.0B of receivables
Typical term: April 30, 2025 – April 29, 2026 (amended periodically)
Sold without recourse for post-sale performance.
Source: Form 10-K (FY2025) — notes
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Supply / distribution agreement
Ally Financial
Has bought Carvana's auto loans under a forward-flow agreement since December 2016.
Source: Form 10-K (FY2025) — notes
Business partnership
DriveTime (Garcia family)
Related party controlled by Ernest Garcia II and III. Carvana and DriveTime have lease agreements and a cross-license agreement.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Retail used car buyers; dealers through the wholesale business.
Named by the company
No customer is named as significant.
Suppliers
Vehicles from consumers and auctions; buyers of the loans Carvana originates.
Named by the company
- Ally Financial — Forward-flow buyer of finance receivables.Form 10-K (FY2025)
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names competitors in used car retail, online auto sites and automakers.
Competitors named in the 10-K
Used vehicle retail
- CarMaxsite ↗
Online auto sites
Also AutoTrader, Cars, Carfax, CarGurus, Edmunds, KBB and TrueCar. Google is part of Alphabet.
Automakers
- Ford Motorsite ↗
- General Motorssite ↗
- Toyota Motorsite ↗
- Volkswagen Groupsite ↗
- Teslasite ↗
- Rivian Automotivesite ↗
Also Lucid.
Peer group the company chose
2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Chosen to reflect Carvana's online business model, revenue size and operational complexity.
- Airbnbsite ↗
- eBaysite ↗
- AutoNationsite ↗
- Expedia Groupsite ↗
- Blocksite ↗
- Lithia Motorssite ↗
- CarMaxsite ↗
- Lyftsite ↗
- Chewysite ↗
- Ubersite ↗
- Chipotle Mexican Grillsite ↗
- Wayfairsite ↗
- DoorDashsite ↗
- Zillow Groupsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
M&A historySite analysisShow
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
The 2022 purchase of ADESA's U.S. physical auction business is Carvana's largest acquisition.
Cash spent on acquisitions, FY2020–FY2025: $2.36B
2022
ADESA US Auction
Not stated
56 auction locations.
- Stated purpose (company)
- Increase reconditioning capacity and put inventory pools closer to customers.
Source: Form 10-K (FY2025) — Item 1
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
| Line item | FY2020In next year’s 10-K | FY2021In next year’s 10-K | FY2022In next year’s 10-K | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 5,587 | 12,814 | 13,604 | 10,771 | 13,673 | 20,322 |
| Operating income | — | — | -2,351 | -80 | 990 | 1,881 |
| Pretax income | — | — | — | 175 | 400 | -890 |
| Net income (attributable) | -171 | -135 | -1,587 | 450 | 210 | 1,407 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 129.4% | 6.2% | -20.8% | 26.9% | 48.6% |
| Operating margincalcoperating income ÷ revenue × 100 | — | — | -17.3% | -0.7% | 7.2% | 9.3% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | -3.1% | -1.1% | -11.7% | 4.2% | 1.5% | 6.9% |
| Balance sheet ($M) | ||||||
| Total assets | 3,035 | 7,015 | 8,698 | 7,071 | 8,484 | 13,201 |
| Total equity | 802 | 525 | -518 | 243 | 1,375 | 4,203 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 1,696 | 5,362 | 8,212 | 6,193 | 5,297 | 4,918 |
| Equity ratio | 12.8% | 4.4% | -6.0% | 3.4% | 14.9% | 26.1% |
| ROE | -44.1% | -38.9% | — | — | 27.9% | 59.9% |
| Cash flow ($M) | ||||||
| Operating CF | -608 | -2,594 | -1,324 | 803 | 918 | 1,036 |
| Investing CF | -346 | -627 | -2,583 | 31 | -13 | -230 |
| Financing CF | 1,165 | 3,528 | 3,899 | -868 | 261 | -137 |
| Free cash flowcalccash flow from operations − capital expenditures | -968 | -3,151 | -1,836 | 716 | 827 | 889 |
| Cash and equivalents | 301 | 403 | 434 | 530 | 1,716 | 2,327 |
| Per share & other | ||||||
| EPS ($) | -2.63 | -1.63 | -15.74 | 0.75 | 1.59 | 8.45 |
| BVPS ($) | — | — | -4.89 | 2.13 | 9.45 | 24.19 |
| P/E (x) | — | — | — | 14.1 | 25.6 | 10.0 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | — | — | — | 44.2 | 7.0 | 6.8 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | — | — | — | 4.97 | 4.30 | 3.49 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $8.04B+42.4% | $714M+29.3% | $289M+91.4% | — |
| 2026-06-30 | $7.38B+52.4% | $680M+33.1% | $310M+69.4% | — |
| 2026-03-31 | $6.43B+52.0% | $581M+47.5% | $250M+15.7% | — |
| 2025-12-31 † | $5.6B+58.0% | $424M+63.1% | $857M+984.8% | — |
| 2025-09-30 | $5.65B | $552M | $151M | — |
| 2025-06-30 | $4.84B | $511M | $183M | — |
| 2025-03-31 | $4.23B | $394M | $216M | — |
| 2024-12-31 † | $3.55B | $260M | $79M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
23.0%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$1,881M × (1 − 3.5%) ÷ $7,897M × 100 = 23.0%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
13.77%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $12B ÷ ($12B + $4.92B) = 70.9%
e.g.Debt weight: $4.92B ÷ ($12B + $4.92B) = 29.1%
e.g.WACC: 15.5% × 70.9% + 10.0% × (1 − 3.5%) × 29.1% = 13.77%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 11.8%–16.0% and ROIC − WACC runs +6.9 to +11.2 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 13.77% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.91 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 15.45%
- Cost of debt
- 10.00%
- Tax rate
- 3.5% (effective rate, FY2023–FY2024)
- Capital structure (equity : debt)
- 71% : 29%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 13.77%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.91 (price-derived adjusted beta. Raw β 2.35, R² 0.26, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 2.354 + 0.33 = 1.907
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.91 × 5.5% = 15.5%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
7.2%
Perpetual FCF growth: g = r − FCF ÷ EV = 13.8% − 6.6%
Past FCF growth (FY2020–FY2025)
—
Not computable (FCF not positive in both years)
Past revenue growth (FY2020–FY2025)
+29.5%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $889M (operating CF − capex); enterprise value $13.51B = market cap $10.92B (latest close, 2026-11-04) + debt $4.92B − cash and short-term investments $2.33B; r = WACC of 13.8% using this page’s default assumptions (β 1.91, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$13.47B
FCF $889M ÷ (13.8% − 7.2%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 11.8% | 12.8% | 13.8% | 14.8% | 15.8% |
|---|---|---|---|---|---|
| 0% | 0.56x | 0.51x | 0.48x | 0.44x | 0.42x |
| 2% | 0.67x | 0.61x | 0.56x | 0.51x | 0.48x |
| 4% | 0.84x | 0.75x | 0.67x | 0.61x | 0.56x |
| 6% | 1.13x | 0.97x | 0.84x | 0.75x | 0.67x |
| 8% | 1.73x | 1.37x | 1.13x | 0.97x | 0.84x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 2.30x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): 3.4%
A small share of profit rests on accounting estimates.
- ✓
Days sales outstanding: 5 → 5 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$1,036M ÷ $1,407M = 0.74x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($303M + $245M) ÷ 2 ÷ $20,322M × 365 = 5 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($1,608M + $2,408M) ÷ 2 ÷ $16,130M × 365 = 45 days
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else — Class A shares, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 100%+
- Directors & officers (shares)
- 4.0%
- Everyone else (est.)
- ≈0%
- Directors & officers (voting power)
- 33.0%
- Institutional-ownership rank
- 37 of 416
- Beta (adjusted)
- 1.91
Reported total 102.8%
of Class A shares
individuals and other non-13F holders
of all votes, across share classes
1 = most institutional; 9% of covered companies have more
above 1 = swings more than the market
- 740.0M shares reported by 814 13F filers ÷ 719.9M Class A shares outstanding on 2026-07-27. Option positions are excluded.
- The 13F total exceeds shares outstanding because some shares are reported twice — for example shares lent to short sellers and then bought by another manager, or holdings that overlapping managers both report.
- Only the listed Class A shares are counted; other share classes (often held by founders) are not in this figure.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days. They hold 36% of Class B shares.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-25 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-27)
20
Strengths & weaknessesSite analysis
Strengths
1. Fast growth
Retail units grew 43% in 2025, 38% in Q2 2026 and about 39% in Q3 2026, to 217,385.
Evidence: Form 10-K (FY2025); Form 10-Q (quarter ended 2026-09-30)
2. Profit turnaround
Operating income went from −$2.35B in 2022 to $1.88B in 2025.
Evidence: SEC EDGAR XBRL
3. Vertical integration
Carvana owns a reconditioning network with capacity of about 1.5M vehicles per year.
Evidence: Form 10-K (FY2025) Item 1
Weaknesses
1. Heavy interest costs
Net interest expense was $505M in 2025. In August 2026 Carvana refinanced its 2030 secured cash/PIK notes with a $1.66B term loan.
Evidence: Form 10-K (FY2025); 8-K filed 2026-08-14
2. Dependence on loan sales
Selling finance receivables has historically produced a significant share of gross profit.
Evidence: Form 10-K (FY2025) Item 1A
3. Related-party ties
Carvana has extensive transactions with DriveTime and carries a $2.2B tax receivable agreement liability.
Evidence: Form 10-K (FY2025)
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
10.0x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
7.4%
(Operating CF − capex) ÷ market cap
1. Growth with profits
Management calls Carvana the fastest-growing and most profitable automotive retailer.
- What has to hold
- Execution keeps up as the company scales.
- The other side
- The 2022 operating loss of $2.35B showed how high the operating risk can be.
Evidence: Q3 2026 shareholder letter
2. Fragmented market
The used vehicle retail market had more than 37 million transactions in 2024, according to Cox Automotive.
- What has to hold
- Online share keeps rising.
- The other side
- Strong competitors.
Evidence: Form 10-K (FY2025) Item 1
Carvana has an Up-C structure. Share count and book value per share use Class A shares and equity attributable to Carvana Co. 2025 pretax income includes $2.2B of tax receivable agreement expense.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
11.0x
$2.33B vs. $211M
Interest coverage (operating income ÷ interest expense)
3.7x
$1.88B vs. $505M
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -20.8% in FY2023 ($13.6B → $10.77B) | Yes, by FY2024 |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Cash
$2.3B of cash at the end of 2025.
Source: SEC EDGAR XBRL
Capacity
Reconditioning capacity of about 1.5M vehicles per year.
Source: Form 10-K (FY2025), Item 1
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Carvana is defending a 2022 securities class action, partly surviving dismissal, and consumer class actions over vehicle titling and registration. In September 2026 the SEC closed its investigation tied to a January 2025 short-seller report without recommending enforcement. Its accrual for unresolved legal matters was $11 million at September 30, 2026.
2 open matters
Securities class action (2022)
PendingClass actionJohn Brent / Rodeo Collection v. Carvana Co. et al. (D. Ariz., consolidated)
Exchange Act and Securities Act claims against Carvana, officers, directors and underwriters. In December 2024 the court let parts of the Section 10(b), Section 11, Section 20(a) and Section 15 claims proceed. Plaintiffs moved for class certification on April 6, 2026.
- Next step
- The class certification ruling is pending; discovery continues.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Titling, registration and consumer class actions
PendingClass actionDana Jennings v. Carvana; Syretta Harvin v. Carvana (E.D. Pa.); state Attorneys General inquiries
Claims over consumer protection and the titling and registration of vehicles sold. State AGs periodically review inspection, advertising, titling, lending and post-sale practices.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Based on Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Funding & liquidity
Loan sale market
- Company disclosure (summarized from the 10-K)
- A material decline in the volume or prices of finance receivables sold would cut a historically significant share of gross profit.
- Company’s stated mitigation
- Forward-flow agreements such as Ally's.
- This site’s assessment
- Impact High / Likelihood Med
- 2Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competitors include CarMax; online auto sites (Amazon, AutoTrader, CarGurus, eBay Motors, Google and others); the Costco Auto Program; and automakers such as Ford, GM, Toyota, VW, Tesla, Rivian and Lucid.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3FX & interest rates
Interest rates
- Company disclosure (summarized from the 10-K)
- Loan sale prices depend on the gap between the rate quoted to the customer and market rates at the time of sale.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Governance & quality
Controlled company
- Company disclosure (summarized from the 10-K)
- The Garcia Parties control Carvana, and their interests may conflict with those of other stockholders.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (5)
Our use of artificial intelligence may not perform as expected and could expose us to technological, operational, legal, and reputational risks that could adversely affect our business, financial condition, and results of operations
We increasingly develop and deploy AI technology through third party generative AI platforms and internal software, in connection with our proprietary systems and customer experiences, including automated, self-service workflows, AI-enabled customer support tools, internal work efficiencies, and enhancement of our recruiting and hiring processes. These initiatives are complex, rapidly evolving, and inherently uncertain. There is no assurance that our AI capabilities will function as intended, deliver anticipated benefits, or scale cost-effectively. The performance, quality, and impact of AI models depend on numerous factors, including the availability and integrity of training data, model design, computational resources, integration with our operations and technology stack, and ongoing monitoring and governance. If our AI systems or those third party platforms we utilize underperform,…
The laws, rules, standards, and guidance relating to AI are developing rapidly and vary across jurisdictions. Read more
We may be subject to evolving requirements regarding transparency, fairness, explainability, safety, data usage and provenance, content integrity, consumer protection, and algorithmic accountability. If we use AI in ways that regulators view as unfair, deceptive, discriminatory, or otherwise noncompliant, we could face heightened scrutiny, investigations, enforcement actions, private litigation, or requirements to modify, suspend, or cease certain AI-enabled practices. To the extent AI touches areas implicating privacy, information security, intellectual property, credit and financing, or other regulated activities, we may incur additional compliance obligations and associated costs.
The development and deployment of AI requires ongoing investments in talent, infrastructure, data quality, tooling, and governance frameworks. Read more
These investments may be significant and may not result in improvements to growth, margins, or customer experience. We may need to devote additional resources to testing, monitoring, documentation, and controls to address emerging standards and mitigate model risks, including bias, fairness, and safety. If we are unable to develop, procure, integrate, or govern AI technologies effectively; if third-party AI providers or inputs are unavailable, unreliable, or more costly; if regulatory requirements materially constrain AI use; or if our AI initiatives otherwise fail to meet expectations, our business, financial condition, and results of operations could be adversely affected.
In June 2025, we received a subpoena from the SEC requesting information that we believe primarily relates to allegations raised by a report published by a now-defunct short-selling firm. Read more
We currently cannot predict the outcome of this matter. For more information, see Item 3. Legal Proceedings.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 18, 2026 ↗ with the 10-K filed Feb 19, 2025 ↗.
26
What to watch going forwardSite analysis
- Unit growth and gross profit per unit.
- Loan sale markets and renewal of Ally's commitment.
- Debt after the Term Loan B refinancing.
- Progress converting ADESA sites.
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 18, 2026
Built on10-K FY2025 · filed 2026-02-18
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Carvana’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.