CVNA US S&P 500Russell 1000 Earnings call
Carvana (CVNA) · Q2 2026 results and valuation
Share price: $73.87 · 2026-11-11
Carvana is an e-commerce platform for buying and selling used cars. The company operates in the United States, providing a digital marketplace, financing, and a logistics network for vehicle delivery and pickup. Source: 10-K annual report (2026-02-18)
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026
Net income down 23.5% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
1 · Numbers
−23.5%
Net income vs Q1 2026
Outlook given
Net income 310.0M vs 405.0M
Revenue +14.7%
Against the same quarter last year (Q2 2025) it is +69.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.
Why Against the same quarter last year (+69.4%), net income rose primarily due to a 38% growth in retail units sold, which led to a $157 reduction in non-GAAP SG&A expense per retail unit sold.
2 · How management spoke
Upbeat
More upbeat than 89% of company calls
Answers to analysts: typical, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Carvana raised its 2026 adjusted EBITDA guidance from $2.24 billion to $3.0 billion and projects an increase in retail units sold in Q3.
Valuation
Is Carvana undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.3% growth a year (3-year revenue growth), the model's fair value is $117.53 a share — the stock trades 37% below it. Today's price assumes 8.7% growth a year.
Current price
$73.87
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.7% for 10 yrs
Fair value / share
$117.53
Buy below
$88.15
Price vs fair value
Undervalued 37%
Price vs buy-below price
Undervalued 16%
Read between the lines
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Figure
Carvana's midterm goal is to build this machine to sell 3 million cars per year at 13.5% adjusted EBITDA margin by 2030 to 2035.
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Figure
Revenue reached a new company record of $7.376 billion, which is an increase of 52% compared to the previous period.
Source quote
“Revenue was $7.376 billion, an increase of 52% and a new company record.”
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Figure
The company reduced its net debt to trailing 12-month adjusted EBITDA ratio to 1.0x in Q2, reaching what it calls its strongest financial position ever.
Source quote
“In Q2, we again reduced our net debt to trailing 12-month adjusted EBITDA ratio to 1.0x, our strongest financial position ever.”
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Guidance
The company projects an increase in retail units sold in Q3 and raised its 2026 adjusted EBITDA guidance from $2.24 billion to $3.0 billion.
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Figure
The company sold almost 200,000 cars in the quarter.
Source quote
“We sold almost 200,000 cars in the quarter.”
3 more
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Figure
The company passed back over 100 basis points of rate to its customers during the period.
Source quote
“During that same period, we passed back over 100 basis points of rate to our customers.”
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Guidance
The company plans to use marketing dollars to fill inventory gaps and get inventory back in line relatively quickly.
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Figure
The company crossed over $3 billion adjusted EBITDA annual run rate for the first time in Q2.
Source quote
“In Q2, we also crossed over $3 billion adjusted EBITDA annual run rate for the first time.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 94% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Consistent with past quarters, our growth in the second quarter was driven by our 3 long-term drivers of growth: a continuously improving customer offering, increasing awareness, understanding and trust and...”
“Adjusted EBITDA was a record $769 million, an increase of $168 million year-over-year, [indiscernible] run rate exceeded $3 billion for the first time, marking another company milestone.”
“We remain focused on executing at a high level, delivering profitable growth and making steady progress toward our long-term goals of becoming the largest and most profitable auto retailer and...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 7.38B | 6.43B | +14.7% | 4.84B | +52.4% |
| Gross profit | 1.38B | 1.27B | +8.9% | 1.06B | +30.1% |
| Operating income | 680.0M | 581.0M | +17.0% | 511.0M | +33.1% |
| Net income | 310.0M | 405.0M | −23.5% | 183.0M | +69.4% |
| P/E today 8.7 | — | — | — | — | — |
Topics
Most discussed now
- Consistent with past quarters, Carvana's growth in the second quarter was driven by its 3 long-term drivers of growth: a...
- If Carvana has less production in a region and it has demand that kind of outstrips its ability to produce...
- Carvana set new company records for retail units sold, revenue, gross profit, SG&A expense per retail unit sold, GAAP operating...
- Carvana's organic revenue growth in its most recent quarter ranks in the top 5% of S&P 500 companies, making us...
- Revenue growth exceeded retail units sold growth primarily due to traditional gross revenue treatment for certain vehicles acquired from…
Faded since Q1 2026
- Dropped General consumer goods are up 25%
- Dropped Carvana also is definitely investing in the tools that allow us to hire people more quickly and to get them...
- Fading The new tools that were discussed are net new tools.
- Fading Those are tools that Carvana hopes will drive additional fundamental gains over time.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
Carvana Co. entered into a Credit Agreement for a $1.66 billion senior secured term loan B facility maturing on August 14, 2033, to refinance outstanding 2030 Secured Notes.
- Results of operations · SEC 8-K
Carvana reported revenue of $7.376 billion, up 52% year-over-year, and retail units sold of 197,325, an increase of 38% compared to the previous year.
- Director or officer change; Articles or bylaws amended; Shareholder vote results · SEC 8-K
Carvana Co. stockholders approved the 2026 Omnibus Incentive Plan and a five-for-one forward stock split of Class A and Class B common stock effective May 7, 2026.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Carvana Co. announced its financial results for the fiscal quarter and year ended December 31, 2025, on February 18, 2026.
- Results of operations · SEC 8-K
Carvana reported revenue of $5.647 billion, up 55% year-over-year, and net income of $263 million, which increased by $115 million compared to the previous year.
- Results of operations · SEC 8-K
Carvana reported revenue of $4.840 billion, up 42% year-over-year, and net income of $308 million, which increased by $260 million compared to the previous year.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$2.63B
2026-06-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: +6.0% YoY.
| Quarter | Shares |
|---|---|
| Q2 2022 | 101.5M |
| Q3 2022 | 105.9M |
| Q1 2023 | 106.0M |
| Q2 2023 | 106.2M |
| Q2 2025 | 677.1M |
| Q2 2026 | 717.7M |
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 143 filings; 50 filings parsed.
Sold by insiders
645.8K shares
$44.2M · 67 transactions
Bought by insiders
25.0K shares
$1.5M · 3 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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by 2030 to 2035
midterm goal to build this machine to sell 3 million cars per year at 13.5% adjusted EBITDA margin
Source quote
“Our midterm goal is to build this machine to sell 3 million cars per year at 13.5% adjusted EBITDA margin by 2030 to 2035.”
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beginning in Q3
gross revenue treatment change will no longer affect year-over-year comparisons
Source quote
“The gross revenue treatment change will no longer affect year-over-year comparisons beginning in Q3, and we expect revenue growth to be more in line with retail unit growth in Q3.”
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in Q3
expected increase in advertising expense dollars
Source quote
“We expect an increase in advertising expense dollars in Q3.”
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Q3
sequential increase in retail units sold in Q3 compared to Q2
Source quote
“One, a sequential increase in retail units sold in Q3 compared to Q2; and two, adjusted EBITDA of $2.7 billion to $3.0 billion for the full year 2026, an increase from $2.24 billion last year.”
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over the coming quarters
rolling out Roll Call and Leader Hub
Source quote
“Yes, we'll be rolling it out over the coming quarters.”