Carvana posts record quarterly profit, sees up to $3 billion in annual earnings

• Second-quarter adjusted EBITDA reached a record $769 million, bringing first-half 2024 adjusted earnings to $1.4 billion total
• Revenue hit $7.38 billion in Q2, exceeding analyst estimates of $6.91 billion, while vehicle unit sales increased 38% year-over-year
• The company expects relatively flat performance in the second half versus the first, projecting $1.3 billion to $1.6 billion in adjusted earnings for H2 2024

Carvana Reports Record Q2 Profit, Projects Up to $3B in Annual Earnings

Key Financial Results:

Carvana delivered exceptional second-quarter performance with net income of $513 million, up $205 million year-over-year. Revenue reached $7.38 billion, surpassing analyst estimates of $6.91 billion. The company achieved record adjusted EBITDA of $769 million in Q2, contributing to $1.4 billion in the first half of 2026.

Operational Highlights:

Vehicle sales increased 38% to 197,325 units during Q2, marking the company's 10th consecutive quarter of industry-leading growth and profitability. Carvana expects sequential growth in retail units during Q3, maintaining its position as the fastest-growing automotive retailer.

Forward Guidance:

The company projects full-year 2026 adjusted earnings between $2.7 billion and $3 billion, implying $1.3 billion to $1.6 billion in the second half. This forecast would easily surpass previous annual records and represents relatively flat performance compared to H1 results.

Market Position:

Despite strong performance, Carvana's adjusted margin declined to 10.4% in Q2, down 2 percentage points year-over-year, as the company invests in expansion initiatives. CEO Ernie Garcia noted the company holds only 2% market share, suggesting significant growth runway.

Strategic Context:

Garcia attributed success to the customer experience built over the prior decade and emphasized that "our model gets better as we get bigger." The company now sells both used and new vehicles through franchised dealership partnerships, though specific breakdowns were not disclosed.

The results demonstrate Carvana's successful turnaround from previous financial challenges, positioning it as a major disruptor in automotive retail.