Carvana Co (CVNA) Q1 2025 Earnings Call Highlights: Record Sales and Revenue Surge Amid ...

GuruFocus News

Thu, May 8, 2025, 12:40 AM 4 min read

• Retail Units Sold: 133,898, an summation of 46% year-over-year.

• Revenue: $4.232 billion, an summation of 38% year-over-year.

• Adjusted EBITDA: $488 million, an summation of $253 million, with an 11.5% margin.

• Net Income: Positive for the 5th consecutive quarter.

• Non-GAAP Retail GPU: $3,308, an summation of $97 year-over-year.

• Non-GAAP Wholesale GPU: $964, a alteration of $189 year-over-year.

• Non-GAAP Other GPU: $2,868, an summation of $430 year-over-year.

• Non-GAAP SG&A Expense: $468 million, an summation of 20% year-over-year.

• GAAP Operating Income: $394 million, with a 9.3% margin.

• Warning! GuruFocus has detected 7 Warning Signs with CVNA.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Carvana Co (NYSE:CVNA) achieved a grounds adjusted EBITDA borderline of 11.5% successful Q1 2025, wrong their semipermanent people scope of 8% to 13.5%.

• The institution reported a 46% summation successful retail units sold, totaling 133,898, mounting a caller institution record.

• Revenue reached $4.232 billion, marking a 38% summation and a caller institution record.

• Carvana Co (NYSE:CVNA) has maintained affirmative nett income for the 5th consecutive quarter.

• The institution has successfully leveraged SG&A expenses, reducing non-GAAP SG&A disbursal per retail portion sold by $750.

• Non-GAAP wholesale GPU decreased by $189 year-over-year, chiefly owed to faster maturation successful retail units than wholesale conveyance units.

• The institution faces imaginable challenges from macroeconomic factors specified arsenic tariffs, which could interaction car prices and user demand.

• There is interest astir maintaining precocious maturation rates and operational ratio arsenic the institution scales to its people of 3 cardinal yearly retail sales.

• Carvana Co (NYSE:CVNA) needs to proceed investing successful lawsuit acquisition improvements to support competitory differentiation.

• The institution indispensable negociate the equilibrium betwixt maturation and margin, prioritizing maturation implicit borderline wrong tenable ranges, which could interaction profitability.

Q: Can you sermon the interaction of tariffs connected Carvana's short-term fiscal show and however you negociate pricing and GPUs? A: Ernest Garcia, CEO, explained that portion tariffs could perchance summation car prices, they mightiness payment utilized cars much than caller ones. Carvana focuses connected maintaining competitory expenses, revenues, and lawsuit experience. The institution adapts to marketplace changes, specified arsenic shifts successful lawsuit preferences for car types, and aims to stock ratio gains with customers to thrust growth.