Carvana Exceeds Expectations and Projects Continued Growth in 2025

Carvana Co. recently announced its fourth-quarter earnings, surpassing Wall Street’s forecasts on both the top and bottom lines, while projecting another robust year ahead in 2025.

Despite the positive financial results, shares of Carvana dipped over 10% in after-hours trading, following a slight decline at the close of Wednesday’s trading session.

Q4 Performance Highlights

• Earnings Per Share (EPS): Carvana reported EPS of 56 cents, substantially outperforming the anticipated 29 cents.
• Revenue: The company’s revenue for the quarter stood at $3.55 billion, exceeding the expected $3.31 billion and marking a 46% increase from $2.42 billion in the same quarter the previous year.

For the entire year of 2024, Carvana’s revenue escalated to $13.67 billion, a significant 27% rise from $10.77 billion in 2023. The company’s adjusted EBITDA for the year reached $1.38 billion, with net income approximating $404 million. These figures include a notable $359 million in adjusted EBITDA and $159 million in net income for the fourth quarter alone, demonstrating a major turnaround from a $200 million loss in the corresponding period a year earlier.

Record-Breaking Annual Sales

Carvana, headquartered in Tempe, Arizona, reported selling 416,348 retail vehicles in 2024, an increase of about 33% from the previous year. This surge in sales contributed to a record annual revenue of $13.67 billion. The company also saw significant gains in gross profit per unit, reporting $6,671 for the fourth quarter and $6,908 for the full year—both metrics showing nearly $1,400 improvements over 2023.

Future Outlook

In its outlook for 2025, Carvana anticipates continued growth in both retail units sold and adjusted EBITDA, including sequential increases expected in the first quarter. The company’s broad guidance outlook reflects its optimistic view of the automotive retail market and its own operational improvements.

Ernie Garcia, CEO and co-founder of Carvana, expressed confidence in the company’s trajectory, stating, “With just ~1% market share today and many opportunities to improve and expand our offering from here, we know this is just the beginning of our journey to change the way people buy and sell cars.”

Despite the after-hours stock price drop, Carvana shares have risen approximately 40% in 2025, adding to the impressive 285% gain seen last year. This performance underscores the company’s strong market position and investor confidence in its growth strategy and operational execution.

As Carvana continues to navigate the dynamic automotive market, its focus on enhancing and expanding its services promises to drive further growth and redefine the car buying and selling experience for consumers.