Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Carvana delivered a landmark FY2025, with revenue surging 48.6% to $20.3B and net income exploding 570% to $1.4B, marking a dramatic profitability turnaround driven by scale efficiencies and disciplined cost management.
Revenue
$20.32B
+48.63% YoY
EPS (Diluted)
$8.45
+431.45% YoY
Gross Margin
20.6%
-0.4 pts YoY
Operating Income
$1.88B
+90.00% YoY
Source: SEC XBRL
Carvana (CVNA) reported FY2025 revenue of $20.32B, up 48.6% year over year. Operating margin was 9.3%, up 2.1 points from 7.2% a year earlier. Operating cash flow was $1.04B, up 12.9% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.42 | 0.41 | Beat +1.3% |
| Mar 2026 | 0.34 | 0.30 | Beat +12.0% |
| Dec 2025This filing | 0.21 | 0.22 | Miss -5.4% |
| Sep 2025 | 0.21 | 0.26 | Miss -19.9% |
Reported EPS of $0.21 versus the $0.22 analyst consensus — a -5.4% miss for Dec 2025.
Compiled by AI from this SEC filing
Total revenue grew 48.6% year-over-year to $20.3B in FY2025, up from $13.7B in the prior year, reflecting strong unit volume growth and improved retail pricing as Carvana expanded its used vehicle marketplace reach.
Source: 10-K Income Statement (XBRL Financial Data)
Operating income nearly doubled, rising 90.0% to $1.88B, while operating margin expanded approximately 200 basis points to 9.3%, demonstrating that revenue growth is outpacing cost growth and the business model is scaling efficiently.
Source: 10-K Income Statement (XBRL Financial Data)
Net income surged 570% to $1.41B from just $210M in the prior year, with basic EPS jumping from $1.72 to $10.22, signaling a decisive shift from a turnaround story to a sustainably profitable enterprise.
Source: 10-K Income Statement (XBRL Financial Data)
SG&A expenses grew only 23.2% to $2.31B despite a 48.6% revenue increase, indicating meaningful operating leverage as fixed and semi-fixed overhead costs are being spread across a much larger revenue base.
Source: 10-K Income Statement (XBRL Financial Data)
Stockholders' equity more than doubled to $3.44B (+173.1%) while long-term debt declined 7.2% to $4.92B, reflecting both retained earnings accumulation and active debt reduction, materially improving the company's financial position.
Source: 10-K Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Despite improvement, Carvana carries a debt-to-equity ratio of approximately 2.61x, with $4.92B in long-term debt. Elevated leverage leaves the company vulnerable to interest rate increases and limits financial flexibility if business conditions deteriorate.
Source: 10-K Balance Sheet (XBRL Financial Data)
Gross margin declined slightly from 21.0% to 20.6% year-over-year despite massive revenue growth, suggesting pricing pressure or rising vehicle acquisition costs. Sustained margin compression could undermine the profitability trajectory if revenue growth moderates.
Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow of $1.04B grew only 12.9% versus net income growth of 570%, indicating a significant gap between reported earnings and cash generation, potentially due to working capital build or non-cash items. This divergence warrants monitoring for earnings quality.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Total assets grew 55.6% to $13.2B, outpacing revenue growth, while investing cash outflows surged to -$230M from -$13M, suggesting increasing capital requirements to support growth. Sustained asset-heavy expansion could pressure free cash flow generation.
Source: 10-K Balance Sheet & Cash Flow Statement (XBRL Financial Data)
Carvana's business is highly sensitive to used vehicle pricing, inventory availability, and consumer credit conditions. A downturn in the used auto market — driven by macroeconomic weakness or normalization of elevated vehicle prices — could rapidly compress revenues and margins.
Source: 10-K Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 20.32 $B | 13.67 $B | +48.63% |
Cost of Revenue $B | 16.13 $B | 10.80 $B | +49.39% |
Gross Profit $B | 4.19 $B | 2.88 $B | +45.76% |
Operating Income $B | 1.88 $B | 0.99 $B | +90.00% |
Net Income $B | 1.41 $B | 0.21 $B | +570.00% |
EPS (Basic) $ | 10.22 $ | 1.72 $ | +494.19% |
EPS (Diluted) $ | 8.45 $ | 1.59 $ | +431.45% |
SG&A Expense $B | 2.31 $B | 1.87 $B | +23.16% |
Answers draw on this SEC filing and the data on this page
Carvana Co. reported strong Q2 FY2026 financial results with revenue surging 52.4% year-over-year to $7.38B and net income rising 69.4% to $310M, driven by a 37.7% increase in retail vehicle sales to 197,325 units.
Carvana delivered explosive Q1 FY2026 revenue growth of 52.0% YoY to $6.43B, with operating income surging 47.5% to $581M, though net income growth lagged at 15.7% and operating cash flow declined sharply by 53.9%.
Other companies in Automotive Retail