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 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%.
Revenue
$6.43B
+51.98% YoY
Gross Margin
19.8%
-2.2 pts YoY
Operating Income
$581M
+47.46% YoY
Source: SEC XBRL
Carvana (CVNA) reported Q1 FY2026 revenue of $6.43B, up 52.0% year over year. Operating margin was 9.0%, down 0.3 points from 9.3% a year earlier. Operating cash flow was $107M, down 53.9% year over year. CVNA's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.42 | 0.41 | Beat +1.3% |
| Mar 2026This filing | 0.34 | 0.30 | Beat +12.0% |
| Dec 2025 | 0.21 | 0.22 | Miss -5.4% |
| Sep 2025 | 0.21 | 0.26 | Miss -19.9% |
Reported EPS of $0.34 versus the $0.30 analyst consensus — a +12.0% beat for Mar 2026.
Compiled by AI from this SEC filing
Total revenue jumped 52.0% YoY from $4.23B to $6.43B in Q1 FY2026, reflecting strong unit sales growth and improved retail pricing power as Carvana continues to scale its used-vehicle e-commerce platform.
Source: 10-Q Income Statement
Gross profit grew 36.8% YoY to $1.27B, but gross margin contracted approximately 220 basis points from 21.95% to 19.76%, indicating that cost of revenue grew faster (56.3%) than revenue (52.0%), likely reflecting higher vehicle acquisition and reconditioning costs.
Source: 10-Q Income Statement
Operating income rose 47.5% YoY to $581M, with operating margin relatively stable at 9.03% vs. 9.31% prior year. SG&A grew 29.0% to $690M, well below revenue growth of 52%, demonstrating meaningful operating leverage.
Source: 10-Q Income Statement
Stockholders' equity more than doubled, rising 147.3% YoY to $3.72B, while long-term debt declined 8.0% to $4.85B, reflecting a significant deleveraging trend and improved financial stability. Total assets grew 55.1% to $13.77B.
Source: 10-Q Balance Sheet
Operating cash flow fell sharply by 53.9% YoY to $107M despite strong earnings growth, suggesting significant working capital consumption — likely tied to inventory build-up to support the rapid revenue expansion.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Operating cash flow declined 53.9% YoY to $107M even as net income grew 15.7%, indicating substantial cash consumption from inventory expansion. Rapid scaling of vehicle inventory requires significant upfront capital, and any slowdown in vehicle sales could leave Carvana with excess inventory and liquidity pressure.
Source: 10-Q Cash Flow Statement & Balance Sheet
Cost of revenue grew 56.3% YoY, outpacing revenue growth of 52.0%, compressing gross margin by ~220 bps to 19.76%. Sustained increases in used vehicle acquisition costs or reconditioning expenses could further erode profitability if not offset by pricing power.
Source: 10-Q Income Statement
Despite an 8.0% reduction in long-term debt to $4.85B, the debt-to-equity ratio remains elevated at 2.46x. The company carries substantial interest obligations that could strain net income if operating performance deteriorates or interest rates remain elevated.
Source: 10-Q Balance Sheet
Net income grew only 15.7% YoY to $250M, significantly below revenue growth of 52.0% and operating income growth of 47.5%, suggesting material below-the-line costs such as interest expense are dampening bottom-line conversion. Net margin stands at a thin 3.89%.
Source: 10-Q Income Statement
SG&A expenses grew 29.0% YoY to $690M as the company scales operations. While this is below revenue growth, any reversal in revenue momentum without a corresponding reduction in fixed cost commitments could rapidly compress operating margins given the asset-heavy nature of vehicle logistics and reconditioning infrastructure.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.43 $B | 4.23 $B | +51.98% |
Cost of Revenue $B | 5.16 $B | 3.30 $B | +56.25% |
Gross Profit $B | 1.27 $B | 0.93 $B | +36.81% |
Operating Income $M | 581.00 $M | 394.00 $M | +47.46% |
Net Income $M | 250.00 $M | 216.00 $M | +15.74% |
SG&A Expense $M | 690.00 $M | 535.00 $M | +28.97% |
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 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.
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