Carvana Boosts 2025 Sales 43% and Achieves Record 11% EBITDA Margin
Carvana sold 596,641 retail units in 2025, up 43%, and reported Q4 revenue of $5.603 billion, a 58% increase. Full-year adjusted EBITDA margin reached a record 11% and net income in Q4 hit $951 million, while net debt-to-EBITDA fell to 1.3 times on $2.3 billion cash.
1. Record Sales and Revenue Growth
Carvana sold 596,641 retail units in 2025, a 43% rise year-over-year, and generated $5.603 billion in Q4 revenue, up 58%. The company expanded its inventory by 20,000 vehicles and cut average shipping fees by $60, enhancing its competitive offer.
2. Profitability Milestones
Adjusted EBITDA for Q4 reached $511 million, a $152 million increase, driving full-year EBITDA margin to 11%, the highest on record. Net income surged to $951 million in Q4, lifting net income margin to 17% from 4.5%, despite GPU headwinds.
3. Strong Balance Sheet and Financing
Carvana ended 2025 with $2.3 billion in cash and reduced net debt-to-EBITDA to 1.3 times. Through 2027, the company secured $12 billion in new loan purchase agreements to support vehicle financing for customers.
4. Operational Challenges and Outlook
Reconditioning costs rose in Q4 due to new site openings and management transitions, impacting wholesale and retail GPU. Management plans to automate processes and expects efficiency gains within 3 to 6 months to restore cost control.