Carvana Posts 52% Revenue Surge, $405 M Profit and Announces 5-for-1 Split
Carvana reported Q1 revenue of $6.43 billion, up 52% year-over-year, and net income of $405 million, driven by record retail unit sales of 187,393 vehicles (up 40%) and adjusted EBITDA of $672 million. The company will implement a 5-for-1 stock split on May 7 and forecasts second-quarter records in units sold and adjusted EBITDA.
1. Record First-Quarter Financial Performance
Carvana posted Q1 revenue of $6.43 billion, a 52% year-over-year increase, and net income of $405 million. Retail unit sales reached a record 187,393 vehicles (up 40%), driving adjusted EBITDA to $672 million.
2. 5-for-1 Stock Split Details
The company will implement a 5-for-1 stock split on May 7, increasing outstanding shares fivefold and reducing the price per share. Management expects the split to enhance trading liquidity and broaden investor access.
3. Second-Quarter Outlook and Capacity
Carvana forecasts record second-quarter retail unit sales and adjusted EBITDA, supported by its network infrastructure capable of handling 1.5 million vehicles annually. This capacity represents a doubling of its current annual throughput.
4. Valuation and Market Response
Shares trade at a premium 31.3x EV/FY26 EBITDA even after a 6% decline in 2026, with a market capitalization near $87 billion. At least seven firms have raised price targets to between $465 and $600, reflecting bullish sentiment.