Carvana Posts Record Q1: 187,000 Vehicles Sold, $6.4B Revenue and 40% Growth
Carvana sold 187,393 vehicles in Q1, up 40%, generating $6.43 billion revenue with net income of $405 million and adjusted EBITDA of $672 million, all company records despite GPU declines and margin pressure. Company cut net debt to 1.1x EBITDA and will expand reconditioning capacity to 1.5 million units annually.
1. Q1 Earnings and Records
Carvana reported $6.432 billion in revenue, a 52% year-over-year increase, with net income rising by $32 million to $405 million. Adjusted EBITDA reached a record $672 million, while GAAP operating income set a new high at $581 million.
2. Unit Sales Growth and Operational Efficiency
Retail units sold climbed 40% to 187,393 vehicles, marking a company quarterly record. SG&A expense per retail unit fell by $170, reflecting efficiency gains in reconditioning processes despite a $92 rise in advertising expense per unit.
3. GPU and Margin Pressure
Non-GAAP retail gross profit per unit decreased by $58, and wholesale GPU fell by $83, driven by higher non-vehicle costs and lower marketplace fees. Net income margin slipped to 6.3% from 8.8%, and adjusted EBITDA margin declined to 10.4% from 11.5%.
4. Balance Sheet Strength and Capacity Expansion
Net debt to trailing 12-month adjusted EBITDA improved to 1.1x, bolstering financial flexibility. The company plans to scale reconditioning capacity to 1.5 million units annually, leveraging existing real estate to support growth up to 3 million units.