Carvana Q2 profit margin narrows even as retail sales hit record; shares slide 15%
CVNA•Outlook and valuation details
Carvana expects a sequential increase in retail units sold in Q3.
The company projects full-year 2026 adjusted EBITDA of $2.7-$3.0 billion.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $7.38 bln | $6.91 bln (19 Analysts) |
| Q2 Net Income | $513 mln | ||
| Q2 Adjusted EBITDA | Slight Beat* | $769 mln | $765.93 mln (19 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell".
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy".
Wall Street's median 12-month price target for Carvana Co is $89.00, about 34.7% above its July 28 closing price of $66.07.
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 39 three months ago.
Quarterly results and margin trend
Carvana's Q2 revenue rose 52% year over year, beating analyst expectations.
Adjusted EBITDA for Q2 also slightly beat analyst expectations.
