Carvana Q4: 43% Volume Surge and $5.6B Revenue
Carvana sold 163,522 retail units in Q4, up 43% year-over-year, driving revenue of $5.603 billion, a 58% increase. Full-year retail units reached 596,641 (up 43%) and adjusted EBITDA margin hit 11%, while net income rose to $951 million, aided by a $618 million non-cash benefit.
1. Record Q4 Volume and Revenue
In Q4 Carvana achieved record retail volume, selling 163,522 units, up 43% year-over-year, and generated $5.603 billion in revenue, a 58% increase driven in part by traditional gross revenue treatment on partner-acquired vehicles.
2. Profitability and Unit Economics
Net income rose to $951 million, up $792 million year-over-year, including a $618 million non-cash benefit; adjusted EBITDA reached $511 million (a new Q4 record) with a 9.1% margin, while non-GAAP retail GPU fell by $255 and wholesale GPU by $148, offset by a $49 increase in other GPU.
3. Operational Enhancements and Customer Experience
The company integrated 10 additional ADESA locations, expanded digital auctions, increased selection by 20,000 cars, sped delivery by one day, saved customers about $60 per shipment, cut interest rates by 1%, and saw 30% of retail buyers complete purchases without human interaction, boosting NPS.
4. Balance Sheet Strength and 2026 Outlook
Carvana closed 2025 with $2.3 billion in cash, retired $709 million of notes, and reduced net debt to 1.3x trailing EBITDA; it secured $12 billion in new loan purchase agreements plus $6 billion with Ally and expects significant growth in retail units sold and adjusted EBITDA in 2026.