Carvana Q4 EPS Soars 274% to $4.22, EBITDA Miss Triggers 23% Drop
Carvana delivered adjusted EPS of $4.22 versus $1.13 expected and revenue of $5.6 billion, surpassing estimates by 274% and 7.3% respectively, while fourth-quarter adjusted EBITDA of $511 million fell short of the $535.7 million consensus. Shares plunged 23.2% after hours despite record net income of $951 million.
1. Strong Q4 Earnings Beat
Carvana reported adjusted earnings per share of $4.22 for Q4, compared to analyst expectations of $1.13, marking a 274% surprise. This performance follows three beats in the past four quarters and reflects improved margin management and nonrecurring adjustments.
2. Robust Revenue and Unit Growth
Revenue for the quarter reached $5.6 billion, up 58% year-over-year and above the $5.24 billion forecast by 7.3%. The company sold 163,522 retail units, a 43% increase from the prior year, driven by expanded inventory and faster delivery times.
3. Adjusted EBITDA Shortfall and Stock Reaction
Adjusted EBITDA came in at $511 million, missing the $535.7 million consensus and triggering a 23.2% share plunge in after-hours trading. Investors reacted to the gap despite Carvana achieving a 17.0% net income margin and 7.6% operating margin.
4. Full-Year Results and 2026 Outlook
For 2025, Carvana sold 596,641 units, up 43% year-over-year, generating $20.3 billion in revenue and $1.9 billion in net income. The company projects sequential growth in retail units and adjusted EBITDA in Q1 2026, assuming stable market conditions.