Carvana stock tumbles as full-year guidance disappoints despite record quarter

Carvana (CVNA) reported 2nd 4th results connected Wednesday that bushed gross and nett expectations, arsenic grounds retail portion income pushed the online used-car retailer to its astir profitable 4th ever. But the banal tumbled aft its full-year forecast fell abbreviated of Wall Street's expectations.

Carvana reported gross of $7.376 billion, up 52% twelvemonth implicit twelvemonth and an all-time quarterly record, topping the $6.86 cardinal expected per Bloomberg consensus. Carvana posted adjusted EPS of $0.42 vs $0.38 estimated, with adjusted EBITDA hitting a grounds $769 cardinal vs $766.2 cardinal expected. 

But Carvana shares tumbled much than 20% aft hours, earlier narrowing losses to 6% successful premarket commercialized contiguous arsenic guidance disappointed.

Carvana said it expects full-year adjusted EBITDA of $2.7 cardinal to $3.0 billion, up from $2.24 cardinal successful 2025. But the midpoint of that scope missed the $2.99 cardinal analysts were expecting. In addition, for Q3 the institution lone guided for a "sequential increase" successful retail units sold, without a circumstantial figure, against statement of 204,115 units.

"Q2 2026 was Carvana's tenth consecutive 4th of industry-leading maturation and profitability, and it was made imaginable by the foundations we laid successful the 10 years prior," Carvana laminitis and CEO Ernie Garcia said successful a statement. "At Carvana's existent run-rate standard of astir 800k retail units and implicit $2 cardinal Net income, we are inactive conscionable 1.5% of the U.S. automotive market. Our accidental is precise clear, and we are much assured than ever successful the way ahead."

Retail units sold reached a grounds 197,325, up 38% year-over-year. The institution said it erstwhile again outpaced an manufacture that shrank implicit the aforesaid period.

Total gross nett per portion was $7,014, a alteration of $412 from a twelvemonth earlier, though it roseate $231 compared to Q1. Carvana attributed the year-over-year diminution to a displacement successful mix.

Carvana said its existent footprint supports yearly capableness of astir 1.5 cardinal retail units, with existent property to yet enactment 3 million. The institution integrated retail accumulation astatine 3 further ADESA locations successful the quarter, bringing its full to 19.

ADESA is simply a carnal auction and reconditioning concern that Carvana purchased backmost successful 2022, giving the institution the quality to get and merchantability further vehicles via wholesale, and recondition vehicles astatine a larger standard for merchantability connected Carvana's website.

Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You tin travel him on X and on Instagram.

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