Carvana Q2 profit margin narrows even as retail sales hit record; shares slide 15%

Carvana

29/07/2026 21:21

Overview
U.S. auto e-commerce platform's Q2 revenue rose 52% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 slightly beat analyst expectations
Carvana Q2 adjusted EBITDA margin narrows to 10.4% from 12.4% a year earlier
Shares of the company were down about 15% in extended trading

Outlook
Carvana expects a sequential increase in retail units sold in Q3
Company projects full-year 2026 Adjusted EBITDA of $2.7-$3.0 bln

Result Drivers
RETAIL UNIT GROWTH - Record 197,325 retail units sold in Q2, up 38% yr/yr, drove revenue and profit gains
SCALE AND EXECUTION - Co said its model benefits from increased scale and strong execution, supporting profitability

Company press release: ID:nBw4gRfW2a

Key Details
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

Analyst Coverage
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

Reuters Recommended Reads
July 29 - Carvana reports strong quarterly earnings on resilient demand for used cars
July 28 - Asbury Automotive Q2 adjusted EPS beats estimates on used vehicle profitability 
July 29 - Germany's AUTO1 Q2 revenue rises, EBITDA jumps 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)