Carvana (NYSE: CVNA) reported record highs in key metrics for Q1 2025, generating $4.2 billion in revenue, a 38% increase year-over-year, from the sale of 133,898 retail units, a 46% rise. These figures represent quarterly records for the online used-car retailer.
Carvana faced challenges in 2022, including a $2.9 billion net loss and a significant drop in gross profit per unit from $4,537 to $3,022. The company held $6.6 billion in long-term debt heading into 2023, but has since undertaken debt restructuring and cost-cutting measures, aiming to sell 3 million vehicles per year with an adjusted EBITDA margin of 13.5% within the next five to ten years.
Currently, Carvana boasts a price-to-earnings (P/E) ratio of 112, significantly higher than peers like CarMax, which has a P/E of 21. The average analyst estimate for Carvana’s 2025 earnings per share (EPS) is $4.85, projecting a 206% increase from 2024.
