**Carvana Inc. Reports Strong Growth in 2025 Despite Recent Stock Decline**
Carvana Inc. (CVNA), the second-largest used car retailer in the U.S., reported a 49% increase in revenue to over $20 billion for the year 2025, with retail sales units growing 43% year over year to 596,006. Adjusted EBITDA rose over 60% to $2.2 billion, with margins improving from 10.1% to 11%. Despite these positive financial results, Carvana’s stock has declined 25% year-to-date, and it has underperformed peers such as CarMax and Sonic Automotive.
In the fourth quarter of 2025, while Carvana exceeded earnings and revenue expectations, the stock slid more than 12% following the announcement, raising concerns over increased reconditioning costs and vague guidance for 2026. The company operates 34 reconditioning locations and aims to process about 1.5 million vehicles annually, with a long-term goal of supporting up to 3 million retail units per year. Investors should monitor Carvana’s operational efficiencies and reconditioning costs as it navigates its growth strategy and market dynamics.
