Carvana Co. reported third‑quarter 2025 results that included a record $5.647 billion in revenue, up 55% year‑over‑year, and 155,941 retail units sold, a 44% increase from the same quarter in 2024. Net income reached $263 million, while adjusted EBITDA hit $637 million, giving an adjusted EBITDA margin of 11.3%—a slight decline from 11.7% in Q3 2024 due to higher brand‑marketing spend.
Earnings per share were $1.03, falling short of the $1.33 consensus estimate. The miss was driven by a $120 million fair‑value warrant loss adjustment, a one‑time charge that did not recur in prior periods. The company’s net income margin was 4.7% for the quarter.
Management guided for the fourth quarter to sell more than 150,000 retail units and projected full‑year adjusted EBITDA at or above the high end of the $2.0‑$2.2 billion range previously disclosed. The company also noted that its revenue run‑rate has surpassed $20 billion for the first time, underscoring the scale of its e‑commerce platform.
Carvana’s performance reflects its vertically integrated model, including the integration of ADESA locations, and its focus on expanding reconditioning capacity. The company’s net debt‑to‑EBITDA ratio fell to 1.5x, its strongest financial position ever, and it has increased cash on hand through debt reduction.
Competitive analysis shows Carvana remains the fastest‑growing and most profitable automotive retailer, with margins significantly above industry averages. The company’s strategic plan targets 3 million annual units and 13.5% EBITDA margins, positioning it for continued growth despite headwinds such as rising delinquencies in the subprime auto‑lending market.
The results demonstrate strong demand and operational efficiency, with revenue growth driven by robust retail sales and a disciplined cost structure. The slight margin contraction is attributed to marketing investments aimed at sustaining growth momentum.
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