10-KPeriod: FY2024

CARVANA CO. Annual Report, Year Ended Dec 31, 2024

Filed February 19, 2025For Securities:CVNA

Summary

Carvana Co. (CVNA) demonstrated a significant turnaround in its 2024 fiscal year, reporting a substantial increase in retail unit sales and a dramatic improvement in profitability. Key financial highlights include a 33.1% increase in retail vehicle unit sales to 416,348, driving total net sales and operating revenues up by 26.9% to $13.7 billion. This top-line growth, combined with improved operational efficiencies, led to a significant expansion of gross profit by 66.8% to $2.9 billion, and a notable increase in total gross profit per unit to $6,908. The company also significantly improved its net income to $404 million from $150 million in the prior year, with Adjusted EBITDA reaching $1.4 billion, indicating strong progress towards sustained profitability. The company has also strengthened its liquidity position, with cash and cash equivalents increasing to $1.7 billion.

Financial Highlights

44 data points
Beta

Revenue

$13.67B

21.0% Gross Margin

Net Income

$210.00M

1.5% Net Margin

EPS (Diluted)

$0.32

Total Assets

$8.48B

Cash & Equivalents

$1.72B

Free Cash Flow

$827.00M

Financial Statements
Beta
Revenue$13.67B
Cost of Revenue$10.80B
Gross Profit$2.88B
SG&A Expenses$1.87B
Operating Income$990.00M
Net Income$210.00M
EPS (Basic)$0.34
EPS (Diluted)$0.32
Shares Outstanding (Basic)611.72M
Shares Outstanding (Diluted)661.03M

Key Highlights

  • 1Carvana reported a 33.1% year-over-year increase in retail vehicle unit sales, reaching 416,348 units in 2024.
  • 2Total net sales and operating revenues grew by 26.9% to $13.7 billion, driven by higher unit sales.
  • 3Gross profit surged by 66.8% to $2.9 billion, with total gross profit per unit increasing to $6,908.
  • 4Net income improved significantly to $404 million from $150 million in the prior year.
  • 5Adjusted EBITDA reached $1.4 billion, demonstrating strong operational performance and profitability improvements.
  • 6The company's cash and cash equivalents increased substantially to $1.7 billion as of December 31, 2024.
  • 7Carvana continues to focus on profitable growth and operational efficiency, with strategies including increasing vehicle purchases from customers and optimizing inventory days to sale.

Frequently Asked Questions

In 2024, Carvana saw a significant improvement in its financial performance. Retail vehicle unit sales increased by 33.1% to 416,348. Total net sales and operating revenues grew by 26.9% to $13.7 billion. Gross profit increased by 66.8% to $2.9 billion, and net income rose to $404 million. Adjusted EBITDA reached $1.4 billion, indicating strong operational efficiency and a path towards sustained profitability.

Carvana has focused on driving profitable growth through operational efficiency initiatives. Key strategies include optimizing the purchase of vehicles directly from customers, reducing the average days to sell inventory, and leveraging existing reconditioning and logistics infrastructure more fully. These efforts have contributed to a higher gross profit per unit and improved overall financial results.

Carvana's liquidity position has strengthened significantly. As of December 31, 2024, the company reported cash and cash equivalents of $1.7 billion, an increase from $530 million at the end of 2023. Total liquidity resources, including available credit, stood at $5.7 billion, providing a solid financial foundation.

Carvana faces several risks including those related to the broader automotive ecosystem (consumer demand, supply chain, macroeconomic conditions), competition, ability to manage rapid growth, maintaining customer service quality, cybersecurity threats, and substantial indebtedness. The company also relies on the sale of automotive finance receivables, making it susceptible to capital market volatility and credit losses.