01—Abstract
Summary
Summary of the 10-K filed February 19, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona. 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 millionb 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.
02—Key points
Key Highlights
- Carvana reported a 33.1% year-over-year increase in retail vehicle unit sales, reaching 416,348 units in 2024.
- Total net sales and operating revenues grew by 26.9% to $13.7 billion, driven by higher unit sales.
- Gross profit surged by 66.8% to $2.9 billion, with total gross profit per unit increasing to $6,908.
- Net income improved significantly to $404 million from $150 million in the prior year.
- Adjusted EBITDA reached $1.4 billion, demonstrating strong operational performance and profitability improvements.
- The company's cash and cash equivalents increased substantially to $1.7 billion as of December 31, 2024.
- Carvana continues to focus on profitable growth and operational efficiency, with strategies including increasing vehicle purchases from customers and optimizing inventory days to sale.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Carvana Co. kept $0.02.
- Revenue$13.67B100.0%
- Cost of revenue−$10.80B79.0%
- Gross profit$2.88B21.0%
- Operating costs−$1.89B13.8%
- Operating income$990.0M7.2%
- Interest, other & tax−$780.0M5.7%
- Net income$210.0M1.5%
Where FY2024 revenue went
$13.67B- Cost of revenue: $10.80B, 79% of revenue
- SG&A: $1.87B, 14% of revenue
- Net income: $210.0M, 1.5% of revenue
- Interest, other & tax: $780.0M, 5.7% of revenue
Kept 1.5% as net incomeNet income $210.0M · 1.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 19, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $13.67B$10.77B | +26.9% |
| Cost of Revenue | $10.80B$9.05B | +19.3% |
| Gross Profit | $2.88B$1.72B | +66.8% |
| SG&A Expenses | $1.87B$1.80B | +4.3% |
| Operating Income | $990.00M-$80.00M | +1337.5% |
| Net Income | $210.00M$450.00M | −53.3% |
| EPS (Basic) | $0.34$0.82 | −58.3% |
| EPS (Diluted) | $0.32$0.15 | +112.0% |
| Shares Outstanding (Basic) | 611.72M546.62M | +11.9% |
| Shares Outstanding (Diluted) | 661.03M1.00B | −34.1% |
05—Questions
Frequently Asked Questions
What is Carvana's financial performance in 2024?
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.
How has Carvana improved its profitability and efficiency?
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.
What is Carvana's liquidity position at the end of 2024?
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.
What are the key risks Carvana faces?
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.
06—Continue