10-KPeriod: FY2025

CARVANA CO. Annual Report, Year Ended Dec 31, 2025

Filed February 18, 2026For Securities:CVNA

Summary

Carvana Co. reported a significant increase in retail vehicle unit sales for the year ended December 31, 2025, up 43.3% to 596,641 units. This growth drove a substantial increase in total net sales and operating revenues, which rose 48.6% to $20.3 billion. The company achieved positive net income of $1.9 billion, a significant turnaround from previous periods, largely due to the release of a substantial portion of its deferred tax asset valuation allowance. While the company has demonstrated strong top-line growth and improved profitability, it continues to carry substantial debt. Management's focus remains on expanding retail unit sales through market penetration and technological innovation. The company also highlights ongoing investments in its logistics and reconditioning infrastructure to support future growth and operational efficiency. Investors should monitor the company's debt levels, interest expenses, and its ability to manage operational costs as it scales.

Financial Highlights

44 data points
Beta

Revenue

$20.32B

20.6% Gross Margin

Net Income

$1.41B

6.9% Net Margin

EPS (Diluted)

$1.69

Total Assets

$13.20B

Cash & Equivalents

$2.33B

Free Cash Flow

$889.00M

Financial Statements
Beta
Revenue$20.32B
Cost of Revenue$16.13B
Gross Profit$4.19B
SG&A Expenses$2.31B
Operating Income$1.88B
Net Income$1.41B
EPS (Basic)$2.04
EPS (Diluted)$1.69
Shares Outstanding (Basic)688.17M
Shares Outstanding (Diluted)1.12B

Key Highlights

  • 1Retail vehicle unit sales increased by 43.3% to 596,641 units for the year ended December 31, 2025.
  • 2Total net sales and operating revenues grew by 48.6% to $20.3 billion for the year ended December 31, 2025.
  • 3Carvana achieved net income of $1.9 billion for the year ended December 31, 2025, a significant improvement from the prior year.
  • 4The company released a substantial portion of its deferred tax asset valuation allowance, contributing significantly to the net income improvement.
  • 5Total gross profit per unit remained relatively stable at $7,026 for the year ended December 31, 2025, compared to $6,908 in the prior year.
  • 6Selling, general, and administrative expenses increased by $434 million to $2.3 billion, primarily due to higher headcount and advertising spend.
  • 7Total liquidity resources available increased to $6.7 billion as of December 31, 2025, from $5.7 billion in the prior year.

Frequently Asked Questions

Carvana experienced strong growth in the year ended December 31, 2025, with retail vehicle unit sales up 43.3% and total net sales increasing by 48.6% to $20.3 billion. The company also reported a significant improvement in profitability, with net income reaching $1.9 billion, largely aided by the release of its deferred tax asset valuation allowance.

Carvana's total debt decreased from $5.5 billion to $5.0 billion as of December 31, 2025. Interest expense, net also decreased significantly by $146 million year-over-year due to debt repurchases and redemptions. Despite this reduction, the company still carries substantial debt.

Carvana's primary growth strategy centers on increasing retail vehicle unit sales through deeper penetration in existing markets and continued innovation in its e-commerce platform. The company is also investing in its logistics and reconditioning infrastructure, including integrating acquired ADESA auction sites, to enhance capacity and operational efficiency. Efforts to optimize inventory selection and expand complementary product offerings are also key.

Carvana's gross profit per unit remained stable at approximately $7,026 in 2025. The company's profitability was significantly boosted by a $2.2 billion release of its valuation allowance on deferred tax assets. While operational expenses, particularly SG&A, have increased with growth, the company's focus on efficiency and scale is expected to support continued profitability.