10-QPeriod: Q3 FY2025

CARVANA CO. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 29, 2025For Securities:CVNA

Summary

Carvana Co. reported significant revenue growth in the third quarter of 2025, with total net sales and operating revenues increasing by 54.5% year-over-year to $5.65 billion. This growth was driven primarily by a substantial increase in retail vehicle sales, up 57.1%, and wholesale sales, up 49.7%. The company also saw strong performance in other revenue streams, including gains on loan sales and complementary product commissions. Despite the revenue surge, total gross profit per unit saw a slight decrease of 0.9%, attributed to higher retail depreciation rates and lower spreads between retail and wholesale market prices, though overall gross profit improved significantly due to higher sales volumes. Carvana's liquidity position remains strong, with total liquidity resources of $6.44 billion as of September 30, 2025, bolstered by substantial cash and cash equivalents and significant availability under its revolving credit facilities. The company also actively managed its debt, including the voluntary redemption of a portion of its 2028 Senior Secured Notes. While the company demonstrated robust top-line growth and improved profitability on a consolidated basis, investors should note the continued increase in selling, general, and administrative expenses, which rose by 26.9%, primarily due to higher advertising and headcount costs associated with increased retail unit sales.

Financial Highlights

40 data points
Beta

Revenue

$5.65B

20.3% Gross Margin

Net Income

$151.00M

2.7% Net Margin

Total Assets

$9.85B

Cash & Equivalents

$2.14B

Free Cash Flow

$307.00M

Financial Statements
Beta
Revenue$5.65B
Cost of Revenue$4.50B
Gross Profit$1.15B
SG&A Expenses$595.00M
Operating Income$552.00M
Net Income$151.00M

Key Highlights

  • 1Total net sales and operating revenues surged by 54.5% to $5.65 billion in Q3 2025, driven by strong performance across retail and wholesale segments.
  • 2Retail vehicle sales increased by 57.1% to $4.0 billion, while wholesale sales grew by 49.7% to $1.2 billion.
  • 3Total gross profit increased by 42.3% to $1.15 billion, although total gross profit per retail unit experienced a slight decrease of 0.9% to $7,362.
  • 4Selling, general, and administrative expenses increased by 26.9% to $595 million, reflecting investments in growth initiatives and higher headcount.
  • 5The company maintained a strong liquidity position with $2.14 billion in cash and cash equivalents and $1.93 billion in available revolving credit facilities as of September 30, 2025.
  • 6Carvana voluntarily redeemed $559 million of its 2028 Senior Secured Notes, demonstrating active debt management.

Frequently Asked Questions

Carvana reported a significant increase in total net sales and operating revenues, up 54.5% to $5.65 billion for the three months ended September 30, 2025, compared to $3.66 billion in the same period of 2024. This growth was driven by a 57.1% increase in retail vehicle sales and a 49.7% increase in wholesale sales.

While total gross profit increased by 42.3% to $1.15 billion due to higher sales volumes, total gross profit per retail unit saw a slight decrease of 0.9% to $7,362. This was attributed to factors such as higher retail depreciation rates and lower spreads between retail and wholesale market prices, partially offset by lower reconditioning and inbound transport costs.

Carvana maintains a strong liquidity position. As of September 30, 2025, the company had $2.14 billion in cash and cash equivalents and $1.93 billion in available capacity under its short-term revolving facilities, leading to total liquidity resources of $6.44 billion.

Yes, Carvana actively managed its debt during the quarter. Notably, the company voluntarily redeemed $559 million of the principal amount of its 2028 Senior Secured Notes. Additionally, interest expense, net, decreased year-over-year primarily due to lower interest on Senior Secured Notes resulting from repurchases and the election to pay cash interest on certain notes.