Gotham City Research says Carvana 2023-2024 earnings ‘overstated by $1B+’

In a recently published report, Gotham City Research says Carvana’s (CVNA) 2023-2024 earnings are “overstated by $1 billion+, and far more dependent on related parties than disclosed.” According to the report, “DriveTime’s leverage fuels CVNA Adj EBITDA. Without DriveTime credit, CVNA earnings collapse, and CVNA Adjusted EBITDA doesn’t cover its interest expense. CVNA 2025 10K will be delayed, 2023/2024 10Ks restated, BLAST ABS restated, & Grant Thornton will resign as auditor. CVNA and DriveTime creditors’ ability and willingness to fund this scheme will change once they realize that the ecosystem is more levered than publicly disclosed.”