Carvana Co (CVNA)
NYSE:CVNA
Want to see CVNA full AI Analyst Report?
Top Page
Carvana Co
(NYSE:CVNA)
Select Model
Select Model
Rating:67Neutral
Price Target:
$403.00
▲(8.60% Upside)
Action:ReiteratedDate:02/19/26
The score is driven primarily by the materially improved financial performance (profitability, cash generation, and deleveraging) and strong, growth-oriented 2026 guidance from the earnings call. Offsetting this, technicals are currently bearish/weak and valuation is stretched with a very high P/E and no dividend support.
Positive Factors
Profitability turnaround
A multi-point improvement to positive net and gross margins in 2025 shows the core e-commerce used-vehicle model can reach sustainable unit economics. Durable margins allow reinvestment in scale, support operating leverage as volume grows, and provide a buffer against cyclical downswings.
Negative Factors
Elevated reconditioning costs and execution variability
Persistent or recurring elevated reconditioning costs erode per-unit margins and reflect operational scaling challenges. If remediation and automation take time, unit economics remain pressured and require capital and managerial focus, slowing margin conversion from scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
A multi-point improvement to positive net and gross margins in 2025 shows the core e-commerce used-vehicle model can reach sustainable unit economics. Durable margins allow reinvestment in scale, support operating leverage as volume grows, and provide a buffer against cyclical downswings.
Read all positive factors
Carvana Co (CVNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.30B
Dividend YieldN/A
Average Volume (3M)2.72M
Price to Earnings (P/E)41.3
Beta (1Y)2.32
Revenue Growth45.55%
EPS Growth5776.52%
CountryUS
Employees23,100
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)4.22
Shares Outstanding142,993,770
10 Day Avg. Volume2,341,770
30 Day Avg. Volume2,724,462
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)16.88
Price to Sales (P/S)2.86
P/FCF Ratio65.34
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue3.78
Enterprise Value/Gross Profit18.68
Enterprise Value/Ebitda-698.55
Forecast
1Y Price Target
$439.94Price Target Upside18.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)7.37
Revenue Forecast (FY)$26.76B
Carvana Co Business Overview & Revenue Model
Company Description
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company offers vehicle acquisition, inspection and reconditioning, online search and shopping experience, finan...
How the Company Makes Money
Carvana primarily makes money by selling used vehicles to retail customers through its online platform. Revenue is generated from (1) retail used vehicle sales, where the company earns the difference between the vehicle’s selling price and its tot...
Carvana Co Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue from different business segments, highlighting which areas are driving growth and where the company might need to improve or expand.
Breaks down revenue from different business segments, highlighting which areas are driving growth and where the company might need to improve or expand.
Data provided by:
The Fly
The FlyCarvana Co Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operating and financial story: very large top-line and unit growth (43% units, 58% Q4 revenue), record adjusted EBITDA margin for the year, healthier leverage and cash positions, expanded financing capacity, and clear customer-experience improvements. Offsetting these positives were operational execution challenges localized to reconditioning that pressured non-vehicle costs and retail GPU in Q4 (with management expecting elevated reconditioning costs to continue into Q1 while remediation is enacted), plus some one-time accounting/tax benefits that boosted net income. On balance, the fundamentals (rapid scalable growth, improving profitability, strong balance sheet) dominate the call, while the operational issues appear manageable and being actively addressed.Positive Updates
Strong Unit Growth and Company Records
Retail units sold grew 43% in 2025 to a record 596,641 units; Q4 retail units were 163,522, also up 43% YoY and a new company record. This marked the eighth consecutive quarter of industry-leading retail unit growth.
Negative Updates
Retail GPU Pressure
Non-GAAP retail GPU decreased by $255 in Q4 YoY, driven primarily by higher non-vehicle costs (notably elevated reconditioning), lower shipping fees passed to customers as cars are positioned closer to buyers, and higher retail depreciation rates.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Unit Growth and Company Records
Retail units sold grew 43% in 2025 to a record 596,641 units; Q4 retail units were 163,522, also up 43% YoY and a new company record. This marked the eighth consecutive quarter of industry-leading retail unit growth.
Read all positive updates
Company Guidance
Carvana guided to “significant growth” in both retail units sold and adjusted EBITDA for full‑year 2026, explicitly calling for a sequential increase in both metrics in Q1 2026, while reaffirming its long‑term targets of 3.0 million retail units per year and a 13.5% adjusted EBITDA margin (noting fixed‑cost leverage alone could add ~2 percentage points of margin over time); the company pointed to its 2025 base of 596,641 retail units (up 43%) and Q4 retail units of 163,522 (also +43%), Q4 revenue of $5.603B (+58%), Q4 adjusted EBITDA of $511M (9.1% margin) and a record full‑year adjusted EBITDA margin of 11%, and said it expects non‑vehicle costs to be up year‑over‑year in Q1 but still projects a sequential increase in retail GPU in Q1; balance sheet support for the plan includes $2.3B cash, $709M of corporate notes retired, a net debt / TTM adjusted EBITDA ratio of 1.3x, and loan purchase capacity totaling up to $12B from new partners over two years plus $6B with Ally through October 2026.Carvana Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.32B | 13.67B | 10.77B | 13.60B | 12.81B |
| Gross Profit | 4.19B | 2.71B | 1.72B | 1.00B | 1.83B |
| EBITDA | -110.00M | 1.36B | 1.16B | -2.15B | -5.00M |
| Net Income | 1.41B | 210.00M | 450.00M | -1.59B | -135.00M |
Balance Sheet | |||||
| Total Assets | 13.20B | 8.48B | 7.07B | 8.70B | 7.01B |
| Cash, Cash Equivalents and Short-Term Investments | 2.33B | 2.18B | 896.00M | 755.00M | 785.00M |
| Total Debt | 633.00M | 6.05B | 6.71B | 8.82B | 5.77B |
| Total Liabilities | 9.00B | 7.11B | 7.46B | 9.75B | 6.49B |
| Stockholders Equity | 3.44B | 1.26B | 243.00M | -518.00M | 306.00M |
Cash Flow | |||||
| Free Cash Flow | 889.00M | 827.00M | 716.00M | -1.84B | -3.15B |
| Operating Cash Flow | 1.04B | 918.00M | 803.00M | -1.32B | -2.59B |
| Investing Cash Flow | -230.00M | -13.00M | 31.00M | -2.58B | -627.00M |
| Financing Cash Flow | -137.00M | 261.00M | -868.00M | 3.90B | 3.53B |
Carvana Co Technical Analysis
Positive
371.08
Price Trends
332.63
Positive
379.21
Negative
365.08
Positive
Market Momentum
8.63
Negative
65.05
Neutral
90.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVNA, the sentiment is Positive. The current price of 371.08 is above the 20-day moving average (MA) of 317.70, above the 50-day MA of 332.63, and above the 200-day MA of 365.08, indicating a bullish trend. The MACD of 8.63 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 90.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVNA.
Carvana Co Risk Analysis
Carvana Co disclosed 42 risk factors in its most recent earnings report. Carvana Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carvana Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $81.30B | 41.28 | 62.85% | ― | 45.55% | 5776.52% | |
62 Neutral | $78.32B | 30.60 | -239.04% | ― | 6.19% | 6.98% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $6.72B | 12.12 | 26.70% | ― | 6.06% | -1.71% | |
57 Neutral | $5.74B | 25.71 | 4.05% | ― | 0.12% | 2.78% | |
55 Neutral | $58.27B | 34.26 | -72.31% | ― | 3.81% | -4.26% | |
50 Neutral | $3.43B | 52.94 | 2.00% | 2.53% | -19.41% | -957.94% |
* Consumer Cyclical Sector Average
CVNA
Carvana Co
371.08
159.67
75.53%
AAP
Advance Auto Parts
56.88
25.63
82.00%
AN
AutoNation
195.81
30.03
18.11%
AZO
AutoZone
3,536.42
-67.05
-1.86%
KMX
CarMax
40.51
-24.08
-37.28%
ORLY
O'Reilly Auto
93.60
0.87
0.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.