Carvana set records for vehicle sales (197,325 units) and total revenue ($7.37 billion) in the second quarter, continuing its run of growth, according to its earnings report Wednesday.
Diving in: The Tempe, Arizona-based e-commerce platform sold nearly double its total from two years ago, which was 101,440 units. Compared with Q2 2025, sales are up 38%.
As it stands, Carvana does not separate new and used retail sales in its reporting due to the newness of its new-vehicle operations.
However, the second-quarter results keep the company on pace to sell nearly 800,000 units this year.
Wednesday’s earnings and related webcast also reaffirmed the retailer’s goal of 3 million cars sold each year between 2030 and 2035.
Retail revenue per unit came in at $27,908, producing a retail gross profit per unit of $3,547, down 2.4% from $3,636 a year ago.
Adding ADESA sites: Three more ADESA locations were added to the fold for retail production.
The additional sites bring the company’s total to 19.
The current capacity supports 1.5 million units, with real estate to reach 3 million.
The company noted the Midwest and Northeast regions were its top two production growth regions (57%) and delivered higher retail sales growth (54%).
“When we grow inventory, any given customer is more likely to find a car they love, and conversions go up,” said Carvana CEO Ernie Garcia.
With that in mind: Garcia stated Carvana is especially focused on growing inventory, which he said has recently “undergrown” sales, but noted that the team has been able to get inventory growth back on track.
The company has leaned into more expensive vehicles as they have passed back rates to more prime customers.
Additionally, Garcia stated customers with incomes over $100,000 saw more than 60% growth year-over-year.
“When the cars are there for that customer segment, the growth is there,” Garcia said. “If we can build the cars that they want, and we can deliver a great experience to them through our machine, the demand is there, and the economics are there.”
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The elephant in the room: Carvana now owns seven CDJR stores across the nation. That said, Wednesday's webcast offered few specifics on how that side of the business is performing.
“New cars are profitable for us today, but beyond that, there’s not a ton of detail that we’re ready to provide,” Garcia said.
Bottom line: Carvana continues to be a top revenue producer in the used retail market, but even with its massive growth in the past two years, there’s still plenty of runway to build on sales.
“That sales volume puts us at just 2% market share of the used car market, and 1.5% of the auto retail market as a whole,” Garcia said. “These numbers make the size of our opportunity exceedingly clear.”
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