Carvana predicts ‘strong’ 2025 after record quarter

Carvana continues to defy doubters of its long-term viability in the auto business, topping Wall Street’s expectations in the fourth quarter while projecting another robust year in 2025.

The details: The online used car retailer beat top and bottom-line expectations for Q4, compared to estimates compiled by LSEG (the London Stock Exchange.

• Earnings were 56 cents per share for the quarter, 27 cents more than the expected 29 cents per share.

• Caravan’s Q4 revenue was $3.55 billion, while the expected revenue was $3.31 billion.

The company’s $3.55 billion in Q4 revenue was up 46%, from the $2.42 billion reported in Q4 2023. Carvana’s total revenue for 2024 was $13.67 billion, up nearly 27% surge from $10.77 billion the prior year.   

Between the lines: Carvana’s adjusted EBITDA for 2024 was $1.38 billion and its net income was roughly $404 million, including adjusted EBITDA of $359 million and net income of $159 million during the fourth quarter. 

• The $159 million in net income for Q4 2024 is a notable improvement from the company’s $200 million in Q4 2023. 

• On a per-share basis, Carvana’s reported earnings of 56 cents per share for Q4 2024 stands in sharp contrast to Q3 2023 when the company reported a loss of $1 per share.

Carvana said it sold 416,348 retail vehicles in 2044, a 33% increase from 2023, with record total revenue being $13.67 billion last year. Gross profit per unit for Q4 2024 was $6,671 and $6,908 for the full year. That’s an increase of roughly $1,400 from 2023 for both the quarterly and full-year reports for 2024.       

Why it matters: Carvana expects its Q4 and full-year 2024 results to help drive the company into another “strong” year in 2025. And with its shares up roughly 40% in 2025 (coupled with a nearly 285% gain last year), it’s clear that the company is one that investors have on their radar. 

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