Carvana $CVNA ( ▲ 0.48% ) has posted one of its strongest quarters since recovering from near-bankruptcy in 2022, with retail sales totaling more than 40% year-over-year and revenue up $2 billion more compared to last year.
The company's stock has surged 78% this year and now trades well above traditional dealers like CarMax $KMX ( ▲ 0.1% ) and Lithia $LAD ( ▼ 0.14% ).
By the numbers: Carvana’s retail unit sales jumped 44% YoY in 2025 to a record 155,941, up from 108,651 in Q3 2024.
Revenue climbed 55% YoY to $5.6 billion, compared to $3.6 billion in the same quarter last year.
Adjusted EBITDA reached $637 million, up from $429 million a year ago.
Net income rose to $263 million with a 4.7% margin, compared to $148 million and a 4% margin in 2024.
What they’re saying: “This quarter we crossed over $20 billion annual revenue run rate for the first time, with revenue growth at 55%...,” said Carvana founder and CEO Ernie Garcia, per a press statement. “Not only is this growth happening at the same time we are producing margins that are higher than have ever been reported by any other automotive retailer, it is also happening at a very significant scale.”
Ernie Garcia
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Between the lines: Carvana credits much of its success to its proprietary technology stack, which the company says provides a meaningful competitive advantage.
Phoenix is serving as a test market for Carvana’s same-day delivery program, with 40% of customers there now receiving same- or next-day delivery—compared to about 10% in other markets.
Over 30% of buyers now complete their entire purchase process digitally without any interaction with a Customer Advocate until delivery or pickup.
For sellers, more than 60% complete the process fully online without Customer Advocate involvement.
Why it matters: The company's same-day delivery push and fully digital transactions signal where consumer expectations may be heading, but whether those capabilities offset the company’s minimal service revenue and limited manufacturer partnerships remains an open question.
Looking ahead: With the acquisition of two franchised Chrysler Dodge Jeep Ram stores (and faint whispers of a possible third in the works), Carvana is quietly probing whether a hybrid retail model will provide even more structural advantages.
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