The used-car retailer posted $769 million in second-quarter adjusted EBITDA and $7.38 billion in revenue, but its shares fell 20% after hours as guidance implied a flatter second half.
Carvana said it expects full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA, a profit metric) of $2.7 billion to $3 billion after reporting record second-quarter results. The outlook implies $1.3 billion to $1.6 billion in adjusted EBITDA in the second half, broadly in line with the first six months after the company generated $1.4 billion in the first half of 2026, including a record $769 million in the second quarter. Shares fell 20% in after-hours trading after closing Wednesday at $66.32, up less than 1% on the day, suggesting investors focused on the prospect of slower profit expansion later in the year. The quarter included net income of $513 million, up $205 million from a year earlier, revenue of $7.38 billion versus LSEG analyst estimates of $6.91 billion, and a 38% rise in vehicle sales to 197,325 units from April through June. Carvana did not separate used and new vehicle sales, though it has been expanding into new vehicles through Stellantis franchised dealerships. The company said retail units sold should rise sequentially in the third quarter and described the April-to-June period as its 10th straight quarter as "the fastest-growing and most profitable automotive retailer - achieving both by large margins." CEO Ernie Garcia said in a release that the company remains on track to reach annual sales of 3 million cars and a 13.5% adjusted EBITDA margin by 2030 to 2035, even as its second-quarter adjusted margin slipped to 10.4% from 12.4% a year earlier during the expansion push.