Carvana Q4 Earnings Beat, Shares Dip After Hours

Financial Performance

Online car dealer Carvana (CVNA) reported a revenue and profit beat for the fourth quarter, exceeding analysts' estimates.

* Revenue: $3.55 billion vs. consensus estimate of $3.34 billion, a 32% increase year-over-year.
* Net income: $0.56 per share vs. estimate of $0.31 per share.
* Adjusted EBITDA: $359 million vs. estimate of $329.4 million.

Operational Metrics

* Retail unit sales: 114,379 vs. estimate of 108,339 for the quarter.
* Full-year sales: 416,000 retail units, up 33% year-over-year.
* Annual revenue: $13.67 billion, a record for the company.

Outlook

Carvana anticipates continued growth in 2025, including:

* Significant increase in retail units sold and adjusted EBITDA.
* Sequential growth in both metrics in Q1, assuming a stable environment.

Stock Performance

CVNA shares exhibited a volatile performance:

* Surged nearly 300% in 2024.
* Gained 43% in 2025 prior to earnings release.
* Dipped 10% in after-hours trading despite the Q4 beat.

Industry Impact

Carvana's online business model saw a surge during the pandemic as consumers sought contactless car purchasing options. However, the company has faced challenges with rising used car values and excess inventory.

Despite these challenges, Carvana has implemented cost-cutting measures and debt refinancing, leading to its first annual profit in 2023.

Controversies

In January 2025, short seller Hindenburg Research accused Carvana of accounting irregularities and worsening financial metrics. Hindenburg later ceased operations.