Q2 2026 Carvana Co Earnings Call Transcript
Key Points
- Carvana Co (CVNA) sold nearly 200,000 cars in Q2 2026, almost double the volume from two years ago, demonstrating strong compounding growth.
- The company achieved a record adjusted EBITDA annual run rate exceeding $3 billion, with operating income and net income run rates of $2.7 billion and $2 billion, respectively.
- Regions with the highest inventory growth (Midwest and Northeast) saw a 54% increase in sales, validating the positive feedback loop of the company's business model.
- Carvana Co (CVNA) continues to gain significant SG&A leverage, reducing non-GAAP SG&A expense per retail unit sold by $157 year-over-year.
- The company's net debt to trailing 12-month adjusted EBITDA ratio improved to 1.0x, its strongest financial position ever, moving toward investment-grade quality.
- Total GPU decreased year-over-year, with retail GPU down $105 due to lapping tariff benefits and higher non-vehicle costs like fuel.
- Other GPU decreased by $192, driven by the decision to pass lower interest rates to customers amid higher benchmark rates.
- Inventory growth lagged behind sales growth, creating a headwind to conversion rates and overall business performance.
- Adjusted EBITDA margin decreased to 10.4% from 12.4% in the prior year, partly due to a change in gross revenue treatment.
- The company faces execution risks in scaling its complex operational machine, including reconditioning capacity and hiring, which could impact future growth.
Hello, and welcome to the Carvana second-quarter 2026 earnings call. (Operator Instructions)
I will now turn the conference over to Meg Kehan, Investor Relations. Please go ahead.
Thank you. Good afternoon, ladies and gentlemen, and thank you for joining us on Carvana's second-quarter 2026 earnings conference call. Please note that this call is being webcast and can be accessed along with our Q2 shareholder letter and supplemental financial tables, on the Investor Relations section of the company's corporate website at investors.carvana.com. Joining me on the call today are Ernie Garcia, Chief Executive Officer; and Mark Jenkins, Chief Financial Officer.
Before we get started, I would like to remind you that this discussion contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, Carvana's market opportunities and future financial results that involve risks and uncertainties that may cause actual results to differ materially from those
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
