Q1 2026 Carvana Co Earnings Call Transcript
Key Points
- Carvana Co (CVNA) achieved a record 187,000 cars sold in a single quarter, marking significant growth.
- The company reported a record GAAP operating income of $581 million and record adjusted EBITDA of $672 million.
- Carvana Co (CVNA) has maintained its position as the most profitable and fastest-growing automotive retailer for nine consecutive quarters.
- The company has successfully implemented new tools and systems to improve operational efficiency, particularly in reconditioning processes.
- Carvana Co (CVNA) continues to leverage SG&A expenses effectively, achieving a $170 reduction in non-GAAP SG&A expense per retail unit sold.
- Non-GAAP retail GPU decreased by $58, primarily due to higher non-vehicle costs and lower shipping fees.
- Non-GAAP wholesale GPU decreased by $83, driven by increased wholesale vehicle volume and lower wholesale marketplace gross profit.
- The company faces challenges in maintaining retail GPU due to tariff-related benefits from the previous year and narrower industry-wide wholesale to retail spreads.
- Advertising expenses increased by $92 per retail unit sold, impacting overall profitability.
- Carvana Co (CVNA) is experiencing pressure from rising fuel costs, which could impact logistics expenses in the future.
Good afternoon, and welcome to the Carvana first-quarter 2026 earnings conference call. (Operator Instructions)
Please note, this event is being recorded. I would now like to turn the conference over to Meg Kehan, Investor Relations. Please go ahead.
Thank you, Gary. Good afternoon, ladies and gentlemen, and thank you for joining us on Carvana's first quarter 2026 earnings conference call. Please note that this call is being webcast and can be accessed along with our Q1 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 start, 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
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