Carvana shares slide despite record quarterly profit

Industry & Services Transport Written by: Angela Harmantas 12:18 Thu 30 Jul 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Carvana Co. ( NYSE:CVNA ) View Price & Profile Carvana shares slide despite record quarterly profit Published: 12:18 30 Jul 2026 EDT Carvana Co. (NYSE:CVNA) shares fell nearly 12% on Thursday morning despite the company reporting record second-quarter profits, as investors weighed a disappointing full-year earnings outlook against another quarter of outsized growth. The online used-car retailer posted record net income of $513 million, up $205 million from a year earlier, while adjusted EBITDA rose $168 million year-over-year to a record $769 million. GAAP operating income also set a record at $680 million, up $169 million from the same period last year. "Q2 2026 was Carvana's 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior," said Ernie Garcia, Carvana’s CEO. "We built an experience customers love, our model gets better as we get bigger, and our execution is the key driver of our progress from here." Retail units grew 38% year-over-year and came in 1% above consensus, marking the company's 10th straight quarter of upside to unit estimates, according to analysts at Jefferies. Revenue grew 52% year-over-year, outpacing unit growth on higher used car prices, a mix shift toward more expensive vehicles, and a transitory accounting tailwind that is expected to lapse in the third quarter. Jefferies said total gross profit per unit was in line with expectations, as downside in other GPU offset upside in retail GPU. The firm attributed the retail GPU gain partly to higher industry prices following FTC guidance directing dealers to include fees in listed prices, while the shortfall in other GPU stemmed from Carvana's decision to hold consumer lending rates steady even as benchmark rates rose. For the full year, Carvana guided to EBITDA of $2.7 billion to $3 billion, a range Jefferies called disappointing even as the firm said the guidance is likely conservative given Carvana's history of beating the high end of its prior full-year targets by 15% in 2024 and 2% in 2025. Jefferies reiterated a Buy rating on the stock with an $88 price target, implying 26 times projected 2027 EV/EBITDA, and said it would recommend buying any weakness in the shares. Continue reading