Carvana posts record quarterly profits, forecasts up to $3 billion in earnings this year

The new guidance follows the company reporting $1.4 billion in adjusted earnings before interest, taxes, depreciation and amortization during the first half of this year, including a record $769 million during the second quarter.

Shares of Carvana fell by 20% in after-hours trading after closing Wednesday at $66.32, up less than 1%.

The guidance means the company expects a relatively flat second half of the year compared with the first six months, with between $1.3 billion and $1.6 billion in adjusted earnings during the second half of this year. Such results would easily top Carvana’s record $2.2 billion in adjusted earnings from 2025.

Carvana’s second-quarter results included net income of $513 million, up $205 million from a year earlier; revenue of $7.38 billion compared to analyst estimates compiled by LSEG of $6.91 billion; and a 38% increase in vehicle sales to 197,325 units from April through June.

Carvana said it expects a sequential increase in retail units sold in the third quarter compared to the second quarter, which the company said marked its 10th straight quarter of being “the fastest-growing and most profitable automotive retailer – achieving both by large margins.”

“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,” Carvana CEO Ernie Garcia said in a release. “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.”

Garcia in a quarterly letter to shareholders said the company remains on track to selling 3 million cars per year and achieving a 13.5% adjusted EBITDA margin by 2030 to 2035.

The company’s adjusted margin during the second quarter was 10.4%, down 2 percentage points from a year earlier as it pushes its expansion efforts.

“We have only 2% market share of used retail and 1.5% market share of all automotive retail. Our runway is huge,” Garcia said in the investor note.