Carvana reports better-than-expected Q1 sales, gross profit per vehicle
Carvana reported its first-quarter earnings after markets closed on Wednesday.
Used car retailer Carvana posted its first-quarter results after markets closed on Wednesday, beating Wall Street expectations on revenue, retail unit sales, and gross profit per unit.
For Q1, Carvana reported:
$6.43 billion in revenue, compared to estimates of $6.12 billion from Wall Street analysts polled by FactSet.
Adjusted gross profit per retail unit of $6,911, down 3% from the same period last year but ahead of estimates. Carvana said the results were driven by higher reconditioning costs and lower shipping fees.
187,393 used vehicles sold to retail customers, up 40% year over year and ahead of rival CarMax (in its most recent comparable quarter).
Looking ahead, Carvana said it expects a sequential increase in retail units sold and adjusted EBITDA, leading to “all-time company records on both metrics.” The company said it remains on track to deliver growth on both metrics for the full year.
According to recent data from Cox Automotive, used car prices in March rose to their highest level since the summer of 2023. Prices have ticked down through mid-April, but remain at three-year highs.
As US gas prices remain elevated — they hit the highest level in four years on Tuesday — used car shoppers have become increasingly interested in used EVs.
