Carvana announced record financial results for the second quarter of 2026, reporting an all-time high net income of $513 million, a 66.6% increase ($205 million) year-over-year. The company's total revenue surged by 52% to $7.376 billion, also a quarterly record. These figures significantly surpassed analyst expectations, with earnings per share reaching $0.42, beating estimates of $0.41, and revenue exceeding the $7.04 billion forecast by over $335 million.
The strong performance was underpinned by a substantial increase in retail unit sales, which grew by 38% year-over-year to 197,325 units. This growth fueled a record GAAP operating income of $680 million, up $169 million from the previous year, and an adjusted EBITDA of $769 million, an increase of $168 million. The adjusted EBITDA margin stood at 10.4%.
Despite the record quarterly results, Carvana's stock fell by nearly 15% after the announcement. This decline was attributed to the company's full-year 2026 adjusted EBITDA guidance of $2.7 billion to $3.0 billion, which Wall Street found to be below expectations. However, CEO Ernie Garcia noted that Carvana's current run-rate scale of almost 800,000 retail units and over $2 billion in net income still represents only 1.5% of the U.S. automotive market, highlighting significant future growth potential. The company expects a sequential increase in retail units sold in Q3, provided market conditions remain stable.
