CARVANA (CVNA) Company Report

Gotham City Research alleged Carvana overstated over $1 billion of 2023–2024 earnings through undisclosed related-party transactions, leading to a roughly 14–15% drop in Carvana shares in late January.
Carvana denied the allegations, calling them "inaccurate and intentionally misleading," and confirmed its Feb. 18 earnings release will proceed as planned.
The short seller claims DriveTime produced over $1 billion of negative operating and free cash flow in 2023–2024 and that GoFi, LLC generated nearly 100% of its 2024 revenue from gains on the sale of finance receivables.
Gotham's assertions are based on audited financial statements and other documents for DriveTime and Bridgecrest obtained via Freedom of Information Act requests.

7 days ago

Bloomberg

Carvana Investigated for Securities Fraud Following Short Seller Report

CVNA

Legal Proceedings

Accounting Changes

Securities law firm Bleichmar Fonti & Auld LLP (BFA Law) has announced an investigation into Carvana Co. (NYSE:CVNA) for potential violations of federal securities laws, prompted by claims of accounting improprieties.
The investigation follows a report issued by Gotham City Research LLC on January 28, 2026, which alleged that Carvana's earnings were overstated by over $1 billion due to undisclosed related party transactions and accounting irregularities involving entities like DriveTime, Bridgecrest, and GoFi.
On January 28, 2026, following the report's release, Carvana's stock price dropped over 20%, falling from $474.06 to a low of $374.55 per share.

7 days ago

Press Release

Bleichmar Fonti & Auld LLP Investigates Carvana Co. Following Stock Drop and Gotham City Report

CVNA

Legal Proceedings

Financial Restatement

Demand Weakening

Securities law firm Bleichmar Fonti & Auld LLP has launched an investigation into Carvana Co. (NYSE:CVNA) for potential violations of federal securities laws.
The investigation follows a stock drop of over 20% on January 28, 2026, from $474.06 to a low of $374.55 per share, after Gotham City Research LLC published a report.
The Gotham City report alleges accounting improprieties and claims Carvana overstated its earnings by over $1 billion due to undisclosed related party transactions involving entities like DriveTime, Bridgecrest, and GoFi.

7 days ago

Press Release

Carvana Stock Plunges Amid Short-Seller Accounting Allegations

CVNA

Financial Restatement

Accounting Changes

Delisting/Listing Issues

Short seller Gotham City Research published a report alleging Carvana overstated 2023–24 earnings by more than $1 billion and is heavily dependent on related parties like DriveTime and Bridgecrest.
Carvana dismissed the allegations as "inaccurate and intentionally misleading," stating that related-party transactions were disclosed.
The report led to a sharp market reaction, with Carvana's shares falling by roughly the mid-teens intraday, from an intraday high of $482.31 to about $375.07.
Carvana is scheduled to report fourth-quarter and full-year 2025 results on February 18.

7 days ago

Bloomberg

Carvana Outlines Ambitious Growth Targets and Operational Strategy

CVNA

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Carvana aims to sell 3 million retail vehicles annually within 5 to 10 years, a substantial increase from its current run rate of approximately 600,000 units per year. This growth is expected to be driven by continued operational scaling, including the full build-out of Odessa locations starting in 2026, estimated to cost around $1 billion.
The company targets a 13.5% EBITDA margin and plans to strategically pass back some Gross Profit Per Unit (GPU) gains to customers to further differentiate its offering and expand its market share from the current 1.5% in the 40 million unit per year used car market.
Management views the 2024 and 2025 credit vintages as "pretty good" despite broader market anxiety and is expanding loan sales to new investors to optimize its cost of funds and enhance finance GPU.
AI is extensively used across the business to improve productivity and customer-facing capabilities, supporting the company's long-term growth objectives.

Nov 18, 2025, 8:00 PM

Transcript

Carvana Outlines Growth Strategy, Operational Scaling, and Financial Targets at Wells Fargo Summit

CVNA

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

Carvana aims to sell 3 million retail vehicles annually within 5 to 10 years, representing a 5X increase from current levels and requiring 20-40% compounded growth. This growth will be supported by operational scaling, including continually growing inspection centers, with a projected $1 billion in capital expenditure for the full build-out of Odessa locations to achieve 3 million total reconditioning capacity.
The company targets 13.5% EBITDA margins, driven by leveraging overhead and unlocking fundamental gains, with plans to pass some gains back to customers to further differentiate its offering and drive market share.
AI is extensively used across the business, significantly enhancing productivity in areas like modeling (generating models 100x faster) and developer output, as well as improving customer-facing capabilities.
Despite broader market anxiety, Carvana's internal data indicates that consumer credit is performing better than the general narrative, particularly for 2024 and 2025 vintages, following credit tightening in late 2023/early 2024.

Nov 18, 2025, 8:00 PM

Transcript

Carvana (CVNA) Outlines Growth Strategy and Financial Targets at Wells Fargo Summit

CVNA

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Carvana (CVNA) aims to achieve 3 million retail vehicle sales annually within 5-10 years, a substantial increase from its current run rate of approximately 600,000 units per year.
The company plans to invest approximately $1 billion in capital expenditure for the full build-out of ADESA locations to support the 3 million unit reconditioning capacity, highlighting the operational intensity of its growth strategy.
Carvana targets a 13.5% EBITDA margin and intends to strategically pass some Gross Profit Per Unit (GPU) gains back to customers to enhance its offering and capture market share.
The CEO believes consumer credit appears stronger than the general narrative suggests, with 2024 and 2025 loan vintages performing "pretty good".

Nov 18, 2025, 8:00 PM

Transcript

Carvana Reports Strong Q3 Results and Provides Q4 Guidance

CVNA

Earnings

Guidance Update

Revenue Acceleration/Inflection

Carvana reported a record-breaking third quarter with a 44% year-over-year increase in retail units sold to nearly 156,000 cars and a 55% jump in revenue to approximately $5.65 billion. The company achieved net income of about $263 million and adjusted EBITDA of $637 million, with adjusted EBITDA margins of approximately 11.3%.
Growth was primarily driven by its vertically integrated eCommerce platform, which enhances customer experience, expands inventory, and improves delivery speeds, alongside continuously improving customer offerings, increasing awareness, trust, and expanding inventory selection.
Despite strong third-quarter results, Carvana's stock experienced volatility due to high expectations and a cautious outlook for the fourth quarter, with guidance for at least 150,000 units sold and adjusted EBITDA near $2.0–$2.2 billion for the year.
Carvana has an ambitious long-term goal of achieving 3 million unit sales within the next 5 to 10 years.

Oct 30, 2025, 2:40 AM

Bloomberg

Carvana Reports Q3 2025 Financial Results

CVNA

Earnings

Revenue Acceleration/Inflection

Carvana reported 155,941 retail units sold in Q3 2025.
Total GAAP Gross Profit per Unit (GPU) was $7,362 in Q3 2025, representing a $65 decrease compared to Q3 2024.
Total Non-GAAP SG&A Expense per Unit decreased by $319 year-over-year to $3,418 in Q3 2025.

Oct 29, 2025, 9:30 PM

Presentation

Carvana Reports Record Q3 2025 Results and Strong Outlook

CVNA

Earnings

Guidance Update

Revenue Acceleration/Inflection

Carvana reported record Q3 2025 results, with retail units sold increasing 44% year-over-year to 155,941 and revenue growing 55% to $5.647 billion.
The company achieved record GAAP operating income of $552 million and Adjusted EBITDA of $637 million in Q3 2025.
Carvana significantly strengthened its balance sheet by retiring $1.2 billion in corporate debt in 2024 and 2025, ending Q3 2025 with over $2.1 billion in cash and a net debt to trailing 12-month adjusted EBITDA ratio of 1.5 times.
For Q4 2025, Carvana expects retail units sold above 150,000 and full-year 2025 Adjusted EBITDA at or above the high end of $2 billion to $2.2 billion.
Carvana expanded loan sale partnerships for up to $14 billion of future loan principal, including an upsized agreement with Ally Financial to $6 billion through October 2027.