Carvana Co. (CVNA) is a leading e-commerce platform specializing in the buying and selling of used cars. The company provides a seamless, customer-centric experience by leveraging technology to offer vehicle research, financing, purchasing, and delivery services. Carvana also operates a proprietary logistics network and patented vending machines to enhance efficiency and brand recognition.
- Retail Vehicle Sales - Sells used vehicles directly to customers through its online platform, offering a transparent and convenient purchasing experience.
- Wholesale Sales and Revenues - Sells trade-ins and other vehicles acquired from customers that do not meet retail inventory standards, as well as revenue from its wholesale marketplace platform.
- Other Sales and Revenues - Includes gains from the sale of finance receivables and commissions on ancillary products such as vehicle service contracts (VSCs), GAP waiver coverage, and auto insurance.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ernest Garcia III ExecutiveBoard | President, CEO, and Chairman | None | Co-founder of Carvana in 2012; previously held roles at DriveTime Automotive Group; Stanford graduate in Management Science and Engineering. | View Report → |
Benjamin Huston Executive | Chief Operating Officer (COO) | None | Co-founder of Carvana in 2012; previously co-founded Looterang and worked at Latham & Watkins LLP; holds a J.D. from Harvard and a B.A. from Stanford. | |
Daniel Gill Executive | Chief Product Officer | None | Joined Carvana in 2015; previously co-founded Huddler and worked at Inflection; Stanford graduate in Biology. | |
Mark Jenkins Executive | Chief Financial Officer (CFO) | None | Joined Carvana in 2014; previously a finance professor at Wharton and worked at The Brattle Group; holds a Ph.D. in Economics from Stanford and a B.S.E. from Duke. | |
Paul Breaux Executive | VP, General Counsel, and Secretary | None | Joined Carvana in 2015; previously practiced law at Andrews Kurth LLP; holds a J.D. from Harvard and dual degrees from the University of Texas at Austin. | |
Ryan Keeton Executive | Chief Brand Officer | None | Co-founder of Carvana in 2012; focuses on brand strategy and marketing initiatives. | |
Tom Taira Executive | President, Special Projects | None | Joined Carvana in 2018 after Propel AI acquisition; previously co-founded TrueCar and Honk LLC; holds a B.A. from UC Irvine and an MBA from Georgetown. | |
Dan Quayle Board | Director | Chairman of Cerberus Global Investments | Former Vice President of the United States (1989–1993); extensive experience in government and private investment; holds a B.A. from DePauw University and a J.D. from Indiana University. | |
Gregory Sullivan Board | Director | CEO of AFAR | Co-founder and CEO of AFAR; previously held leadership roles at DriveTime; holds a B.B.A. from Notre Dame and a J.D. from the University of Virginia. | |
Ira Platt Board | Director | President of Georgiana Ventures, LLC | President of Georgiana Ventures; extensive experience in specialty finance and investment; previously held senior roles at RBS Greenwich Capital and Aegis Consumer Funding Group. | |
Michael Maroone Board | Lead Director | CEO of Maroone U.S.A. LLC; Chairman of Cleveland Clinic Florida; Member of Cleveland Clinic Enterprise Board | Former President and COO of AutoNation; extensive experience in automotive retail; University of Colorado Boulder graduate. | |
Neha Parikh Board | Director | None | Former CEO of Waze (2021–2023); previously served on the board of Tailwind Acquisition Corp.; holds a business degree from UT Austin and an MBA from Kellogg School of Management. |
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Given that you've historically grown units from Q2 to Q3, but are expecting seasonality to impact unit growth now despite adding production capacity and hiring more technicians, can you explain why you're anticipating seasonality at this stage?
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With SG&A expenses remaining flat while retail units sold increased by 33% , how sustainable is this level of SG&A leverage as you continue to scale, especially considering you're carrying capacity for approximately 3x retail unit sales?
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Can you elaborate on the potential impact of credit tightening on your business going forward, and whether you anticipate making further adjustments to your credit policies in light of performance trends?
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As you plan to pass back value to customers from future fundamental gains, how do you intend to balance this with the need to drive profitability, and what specific areas are you targeting for these gains?
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Given that you're operating below your target available website inventory due to strong demand and limited production capacity , what are the specific gating factors preventing you from scaling production more rapidly to meet customer demand?
Research analysts who have asked questions during CARVANA earnings calls.
Rajat Gupta
JPMorgan Chase & Co.
5 questions for CVNA
Sharon Zackfia
William Blair & Company
5 questions for CVNA
Brian Nagel
Oppenheimer & Co. Inc.
4 questions for CVNA
Daniela Haigian
Morgan Stanley
4 questions for CVNA
Marvin Fong
BTIG, LLC
4 questions for CVNA
Michael McGovern
Bank of America
4 questions for CVNA
Christopher Bottiglieri
BNP Paribas
3 questions for CVNA
Jeffrey Lick
Stephens Inc.
3 questions for CVNA
Michael Baker
D.A. Davidson & Co.
3 questions for CVNA
Alexander Potter
Piper Sandler Companies
2 questions for CVNA
Andrew Boone
JMP Securities
2 questions for CVNA
Brad Erickson
RBC Capital Markets
2 questions for CVNA
Chris Bottiglieri
BNP Paribas
2 questions for CVNA
Chris Pierce
Needham & Company
2 questions for CVNA
Jeff Lick
Stephens Inc.
2 questions for CVNA
John Colantuoni
Jefferies
2 questions for CVNA
Michael Montani
Evercore ISI
2 questions for CVNA
Ronald Josey
Citigroup Inc.
2 questions for CVNA
Ron Josey
Citigroup Inc.
2 questions for CVNA
Seth Basham
Wedbush Securities
2 questions for CVNA
Adam Jonas
Morgan Stanley
1 question for CVNA
Alex Potter
Piper Sandler & Co.
1 question for CVNA
Christopher Pierce
Needham & Company
1 question for CVNA
John Healy
Northcoast Research
1 question for CVNA
Nicholas Jones
Citizens JMP
1 question for CVNA
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
ADESA U.S. physical auction business (acquired by Carvana) | 2022 |
Recent press releases and 8-K filings for CVNA.
- Jefferies analyst John Colantuoni upgraded Carvana (CVNA) from Hold to Buy, raising the price target from $385 to $475, signaling a potential upside of over 20%.
- The upgrade is based on projections for elevated revenue and EBITDA growth, with 2027 estimates notably above consensus, and Carvana's ability to capitalize on the growing shift to digital in the $800 billion used car market.
- Carvana's recent performance includes a 41% year-over-year increase in retail unit sales in Q2 2025 and the expansion of same-day delivery services to multiple metropolitan areas.
- The $475 price target is justified by an Enterprise Value (EV)/EBITDA (2027) multiple of 28x, which reflects a 25% premium to the peer-based growth-adjusted multiple.
- Record Q1 performance with approximately 134,000 retail units sold and industry-leading 11.5% adjusted EBITDA margin, highlighting substantial growth since its public debut in 2017.
- New medium-term objective to sell 3,000,000 cars per year within five to ten years at 13.5% adjusted EBITDA margin, reflecting a strategic shift following achievement of previous targets.
- Operational enhancements through significant investments in vertical integration and a national footprint via the ADESA physical auction network, supporting scalable production capacity.
- Long-term targets: The executives outlined a goal to reach 3 million units in 5-10 years, driven by expanding production capacity (e.g., growing from 23 to 35 and eventually 60 reconditioning centers) and steady unit production increases ( ).
- Steady margins and economics: The company emphasized its focus on maintaining consistent unit economics with a target of around 13.5% EBITDA margin, achieved through efficient operational execution despite competitive pressures ( ).
- Supply chain and inventory strategy: Management discussed sourcing used cars through a diversified channel approach—including off-lease returns and potential franchise acquisitions—to ensure a robust supply base without significant disruption ( ).
- Lending and data utilization: Improvements in gain on sale margins have been attributed to better credit scoring, enhanced verification processes, and leveraging the company’s extensive transaction data to drive tech-enabled efficiencies ( , ).
- Record performance: Carvana achieved record Q1 2025 results with net income of $373 million (8.8% margin), record retail unit sales of 133,898 (up 46% YoY), and record revenue of $4.232 billion .
- Strong profitability: Adjusted EBITDA reached $488 million with an 11.5% margin, aligning with long-term guidance .
- GPU highlights: Q1 2025 saw GAAP GPU of $6.94B and Non‐GAAP GPU at $7.14B .
- SG&A efficiency: Reduced expense per retail unit to $3,996 GAAP per unit .
- Ambitious growth target: Long-term goal to sell 3M retail units annually at a 13.5% Adjusted EBITDA margin within 5–10 years .
- Strategic initiatives: Continued investments in operational efficiencies, customer experience enhancements, and infrastructure expansion .