Carvana Co. — research brief (BMC #088 on gallery, queue id 88)

Prepared 2026-10-11 (America/Chicago). Labels: FACT = stated in an SEC filing (Carvana Form 10-K for fiscal 2025, audited, filed Feb 18, 2026; Form 10-Q for the quarter ended Jun 30, 2026, unaudited, filed Jul 29, 2026). SECONDARY = third-party data cited in the 10-K (Cox Automotive market size). INFERENCE = ratios or interpretation computed by this project.

Sources (accessed 2026-10-11)

Carvana Form 10-K FY2025: https://www.sec.gov/Archives/edgar/data/1690820/000169082026000009/cvna-20251231.htm
Carvana Form 10-Q, quarter ended Jun 30, 2026: https://www.sec.gov/Archives/edgar/data/1690820/000169082026000055/cvna-20260630.htm
Logo: project monogram ("C" on a blue tile), not Carvana's official mark. Trademark of its owner; identification only.

Teaching arc

Carvana sells used cars it buys, reconditions and delivers itself, and earns far more per car by also selling the customer's loan and add-on products. Retail margin is thin; scale, loan-sale gains and wholesale make the model profitable.

Key figures — FY2025 (year ended Dec 31, 2025)

Net sales and operating revenues $20,322M (+48.6% vs $13,673M; 2023 $10,771M): retail vehicle sales $14,537M (72%, +50.2%), wholesale sales and revenues $4,052M (20%, +42.6%), other sales and revenues $1,733M (9%, +50.6%) (FACT).
Gross profit $4,192M (+45.8%): retail $1,978M, wholesale $481M, other $1,733M (100% gross margin). Gross margin 20.6% (INFERENCE).
Retail units 596,641 (+43.3%); wholesale units 297,643; retail revenue per unit $24,365; wholesale revenue per unit $10,519; total gross profit per retail unit $7,026 (retail $3,315, wholesale $806, other $2,905) (FACT).
Wholesale marketplace: 1,006,551 units transacted, revenue $921M, gross profit $179M (FACT).
SG&A $2,308M: compensation and benefits $830M, advertising $363M (2024: $229M), market occupancy $68M, logistics $162M, other $885M. SG&A per retail unit about $3,868 (INFERENCE) (FACT for components).
Operating income $1,881M (2024: $990M); interest expense, net $505M (2024: $651M); other expense, net $2.3B mainly $2.2B Tax Receivable Agreement expense (non-cash); net income $1,407M (2024: $210M) (FACT).
Adjusted EBITDA $2,237M, 11.0% margin (company non-GAAP, FACT).
Operating cash flow $1,036M; capital purchases $147M; difference about $889M (INFERENCE). Cash and equivalents $2,327M at Dec 31, 2025 (FACT).
Gain on finance receivables sold or securitized: $1.2B (2025), $755M (2024), $434M (2023), inside other sales and revenues (FACT).
Average monthly unique visitors 18.5M; total website units 75,683 at year end; over 75,000 cars listed; over 23,100 employees; 51 U.S. patents; 16 of 56 acquired ADESA sites built out as reconditioning sites (FACT).
About 37M U.S. used retail transactions in 2024 per Cox Automotive; top 10 used retailers under 10% share (SECONDARY, cited in 10-K).

H1 2026 (six months ended Jun 30, 2026, unaudited, not annualized)

Revenue $13,808M vs $9,072M; Q2 revenue $7,376M vs $4,840M. Retail units 384,718 vs 277,178. Operating income $1,261M vs $905M; net income $918M vs $681M. Gain on finance receivables sold $703M vs $547M (FACT).

Related parties and structure

DriveTime (controlled by the Garcia Parties, who control Carvana): leases, vehicle service contract administration, loan servicing, vehicle and receivable trades; terms not assumed arm's length (FACT).
Root, Inc.: insurance on Carvana's site; commissions plus Root Warrants (FACT).
Tax Receivable Agreement: 85% of realized tax benefits owed to LLC unitholders (FACT).

Not stated / not used

No valuation, no market share of its own beyond the 10-K statements, no unit economics beyond the 10-K metrics, no annualizing of half-year figures.

# Carvana Co. — research brief (BMC #088 on gallery, queue id 88) Prepared 2026-10-11 (America/Chicago). Labels: **FACT** = stated in an SEC filing (Carvana Form 10-K for fiscal 2025, audited, filed Feb 18, 2026; Form 10-Q for the quarter ended Jun 30, 2026, unaudited, filed Jul 29, 2026). **SECONDARY** = third-party data cited in the 10-K (Cox Automotive market size). **INFERENCE** = ratios or interpretation computed by this project. ## Sources (accessed 2026-10-11) - Carvana Form 10-K FY2025: https://www.sec.gov/Archives/edgar/data/1690820/000169082026000009/cvna-20251231.htm - Carvana Form 10-Q, quarter ended Jun 30, 2026: https://www.sec.gov/Archives/edgar/data/1690820/000169082026000055/cvna-20260630.htm - Logo: project monogram ("C" on a blue tile), **not** Carvana's official mark. Trademark of its owner; identification only. ## Teaching arc **Carvana sells used cars it buys, reconditions and delivers itself, and earns far more per car by also selling the customer's loan and add-on products. Retail margin is thin; scale, loan-sale gains and wholesale make the model profitable.** ## Key figures — FY2025 (year ended Dec 31, 2025) - Net sales and operating revenues $20,322M (+48.6% vs $13,673M; 2023 $10,771M): retail vehicle sales $14,537M (72%, +50.2%), wholesale sales and revenues $4,052M (20%, +42.6%), other sales and revenues $1,733M (9%, +50.6%) (FACT). - Gross profit $4,192M (+45.8%): retail $1,978M, wholesale $481M, other $1,733M (100% gross margin). Gross margin 20.6% (INFERENCE). - Retail units 596,641 (+43.3%); wholesale units 297,643; retail revenue per unit $24,365; wholesale revenue per unit $10,519; total gross profit per retail unit $7,026 (retail $3,315, wholesale $806, other $2,905) (FACT). - Wholesale marketplace: 1,006,551 units transacted, revenue $921M, gross profit $179M (FACT). - SG&A $2,308M: compensation and benefits $830M, advertising $363M (2024: $229M), market occupancy $68M, logistics $162M, other $885M. SG&A per retail unit about $3,868 (INFERENCE) (FACT for components). - Operating income $1,881M (2024: $990M); interest expense, net $505M (2024: $651M); other expense, net $2.3B mainly $2.2B Tax Receivable Agreement expense (non-cash); net income $1,407M (2024: $210M) (FACT). - Adjusted EBITDA $2,237M, 11.0% margin (company non-GAAP, FACT). - Operating cash flow $1,036M; capital purchases $147M; difference about $889M (INFERENCE). Cash and equivalents $2,327M at Dec 31, 2025 (FACT). - Gain on finance receivables sold or securitized: $1.2B (2025), $755M (2024), $434M (2023), inside other sales and revenues (FACT). - Average monthly unique visitors 18.5M; total website units 75,683 at year end; over 75,000 cars listed; over 23,100 employees; 51 U.S. patents; 16 of 56 acquired ADESA sites built out as reconditioning sites (FACT). - About 37M U.S. used retail transactions in 2024 per Cox Automotive; top 10 used retailers under 10% share (SECONDARY, cited in 10-K). ## H1 2026 (six months ended Jun 30, 2026, unaudited, not annualized) - Revenue $13,808M vs $9,072M; Q2 revenue $7,376M vs $4,840M. Retail units 384,718 vs 277,178. Operating income $1,261M vs $905M; net income $918M vs $681M. Gain on finance receivables sold $703M vs $547M (FACT). ## Related parties and structure - DriveTime (controlled by the Garcia Parties, who control Carvana): leases, vehicle service contract administration, loan servicing, vehicle and receivable trades; terms not assumed arm's length (FACT). - Root, Inc.: insurance on Carvana's site; commissions plus Root Warrants (FACT). - Tax Receivable Agreement: 85% of realized tax benefits owed to LLC unitholders (FACT). ## Not stated / not used - No valuation, no market share of its own beyond the 10-K statements, no unit economics beyond the 10-K metrics, no annualizing of half-year figures.