Carvana sees sequential increase in adjusted EBITDA in Q2

Carvana Co. presented today at the William Blair 44th Annual Growth Stock Conference, sharing progress and updates, including: Efficiency-driven growth. Despite continued focus on profitability initiatives and unit economics, Carvana grew retail units by 16% YoY in Q1, driven in part by improvements in conversion and customer experience. Substantial YoY improvements in unit economics. In Q1, non-GAAP GPU increased 42%, non-GAAP SG&A per unit decreased 17%, and Adjusted EBITDA Margin increased 860 bps. The company reiterated its expectation of a sequential increase in its YoY growth rate in retail units and a sequential increase in Adjusted EBITDA in Q2. Carvana’s Adjusted EBITDA provides significant financial flexibility that allows the company to de-lever over time. The company previously announced its intention to pay cash interest on 2028 and 2030 Senior Secured Notes for interest payments beginning in 2025. In Q2, Carvana repurchased $250 million, or 24% of 2028 Senior Secured Notes and raised $350M of equity capital through its at-the-market program. Carvana expects these combined actions to lead to ~$55M of interest expense savings in 2026 and $620M less debt outstanding at year-end 2026. Beyond these steps, the company plans to continue to reduce leverage over time.