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Carvana Co (CVNA) AI Stock Analysis
Carvana Co
(NYSE:CVNA)
The score is driven primarily by improved financial performance (return to solid profitability and positive, growing free cash flow) and a strongly positive earnings call with supportive guidance and record operating results. Offsetting these strengths are mixed technical signals (negative MACD and price below key longer-term moving averages) and a valuation that appears only moderately attractive while balance-sheet leverage and operational scaling constraints remain notable risks.
Carvana Co Key Performance Indicators (KPIs)
Revenue by SegmentBreaks down revenue from different business segments, highlighting which areas are driving growth and where the company might need to improve or expand.
Since early 2024 Carvana has staged a broad recovery across channels: Retail has reclaimed dominance while Wholesale and the 'Other' bucket (ancillaries/finance) have accelerated too, suggesting stronger unit flow and better per-vehicle monetization. That synchronized rebound is encouraging for top-line stability, but faster revenue growth increases inventory, capital intensity and cash-cycle exposure—so watch margin trends and working-capital metrics to see whether scale is translating into sustainable profitability rather than just volume.
The FlyCarvana Co (CVNA) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $79.06B
- Dividend Yield
- ―
- Average Volume (3M)
- 9.04M
- Price to Earnings (P/E)
- 23.4
- Beta (1Y)
- 2.45
- Revenue Growth
- 50.28%
- EPS Growth
- 157.02%
- Country
- US
- Employees
- 23,100
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Dealerships
Carvana Co Business Overview & Revenue Model
Company Description
Carvana Co., along with its subsidiaries, operates a digital platform facilitating the purchase and sale of pre-owned vehicles across the United States. Their comprehensive services span the entire customer journey, including sourcing and recondition...
How the Company Makes Money
Carvana primarily makes money through multiple revenue streams tied to used-vehicle retailing and ancillary services. (1) Used vehicle sales revenue: The largest source of revenue is the sale of used cars to retail customers. Carvana acquires vehicle...
Carvana Co Earnings Call Summary
The call was strongly positive. Carvana delivered record retail units, revenue, operating income, adjusted EBITDA, and net income, strengthened its balance sheet, improved customer experience metrics, and raised confidence in its long-term scale and margin objectives. The main challenges were lower adjusted EBITDA margin, GPU pressure from customer rate givebacks and benchmark rates, higher fuel and logistics costs, and the ongoing difficulty of scaling production and inventory availability. Management nevertheless characterized the path forward as clear and maintained an outlook for a strong finish to 2026.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Carvana said its focus remains on building the machine to deliver 3 million units per year and 13.5% adjusted EBITDA margin, and expects, as long as the environment remains stable, a sequential increase in retail units sold and adjusted EBITDA in the higher end of the previously communicated range of $2.7 billion to $3.0 billion for the full year 2026; management also said the 13.5% EBITDA margin goal maps to 12.5% operating income margins and that it can see its way very clearly to 13.5%.
Carvana Co Financial Statement Overview
Summary
Clear turnaround with TTM revenue growth (~9.6%), positive net margin (~6.2%), and strong TTM net income ($1.7B). Free cash flow is meaningfully positive ($1.11B) and growing, supporting profitability quality, but the balance sheet still carries elevated risk with sizable total debt ($5.62B) and a history of margin/equity volatility.
Income Statement
76PositiveBalance Sheet
63PositiveCash Flow
72Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.45B | 20.32B | 13.67B | 10.77B | 13.60B | 12.81B |
| Gross Profit | 5.23B | 4.19B | 2.71B | 1.72B | 1.00B | 1.83B |
| EBITDA | 407.00M | -110.00M | 1.36B | 1.16B | -2.15B | -5.00M |
| Net Income | 1.71B | 1.41B | 210.00M | 450.00M | -1.59B | -135.00M |
Balance Sheet | ||||||
| Total Assets | 15.20B | 13.20B | 8.48B | 7.07B | 8.70B | 7.01B |
| Cash, Cash Equivalents and Short-Term Investments | 3.05B | 2.81B | 2.18B | 896.00M | 755.00M | 785.00M |
| Total Debt | 5.62B | 5.52B | 6.05B | 6.71B | 8.82B | 5.77B |
| Total Liabilities | 9.54B | 9.00B | 7.11B | 7.46B | 9.75B | 6.49B |
| Stockholders Equity | 4.35B | 3.44B | 1.26B | 243.00M | -518.00M | 306.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.11B | 889.00M | 827.00M | 716.00M | -1.84B | -3.15B |
| Operating Cash Flow | 1.33B | 1.04B | 918.00M | 803.00M | -1.32B | -2.59B |
| Investing Cash Flow | -259.00M | -230.00M | -13.00M | 31.00M | -2.58B | -627.00M |
| Financing Cash Flow | -120.00M | -137.00M | 261.00M | -868.00M | 3.90B | 3.53B |
Carvana Co Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVNA, the sentiment is Positive. The current price of 72.08 is above the 20-day moving average (MA) of 63.01, above the 50-day MA of 65.81, and above the 200-day MA of 68.84, indicating a bullish trend. The MACD of 2.23 indicates Negative momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 85.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVNA.
Carvana Co Risk Analysis
Carvana Co disclosed 42 risk factors in its most recent earnings report. Carvana Co reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksCarvana Co Peers Comparison
Overall Rating
CARG81Outperform- CVNA68Neutral
PAG61Neutral
AN58Neutral
KMX58Neutral
LAD51Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CARG | 81Outperform | $3.25B | 18.07 | 56.25% | ― | 6.01% | 47.62% |
| CVNA | 68Neutral | $85.57B | 23.42 | 43.91% | ― | 50.28% | 157.02% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| PAG | 61Neutral | $13.94B | 15.48 | 16.40% | 2.66% | 6.12% | -3.41% |
| AN | 58Neutral | $5.87B | 8.93 | 31.76% | ― | -1.77% | 22.76% |
| KMX | 58Neutral | $7.83B | 24.69 | 4.80% | ― | 4.09% | -40.01% |
| LAD | 51Neutral | $6.82B | 9.07 | 12.12% | 0.81% | 1.46% | 0.70% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CVNA | Carvana | 72.08 | 7.62 | 11.83% | |
| AN | AutoNation Inc | 188.12 | -4.84 | -2.51% | |
| KMX | CarMax Inc | 52.60 | 19.35 | 58.20% | |
| LAD | Driveway Vehicle Solutions | 316.52 | 23.98 | 8.20% | |
| PAG | Penske Automotive | 212.20 | 58.49 | 38.05% | |
| CARG | Cargurus | 36.15 | 0.73 | 2.06% |
Carvana Co Corporate Events
Carvana Secures $1.66 Billion Term Loan Financing
PositiveOn August 14, 2026, Carvana entered into a new $1.66 billion senior secured Term Loan B facility with a maturity in 2033, arranged by Barclays Bank PLC and a syndicate of lenders. The issue was priced at 99.75% of par and carries interest tied to eit...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 30, 2026