Description

Carvana Co.: Is The Third-Party Marketplace Expansion Its Secret Weapon For Growth? 

Carvana Co.’s latest earnings for Q1 2025 highlighted several key achievements as well as ongoing challenges. The company reported robust growth across several financial metrics, reflecting the effectiveness of its business model in a competitive and fragmented automotive retail industry. On the positive side, Carvana achieved record retail units sold at 133,898, representing a 46% increase year over-year. Revenue also reached a new high of $4.232 billion, a 38% increase from the previous year. This growth is attributed to improvements in customer offerings, increasing market awareness and trust, and expanded inventory selection. The company also reported a significant improvement in adjusted EBITDA, which was $488 million for Q1 2025, marking a 3.8 percentage point increase to an 11.5% adjusted EBITDA margin. This achievement places Carvana within its long-term financial model range of an 8% to 13.5% EBITDA margin, highlighting operational efficiencies and profitability despite a generally seasonally weak quarter.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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