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Carvana: A 40% Unit Jump That Came With A Record And A Margin Warning!

Carvana reported a strong first quarter of 2026, characterized by record operational and financial metrics alongside sustained growth momentum. The company sold a record 187,000 vehicles in the quarter, marking a 40% year-over-year increase and its ninth consecutive quarter of leading retail unit growth in the automotive retail sector. Total revenue rose by 52% to $6.432 billion, a figure influenced by traditional gross revenue treatment related to vehicle acquisitions from a major marketplace partner. Profitability also reached new heights, with GAAP operating income hitting $581 million and adjusted EBITDA reaching $672 million, both setting company records. Despite these gains, adjusted EBITDA margin decreased modestly to 10.4% from 11.5%, and net income margin declined to 6.3% from 8.8% the prior year, attributed partly to revenue composition changes and increases in non-vehicle costs.