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Carvana’s $3 Billion Profit Engine Is Humming—But Rates Could Hit The Brakes!

Carvana has staged one of the more striking operating recoveries in U.S. auto retail. After spending years associated with heavy debt, restructuring concerns, and questions around the sustainability of its business model, the online used-car retailer is now growing faster than the broader industry while generating substantial profits. In the second quarter of 2026, retail units sold jumped 38% year over year to 197,325, while revenue climbed 52% to a record $7.38 billion. Adjusted EBITDA reached $769 million, taking the annualized run rate above $3 billion for the first time. Yet the comeback is encountering an increasingly important challenge: higher interest rates. Financing is deeply connected to vehicle affordability, customer demand, and Carvana’s per-unit economics, creating a difficult balancing act between protecting margins and keeping monthly payments attractive.