From Yahoo Finance: 2025-05-08 13:56:00

Carvana stock surged over 10% near a new 52-week high as profits in Q1 soared due to consumers rushing to buy cars before Trump’s tariffs. CEO Garcia sees potential benefits for Carvana from tariffs on new cars. Retail sales rose 46% to 134K used vehicles sold, driving revenue to $4.23 billion. Adjusted EBITDA more than doubled to $488 million.

Carvana faced a crash post-pandemic due to rapid growth, but rebounded with improved management. The company aims to sell 3 million retail units yearly with an adjusted EBITDA margin of 13.5% in the next 5-10 years. In 2024, Carvana sold 416,000 retail units with an adjusted EBITDA margin of 10.1%.

Looking ahead to Q2, Carvana expects increased retail units sold and adjusted EBITDA, aiming for all-time company records. The company’s adjusted EBITDA figure is boosted by booking loan sales immediately as revenue. Carvana’s long-term goal is ambitious, aiming for significant retail unit sales and profit margin growth.

Read more: Carvana stock surges on strong Q1 earnings