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Carvana Reports First GAAP Profitable Quarter; Shares Jump 40%

May 1, 2024, 08:44 PM

Carvana Co. reported a significant financial turnaround with its first quarter results, marking its first GAAP profitable quarter. The used car retailer posted a net income of $49 million and an Adjusted EBITDA of $235 million, achieving a positive net income margin and an industry-leading Adjusted EBITDA margin. This performance represents a 16% year-over-year increase in retail units sold, totaling 91,878 vehicles. Despite reduced marketing expenditures and constrained inventory, the company managed to deliver record profitability metrics. Carvana CEO stated, 'In the first quarter, we delivered our best financial results in company history...We returned to growth, growing 16%.' Following the announcement, Carvana's stock surged by approximately 40% in after-hours trading, and the company expects sequential increases in its performance.