CVNA

It has been about a month since the last earnings report for Wayfair (W). Shares have lost about 12.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Wayfair due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Wayfair Inc. before we dive into how investors and analysts have reacted as of late. Wayfair reported second-quarter 2026 earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 94 cents. Net revenues for the second quarter of 2026 rose 7.5% year over year to $3.52 billion, surpassing the Zacks Consensus Estimate of $3.47 billion by 1.41%.The outperformance was driven by accelerating U.S. demand, sustained market share gains and outsized growth from the company's specialty and luxury brands, including Perigold.Last Twelve Months (LTM) net revenues per active customer increased 4.2% year over year to $596 as of June 30, 2026. The active customer base rose 3.3% year over year to 21.7 million. Net revenues in the United States (88.8% of total net revenues) increased 8.7% year over year to $3.13 billion, the strongest growth the segment has posted in the post-pandemic period. International net revenues (11.2% of total net revenues) declined 1.3% year over year to $394 million. On a constant currency basis, international revenues declined 2% year over year.Orders per customer (LTM orders delivered divided by active customers) were 1.89 for the quarter, up from 1.86 in the second quarter of 2025. The average order value expanded from $328 to $332 year over year.Total orders delivered in the second quarter were 10.6 million, up 6% year over year. Repeat customers placed 8.5 million orders (80.2% of total orders delivered), representing an increase of 4.9% year over year compared with 80.7% of total orders in the second quarter of 2025. Mobile orders accounted for 64.1% of total orders delivered, up from 62.9% in the second quarter of 2025. Wayfair's second-quarter gross profit was $1.05 billion, representing a gross margin of 30%, which contracted 10 basis points year over year. Non-GAAP Contribution Profit was $539 million, or 15.3% of net revenues, representing a contribution margin improvement of 10 basis points year over year. Adjusted EBITDA was $242 million in the reported quarter, up 18% year over year, representing an adjusted EBITDA margin of 6.9%, which expanded 60 basis points year over year and marked the company's best margin performance since 2021.Customer service and merchant fees represented 3.6% of net revenues. Advertising expenses represented 11.1% of net revenues, an improvement of roughly 30 basis points from the second quarter of 2025. Selling, operations, technology and general and administrative (SOT G&A) expenses were $361 million for the quarter, delivering 100 basis points of leverage against the prior-year period.Wayfair reported a GAAP net loss of $1 million for the second quarter against GAAP net income of $15 million in the second quarter of 2025. GAAP loss per share was 1 cent versus earnings of 11 cents a year earlier. Second-quarter results included a $59 million loss on debt extinguishment tied to the repurchase of 2028 convertible notes. As of June 30, 2026, cash and cash equivalents were $1.07 billion, and short-term investments were $78 million, bringing the combined total to $1.14 billion compared with $1.06 billion as of March 31, 2026. Total liquidity reached $1.6 billion, including availability under the revolving credit facility, up from $1.5 billion as of March 31, 2026.Long-term debt as of June 30, 2026, was $2.8 billion compared with $2.93 billion as of March 31, 2026, reflecting the redemption of the remaining 2028 convertible notes, funded in part through the issuance of a $400 million high-yield note.Net cash provided by operating activities was $360 million in the second quarter, up from $273 million in the second quarter of 2025. Non-GAAP free cash flow was $301 million, up more than 30% year over year and the strongest quarterly figure since the second quarter of 2020. Capital expenditures totaled $59 million for the quarter. For the third quarter of 2026, Wayfair expects revenues to grow in the high single digits year over year.The company expects gross margin in the range of 29.5% to 30.5% of net revenues, with results likely landing toward the lower end as investment in the customer experience, including the loyalty program, continues.Customer service and merchant fees are expected to be just below 4% of net revenues, while advertising is expected in the 10.5% to 11.5% range, also toward the low end. Together, this should yield a contribution margin in line with or slightly better than the second quarter. SOT G&A is expected to hold in the $360 million to $370 million range.Adjusted EBITDA margin is guided in the 6% to 7% range for the third quarter. Since the earnings release, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 71.26% due to these changes. Currently, Wayfair has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wayfair has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Wayfair is part of the Zacks Internet - Commerce industry. Over the past month, Carvana (CVNA), a stock from the same industry, has gained 6.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Carvana reported revenues of $7.38 billion in the last reported quarter, representing a year-over-year change of +52.4%. EPS of $0.42 for the same period compares with $0.26 a year ago. For the current quarter, Carvana is expected to post earnings of $0.49 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days. Carvana has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wayfair Inc. (W) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Carvana (CVNA). Shares have added about 20.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Carvana due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Carvana Co. before we dive into how investors and analysts have reacted as of late. Carvana reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing. Retail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052. Total gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million. However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively. Operating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed. Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose. Inventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location. The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027. Cash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million. For the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035. In the past month, investors have witnessed a flat trend in estimates revision. The consensus estimate has shifted 7.89% due to these changes. At this time, Carvana has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Carvana has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Carvana stock has delivered a very large 3 year return, yet current valuation checks lean expensive and raise questions about how much of that recovery is already priced in. Carvana has returned about 7.7x over the past 3 years, which sets a high bar for any further upside case grounded in fundamentals. Recent headlines about record operating metrics and a large debt refinancing can support confidence in the business. At the same time, the federal investigation involving minority investor Mark Walter introduces an external risk that may affect sentiment and liquidity around the stock. Across Simply Wall St’s broader checks, Carvana scores 0 out of 6 on value, which points to a company that does not screen as a clear bargain on the usual valuation filters. The issue now is whether Carvana's current share price still offers enough compensation for the risks after such a strong 3 year run. Carvana delivered 4.0% returns over the last year. See how this stacks up to the rest of the Specialty Retail industry. The P/E ratio is a useful cross check for Carvana because the market is currently valuing the business on reported earnings rather than only on sales or assets. Carvana trades on a P/E of 32.3x, compared with an industry average for Specialty Retail of 19.5x and a peer average of 18.8x. That is a sizeable premium to both the broader sector and closer listed peers. The fair P/E that falls out of Simply Wall St’s model for Carvana is 27.0x. This suggests the current 32.3x is above what might be expected after adjusting for the company’s growth profile, margins, risk and size. Despite the recent drop linked to the investigation into minority investor Mark Walter, the market is still putting a relatively full earnings multiple on Carvana stock compared with these benchmarks. On this P/E test, Carvana stock screens as overvalued relative to what the tailored fair multiple and sector averages suggest. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Carvana pick up where the P/E puzzle leaves off by spelling out what would need to happen with Carvana's future growth, margins and earnings for the stock to be worth materially more or less than it is today. Rather than stopping at a single output from a ratio or model, they unpack the future that number assumes so you can track over time whether that path is still playing out. These Narratives sit on Simply Wall St's Community page. Community views on Carvana are sharply split, with one side focused on digital scale and the other on balance sheet and accounting risk. Bull case: 15% undervalued Read the full Bull Case to see why Carvana could be undervalued Bear case: 15% undervalued Read the full Bear Case to see why Carvana could be overvalued Do you think there's more to the story for Carvana? Head over to our Community to see what others are saying! Carvana now trades on a richer P/E multiple than its sector and peer group, so the market is already pricing in a lot of optimism around earnings. With broader valuation checks screening weak, the burden of proof sits with future execution on margins and balance sheet discipline rather than simple multiple expansion. For potential investors, the key question is whether Carvana can deliver the level of sustainable profitability that would make this premium look reasonable instead of stretched. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CVNA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

The S&P 500 (SNPINDEX:^GSPC) fell 0.50% to 7,747, the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 0.31% to 26,647, and the Dow Jones Industrial Average (DJINDICES:^DJI) lost 0.51% to 53,460 as indices drifted near record levels ahead of pivotal retail corporate earnings reports. Gold prices rose 0.80% to $4,472.90 as of U.S. market close, and the 10-Year Treasury yield climbed 0.05% to 4.68% while Industrials led sector gainers, Communication Services finished as the primary laggard, and Utilities also fell. Space Exploration Technologies (NASDAQ:SPCX) shares rebounded 4.5% on new positive notes from analysts, while Carvana (NYSE:CVNA) was today's biggest loser on the S&P 500, dropping 7.3%. Sandisk (NASDAQ:SNDK) gained 9% as memory chipmakers showed strength, though Meta Platforms (NASDAQ:META) faced selling pressure amid broader communications sector weakness. It was a largely unspectacular day for the market, as investors mostly seemed curious to see how earnings from retailers like Walmart (NASDAQ:WMT), Home Depot (NYSE:HD), and Target (NYSE:TGT) will turn out this week. In this sense, it seemed like a "risk-off" day as the market took a wait-and-see approach on further buying. The U.S. 30-year Treasury yield hit 5.3% -- its highest mark since 2007 -- highlighting this cautious stance. As bond yields rise alongside the potential for rising interest rates from the Fed, it will be interesting to see how growth stocks fare -- especially those tied to the AI realm. Really, there was no single major event that caused the market to dip today. With U.S. markets still near an all-time high, today's breather is nothing to panic over one way or the other. Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. Josh Kohn-Lindquist has positions in Space Exploration Technologies. The Motley Fool has positions in and recommends Home Depot, Meta Platforms, Target, and Walmart. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 17: Markets Inch Lower and Treasury Yields Rise as Investors Wait for Retail Earnings was originally published by The Motley Fool

E-commerce used vehicle retailer Carvana CVNA reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing. Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote Retail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052. CVNA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Total gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million. However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively. Operating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed. Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose. Inventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location. The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027. Cash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million. For the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035. General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50. Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Ford F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Carvana (CVNA) shares are taking a meaningful hit on Thursday as management’s muted future guidance overshadows an otherwise record-breaking Q2 financial release. CVNA posted a 52% year-over-year increase in revenue to $7.38 billion on a record 197,325 retail units sold and $513 million in net income. Still, the online used-car retailer guided for $2.7 billion to $3 billion in full-year adjusted EBITDA, missing the consensus estimate set at $2.99 billion. Nebius Stock Gets Another Wall Street Upgrade. Here’s Why Investors Are Paying Attention. Employees Reveal That Blue Origin Stock Is Worthless Just Weeks After SpaceX IPO Turned Employees Into Millionaires Dear Rivian Stock Fans, Mark Your Calendars for July 30 Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. The quarterly print adds to pressure on Carvana shares, which have already had a terrible first half of 2026, currently down a little under 40% versus their year-to-date high in late January. Investors are bailing on CVNA shares also because the firm’s adjusted EBITDA margin contracted by 200 bps in the second quarter to 10.4%, while total non-GAAP gross profit per unit (GPU) fell $455. On the earnings call, management took a cautious view on the consumer environment and cited pressure on non-retail GPU components and temporary inventory rebalancing costs for the muted outlook. Note that Carvana now sits firmly below its major moving averages (MAs), with an RSI in the late 30s indicating intense selling pressure. For long-term investors, Needham’s senior analyst Chris Pierce dubbed the post-earnings selloff in Carvana shares a classic “buy the dip” opportunity in a research note today. According to him, the company remains “well-positioned” to achieve its target of 3 million annual retail sales at a market-leading 12.6% margin. At 3.5x sales, CVNA is undervalued relative to its infrastructure advantages, proprietary AI-driven logistics, and an expanding nationwide network, he told clients. All in all, Needham maintained a “Buy” rating on Carvana with a $120 price target, suggesting it could more than double the current level over the next 12 months. While not nearly as positive as Needham, other Wall Street firms have not thrown in the towel on CVNA stock either. The consensus rating on Carvana remains at “Moderate Buy,” with the mean price target of about $91 indicating potential for a more than 50% rally in the second half of 2026. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Carvana Co. CVNA discussed execution, inventory expansion and operational improvements during its second-quarter 2026 earnings call, with management emphasizing the need to scale its operating platform to support continued growth. The company reported earnings per share of $0.42 versus the Zacks Consensus Estimate of $0.42, while revenue came in at $7.38 billion compared with the Zacks Consensus Estimate of $6.99 billion. Revenue surpassed expectations by approximately 5.6%. Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote CEO Ernest Garcia said Carvana sold nearly 200,000 vehicles during the quarter, with the company focused on expanding inventory availability and strengthening execution across its network. Garcia explained that inventory growth supports a broader operating cycle by improving customer selection, conversion rates, marketing efficiency and logistics performance. Management reiterated its long-term goal of expanding the platform’s capacity while maintaining profitability. Carvana delivered record second-quarter retail units of 197,325, up 38% year over year, and revenue of $7.376 billion, up 52% year over year. CFO Mark Jenkins said growth was driven by improved customer experience, stronger awareness and increasing inventory selection. He also highlighted continued operating leverage as the company scaled. The company posted record net income of $513 million and adjusted EBITDA of $769 million. Adjusted EBITDA margin was 10.4%, while net income margin improved to 7.0%. Management identified inventory availability as a key operational priority after inventory growth trailed sales growth. Garcia said improving production capacity would help support conversion rates and future growth. Carvana said reconditioning operations improved after earlier challenges, allowing the company to shift focus back toward expanding inventory and returning vehicle mix closer to historical levels. During Q&A, a Morgan Stanley analyst asked about reconditioning improvements and retail GPU trends. Garcia said the company had made progress on costs and was continuing to optimize inventory growth and pricing operations. Carvana discussed its decision to pass some efficiency gains back to customers through financing rates. Garcia said management views these investments as supporting long-term customer value and growth. Management noted that other GPU declined year over year due partly to customer-facing rate reductions and higher benchmark rates, but efficiency gains in financing helped offset some of the pressure.Analysts pressed management on GPU trends and profitability drivers. Executives maintained that overall execution, rather than individual quarterly movements, remains central to long-term performance. Carvana expects retail units sold in the third quarter to increase sequentially from the second quarter. The company maintained full-year 2026 adjusted EBITDA guidance of $2.7 billion to $3.0 billion compared with $2.24 billion in the prior year. Jenkins said the guidance reflects the company’s approach of providing more detailed expectations as visibility improves through the year. A JPMorgan analyst questioned the second-half profitability outlook. Garcia said results would depend on execution against inventory expansion, production capacity and operational initiatives. Management entered the second half of 2026 focused on expanding production capacity, improving customer experience and continuing efficiency gains throughout the business. Executives highlighted the company’s stronger financial position, including a reduction in net debt to trailing 12-month adjusted EBITDA to 1.0x during the quarter. The company’s message centered on balancing growth investments with profitability while continuing to build its operating platform. Carvana has a Zacks Rank #3 (Hold). The stock’s current Zacks data shows a Value Score of F, Growth Score of D, Momentum Score of C and VGM Score of F.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks Style Scores are designed to evaluate a stock’s characteristics across value, growth and momentum factors, with higher scores representing stronger relative attributes. The Zacks Rank can change following earnings estimate revisions after the latest quarterly results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Carvana Co.? Here are five stocks we like better. Carvana delivered record Q2 results: Retail unit sales rose 38% year over year to 197,325, revenue increased 52% to $7.38 billion, and adjusted EBITDA reached a record $769 million. Growth is being driven by inventory expansion and capacity: Regions with larger inventory increases posted stronger sales growth, while Carvana plans additional production capacity and expects sequentially higher retail unit sales in Q3. The company raised its earnings trajectory while maintaining ambitious long-term goals: Carvana forecast 2026 adjusted EBITDA of $2.7 billion to $3.0 billion and continues targeting 3 million annual vehicle sales at a 13.5% adjusted EBITDA margin between 2030 and 2035. This Single Factor Is Holding Back Carvana’s Disruptive Edge Carvana (NYSE:CVNA) reported record second-quarter results as retail unit sales rose 38% year over year to 197,325 vehicles and revenue increased 52% to $7.38 billion. The online used-car retailer also posted record adjusted EBITDA of $769 million, net income of $513 million and GAAP operating income of $680 million. Chief Executive Officer Ernie Garcia said the company sold “almost 200,000 cars” during the quarter, nearly double its sales volume from two years earlier. He said that scale still represents approximately 2% of the used-car market and 1.5% of the broader auto retail market, underscoring the company’s remaining growth opportunity. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Avis, CarMax, and Carvana: 3 Car Stocks Sharply Diverge Carvana said its annualized adjusted EBITDA run rate exceeded $3 billion for the first time. Garcia said annualized operating income and net income were approximately $2.7 billion and $2 billion, respectively. Garcia emphasized the relationship between regional inventory expansion and sales growth. In the Midwest and Northeast, where Carvana added the most retail production capacity, inventory increased 57% and sales rose 54% in the second quarter. In the West and Southeast, where less capacity was added, inventory increased 17% and sales grew 30%. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Carvana's 5-for-1 Split: Green Light for a New Growth Era According to Garcia, larger local inventory assortments improve the odds that customers find vehicles they want, lifting conversion rates and making advertising spending more efficient. More vehicles near customers can also reduce delivery times and shipping fees while improving logistics efficiency, he said. The company said it had recently focused on bringing reconditioning costs under control before returning to inventory growth. Garcia said the company began increasing inventory more in line with sales during the middle of the second quarter and is moving back toward its traditional mix of vehicle ages and mileage after leaning into newer, higher-priced vehicles that required less reconditioning. → Innovative ETF Strategies That Are Paying Off This Summer Chief Financial Officer Mark Jenkins said revenue growth exceeded unit growth partly because of traditional gross-revenue treatment for certain vehicles acquired from a large retail marketplace partner, higher industry vehicle prices and a mix shift toward newer, more expensive vehicles. He said the revenue-treatment change will no longer affect year-over-year comparisons beginning in the third quarter, when revenue growth is expected to be more aligned with retail unit growth. Non-GAAP retail gross profit per unit declined $105 from a year earlier, primarily because the company lapped an approximately $100 benefit from tariff-related effects in the prior year. Higher non-vehicle costs, including inbound transportation fuel expenses, were more than offset by higher retail appreciation, Jenkins said. Non-GAAP wholesale GPU declined $158, as retail unit growth outpaced wholesale gross profits. Non-GAAP Other GPU declined $192, driven mainly by Carvana’s decision to offer customers lower interest rates and by higher benchmark rates. Those pressures were partly offset by lower funding costs, higher average amounts financed and higher finance attachment rates. Garcia said Carvana passed more than 100 basis points of interest-rate reductions to customers over the past year, with a greater focus on prime borrowers. He said the company’s fundamental financing gains helped offset a portion of the resulting pressure on Other GPU. Carvana’s non-GAAP SG&A expense per retail unit sold declined by $157. The company cited a $272 reduction in overhead expense per unit, partly offset by an $88 increase in operations expense per unit, mainly due to fuel costs. Advertising expense rose $27 per retail unit as the company continued to invest in awareness and said it expects advertising dollars to increase in the third quarter. Net income was $513 million, up $205 million year over year. Net income margin was 7.0%, compared with 6.4% a year earlier. Adjusted EBITDA margin was 10.4%, compared with 12.4%, with the decline primarily attributed to the gross-revenue treatment that increased retail revenue per unit. Net debt to trailing 12-month adjusted EBITDA fell to 1.0 times, which Jenkins called the company’s strongest financial position to date. For the third quarter, Carvana expects a sequential increase in retail units sold. For full-year 2026, the company forecast adjusted EBITDA of $2.7 billion to $3.0 billion, compared with $2.24 billion in 2025, assuming the operating environment remains stable. Management said the company’s long-term objective remains selling 3 million vehicles annually at a 13.5% adjusted EBITDA margin between 2030 and 2035. Garcia said the company now needs to grow to less than four times its current scale to reach that target, compared with approximately six times its scale when the goal was introduced in early 2025. The company also discussed artificial intelligence initiatives, including its Sebastian customer-assistance tool. Garcia said customer-care costs have declined annually over the last four years, falling 40% three years ago, 30% two years ago, 20% last year and 10% this year. He attributed those reductions in part to increasingly capable digital customer experiences. Carvana said it is continuing to roll out operational tools, including Roll Call and Leader Hub, over coming quarters. It is also evaluating additional production capacity through ADESA-site conversions, existing inspection centers and a newly initiated fresh-build location. On new-vehicle efforts, Garcia said the initiative remains early but that customer satisfaction scores for new-car transactions have been “very high.” He said new cars are currently profitable for the company, though management did not provide further details on expected gross profit or inventory implications. Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana's model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships. Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Carvana Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Carvana (CVNA) reported second quarter results on Wednesday that beat revenue and profit expectations as record retail unit sales pushed the online used-car retailer to its most profitable quarter ever. But the stock tumbled after its full-year forecast fell short of Wall Street's expectations. Carvana reported revenue of $7.376 billion, up 52% year over year and an all-time quarterly record, topping the $6.86 billion expected, per Bloomberg consensus. Carvana posted adjusted EPS of $0.42 versus $0.38 estimated, with adjusted EBITDA hitting a record $769 million versus $766.2 million expected. But Carvana stock tumbled more than 20% after the bell before narrowing losses to 6% in premarket trading today as guidance disappointed. Carvana said it expects full-year adjusted EBITDA of $2.7 billion to $3.0 billion, up from $2.24 billion in 2025. But the midpoint of that range missed the $2.99 billion analysts were expecting. In addition, for Q3 the company only guided for a "sequential increase" in retail units sold, without a specific figure, against consensus of 204,115 units. "Q2 2026 was Carvana's tenth consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior," Carvana founder and CEO Ernie Garcia said in a statement. "At Carvana's current run-rate scale of almost 800k retail units and over $2 billion Net income, we are still just 1.5% of the U.S. automotive market. Our opportunity is very clear, and we are more confident than ever in the path ahead." Retail units sold reached a record 197,325, up 38% year over year. The company said it once again outpaced an industry that shrank over the same period. Total gross profit per unit was $7,014, a decrease of $412 from a year earlier, though it rose $231 compared to Q1. Carvana attributed the year-over-year decline to a shift in mix. Carvana said its current footprint supports an annual capacity of about 1.5 million retail units, with real estate to eventually support 3 million. The company integrated retail production at three additional ADESA locations in the quarter, bringing its total to 19. ADESA is a physical auction and reconditioning business that Carvana purchased in 2022, giving the company the ability to acquire and sell additional vehicles via wholesale and recondition vehicles at a larger scale for sale on Carvana's website. Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance

Carvana (CVNA) reported $7.38 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 52.4%. EPS of $0.42 for the same period compares to $0.26 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $6.99 billion, representing a surprise of +5.55%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.42. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Carvana performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Per retail unit gross profit - Total: $7,014.00 compared to the $6,796.56 average estimate based on four analysts. Per retail unit gross profit - Retail vehicle: $3,547.00 compared to the $3,282.16 average estimate based on four analysts. Unit sales - Retail vehicle unit sales: 197,325 versus 198,190 estimated by four analysts on average. Per unit revenue - Wholesale vehicles: $10,633.00 versus $11,079.20 estimated by three analysts on average. Unit sales - Wholesale vehicle unit sales: 105,052 versus 97,755 estimated by three analysts on average. Per retail unit gross profit - Other: $2,666.00 versus $2,853.86 estimated by three analysts on average. Per unit revenue - Retail vehicles: $27,908.00 versus $25,395.83 estimated by three analysts on average. Per retail unit gross profit - Wholesale: $801.00 versus the two-analyst average estimate of $952.00. Sales and operating revenues- Retail vehicle sales, net: $5.51 billion versus the five-analyst average estimate of $4.97 billion. The reported number represents a year-over-year change of +61.7%. Sales and operating revenues- Other sales and revenues: $526 million versus $559.44 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +28% change. Sales and operating revenues- Wholesale sales and revenues: $1.34 billion versus $1.28 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change. Gross Profit- Retail vehicle: $700 million versus the three-analyst average estimate of $640.75 million. View all Key Company Metrics for Carvana here>>> Shares of Carvana have returned +0.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research