Carvana(NYSE) CVNA

Carvana Co. NYSE:CVNA helps people buy and sell used cars online. Customers can choose from thousands of vehicles on a website or app. The company delivers cars to homes or offers pickup at vending machines.

How Carvana Makes Money

• Retail Vehicle Sales: Used car sales to customers and related delivery fees; accounted for $5.5 billion of revenue in the three months ended June 30, 2026.
• Wholesale Sales and Revenues: Revenue from selling vehicles to wholesalers and fees from third-party auction services; totaled $1.3 billion in the three months ended June 30, 2026.
• Other Sales and Revenues: Gains from selling car loans and commissions on service contracts, gap insurance, and auto insurance; generated $526 million in the three months ended June 30, 2026.

Expanding the Network

• Partnered with Root to offer an integrated auto insurance solution directly on the e-commerce platform.
• Integrated production lines at ADESA facilities to increase the capacity for vehicle inspection and reconditioning.
• Expanded the logistics network to reach 316 metropolitan areas and over 80% of the U.S. population as of June 30, 2026.
• Effected a five-for-one forward stock split in May 2026 to increase the number of authorized shares.

What Makes the Platform Different

The company manages a vertically integrated supply chain that includes its own inspection centers and a proprietary hub-and-spoke logistics network. This infrastructure supports a digital-first experience featuring 360-degree virtual vehicle tours and instant financing terms for customers.

Key Financial Performance

• Retail vehicle sales rose 61.7% year over year to $5.5 billion during the three months ended June 30, 2026.
• Net income reached $513 million for the three months ended June 30, 2026, up from $308 million during the same period in 2025.
• Retail units sold increased 37.7% year over year to 197,325 vehicles in the three-month period ended June 30, 2026.
• Total gross profit per unit was $7,014 for the quarter ended June 30, 2026, a 5.5% decrease from the previous year.
• Cash and cash equivalents totaled $2.6 billion as of June 30, 2026.

Bottom Line

Carvana has evolved from a regional digital dealer into a national automotive platform with integrated financing and logistics capabilities. Its expansion into wholesale marketplaces and insurance products has diversified its revenue beyond traditional used car sales.