Carvana
Carvana's revenue rose 48.6% to $20.3 billion in fiscal 2025. Its operating margin was 9.3%, up from 7.2% a year earlier. Free cash flow was $889 million, up 7.5%. The diluted share count rose 69.6%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What Carvana does
Carvana runs an online platform for buying and selling used cars. Customers browse, buy and arrange delivery online, and can sell or trade in their own car by answering a few questions about it and getting an automated offer. Carvana picks up the car at the customer's home or the customer drops it off at a Carvana location. The company says this removes the need to visit a dealership or negotiate a private sale.
Carvana gets most of its used cars directly from customers. It also buys from used car auctions, including its own digital auction platform, and from wholesale suppliers. Cars go to inspection and reconditioning centers, where trained technicians check and repair them before sale. The 10-K says that since 2012 it has sold 2.8 million retail vehicles and generated $84.1 billion in total revenue, using a logistics network that spans 316 metropolitan areas.
Carvana says the used car market is large and split among many sellers. It does business with DriveTime Automotive and other companies tied to its controlling stockholder.
Its biggest risks, as it describes them
- Changes in the wider auto market, such as consumer demand and supply chain problems.
- Needing more capital, and managing its rapid growth, which may not continue.
- Its relationship with DriveTime and other companies linked to its controlling stockholder.
- Competition from existing and new companies in a highly competitive industry.
- Changes in used and new vehicle prices, and trouble acquiring vehicles and parts for reconditioning.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2023 to 2025, earnings per share grew 235.7% a year and net income 76.8% a year, as new shares raised the share count by 12% and diluted each share's earnings.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value Carvana yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Carvana's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from Carvana's fiscal 2025 free cash flow of $889M, net cash of −$2.7B at December 31, 2025 and 740 million diluted shares, from its filings. The scenarios are fitted to Carvana: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 14.3% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Automotive Retail), plus 1 point for unsteady results (a loss in fiscal 2022); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $56.61
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from Carvana's earnings per share of $8.45 (in fiscal 2025). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 15.6×, the average of its peers' median and the Consumer Discretionary median for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $56.61
- Value at this multiple, against the last close
- —
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| AutoZoneAZO | $3,190.07 | $152.55 | 20.9× |
| Murphy USAMUSA | $539.14 | $32.77 | 16.5× |
| Group 1 AutomotiveGPI | $243.88 | $24.16 | 10.1× |
| Asbury Automotive GroupABG | $172.96 | $26.78 | 6.5× |
| CarvanaCVNA | $56.61 | $8.45 | — |
Balance sheet
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 0.4 | 0.4 | 0.5 | 1.7 | 2.3 |
| Debt incl. finance leases | 2.9 | 6.9 | 5.4 | 5.5 | 5.1 |
| Net debt (negative means net cash) | 2.5 | 6.4 | 4.9 | 3.8 | 2.7 |
| Net debt to EBITDA | — | — | — | — | — |
| Debt to equity | — | — | — | 4.3x | 1.5x |
| Interest coverage | 0.2x | −4.8x | −0.1x | 1.5x | 3.7x |
| Current ratio | 1.7x | 1.8x | 2.2x | 3.6x | 4.3x |
| Quick ratio | 0.6x | 1.1x | 1.4x | 2.4x | 2.7x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $1.5 million of Carvana shares on the open market, and 11 insiders sold $273.6 million, $243.5 million of it under trading plans set up in advance.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Oct 12, 2026 | Thomas TairaPresident, Special Projects | Sold plan | 5,597 | $65.00 | $363,805 | Form 4 |
| Oct 1, 2026 | Mark W. JenkinsChief Financial Officer | Sold plan | 63,750 | $61.64 | $3.9 million | Form 4 |
| Oct 1, 2026 | Stephen R PalmerVice President of Accounting | Sold plan | 5,000 | $61.64 | $308,203 | Form 4 |
| Sep 14, 2026 | Thomas TairaPresident, Special Projects | Sold plan | 16,789 | $70.58 | $1.2 million | Form 4 |
| Sep 1, 2026 | Mark W. JenkinsChief Financial Officer | Sold plan | 63,750 | $71.55 | $4.6 million | Form 4 |
| Sep 1, 2026 | Benjamin E. HustonChief Operating Officer | Sold plan | 50,000 | $71.55 | $3.6 million | Form 4 |
| Sep 1, 2026 | Stephen R PalmerVice President of Accounting | Sold plan | 5,000 | $71.55 | $357,768 | Form 4 |
| Aug 14, 2026 | Ira J. PlattDirector | Sold | 15,000 | $75.50 | $1.1 million | Form 4 |
| Aug 14, 2026 | Quayle J DanforthDirector | Sold plan | 14,525 | $75.00 | $1.1 million | Form 4 |
| Aug 13, 2026 | Ira J. PlattDirector | Sold | 15,000 | $73.00 | $1.1 million | Form 4 |
| Aug 3, 2026 | Mark W. JenkinsChief Financial Officer | Sold plan | 63,750 | $64.50 | $4.1 million | Form 4 |
| Aug 3, 2026 | Benjamin E. HustonChief Operating Officer | Sold plan | 50,000 | $64.50 | $3.2 million | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Fail | Pass |
| Cash from operations exceeds net income | Pass | Pass | Fail |
| Debt fell relative to assets | Pass | Fail | Pass |
| Current ratio rose | Pass | Pass | Pass |
| Share count didn't rise | Fail | Pass | Fail |
| Gross margin rose | Pass | Pass | Fail |
| Revenue rose relative to assets | Fail | Pass | Pass |
| F-score | 7 of 9 | 7 of 9 | 6 of 9 |
| Accruals ratio | −4.5% | −9.1% | 3.4% |
Compare
Put Carvana side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Carvana | FY25 | 48.6% | 9.3% | 4.4% | 24.6% | — | 6 | |
| AutoZone | FY26 | 7.4% | 18.3% | 8.9% | 48.4% | 2.1x | 6 | Compare |
| Murphy USA | FY25 | −4.2% | 3.7% | 1.9% | 20.5% | 2.2x | 5 | Compare |
| Group 1 Automotive | FY25 | 13.2% | 3.2% | 1.9% | 8.6% | — | 5 | Compare |
| Asbury Automotive Group | FY25 | 4.7% | 4.8% | — | 9.2% | 3.7x | 6 | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 0.4 | 0.9 | 2.0 | 3.9 | 5.6 | 12.8 | 13.6 | 10.8 | 13.7 | 20.3 |
| Revenue growth | 180.0% | 135.2% | 127.7% | 101.5% | 41.8% | 129.3% | 6.2% | −20.8% | 26.9% | 48.6% |
| Gross profit | 0.0 | 0.1 | 0.2 | 0.5 | 0.8 | 1.9 | 1.2 | 1.7 | 2.9 | 4.2 |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | −2.4 | −0.1 | 1.0 | 1.9 |
| Net income | −0.1 | −0.1 | −0.1 | −0.1 | −0.2 | −0.1 | −1.6 | 0.5 | 0.2 | 1.4 |
| Diluted EPS (US$) | — | — | — | −2.45 | −2.63 | −1.63 | −15.74 | 0.75 | 1.59 | 8.45 |
| Diluted shares (millions) | — | — | — | 47 | 65 | 83 | 101 | 201 | 132 | 224 |
| Cash flow | ||||||||||
| Cash from operations | −0.2 | −0.2 | −0.4 | −0.8 | −0.6 | −2.6 | −1.3 | 0.8 | 0.9 | 1.0 |
| Capital expenditure | 0.0 | 0.1 | 0.1 | 0.2 | 0.4 | 0.6 | 0.5 | 0.1 | 0.1 | 0.1 |
| Free cash flow | −0.3 | −0.3 | −0.6 | −1.0 | −1.0 | −3.2 | −1.8 | 0.7 | 0.8 | 0.9 |
| Dividends paid | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Share buybacks | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Acquisitions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 2.2 | 0.0 | 0.0 | 0.2 |
| Stock-based compensation | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 0.0 | 0.2 | 0.1 | 0.1 | 0.3 | 0.4 | 0.4 | 0.5 | 1.7 | 2.3 |
| Debt incl. finance leases | 0.2 | 0.3 | 0.6 | 0.8 | 1.3 | 2.9 | 6.9 | 5.4 | 5.5 | 5.1 |
| Total assets | 0.3 | 0.6 | 1.0 | 2.1 | 3.0 | 7.0 | 8.7 | 7.1 | 8.5 | 13.2 |
| Total liabilities | 0.2 | 0.4 | 0.8 | 1.9 | 2.2 | 6.5 | 9.8 | 7.5 | 7.1 | 9.0 |
| Shareholders' equity | — | 0.1 | 0.1 | 0.1 | 0.4 | 0.3 | −0.5 | 0.2 | 1.3 | 3.4 |
| Margins and ratios | ||||||||||
| Gross margin | 5.3% | 7.9% | 10.1% | 12.9% | 14.2% | 15.1% | 9.2% | 16.0% | 21.0% | 20.6% |
| Operating margin | — | — | — | — | — | — | −17.3% | −0.7% | 7.2% | 9.3% |
| Net margin | −25.5% | −7.3% | −2.8% | −2.9% | −3.1% | −1.1% | −11.7% | 4.2% | 1.5% | 6.9% |
| Free cash flow margin | −76.6% | −32.4% | −28.5% | −25.1% | −17.3% | −24.6% | −13.5% | 6.7% | 6.0% | 4.4% |
| Return on capital | — | — | −4.0% | −3.2% | −2.3% | 1.4% | −44.0% | −1.5% | 20.5% | 24.6% |
| Return on equity | — | — | −54.0% | −129.4% | −70.3% | −38.9% | — | — | 27.9% | 59.9% |
| Return on assets | — | −12.9% | −6.8% | −7.5% | −6.7% | −2.7% | −20.2% | 5.7% | 2.7% | 13.0% |
| Net debt to EBITDA | — | — | — | — | — | — | — | — | — | — |