Carvana beat Wall Street’s fourth-quarter revenue and net income expectations while predicting another “strong” year in 2025.

As in the past, Carvana gave a wide range of expectations for the year, including growth in retail unit sales and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), with both figures increasing sequentially in the first quarter.

Carvana shares fell more than 10% in after-hours trading on Wednesday. The stock closed at $281.82, down about 1%. Wall Street analysts attributed the decline in shares mainly to high expectations from investors and vague forecasts for 2025.

Compared to the average estimate compiled by the London Stock Exchange, the company’s fourth-quarter performance was as follows:

Earnings per share: 56 cents, expected 29 cents

Revenue: $3.55 billion, expected $3.31 billion

Revenue was $3.55 billion, up 46% from $2.42 billion in the same period last year. Full-year revenue for 2024 is $13.67 billion, up nearly 27% from $10.77 billion in 2023.

In 2024, the Tempe, Arizona-based company reported adjusted EBITDA of $1.38 billion and net income of about $404 million. That included $359 million in adjusted EBITDA and $159 million in net income in the fourth quarter. The fourth-quarter net income was a big improvement from a loss of $200 million in the same period last year.

On a per-share basis, the company reported earnings of 56 cents per share for the December quarter, compared with a loss of $1 per share in the same period in 2023.

Carvana’s annual and quarterly results were all record.

Last year, Carvana said it sold 416,348 vehicles at retail, up about 33% from the year before, and full-year revenue for 2024 reached a record $13.67 billion. Total gross profit per vehicle was $6,671 in the fourth quarter and $6,908 for the full year. Both metrics are up nearly $1,400 from 2023.

“With only about 1% market share today, we have a lot of opportunities to improve and expand our product offerings, and we know this is just the beginning of our journey to change the way people buy and sell cars,” Carvana CEO and co-founder Ernie Garcia said in a press release.

Carvana’s stock price will rise by about 40% in 2025, compared with a gain of nearly 285% last year.
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