Overview
Carvana is targeting sales of 3 million vehicles annually within the next five to 10 years while maintaining a 13.5% adjusted EBITDA margin. Record third-quarter results and accelerated integration of the ADESA auction network are central to scaling both volume and profitability.
Q3 Performance
- Retail unit sales: 155,941 (+44% year over year)
- Revenue: $5.65 billion (+54.5%, record)
- Adjusted EBITDA margin: 11.3% (vs. 11.7% a year ago)
Year to date through Sept. 30, retail unit sales reached 433,119 and revenue totaled $14.72 billion (+45.4%).
Outlook and Guidance
- Q4 retail units: >150,000 (guidance)
- Full-year 2025 retail units: >580,000 implied, exceeding a prior expectation of >500,000
- Full-year adjusted EBITDA: at or above the high end of $2.0–$2.2 billion
ADESA Integration
Carvana’s $2.2 billion acquisition of ADESA’s U.S. physical auction business (56 locations, ~6.5 million sq. ft. on 4,000+ acres) underpins its footprint strategy. The company has expanded integrated sites that combine retail reconditioning and wholesale auction operations from 9 to 27 year over year, aiming to reduce transport time and cost, increase reconditioning throughput, and position inventory closer to customers.
Delivery Speed and Proximity
Carvana is piloting faster delivery, with about 40% of Phoenix-area customers now eligible for same-day delivery (~10% in other enabled markets). Same-day capability exists in markets across “more than 20” states, supporting the goal of shorter wait times through proximity and process speed.
Competitive Context
Large dealership groups are emphasizing proximity as a growth lever in used vehicles. Lithia reports average dealership proximity within 188 miles of 95% of the U.S. population and sold 109,097 used vehicles in Q3, while AutoNation underscored that most used-car purchases occur within 50 miles of the seller.
Strategy and Implications
Carvana frames ADESA integration, logistics improvements, and faster delivery as levers to scale volume while progressing toward a 13.5% adjusted EBITDA margin. Despite a slight year-over-year margin dip, double-digit profitability alongside record volume and revenue suggests the scaling model is gaining traction.
Key Numbers at a Glance
- 3M annual units target in 5–10 years at 13.5% adjusted EBITDA margin
- Q3 retail units: 155,941; revenue: $5.65B; margin: 11.3%
- YTD (through Sept. 30): 433,119 units; $14.72B revenue
- Q4 guide: >150,000 units; Full-year 2025 implied: >580,000 units
- Full-year adjusted EBITDA: at or above $2.0–$2.2B high end
- Integrated retail/auction centers: 27 (up from 9)
- Same-day delivery: ~40% Phoenix; ~10% in other enabled markets; >20 states with capability
