Fast-growing used-car chain Carvana plans to keep its foot on the gas in 2026 in terms of sales volume and profits — powered by an increase in its inventory of more than 20,000 units in the previous year, according to the company’s latest quarterly results.
“We’ve got the real estate, we’ve got the people, we’ve got the team, we’ve got the systems,” Carvana CEO Ernie Garcia said in a conference call to announce fourth-quarter and full-year results for 2025, as well as plans for 2026 and beyond.
Carvana also has the inventory.
In an environment where retailers scramble to acquire more used vehicles to sell, Carvana reported on Feb. 18 it had over 75,000 total units available for sale on its website as of Dec. 31, 2025.
That’s up from 53,000 a year earlier, or 33,000 at the end of 2023. With more selection to choose from, the Carvana network is more likely to have the used vehicle shoppers want. And with more efficiency, it’s faster and cheaper to get it in their hands.
“In the last 12 months, we increased customer selection by 20,000 cars — 20,000. We are delivering cars to our customers a full day faster. We have put more cars closer to our customers, leading to $60 average savings on shipping fees for our customers,” Garcia said in the call.
For 2026, Garcia said Carvana’s goal is a difficult combination: to increase unit sales and profitability at the same time, through greater efficiency and economies of scale.
Carvana reported that in 2025, it sold 596,641 retail units, an increase of 43% versus 2024. Total annual revenue was $20.3 billion, up 49%. Both were records.
In the fourth quarter, Carvana sold 163,522 retail units, up 43% versus Q4 2024. Fourth-quarter revenue was $5.6 billion, up 58%. The year-ago comparisons weren’t easy, either. In 2024, Carvana unit sales were up 33.1% versus 2023.
In October 2025, Garcia said Carvana’s volume goal by 2030 to 2035 is to sell 3 million cars annually — at an adjusted EBITDA margin of 13.5%. To put that in context, Carvana’s adjusted EBITDA margin was 11% for 2025.
EBITDA stands for earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA margin means EBITDA earnings, adjusted for one-time, non-recurring or unusual items, as a percent of revenue.
Carvana says it has the infrastructure to handle that much volume. In 2022, Phoenix-based Carvana acquired the U.S. physical auction business of ADESA, the wholesale auction firm of the former KAR Global for $2.2 billion.
The purchase consisted of 56 ADESA U.S. locations across the country, totaling approximately 6.5 million square feet of buildings on more than 4,000 acres. KAR Global was renamed OPENLANE Inc. in May 2023.
In merging the two companies, Carvana has been adding Carvana-style, retail-ready reconditioning capability to ADESA auction sites, and adding ADESA-style auction capabilities to its existing Carvana reconditioning centers.
Garcia said 2026 was already off to a good start, based on early results for the first quarter.
“Looking forward, assuming the environment remains stable, we expect significant growth in both retail units sold and adjusted EBITDA in full year 2026, including a sequential increase in both retail units sold and adjusted EBITDA in Q1 2026,” he said.
