Feb 18 - Carvana reported a substantial increase in fourth-quarter revenue and profit, saying the online used-vehicle retailer benefited from robust demand among American consumers facing elevated living costs and secondary effects from tariffs.
The company, recognized for its large car vending machines that sell used vehicles, said overall revenue rose about 58% to $5.6 billion in the final quarter of 2025 compared with the same period a year earlier. The figure surpassed the average analyst expectation of $5.26 billion, based on data compiled by LSEG.
Carvana's quarterly net income jumped to $951 million from $159 million a year earlier. The company reported earnings per share of $4.22 for the quarter, calculated on 226 million Class A shares.
Executives and investors have been watching how shifts in household budgets and price dynamics at the wholesale and retail level are influencing demand for preowned vehicles. Carvana said those pressures - higher cost of living for consumers and the trickle-down effects of tariffs - have helped sustain buyer interest in used cars during the period.
The results capped what the company described as a notable year in 2025: its shares more than doubled during the year and the company gained inclusion in the benchmark S&P 500 index.
These fourth-quarter figures represent a continuation of the stronger performance Carvana reported across the year, with the firm citing persistent consumer demand for used vehicles as a key revenue driver. The company’s outsized revenue gain contributed to the improvement in net income and per-share profitability for the period.
Summary
Carvana posted a marked improvement in fourth-quarter financial results, driven by increased consumer demand for preowned vehicles amid higher living costs and the downstream impacts of tariffs. Revenue rose roughly 58% to $5.6 billion, beating LSEG analyst expectations of $5.26 billion, while net income expanded to $951 million from $159 million and earnings per share were $4.22 on 226 million Class A shares. The company’s share price more than doubled in 2025 and it gained entry to the S&P 500.
Key points
- Revenue jumped about 58% year-over-year to $5.6 billion in Q4 2025, above the LSEG analyst consensus of $5.26 billion.
- Quarterly net income increased to $951 million from $159 million, with EPS of $4.22 based on 226 million Class A shares.
- Stronger demand for used vehicles was linked to higher consumer living costs and the trickle-down effects of tariffs; Carvana’s shares more than doubled in 2025 and the company entered the S&P 500.
Sectors impacted
- Automotive and used-vehicle retail - direct beneficiary of increased preowned car demand.
- Capital markets and indexes - Carvana’s S&P 500 inclusion and share performance affect index composition and investor flows.
Risks and uncertainties
- Consumer financial pressure - the report ties demand to higher cost of living, indicating potential sensitivity if household budgets shift.
- Tariff-related effects - the company cited trickle-down effects of tariffs as a factor supporting demand, introducing uncertainty if tariff impacts change.
Note: The article reflects the information the company disclosed for the fourth quarter and the year-to-date developments noted for 2025. Where the underlying drivers are identified, they were described as the company presented them.