Carvana Reports Record Profits but Stock Drops on Unclear 2025 Guidance

The used-car retailer achieved significant growth in 2024 but faced investor concerns over vague projections for the year ahead.

Carvana posted a record $13.67 billion in annual revenue for 2024, a 27% increase from the previous year, and sold over 416,000 vehicles, up 33%.
The company reported $3.55 billion in Q4 revenue, a 46% year-over-year increase, and adjusted EBITDA of $359 million, exceeding analyst expectations.
Despite strong financial results, Carvana's stock dropped over 10% as investors reacted to a lack of specific guidance for 2025.
Carvana projects continued significant growth in retail units sold and adjusted EBITDA for 2025, contingent on stable market conditions.
The company attributes its turnaround to operational efficiencies, cost-cutting measures, and improved inventory management after challenges in prior years.