Carvana Co. - Ordinary Shares - Class A

Q2 performance: very strong profitable growth; records on multiple metrics - Retail units sold: 197,325 (+38% YoY, company record) - Revenue: $7.376B (+52% YoY, company record). Mark Jenkins noted revenue growth outpaced unit growth due to a temporary gross revenue treatment change for certain vehicles from a large marketplace partner (will no longer affect YoY comparisons beginning in Q3), plus industry price/mix effects. - Adjusted EBITDA: $769M (+168M YoY, record) and crossed $3B adjusted EBITDA annual run-rate for the first time. - Margins: Adjusted EBITDA margin 10.4% (down from 12.4% YoY), largely tied to the revenue treatment dynamic. - GAAP operating income: $680M (88% of adjusted EBITDA; record). Net income: $513M (+205M YoY), net income margin 7%. - Balance sheet / credit: Reduced net debt / trailing 12-month adjusted EBITDA to 1.0x (strongest financial position ever).

Guidance / outlook for remainder of 2026: expects stability + stronger Q3, and a full-year EBITDA range - Sequential expectation: Company expects Q3 retail units sold to increase vs Q2 (assuming a stable environment). - Full-year 2026 adjusted EBITDA: $2.7B to $3.0B, up from $2.24B in 2025. - Mark Jenkins emphasized this guidance style is consistent with prior years—first-half gets “sequential color,” midyear provides clearer EBITDA guardrails.

Key “surprising but encouraging” operational insight: inventory build-up by region strongly drives sales via their compounding loop - Carvana shared inventory vs sales growth correlations by region from its inventory production build-out. - Midwest + Northeast (largest incremental production capacity additions): inventory +57%, sales +54% in Q2. - West + Southeast (smallest incremental capacity additions): inventory +17%, sales +30% in Q2. - Management frames this as their “positive feedback loop”: more inventory near more customers → better conversion → marketing efficiency improves → more customers → improved delivery/logistics → better conversion → more inventory.