Carvana Co. - Ordinary Shares - Class A

Strong Financial Performance: Carvana reported a record 133,898 retail units sold in Q1 2025, a 46% year-over-year increase. Revenue also reached $4.232 billion, up 38% from the previous year. Adjusted EBITDA was $488 million, representing an 11.5% margin, marking an increase of 3.8 percentage points YOY. This consistency in profitability is notable as it marks the fifth consecutive quarter of positive net income.

Long-Term Growth Targets: The company aims for 3 million annual retail sales and 13.5% adjusted EBITDA margins within the next 5 to 10 years. This ambitious goal showcases Carvana’s commitment to growth and market penetration, given that they currently represent only about 1% of the U.S. used car market (40 million used cars sold annually).

Strategic Investment in Operations: The company plans to focus on growth over margin optimization, emphasizing that investments may lead to short-term margin dips. Carvana prioritizes enhancing customer experience and operational efficiencies, resulting in a potential for both improved sales volumes and customer satisfaction. They continue to unlock fundamental operational gains in logistics and cost efficiencies, with expectations for future margin improvements as they scale.