Carvana’s (NYSE:CVNA) Q2 CY2026 Sales Beat Estimates But Stock Drops 15.7%

Online used car dealer Carvana (NYSE: CVNA) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 52.4% year on year to $7.38 billion.

Is now the time to buy Carvana? Find out by accessing our full research report, it’s free.

“Q2 2026 was Carvana’s 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior,” said Ernie Garcia, Carvana founder and CEO.

Company Overview

Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Carvana grew its sales at an exceptional 28.5% compounded annual growth rate. Its growth beat the average consumer internet company and shows its offerings resonate with customers, a helpful starting point for our analysis.

This quarter, Carvana reported magnificent year-on-year revenue growth of 52.4%, and its $7.38 billion of revenue beat Wall Street’s estimates by 7.7%.

Looking ahead, sell-side analysts expect revenue to grow 24.2% over the next 12 months, a deceleration versus the last three years. Still, this projection is eye-popping given its scale and indicates the market is baking in success for its products and services.

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

Retail Units Sold

Unit Growth

As an online retailer, Carvana generates revenue growth by expanding its number of users and the average order size in dollars.

Over the last two years, Carvana’s retail units sold, a key performance metric for the company, increased by 37.7% annually to 197,325 in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction.

In Q2, Carvana added 54,045 retail units sold, leading to 37.7% year-on-year growth. The quarterly print isn’t too different from its two-year result, suggesting its new initiatives aren’t accelerating unit growth just yet.

Revenue Per Unit

Average revenue per unit (ARPU) is a critical metric to track because it measures how much customers spend per order.

Carvana’s ARPU growth has been exceptional over the last two years, averaging 10.7%. Its ability to increase monetization while growing its retail units sold at an impressive rate reflects the strength of its platform, as its units are spending significantly more than last year.

This quarter, Carvana’s ARPU clocked in at $37,380. It grew by 10.7% year on year, slower than its unit growth.

Key Takeaways from Carvana’s Q2 Results

We were very impressed by Carvana’s number of units this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its full-year EBITDA guidance missed. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 15.7% to $55.94 immediately following the results.

So do we think Carvana is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).