CARVANA CO. (CVNA)

Carvana Co. is a Delaware holding company, formed in 2016, that operates the business of Carvana Group, LLC and its subsidiaries. Its Class A common stock trades on the NYSE under the symbol "CVNA." Carvana describes itself as the leading e-commerce platform for buying and selling used cars, combining an online sales experience with a vertically integrated supply chain. Since its 2012 inception through December 31, 2025, it has sold 2.8 million retail vehicles and generated $84.1 billion in total revenue.

The business is built on retail vehicle unit sales, which drive most of its revenue and open up related revenue streams. Vehicles are acquired from customers (including trade-ins and one-way sales through an online instant-offer tool), used car auctions including its digital auction platform, and wholesale suppliers. They are inspected and reconditioned at inspection and reconditioning centers or auction sites with reconditioning capabilities. Vehicles that do not meet its standards are sold wholesale. Customers browse a mobile-optimized website with over 75,000 vehicles and use patented 360-degree photo technology. Carvana also offers in-house financing through a proprietary loan origination platform, and accepts cash or third-party financing. Complementary products include vehicle service contracts, GAP waiver coverage, and auto insurance through a partnership with Root, Inc. Vehicles reach customers by home delivery or pickup at one of 39 patented car vending machines. A seven-day return policy and post-sale customer support round out the offering. Loans are sold through securitizations or to financing partners.

Carvana serves consumers who buy or sell used vehicles in the U.S. Its logistics network spans 316 metropolitan statistical areas and its distribution network services over 80% of the U.S. population. Its customer base resembles the overall used car market, with a slight shift toward younger buyers. The U.S. used auto retail market had about 37 million transactions in 2024, per Cox Automotive. It is highly fragmented, and Carvana estimates its own share at roughly 1.6%. Customers have rated Carvana 4.7 out of 5.0 across more than 245,000 surveys. Marketing uses television, search, social media, referrals, and other channels. Sales are seasonal, typically peaking late in the first quarter and weakening through the year.

Operationally, Carvana uses a proprietary hub-and-spoke logistics network of its own multi-car and single-car haulers. Reconditioning capacity is about 1.5 million vehicles per year at full utilization. The 2022 acquisition of ADESA US Auction, LLC added 56 locations, 16 of which had been built out with reconditioning capabilities as of December 31, 2025. Its technology includes inventory pricing models, automated photography, logistics software, AI-powered chatbots, and credit models, supplemented by third-party technology. It held 51 issued U.S. patents and six international patents, and had a cross-license agreement with related party DriveTime. Competitors include traditional dealers such as CarMax, online automotive sites, Costco's auto program, automakers, and private sales. Carvana had over 23,100 employees as of December 31, 2025. Its Class A shares represented a 64.7% economic interest in Carvana Group, LLC.