On this page of StockholderLetter.com we present the latest annual shareholder letter from CARVANA CO. — ticker symbol CVNA. Reading current and past CVNA letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 2025
OUR MISSION IS TO CHANGE THE WAY PEOPLE BUY AND SELL CARS. CARVANA FORM 10-K

To our valued shareholders, In 2015, we passed 100 people inside Carvana and decided it was time to start to proactively manage our culture systematically. The first step was the founding team sitting together around a whiteboard and writing out the key ideas that had helped us come up with Carvana and that were shaping what it was becoming. One of the ideas we started with that day was the idea of making the pie bigger. This isn t a novel idea, but I think it s often the foundation of great companies and the most productive form of idealism. Every group of people is limited by the amount of time and energy they have. We can only do so much, and this means many things. Time is pretty inflexible, so it means we need to surround ourselves with highenergy people. It means we need to create an environment that enables efficient collaboration. It means we need to build a culture and a mission that is energizing. And it means we need to prioritize aggressively. Making the pie bigger is a useful frame for general prioritization, and we believe it leads to greater value creation that compounds over time, but it often results in lower immediate payoff, which is what makes it so hard to consistently do. Like many forms of value creation, this means it often comes down to a consistent set of beliefs and the discipline to keep taking the path that makes the pie the biggest. CARVANA 2025 ANNUAL REPORT In our investor relations jargon, we often call this concept fundamental gains, which is probably a term you feel like we use too much. There is a good chance that s true, but repetition is the right error when discipline is the goal. In the last 13 years, we are proud of all the fundamental pie that we ve made. We have the highest customer satisfaction in our industry. We give our customers the largest selection. We give them the fastest and simplest experiences. And they are rewarding us with the fastest growth in the industry. That s a lot of pie for our customers. We are now a team of about 25,000 people. We ve fought battles together. We ve enjoyed good times. We ve suffered hard times. We ve watched the people around us build families and careers. And we ve had fun along the way. At least most of the time. That s a lot of Carvana team pie. In 2025, we achieved about 2x the Adjusted EBITDA margins of the rest of our industry and we grew at over 40%. And our future is even more exciting: we have positive feedback in our business, we have the most scalable business model in our industry, and we have a stack of technology, process, people, and infrastructure that is extremely difficult to replicate. Investor pie.
But we re still cooking (don t worry, this metaphor will end soon). In the last year, we added 20,000 cars of selection to our inventory, we reduced customer interest rates on car loans by ~1%, we sped up delivery times by over a day, we reduced both frequency and duration of delivery delays by over 10% each, and we reduced the shipping fees that customers pay for cars outside their free shipping radius. All that happened at the same time that we increased Adjusted EBITDA margin by nearly 100 basis points. That s a lot of incremental value to create in just one year. A fun way to think about the power of that progress is to think about Carvana from a year ago having to compete with Carvana from today. But Carvana of today includes a culture of making the pie bigger and that bodes well for Carvana of tomorrow. In the last year, we made tremendous progress that we are extremely proud of, but we are nowhere near done improving the Carvana machine, and we have a lot of building to do. Both things continue to energize us. The march continues, Ernie Carvana of today is the most formidable version of Carvana yet. We are clearly positioned to achieve our goal of selling 3 million cars per year at a 13.5% Adjusted EBITDA margin by 2030 to 2035, and we believe the biggest obstacle standing between us and our goal is disciplined execution. And this will continue to be difficult. Our stack of technology, process, people, and infrastructure carries meaning that is both good and bad. The negative part is that we can t just turn on servers to match demand. We have to manage people, execute processes, move things, and make physical investments to enable our growth. And the good part is that nobody else can just turn on servers to catch up to us either. Overall, that s a trade that we will take. CARVANA 2025 ANNUAL REPORT
 • shareholder letter icon 3/25/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/21/2023 CVNA Stockholder Letter
 • stockholder letter icon 3/26/2024 CVNA Stockholder Letter
 • stockholder letter icon 3/25/2025 CVNA Stockholder Letter
 • stockholder letter icon More "Auto Dealerships" Category Stockholder Letters
 • Benford's Law Stocks icon CVNA Benford's Law Stock Score = 82


CVNA Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2025

OUR MISSION IS TO
CHANGE THE WAY PEOPLE
BUY AND SELL CARS.
CARVANA FORM 10-K


To our valued shareholders,
In 2015, we passed 100 people inside
Carvana and decided it was time to
start to proactively manage our culture
systematically.
The first step was the founding team sitting
together around a whiteboard and writing
out the key ideas that had helped us come
up with Carvana and that were shaping
what it was becoming.
One of the ideas we started with that day
was the idea of    making the pie bigger.   
This isn   t a novel idea, but I think it   s often
the foundation of great companies and the
most productive form of idealism.
Every group of people is limited by the
amount of time and energy they have. We
can only do so much, and this means many
things. Time is pretty inflexible, so it means
we need to surround ourselves with highenergy people. It means we need to create
an environment that enables efficient
collaboration. It means we need to build
a culture and a mission that is energizing.
And it means we need to prioritize
aggressively.
   Making the pie bigger    is a useful frame
for general prioritization, and we believe
it leads to greater value creation that
compounds over time, but it often results
in lower immediate payoff, which is what
makes it so hard to consistently do. Like
many forms of value creation, this means
it often comes down to a consistent set of
beliefs and the discipline to keep taking the
path that makes the pie the biggest.
CARVANA 2025 ANNUAL REPORT
In our investor relations jargon, we often
call this concept    fundamental gains,   
which is probably a term you feel like we
use too much. There is a good chance
that   s true, but repetition is the right error
when discipline is the goal.
In the last 13 years, we are proud of all
the fundamental pie that we   ve made. We
have the highest customer satisfaction
in our industry. We give our customers
the largest selection. We give them the
fastest and simplest experiences. And they
are rewarding us with the fastest growth
in the industry. That   s a lot of pie for our
customers.
We are now a team of about 25,000 people.
We   ve fought battles together. We   ve
enjoyed good times. We   ve suffered hard
times. We   ve watched the people around us
build families and careers. And we   ve had
fun along the way. At least most of the time.
That   s a lot of Carvana team pie.
In 2025, we achieved about 2x the Adjusted
EBITDA margins of the rest of our industry
and we grew at over 40%. And our future
is even more exciting: we have positive
feedback in our business, we have the most
scalable business model in our industry,
and we have a stack of technology,
process, people, and infrastructure that is
extremely difficult to replicate. Investor pie.

But we   re still cooking (don   t worry, this
metaphor will end soon). In the last year,
we added 20,000 cars of selection to our
inventory, we reduced customer interest
rates on car loans by ~1%, we sped up
delivery times by over a day, we reduced
both frequency and duration of delivery
delays by over 10% each, and we reduced
the shipping fees that customers pay for
cars outside their free shipping radius.
All that happened at the same time that
we increased Adjusted EBITDA margin by
nearly 100 basis points.
That   s a lot of incremental value to create
in just one year. A fun way to think about
the power of that progress is to think about
Carvana from a year ago having to compete
with Carvana from today.
But Carvana of today includes a culture of
making the pie bigger and that bodes well
for Carvana of tomorrow.
In the last year, we made tremendous
progress that we are extremely proud of,
but we are nowhere near done improving
the Carvana machine, and we have a lot
of building to do. Both things continue to
energize us.
The march continues,
Ernie
Carvana of today is the most formidable
version of Carvana yet.
We are clearly positioned to achieve our
goal of selling 3 million cars per year at a
13.5% Adjusted EBITDA margin by 2030 to
2035, and we believe the biggest obstacle
standing between us and our goal is
disciplined execution.
And this will continue to be difficult. Our
stack of technology, process, people, and
infrastructure carries meaning that is both
good and bad. The negative part is that we
can   t just turn on servers to match demand.
We have to manage people, execute
processes, move things, and make physical
investments to enable our growth. And the
good part is that nobody else can just turn
on servers to catch up to us either. Overall,
that   s a trade that we will take.
CARVANA 2025 ANNUAL REPORT


shareholder letter icon 3/25/2026 Letter Continued (Full PDF)
 

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