What Happened to Carvana Stock?

Carvana's journey on the public market has been marked by extreme volatility and a remarkable turnaround. The online used car retailer went public on April 28, 2017, at an IPO price of $15 per share. The stock experienced a significant boom during the COVID-19 pandemic, as consumers shifted towards online purchasing, driving its share price to an all-time high of $376.83 (pre-split) in August 2021.

However, this rapid expansion was accompanied by substantial debt and operational inefficiencies. As interest rates rose and economic conditions tightened in 2022, Carvana faced severe liquidity concerns, leading to a dramatic collapse in its stock price, which hit an all-time low of $3.55 (pre-split) by December 2022, sparking fears of bankruptcy. The company's business model, heavily reliant on growth and capital, struggled under the new economic realities.

A pivotal moment arrived in July 2023 when Carvana announced a comprehensive debt restructuring agreement with its noteholders. This deal aimed to reduce its total debt by over $1.2 billion and significantly lower near-term cash interest expenses. The restructuring was successfully completed by September 2023, cutting the total principal debt by $1.326 billion and reducing annual cash interest expense by over $455 million for the subsequent two years, providing crucial financial breathing room.

This financial stabilization paved the way for a remarkable operational turnaround. Carvana began reporting positive financial results in 2024, achieving its first positive net income of $48 million in Q2 2024 and record Adjusted EBITDA. This trend continued through Q3 and Q4 2024, with the company reporting a full-year net income of $404 million and Adjusted EBITDA of $1.378 billion, positioning itself as the most profitable public automotive retailer by Adjusted EBITDA margin.

The positive momentum extended into 2025, with Carvana reporting record full-year revenue of $20.3 billion, net income of $1.9 billion, and Adjusted EBITDA of $2.2 billion in February 2026. Despite a slight miss on Q4 2025 adjusted EBITDA estimates due to elevated reconditioning costs, the overall financial health and growth trajectory were strong. The stock reached a new pre-split all-time high of $478.45 in January 2026.

As of May 2026, Carvana continues to demonstrate robust performance. On April 29, 2026, the company announced record Q1 2026 results, including record retail units sold (187,393), revenue of $6.432 billion, net income of $405 million, and Adjusted EBITDA of $672 million. This marked its sixth consecutive quarter of strong year-over-year retail unit growth. In a move reflecting management's confidence and aiming to improve stock accessibility, Carvana implemented a 5-for-1 forward stock split on May 7, 2026, with shares beginning to trade on a split-adjusted basis on May 8, 2026. The stock is currently trading at approximately $78 per share (post-split) as of May 8, 2026.