Business/Financial Results (Form 8-K)

Dear Shareholders,

The third quarter was another exceptional quarter for Carvana.

We were once again the most profitable and fastest growing automotive retailer. And once again by significant margins.

Our Net income margin was 4.7%. This is more than 2x the industry average in the quarter.

Our Operating income and Adjusted EBITDA margins were 9.8% and 11.3%, both about 2.5x the industry average in the quarter.

In the quarter we grew units 44% year-over-year. This compares to the public dealer average in the quarter of approximately zero growth.

Not only is this growth happening at the same time we are producing margins higher than have ever been reported by any other automotive retailer, but it is also happening at a very significant scale.

This quarter we crossed over $20 billion annual revenue run rate for the first time, with revenue growth at 55%.

Excitingly, we are achieving these results while we still have many areas of opportunity across the business.

We still have fundamental gain opportunities in every revenue and cost line item with plans to systematically unlock them.

We still have significant fixed cost leverage opportunities that we expect to achieve consistently over time as we grow.

We are still investing in foundational capabilities that strengthen, differentiate, and further vertically integrate our business, deepening our competitive moats.

We still have significant capacity for growth and positive feedback that we are investing in and unlocking now. We currently have inspection and reconditioning real estate capacity for our current goal of selling 3 million retail units annually and, by year end, we will have fully built out capacity for over 1.5 million retail units or 2.5x our current quarterly run rate.

We are still adding inventory pools which reduces logistics costs and puts cars closer to more customers speeding up delivery times. We have now added production capabilities to 15 ADESA locations with plans to continue opening these centers at a similar pace over the next year.

We are still small compared to our opportunity - just about 1.5% of the U.S. used car market and 1% of the total U.S. car market.

We still compete in a highly fragmented market with a highly differentiated and difficult to replicate offering.

We are still delivering the best experiences available to customers when buying or selling a car.

And we are still relentlessly marching down the path to hitting our goal of selling 3 million cars per year at a 13.5% Adjusted EBITDA margin within 5 to 10 years.

Summary of Q3 2025 Results

Q3 2025 Financial Results: All financial comparisons stated below are versus Q3 2024 unless otherwise noted. Complete financial tables appear at the end of this letter.

•Retail units sold totaled 155,941, an increase of 44%

•Revenue totaled $5.647 billion, an increase of 55%

•Total Gross profit was $1.148 billion, an increase of 42%

•Net income margin was 4.7%1, an increase from 4.0%

◦Net income totaled $263 million1, an increase of $115 million

•Adjusted EBITDA margin was 11.3%, a decrease from 11.7%2

◦Adjusted EBITDA totaled $637 million, an increase of $208 million

•GAAP Operating income was $552 million, an increase of $215 million

•Basic and diluted net earnings per Class A share were $1.08 and $1.03, respectively, based on 139 million and 146 million shares of Class A common stock outstanding, respectively

◦Assuming full conversion of LLC units and other dilutive effects, there would have been 224 million shares of Class A common stock outstanding

1 Net income in Q3 2025 included a negative $120 million (2.1% margin) impact from the decline in the fair value of our Root warrants.

2 Adjusted EBITDA margin in Q3 2024 benefitted from a 0.7% positive impact due to the volume of loans sold within the quarter and changes in benchmark interest rates between loan origination and sale.

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Outlook

Our results through Q3 position us well for a strong finish to 2025. Looking toward the fourth quarter, we expect the following as long as the environment remains stable:

•Retail units sold above 150,000, and

•Adjusted EBITDA at or above the high end of our previously communicated range of $2.0 to $2.2 billion for the full year 20253.

Third Quarter Results

Q3 2025 marked another quarter that highlighted the power of Carvana's vertically-integrated business model, delivering record performance across numerous key metrics. Retail units sold reached a new company record of 155,941, up 44% year-over-year.

Revenue totaled $5.647 billion, an increase of 55% year-over-year. Revenue growth in Q3 2025 exceeded retail units sold growth primarily due to higher average selling prices and the impact of traditional gross revenue treatment for certain vehicles acquired from a large retail marketplace partner.

Alongside industry-leading growth, our results in Q3 also demonstrate further improvements to profitability. Net income was $263 million, a 78% increase year-over-year1. GAAP operating income was $552 million, an increase of 64% year-over-year, and a new company record. Adjusted EBITDA was $637 million, an increase of 48% year-over-year, and also a new company record.

Net income margin expanded to 4.7%, an increase of 0.7 points year-over-year, and GAAP operating margin increased to 9.8%, an increase of 0.6 points year-over-year. Adjusted EBITDA margin was 11.3%, declining 0.4 points year-over-year4, primarily reflecting higher revenue per unit, as described above.

1 All data points are as of Q3 2025 or most recently reported fiscal quarter.

Q3 2025 results underscore the earnings power of our model as we delivered record volume, further operating leverage, and industry-leading profitability. We remain focused on disciplined execution and profitably scaling our platform as we continue to make progress toward our goal of selling 3 million retail units per year at an Adjusted EBITDA margin of 13.5% within 5 to 10 years.

3 In order to clearly demonstrate our progress and highlight the most meaningful drivers within our business, we continue to use forecasted Non-GAAP financial measures, including forecasted Adjusted EBITDA. We have not provided a quantitative reconciliation of forecasted GAAP measures to forecasted Non-GAAP measures within this communication because we are unable, without making unreasonable efforts, to forecast fair value changes or calculate one-time or restructuring expenses. These items could materially affect the computation of forward-looking Net Income. Forecasted results and future objectives may be impacted by factors outside Carvana's control. See "Forward Looking Statements" herein.

4 Adjusted EBITDA margin in Q3 2024 benefitted from a 0.7% positive impact due to the volume of loans sold within the quarter and changes in benchmark interest rates between loan origination and sale.

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Update on ADESA Integrations and Digital Auction Expansion

Throughout Q3, we continued to expand the number of locations where we can produce retail inventory by integrating 3 more ADESA locations. This brings our total number of ADESA integrations to 15 and our total number of retail inventory pools to 33.

We have real estate to support annual retail production of 3 million units and, by the end of 2025, we expect to have fully built out annual retail production capacity of over 1.5 million across our Carvana and integrated ADESA production locations. In 2026, we expect to continue to integrate ADESA locations at a similar rate as in 2025 and begin construction on full build outs at select ADESA locations throughout the year.

While this capacity is well in excess of our current annual sales run rate, we believe it's valuable to continue to invest in building capacity well ahead of future growth. A broader network makes future growth easier by leveraging more locations, having more cars closer to more customers, and allowing us to distribute inventory efficiently across the country.

After the ADESA acquisition we had two types of large industrial facilities: Carvana IRCs and ADESA wholesale auctions. As we integrate these sites, we combine retail and wholesale capabilities within single sites. In order to support retail sales, a site must have reconditioning capabilities. In order to support wholesale disposition, a site must have auction capabilities. Over time, we are making sites across our network more powerful by adding reconditioning capabilities to ADESA sites and adding wholesale auction capabilities to Carvana IRCs with ADESA Clear.

One useful way to think about this evolving footprint is to look at the number of sites that are optimized for retail disposition, wholesale disposition, and for both over time.

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By adding wholesale and retail capabilities to more locations, we become a better buyer of cars from both our customers and commercial partners.

Strengthening Our Platform and Customer Experiences

Our vertically-integrated model unlocks many structural advantages. One of the many benefits of fully owned operations tied to a proprietary technology stack is that it creates opportunities to develop foundational capabilities that are unique within our industry. These capabilities differentiate the car buying and selling experience for customers and drive real positive feedback for the business. Two examples of this are Same Day Delivery and our fast and intuitive self-service customer care.

Same Day Delivery

Buying a car is a complex process. In most dealership transactions, this complexity is managed through many hours spent in person. Since the beginning, we have reduced complexity for car buyers and sellers with technology - combining an intuitive ecommerce website and seamless fulfillment experience. This has always been convenient and saved customers the time they would have otherwise spent waiting at a dealership, but it came with the tradeoff of waiting for vehicle delivery. Same-day delivery changes this.

We are only able to offer same-day delivery because of our vertically-integrated operations and technology. We have full control over the transaction and underwriting process, full control of how that ties to vehicle staging and fulfillment, and full control of the policies and staffing driving what options are available to customers.

We are currently using Phoenix as a test market to expand and refine our same day delivery capabilities. As a result, ~40% of customers in Phoenix now get same day or next day delivery vs. ~10% in other markets. Phoenix customers now have about 2,500 cars available to be delivered the same day. In the near term, we will continue to test and optimize this capability in Phoenix and will then look to roll out these enhancements to additional markets over time.

Having thousands of vehicles that can be purchased in minutes and delivered in hours is a highly differentiated and desirable customer offering that is extremely difficult to replicate.

Customer Care

The complexity of buying a car also shows up in customer support. The traditional car buying process requires that customers engage with several subject matter experts to address their needs and questions from selecting a vehicle, to qualifying for financing, to completing paperwork. The amount of customer- and vehicle-specific knowledge required is significant and either takes multiple people, multiple hours, or both.

Carvana has always navigated this complexity with a self-service ecommerce process. Now, the process is more powerful and self-directed than ever before. Each of the steps that a customer needs to complete in order to buy a car are supported by intuitive and easy to use tools that incorporate our workflows. These underlying services are also made available to Sebastian, our AI-powered chatbot, through dedicated sub-agents. This provides customers a customized experience whether they are navigating the website the traditional way or chatting with Sebastian.

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As we continue to strengthen and optimize this capability, more than 30% of car buyers now complete the entire process without any interaction with a Customer Advocate until their delivery or pickup appointment. For customers selling their cars to us, this number is more than 60%. And when customers do reach out, our Advocates access these same tools to deliver the highest-quality support.

Delivering immediate, personalized, scalable car buying support is a highly differentiated and desirable customer offering that is extremely difficult to replicate.

The following are real chats that showcase how the pairing of our vertically-integrated, proprietary systems with AI enables automated customer experiences.

Significant and Rapidly Growing Technology Advantage

This is just the beginning of what's possible. Our technology advantages compound as we grow. With each incremental customer activity, our vertically-integrated system produces and benefits from more structured data. As we embed AI deeper into the proprietary systems powering our operations, we will have more opportunities to turn complexity into deterministic workflows that are faster, more consistent, and lower cost. This, in turn, drives positive feedback in the form of better customer experiences, higher conversion, and more growth.

Summary

The third quarter was another quarter to be proud of and one that continues to light the path to achieving our current goal of selling 3 million cars per year at 13.5% Adjusted EBITDA margin in the next 5-10 years.

Our team continues to do all the complex, detailed work that makes our customers' experiences simpler and more fun.

We continue to identify many opportunities for improvement and then to go through the iterative process of prioritizing those projects, focusing on the most important, executing on them, and then going back to our ever expanding list of projects to pick the next set.

We remain as excited as ever, not just about our ability to hit our goals but also about our ability to continue to separate from the status quo.

Our mission is to change the way people buy and sell cars and there is no stopping us.

The march continues,

Ernie Garcia, III, Chairman and CEO

Mark Jenkins, CFO

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Appendix I: GPU and SG&A Expense Detail

Year-over-year changes in components of Total GPU and Total SG&A Expense per Unit were driven by the factors outlined below.

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Appendix II

Conference Call Details

Carvana will host a conference call today, October 29, 2025, at 5:30 p.m. EST (2:30 p.m. PST) to discuss financial results. To participate in the live call, analysts and investors should dial (833) 255-2830 or (412) 902-6715. A live audio webcast of the conference call along with supplemental financial information will also be accessible on the company's website at investors.carvana.com. Following the webcast, an archived version will also be available on the Investor Relations section of the company's website. A telephonic replay of the conference call will be available until Wednesday, November 5, 2025, by dialing (877) 344-7529 or (412) 317-0088 and entering passcode 2325331#.

Forward Looking Statements

This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana's current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, strategy, future performance, and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning.