Business/Financial Results (Form 8-K)

Dear Shareholders,

The first quarter was another outstanding quarter for Carvana.

It was our 6th consecutive quarter of 40% or greater year-over-year unit growth leading to company records in retail units sold, revenue, gross profit, SG&A expense per unit, GAAP Operating Income, and Adjusted EBITDA, again demonstrating the power of our business model.

At its core, the used car industry is a complex system that enables customers to switch cars with one another. Our goal is to make that system dramatically simpler, more efficient, more scalable, and more customer-centric. We achieve that through vertical integration, reengineering physical processes, and maximizing the use of technology.

It's working.

The simplest proof point is this: for the 9th straight quarter, we were both the fastest growing and most profitable automotive retailer.

Another expression of this is how quickly we can move cars from one owner to the next.

A Carvana customer went from clicking "get started" to scheduling delivery in about 2 minutes. That only happens with intuitive tools, high levels of automation, vertical integration, deterministic pricing, and real-time access to data.

Another customer went from clicking "get started" to having their car delivered to their driveway in less than 2 hours. That requires everything above, plus automated verification, rapid vehicle retrieval, real-time scheduling, and highly coordinated logistics.

And in one of the clearest demonstrations of what our system can do, we completed the full lifecycle of a vehicle-from one customer selling their car to us to another customer buying that same car-in less than 5 days. That takes all the previous capabilities and adds automated vehicle valuation, integrated scheduling, multi-hauler transport, inspection and reconditioning, photography, and merchandising, all culminating with another customer clicking "get started" on that car, finalizing the order and taking delivery.

These timelines are all records and necessarily outliers, but they clearly illustrate how tightly the Carvana system fits together and how each capability compounds the advantages of the others, making Carvana the most efficient platform for moving cars from their previous owner to their next.

With our investments in our wholesale capabilities in the last couple of years, we have also streamlined the process when the next owner of a vehicle is a dealer. In just 11 hours, we purchased a car from a customer, listed it for sale on ADESA Clear and sold it to a dealer. We believe ADESA Clear is the best digital wholesale platform in the industry. Paired with our retail capabilities, we believe this enables us to be the best buyer of cars from both retail customers and commercial partners.

Speed is fundamentally valuable when dealing with a depreciating asset, but speed also demonstrates the simplicity of our system and the customer experiences we can provide, which are even more valuable.

As we continue to scale reconditioning capacity and expand inventory pools, we expect these capabilities to compound even further. And we expect to keep setting new benchmarks that highlight just how different the Carvana model is.

We remain firmly on the path of achieving our mission of changing the way people buy and sell cars and to selling 3 million cars per year at a 13.5% adjusted EBITDA margin by 2030 to 2035.

Summary of Q1 2026 Results

Q1 2026 Financial Results: All financial comparisons stated below are versus Q1 2025 unless otherwise noted. Complete financial tables appear at the end of this letter.

•Retail units sold totaled 187,393, an increase of 40%

•Revenue totaled $6.432 billion, an increase of 52%

•Total Gross profit was $1.271 billion, an increase of 37%

•Total Gross profit per unit ("GPU") was $6,783, a decrease of $155

•Non-GAAP Total GPU was $6,911, a decrease of $229

•Net income margin was 6.3%, a decrease from 8.8%

◦Net income totaled $405 million1

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1 Net income in Q1 2026 was negatively impacted by $42 million associated with changes in the fair value of warrants.

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•Adjusted EBITDA margin was 10.4%, a decrease from 11.5%

◦Adjusted EBITDA totaled $672 million

•GAAP Operating income was $581 million, an increase of $187 million

•Basic and diluted net earnings per Class A share were $1.75 and $1.69, respectively, based on 143 million and 148 million shares of Class A common stock outstanding, respectively

◦Assuming full conversion of LLC units and other dilutive effects, there would have been 226 million shares of Class A common stock outstanding

Outlook

Looking toward Q2 and assuming the environment remains stable, we expect a sequential increase in both retail units sold and Adjusted EBITDA2, leading to all-time company records on both metrics. We remain on track to deliver significant growth in both retail units sold and Adjusted EBITDA2 in FY 2026.

First Quarter Results

The first quarter was another very strong quarter for Carvana and again highlighted the power of our vertically integrated offering.

Retail units sold were 187,393, marking 40% year-over-year growth and again significantly outpacing the industry, which was approximately flat year-over-year. This level of growth drove industry-leading profitability, with Net Income margin of 6.3% and Adjusted EBITDA margin of 10.4%.

1 All data points are as of the most recent publicly reported fiscal quarter.

GAAP and Non-GAAP Retail GPU decreased by $39 and $58 year-over-year, respectively, primarily driven by higher reconditioning costs and lower shipping fees. On a sequential basis, Retail GPU increased by $175 and $174 on a GAAP and Non-GAAP basis, respectively.

Retail GPU was impacted by higher reconditioning costs year-over-year in Q1. Over the past few months, our reconditioning teams have made exciting progress:

•Centralizing planning and decision-making to improve productivity and simplify execution as we scale. For example, we are transitioning shift scheduling and overtime management from site-level ownership to a centralized model, enabling us to better optimize production while maintaining efficiency across the network.

•Building better tools and continuing to leverage AI to improve visibility, planning, and day-to-day execution. For example, we have developed a new application under our proprietary Carli software, called 'Roll Call', which enables leaders to allocate labor more efficiently across a given site and identify gaps, bottlenecks or underutilized headcount.

•Strengthening training and workforce development through greater technology integration and a more structured curriculum, allowing us to more efficiently recruit and upskill reconditioning associates in line with our growth.

2 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 (loss). Forecasted results and future objectives may be impacted by factors outside Carvana's control. See "Forward Looking Statements" herein.

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So far in Q2, we are beginning to see the impact of these efforts, with labor hours per unit for vehicles produced over the last few weeks approaching levels just shy of our all-time best.

These recent trends are encouraging, but there is more to do. We will continue refining our operations to drive strong execution and consistently deliver high-quality vehicles to our customers.

Our Q1 results have again demonstrated our ability to deliver significant profitability at increasing scale as we continue to progress toward achieving our goal of becoming the largest and most profitable auto retailer and buying and selling millions of cars per year.

Title & Registration: Turning Complexity into Capability

Similar to reconditioning, logistics, and customer care, title and registration ("T&R") is a complex, behind-the-scenes operational process that we simplify through vertical integration to drive better experiences.

Titles are records of ownership. Registration is a license to use the roads. While these functions are straightforward, the processes behind them are structurally complex. T&R is highly fragmented, heavily paper-based, and governed by over 40,000 discrete rule conditions across 50 states. These span 600+ state-specific form IDs across three categories: document coherence (fields must match across the documents in the transaction), presence and format (fields must exist, be signed, or satisfy a required value), and conditional requirements (200+ deal attributes that determine which documents are required). Requirements vary widely by state (and often by county or city), as well as by customer and vehicle, with many jurisdictions still dependent on paper documentation, wet ink signatures, and in-person or mail document delivery.

Providing efficient, industry-leading title and registration experiences at national scale requires both high-quality technology capable of automating decisions across a vast number of scenarios and operational systems that can execute reliably within rigid, state-governed processes. This integration of technology and operations is a core capability of the Carvana model.

Continued investments in these areas have enabled us to achieve timely registration completion rates of ~99%, which we believe to be substantially higher than industry averages.

Expanding Production Capacity

One of the key drivers of achieving 3 million annual retail units sold is expanding production capacity. We plan to do this through four key strategies: 1) increasing staffing at existing facilities, 2) integrating retail production lines at more ADESA facilities, 3) building new lines at ADESA facilities, and 4) eventually building new greenfield production locations, with the latter being less of a priority in the near term.

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As of Q1, we have 18 Carvana inspection and reconditioning centers and 16 ADESA integrated sites. In 2026, we expect to integrate 6 to 8 existing ADESA sites. In addition to these integrations, we expect to begin construction on full-buildouts of select ADESA sites throughout the year.

This current footprint gives us fully built out annual capacity for approximately 1.5 million retail units, with real estate to support annual retail production of 3 million retail units.

Looking forward, we will continue investing in our infrastructure ahead of future growth. By building excess reconditioning capacity, we expect to benefit from near-term operational flexibility while laying a clear foundation to support growth over the medium and long term.

Summary

The first quarter was another great quarter that has us off to a strong start in 2026.

We are continuing to hit records. We are continuing to improve the Carvana machine. We are continuing to execute. And our team is continuing to demonstrate our ability to scale a business of Carvana's complexity at high speed while continually delivering exceptional experiences to our customers.

It remains early in the game and the future remains extremely bright.

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.

Going forward, we will present Wholesale GPU on a consolidated basis, combining Wholesale Vehicle GPU ($592 and $603 in Q1 2026 on a GAAP and Non-GAAP basis, respectively) and Wholesale Marketplace GPU ($219 and $278 in Q1 2026 on a GAAP and Non-GAAP basis, respectively) given their increasingly integrated functions. Additionally, expenses previously categorized as Wholesale Marketplace operations ($91 per retail unit sold in Q1 2026) are now categorized as Overhead expenses, as they are primarily fixed with respect to retail units sold.

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Conference Call Details

Carvana will host a conference call today, April 29, 2026, 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, May 6, 2026, by dialing (877) 669-9658 or (412) 317-0088 and entering passcode 3177591#.

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.