Carvana’s numbers look a lot healthier than the stock’s chart. Shares closed at $66.18 on July 29 after a choppy week of trading, but the six-month return is -86.1%.
Operational results show improvement. Revenue finished 2025 at $20.3B, up 48.6% from the prior year. Gross margin sits at 20.6%, operating margin at 9.3% and net margin at 6.9% — an improvement from the company’s prior loss-making years.
At the same time the market values the business at market cap 14.8B, enterprise value 17.3B and net debt of 2.5B. Carvana’s P/E is 10.5x and EV/sales 0.9x — both well below peers on the firm’s own numbers.
Management keeps bringing attention back to financing activity as a live issue. The filing calls out shifts in borrowings and repayments that affect cash flows:
> "Cash provided by and used in financing activities was $52 million and $37 million during the six months ended June 30, 2026 and 2025, respectively, an increase in cash provided by financing activities of $89 million, primarily due to higher borrowings on short-term revolving facilities relative to payments and lower repayments of long-term debt due to the repurchase and cancellation of $52 million of principal amount of 2028 Senior Secured Notes in the open market for $55 million during the six months ended June 30, 2025, partially offset by higher tax withholding payments related to RSUs." (Carvana / 10-Q / 2026-07-29)
Put bluntly: the company is borrowing more on short-term lines now than it’s paying down long-term paper — and the filing lists that movement as a driver of cash. That isn’t a mystery; it’s a reminder that near-term liquidity and the cost of capital matter to the story as much as selling cars.
Carvana’s own scenario math makes that explicit. The company lays out three mechanical pathways with very different outcomes depending on both growth and the multiple the market assigns: bull case revenue CAGR +29.5% with an exit P/E of 35.3x; base case revenue CAGR +14.3% with an exit P/E of 10.5x; bear case revenue CAGR +5.7% with an exit P/E of 7.4x. The company notes the gap between those paths is very large and that most of the swing comes from the exit multiple the market applies.
So there’s a clear tension to watch: operational evidence (20.3B in revenue, improving margins, positive net income) versus structural financing sensitivity (short-term borrowings, effects of interest rates and debt market access). The company reports growth that could support a higher multiple; whether it earns one depends on how the credit picture and the market’s appetite for those multiples stack up.
Shares have bounced from lower levels in recent sessions — 62.74 on July 22, 60.20 on July 23, 60.47 on July 24, then 64.08 on July 27 and 66.08 on July 28 — but the run from a top-line and margin recovery to what the market is willing to pay for it is not automatic. Carvana’s filings put the mechanics of that trade front and center.
*All figures and the quoted language are taken from Carvana filings, including the 10-Q dated 2026-07-29.*