On May 7, 2026, Carvana (NYSE: CVNA) will undergo a 5-for-1 stock split. Carvana, a leading online marketplace for buying and selling used cars, announced this strategic move. A stock split increases the number of shares an investor owns but lowers the price of each share. For every one share owned, shareholders will receive five new shares.
This decision follows a period of very strong financial performance. As highlighted by CNBC, Carvana announced record first-quarter results with revenue climbing 52% year-over-year to $6.43 billion. The company also reported a net income of $405 million, an increase from $373 million in the same quarter a year earlier, showing improved profitability.
The company's growth is also visible in its sales volume. As noted by WSJ, Carvana sold a record 187,393 retail units, a 40% increase from the previous year. This strong sales performance helped the company achieve an adjusted EBITDA of $672 million. Adjusted EBITDA is a key measure of operating profit, excluding certain non-cash expenses.
Looking forward, Carvana anticipates setting new company records in the second quarter for both retail units sold and adjusted EBITDA. According to Seeking Alpha, its current infrastructure is set up to support 1.5 million units sold annually. This represents a significant step up from its current rate of approximately 750,000 units.
Despite its rapid growth, Carvana trades at a premium valuation of 31.3x EV/FY26 EBITDA, as highlighted by Seeking Alpha. While the stock is down 6% in 2026, it has gained approximately 63% over the past year. This brings its market capitalization, or total company value, to around $87 billion.
