Carvana Is Eating Traditional Auto Dealers' Lunch

Carvana Co. delivered robust Q1 revenue growth of 52% YoY and significantly beat analyst top-line expectations by $322 million. Despite a softer gross profit per unit, Carvana improved SG&A efficiency and maintained respectable profitability, with EPS of $1.69 above consensus. Management guides for records in retail units sold and adjusted EBITDA in Q2, with ambitious long-term targets for 3M retail units and 13.5% adjusted EBITDA margin by 2030-2035.