2026 Just Started and Carvana Stock Is Already Up Sharply. Can It Keep Soaring?

• Carvana shares person stayed blistery aft a immense 2025 run.

• The institution is increasing rapidly and posting important profits.

• Carvana's vertically integrated concern is proving to beryllium rewarding.

• 10 stocks we similar amended than Carvana ›

Carvana (NYSE: CVNA) stock's rebound has been thing abbreviated of astounding. After a brutal illness successful 2022 that led to shares hitting a debased of $3.55, the used-car seller has made a singular comeback. Today, shares commercialized astatine adjacent to $470. While overmuch of this summation occurred earlier 2025, past twelvemonth was inactive spectacular. Shares much than doubled successful 2025, and they person continued to emergence truthful acold successful aboriginal 2026.

Much of the stock's soaring terms since its 2022 lows has been well-deserved. The institution has executed an awesome turnaround, and its concern is performing amended than ever. But has the stock's emergence outpaced the underlying fundamentals?

Let's instrumentality a look.

Carvana sells utilized cars online, and it handles a batch of the process itself -- buying inventory, reconditioning cars, arranging financing for buyers, and delivering vehicles. Of course, it besides specializes successful a seamless virtual buying experience. By vertically integrating a important information of the process and focusing connected an e-commerce acquisition alternatively than a brick-and-mortar one, profits tin soar erstwhile things spell well.

This is precisely what has happened recently.

In Q3, Carvana sold 155,941 retail units, up 44% from a twelvemonth earlier, and gross roseate 55% to astir $5.65 billion. The institution paired that maturation with profitability, reporting nett income of $263 cardinal (up 78% twelvemonth implicit year) and adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) of $637 cardinal (up 48% twelvemonth implicit year).

Management besides signaled that the momentum was continuing into the extremity of the year. In its Q3 update, Carvana said it expected to merchantability much than 150,000 retail units successful the 4th fourth and adjusted EBITDA for the afloat twelvemonth of 2025 to beryllium astatine oregon supra the precocious extremity of its erstwhile forecast of $2.0 cardinal to $2.2 billion.

"In Q3, Carvana erstwhile again drove industry-leading maturation and profitability," said Carvana CEO Ernie Garcia successful the company's third-quarter net release. "We proceed to absorption connected unlocking the structural advantages of our vertically integrated exemplary that fortify our concern and abstracted our lawsuit offering."

Carvana has rebuilt itself into a profitable maturation story, and the banal has responded.