Carvana Stock Surges On Q2 Results, Support Agreement With Noteholders

(RTTNews) - Carvana (CVNA) said it performed exceptionally well in the second quarter and set company records for adjusted EBITDA and gross profit per unit, which was up 94% year-over-year. Looking forward, the company expects to achieve positive adjusted EBITDA in third quarter 2023.

Carvana also announced an agreement with noteholders representing over 90% of outstanding senior unsecured notes to reduce total debt, extend maturities, and lower near-term cash interest expense.

Mark Jenkins, Carvana's CFO, said: "This transaction significantly increases our financial flexibility by reducing our total debt, extending maturities, and lowering near-term cash interest expense as we continue to execute our plan of driving significant profitability and returning to growth."

Second quarter net loss was $105 million compared to a loss of $439 million, prior year. Adjusted EBITDA was $155 million in the second quarter. The company's second quarter results benefited from approximately $70 million of non-recurring items. Adjusted EBITDA margin was 5.2%, an improvement of 10.8% from a year ago.

Shares of Carvana are up 25% in pre-market trade on Wednesday.

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