Carvana Co. stock research
FY2025 Q1
Carvana (CVNA) Gross Margin — Quarter Ended Mar 31, 2025
Revenue, gross profit, and cost of revenue all increased compared to the preceding quarter and the same quarter last year. Gross margin improved both sequentially and year over year, reflecting a larger portion of revenue converting to gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue, gross profit, and cost of revenue all increased compared to the preceding quarter and the same quarter last year. Gross margin improved both sequentially and year over year, reflecting a larger portion of revenue converting to gross profit.
- The strongest observable driver of the margin improvement is the relationship between gross profit and revenue, which grew at a faster pace than cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, all three metrics were higher, with gross margin showing a more pronounced increase.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.0%
Gross profit
$929.0M
Revenue
$4.2B
Cost of revenue
$3.3B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+2.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $3.4B | $715.0M | $2.7B | 21.0% |
| Sep 30, 2024 | $3.7B | $807.0M | $2.8B | 22.1% |
| Dec 31, 2024 | $3.5B | $763.0M | $2.8B | 21.5% |
| Mar 31, 2025 | $4.2B | $929.0M | $3.3B | 22.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.4 pts
Year-over-year change
Mar 31, 2024
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement is the relationship between gross profit and revenue, which grew at a faster pace than cost of revenue relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, all three metrics were higher, with gross margin showing a more pronounced increase.
Monitor the trajectory of gross margin relative to revenue growth in upcoming quarters.