Carvana Co. stock research
FY2025 Q4
Carvana (CVNA) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was unchanged from the prior quarter but substantially higher than a year ago. Gross margin weakened sequentially and declined versus the same quarter last year, as cost of revenue increased relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue was unchanged from the prior quarter but substantially higher than a year ago. Gross margin weakened sequentially and declined versus the same quarter last year, as cost of revenue increased relative to revenue.
- The gross margin decline from the prior quarter was driven by cost of revenue growing faster than revenue, with revenue stable while cost of revenue increased.
- Compared to the immediately preceding quarter, revenue was flat, gross profit was stable, but gross margin weakened. Compared to the same quarter one year earlier, revenue was substantially higher, gross profit was higher, yet gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.8%
Gross profit
$1.1B
Revenue
$5.6B
Cost of revenue
$4.6B
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-2.8 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $4.2B | $929.0M | $3.3B | 22.0% |
| Jun 30, 2025 | $4.8B | $1.1B | $3.8B | 22.0% |
| Sep 30, 2025 | $5.6B | $1.1B | $4.5B | 20.3% |
| Dec 31, 2025 | $5.6B | $1.1B | $4.6B | 18.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.6 pts
Year-over-year change
Dec 31, 2024
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline from the prior quarter was driven by cost of revenue growing faster than revenue, with revenue stable while cost of revenue increased.
Compared to the immediately preceding quarter, revenue was flat, gross profit was stable, but gross margin weakened. Compared to the same quarter one year earlier, revenue was substantially higher, gross profit was higher, yet gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as it has increased both sequentially and year-over-year.