By Connor Hart

Carvana swung to a profit and logged higher-than-expected revenue in the fourth quarter, buoyed by higher car sales.

The online used-car seller on Wednesday posted a profit of $159 million, compared with a loss of $200 million a year earlier.

Adjusted per-share earnings were 56 cents, topping the 31 cents a share that analysts surveyed by FactSet expected.

Revenue increased 46% to $3.55 billion and came in ahead of the $3.34 billion that analysts modeled.

The company said it sold 114,379 retail units in the recent quarter, up 50% from the prior year.

Chief Executive Ernie Garcia said the company has captured roughly 1% of its total market, giving it ample runway to improve and expand its offerings moving forward. "We know this is just the beginning of our journey to change the way people buy and sell cars," he said.

For the first quarter, Carvana said it expects a sequential increase in both retail units sold and adjusted earnings before interest, taxes, depreciation and amortization.

For 2025, the company forecast what it called significant growth in both retail units sold and adjusted Ebitda.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 19, 2025 16:10 ET (21:10 GMT)

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