Key Takeaways
- The board of directors at Carvana has greenlit a 5-for-1 forward stock split, awaiting May 5 shareholder approval.
- Should the vote pass, split-adjusted trading commences May 7 with the ticker symbol remaining “CVNA.”
- The company aims to improve stock accessibility for retail investors and its workforce through this initiative.
- Shares of CVNA climbed approximately 3% during premarket hours following the disclosure.
- Despite a 31% decline in 2026, the stock has surged 62% over the trailing 12-month period.
The online used car retailer Carvana has received board approval for a 5-for-1 forward stock split, marking a historic first for the company. Following the announcement, shares climbed roughly 3% in early premarket activity, trading near the $302 level.
Shareholder approval remains a requirement before the split takes effect. The proposal will be presented to stockholders during the company’s Annual Meeting scheduled for May 5, 2026. Upon approval, shareholders of both Class A and Class B common stock on record at the close of business on May 6 will be issued four additional shares for each existing share. Split-adjusted trading is slated to commence on May 7.
Implementation of the split will occur via an amendment to the company’s Certificate of Incorporation.
Chief Financial Officer Mark Jenkins referenced Carvana’s impressive 2025 results as the foundation for this strategic decision. The company achieved unprecedented milestones in both unit sales volume and profitability throughout the year while maintaining industry-leading growth rates.
Chief Executive Officer Ernie Garcia emphasized the employee-centric rationale behind the decision. Every full-time employee qualifies for equity compensation tied to their length of service, and the company maintains a discounted Employee Stock Purchase Plan.
“We’re proud to have an incredible team that truly owns outcomes,” Garcia said in a statement.
A Volatile Journey
Carvana made its public market debut in 2017 with shares priced at $15. The stock rocketed beyond $300 during 2021’s pandemic-fueled vehicle purchasing frenzy, only to crater to approximately $5 by late 2022. That year brought a staggering $1.6 billion loss for the company.
The turnaround since has been remarkable. Carvana achieved profitability once again and has demonstrated rapid expansion in both revenue and earnings, capturing increased market share within the highly fragmented used automobile sector. Shares reached a record closing peak of $478.45 on January 22, 2026.
However, 2026 has presented challenges. Year-to-date, CVNA has declined 31%. A February quarterly report that failed to meet all expectations, combined with a short-seller report claiming undisclosed related-party transactions, created headwinds for the stock. The company strongly refuted these claims, characterizing them as “inaccurate and intentionally misleading.”
Despite recent volatility, CVNA maintains a 62% gain over the past year.
Strong 2025 Performance Metrics
Carvana’s retail unit sales approached 600,000 vehicles in 2025. The company delivered an 11% total EBITDA margin and achieved record net income of $1.9 billion for the full year.
CEO Garcia recently reaffirmed the company’s ambitious long-range objectives: reaching 3 million annual retail vehicle sales with a 13.5% adjusted EBITDA margin, with an expected timeline falling between 2030 and 2035.
Based on the current premarket trading level near $302, the post-split share price would land at approximately $60.40 per share.
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