Free cash flow has turned positive at $56 million in 2026Q1, though the thin 0.9% FCF margin and historical working capital drains, such as the $415 million outflow in 2025Q2, warrant continued monitoring.
| Cash from Operations | 911M | 1.04B | 918M | 803M | -1.32B | -2.59B | -608.41M | -757.13M | -414.34M | -199.92M | -240.22M | -53.51M | -30.16M |
| Operating CF Margin % | - | 5.1% | 6.71% | 7.46% | -9.73% | -20.24% | -10.89% | -19.22% | -21.19% | -23.28% | -65.79% | -41.04% | -72.36% |
| Operating CF Growth % | 456.59% | 12.85% | 14.32% | 160.65% | 48.96% | -326.36% | 19.64% | -82.73% | -107.25% | 16.78% | -348.95% | -77.41% | - |
| Net Income | 1.6B | 1.9B | 404M | 150M | -2.89B | -287M | -462.22M | -364.64M | -254.75M | -164.32M | -93.11M | -36.78M | -15.24M |
| Depreciation & Amortization | 271M | 275M | 305M | 352M | 261M | 105M | 73.79M | 41.27M | 23.54M | 11.57M | 4.66M | 2.8M | 1.71M |
| Stock-Based Compensation | 77M | 96M | 91M | 73M | 69M | 39M | 25M | 33.06M | 24.09M | 5.61M | 555K | 490K | 0 |
| Deferred Taxes | -2.75B | -2.78B | 0 | 0 | 0 | 46M | 60.77M | 14.6M | 2.49M | 2.33M | 14.36M | 79.66M | 0 |
| Other Non-Cash Items | 2.13B | 2.03B | 295M | -336M | -153M | -415M | -72.82M | -189.96M | -62.89M | -21.94M | -36.94M | -80.07M | -247K |
| Working Capital Changes | -652M | -480M | -177M | 564M | 1.39B | -2.08B | -232.94M | -291.46M | -146.83M | -33.18M | -129.75M | -19.61M | -16.38M |
| Change in Receivables | 21M | 49M | -47M | -22M | 145M | -148M | -42.99M | -9.74M | -19.21M | -8.71M | -3.49M | -2.71M | -450K |
| Change in Inventory | -1.09B | -734M | -455M | 711M | 1.35B | -2.09B | -263.32M | -344.86M | -183.07M | -40.84M | -117.47M | -41.67M | -17.39M |
| Change in Payables | 418M | 235M | 260M | -166M | -46M | 247M | 67.37M | 97.91M | 68.55M | 16.9M | -1.63M | 25.56M | 1.63M |
| Cash from Investing | -226M | -230M | -13M | 31M | -2.58B | -627M | -345.93M | -227.74M | -150.34M | -82.67M | -47.69M | -16.07M | -3.77M |
| Capital Expenditures | -171M | -147M | -91M | -87M | -512M | -557M | -360M | -230.54M | -143.67M | -78.49M | -39.54M | -13.95M | -3.77M |
| CapEx % of Revenue | 0.76% | 0.72% | 0.67% | 0.81% | 3.76% | 4.35% | 6.44% | 5.85% | 7.35% | 9.14% | 10.83% | 10.7% | 9.04% |
| Acquisitions | -147M | -160M | 0 | -7M | -2.2B | -56M | 0 | 0 | -6.67M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 31M | 77M | 78M | 125M | 125M | 56M | 199K | 2.8M | 0 | -4.18M | -8.15M | -2.12M | 0 |
| Cash from Financing | -77M | -137M | 261M | -868M | 3.9B | 3.53B | 1.16B | 1.01B | 466.26M | 416.09M | 283.96M | 105.78M | 39.61M |
| Debt Issued (Net) | -581M | -670M | -987M | -1.24B | 2.75B | 3.59B | 153M | 733M | 311.71M | 113.92M | 122.73M | 74.93M | 17.37M |
| Equity Issued (Net) | 580M | 584M | 1.26B | 453M | 1.23B | -40M | 1.06B | 297M | 172.28M | 304.88M | 162.05M | 64.53M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.62M | 0 | 0 | -33.53M | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -40M | 0 | 0 | 0 | 0 | -398K | 0 | 0 |
| Other Financing | -76M | -51M | -16M | -84M | -79M | -22M | -47.01M | -15.38M | -13.1M | -2.71M | -810K | -150K | 22.24M |
| Net Change in Cash | 608M | 669M | 1.17B | -34M | -8M | 307M | 210.65M | 29.75M | -98.41M | 133.5M | -3.95M | 36.2M | 5.68M |
| Free Cash Flow | 740M | 889M | 827M | 716M | -1.84B | -3.15B | -968.41M | -987.67M | -558.01M | -278.41M | -279.76M | -67.46M | -33.93M |
| FCF Margin % | 3.29% | 4.37% | 6.05% | 6.65% | -13.5% | -24.59% | -17.33% | -25.07% | -28.54% | -32.42% | -76.62% | -51.73% | -81.41% |
| FCF Growth % | -22.02% | 7.5% | 15.5% | 139% | 41.73% | -225.38% | 1.95% | -77% | -100.42% | 0.48% | -314.72% | -98.82% | - |
| FCF per Share | 1.00 | 0.79 | 1.25 | 0.71 | -3.64 | -7.61 | -2.98 | -4.22 | -3.71 | -3.65 | -3.73 | -0.90 | -0.45 |
| FCF Conversion (FCF/Net Income) | 0.46x | 0.74x | 4.37x | 1.78x | 0.83x | 19.21x | 3.56x | 6.60x | 7.47x | 10.92x | 23.67x | 1.45x | 1.98x |
| Interest Paid | 26M | 0 | 115M | 538M | 423M | 152M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 5M | 0 | 5M | 28M | 3M | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Used vehicle price volatility
As reported in financial statements, the relationship between net income and operating cash flow remains highly volatile, with the OCF/NI ratio fluctuating from a high of 19.67 in 2024Q2 to a low of 0.16 in 2025Q2, indicating significant non-cash adjustments and timing differences in revenue recognition.
The wide variance between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash items, likely related to the gain-on-sale accounting for finance receivables. Investors should monitor whether this divergence persists, as it may imply that accounting profits are not yet fully supported by realized cash inflows from the core retail business.
Based on recent quarterly filings, Carvana's free cash flow trajectory has shifted from a $257 million burn in 2023Q4 to a positive $56 million in 2026Q1, though the FCF margin remains thin at 0.9%, reflecting the ongoing challenge of balancing growth with sustainable cash generation.
The transition to positive free cash flow appears to be a result of disciplined capital expenditure management rather than explosive cash generation. The inconsistency in quarterly FCF margins suggests that the business remains sensitive to operational cycles, and sustained profitability may require more predictable conversion of retail volume into cash.
According to the cash flow data, working capital changes have acted as a significant periodic drain on liquidity, notably reaching a $415 million outflow in 2025Q2, which highlights the capital-intensive nature of maintaining a centralized inventory pool across the company's national logistics network.
The erratic nature of working capital movements suggests that inventory management and the timing of loan sales are primary drivers of short-term cash availability. Analysts should investigate whether these outflows represent strategic inventory builds or inefficiencies in the reconditioning cycle that could pressure liquidity during periods of softening demand.
As indicated by the quarterly data, capital expenditures have remained relatively stable, averaging approximately $30 million per quarter, which represents a low capital intensity of roughly 0.6% to 0.9% of revenue, suggesting that the core infrastructure is currently in a maintenance or optimization phase.
The relatively low level of capital expenditure relative to revenue implies that the company is not currently engaged in aggressive physical expansion of its IRC network. This strategy appears to prioritize cash preservation, though it may limit the company's ability to scale throughput if demand exceeds the current capacity of existing facilities.
Quick answers to the most common questions about buying CVNA stock.
Carvana Co. (CVNA) generated $1.04B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Carvana Co. (CVNA) generated $889.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Carvana Co. (CVNA) spent $147.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.