Dear Shareholders,

In the first quarter, we delivered our best financial results in company history; for that reason, it is a quarter worthy of
reflection.

In Q1, we achieved a net income margin of 1.6% and a company-record Adjusted EBITDA margin of 7.7%. By the latter
measure, for the first time, we became the most profitable public automotive retailer in the U.S.

We returned to growth, growing 16% despite decreasing marketing dollars and constrained inventory.

We completed our third quarter of positive net income and our first quarter with Adjusted EBITDA exceeding capital
expenditures and interest expense, clearing that hurdle by a significant margin.

We achieved all of this in a difficult environment that has challenged unit economics and volume for many across the
industry.

While our path to where we are today has not been linear, we think the most important storylines can be found by
looking at what has been consistent throughout our journey:

When we started Carvana, we believed that an entirely new retail model with a national inventory paired with a
purpose-built, technology-enabled transaction platform, and connected by a completely new supply chain would
allow us to efficiently and profitably provide exceptional, highly differentiated customer experiences.

Eleven years later, we believe the same thing.

When we shared our long-term financial model, we believed that the time-tested, structurally stable economics of
our industry combined with the unique revenue and cost opportunities afforded by our business model would allow
us to build the most profitable business in automotive retail while still offering our customers significant discounts vs.
the competition.

Six years later, we believe the same thing.

When we began investing in our business of buying cars from customers, we believed that further vertical integration
would enable us to serve even more customers, generate additional economic gains, and provide positive feedback to
the retail business.

Five years later, we believe the same thing.

When we acquired ADESA, we believed that pairing our business with the second-largest wholesale auction platform
in the country (with 6,500 acres of land and 500,000 parking spaces within 100 miles of 95% of the US population, all
zoned for our use) would allow us to vertically integrate even further and efficiently scale to millions and millions of
units per year.

Two years later, we believe the same thing.

When it felt like everything was breaking against us, we believed that we had a business and people who had the
strength to be made better by the pressure we were under.

Eighteen months later, we believe the same thing.

Last quarter, we outlined five reasons why we believed we were better positioned to fulfill our goals than we had ever
been.

Today, we believe the same thing.

Carvana is a company with a north star of delivering exceptional, ever-improving customer experiences. We are a
1
company full of people with eyes locked on the target who don’t know how to quit. We are a company that has
proven our ability to move quickly over a sustained period of time. We are a company that has demonstrated our
ability to adapt to challenges. And we are a company that, despite carrying significant excess capacity and having
room for meaningful efficiency gains from here, just delivered $49 million of net income and approximately $1 billion
in annualized Adjusted EBITDA with only 1% market share in one of the largest retail markets in the U.S.

Summary of Q1 Results
Q1 2024 Financial Results: All financial comparisons stated below are versus Q1 2023 unless otherwise noted.
Complete financial tables appear at the end of this letter.

● Retail units sold totaled 91,878, an increase of 16%

● Revenue totaled $3.061 billion, an increase of 17%
● Total gross profit was $591 million, an increase of 73%
● Total gross profit per unit (“GPU”) was $6,432, an increase of $2,129
● Non-GAAP Total GPU was $6,802, an increase of $2,006
● Net income (loss) margin was 1.6%, an increase from (11.0)%
o Net income totaled $49 million and included a ~$75 million gain in the fair value of our
warrants to acquire Root common stock.
▪ This gain did not impact GPU or Adjusted EBITDA.
● Adjusted EBITDA margin was 7.7%, an increase from (0.9)%
o Adjusted EBITDA totaled $235 million
● Basic and diluted net earnings per Class A share were $0.24 and $0.23, respectively, based on 116
million and 212 million shares of Class A common stock outstanding, respectively

Outlook
Our financial performance clearly demonstrates the significant power of our business model.

Looking toward the second quarter of 2024, we expect the following as long as the environment remains stable:

● A sequential increase in our year-over-year growth rate in retail units, and

● A sequential increase in Adjusted EBITDA1.

With our strong results in Q1 and outlook for Q2, we expect to comfortably deliver on our outlook of
year-over-year growth in retail units sold and Adjusted EBITDA for FY 2024. Going forward, we do not plan to
provide additional full year 2024 updates and will focus on quarterly commentary.

First Quarter Results

Q1 was a milestone quarter for proving the long-term earnings power of our online retail model. We set company
records on Adjusted EBITDA, Adjusted EBITDA margin, and GAAP Operating Income, and generated Adjusted EBITDA
that significantly exceeded capital expenditures and interest expense.

We entered Q1 squarely focused on our unit economics and profitability initiatives. Despite this focus, we saw strong
customer demand in part due to fundamental gains in conversion and customer experience that we made over the
preceding quarters.

1
In order to clearly demonstrate our progress and highlight the most meaningful drivers within our business, we continue to use forecasted Non-GAAP financial
measures, including forecasted Adjusted EBITDA. We have not provided a quantitative reconciliation of forecasted GAAP measures to forecasted Non-GAAP
measures within this communication because we are unable, without making unreasonable efforts, to calculate one-time or restructuring expenses. These items
could materially affect the computation of forward-looking Net Income (loss).

2
Retail units sold increased by 16% year-over-year and 21% sequentially despite advertising spend decreasing by 8%
sequentially and average days of immediately available inventory on our website falling to 13 days in March, nearing
our all-time monthly low for this metric.

To respond to this demand, we have begun increasing production across the country. In the near term, we will
continue to focus on growing production to match demand and returning selection to normalized levels.

Our strong profitability results in Q1 were driven by meaningful fundamental gains in GPU and SG&A expenses.

We set company records (on a normalized basis, after adjusting for excess loan sales in Q2 2023) for GAAP and
Non-GAAP GPU of $6,432 and $6,802, respectively, driven by strength and sequential improvements across all GPU
components. For the fourth consecutive quarter, we set company records for GAAP and Non-GAAP Retail GPU at
$3,080 and $3,211, respectively. Our strength in Retail GPU continues to be driven by fundamental gains in several
areas, including non-vehicle cost of sales, customer sourcing, inventory turn times, and revenues from additional
services.

GAAP and Non-GAAP SG&A per unit were $4,963 and $4,245, respectively, down $806, and $697, sequentially. The
Carvana Operations portion of SG&A expense was $1,850 per unit, down $174 sequentially. The Overhead portion of
SG&A expense was approximately flat sequentially in dollars at $151 million, and down $328 per unit, proving our
ability to lever into our fixed expense base with growth.

Net income totaled $49 million, and net income margin was 1.6%. We set company records for Adjusted EBITDA of
$235 million and Adjusted EBITDA margin of 7.7%.

Our business model, our financial model, and our customer offering are stronger than ever, and we are now in the
long-term phase of driving profitable growth in pursuit of our goal of becoming the largest and most profitable
automotive retailer and buying and selling millions of cars per year.

A More Profitable Business Model

Our strong performance in Q1 delivered several powerful profitability milestones.

● Automotive retail industry-leading Adjusted EBITDA margin. Our GAAP operating margin, net income
margin, and Adjusted EBITDA margin in Q1 were 4.4%, 1.6%, and 7.7%, respectively. The latter led all U.S.
publicly traded automotive retailers in Q1, which ranged from ~3% to ~7%. By this measure, in Q1, we
achieved for the first time our goal of becoming the most profitable auto retailer.

● Significant GAAP Operating Income. We generated $134 million of GAAP operating income in the first
quarter, a new company record. Notably, we achieved this result in an environment in which retail used
vehicle sales were down over 10% since 2019, benchmark interest rates remain at levels not seen in nearly 20
years, and many other automotive retailers are seeing reduced profitability. Moreover, we achieved this
result while carrying the costs associated with excess capacity for ~3x retail unit growth, further
demonstrating the underlying strength of our online retail model.2
2
Our record GAAP Operating Income in Q1 resulted in part because our Adjusted EBITDA is higher quality than that of many high-growth, technology-focused
companies due to relatively low non-cash expenses. Our non-cash expense efficiency compared to other high-growth companies means we converted ~270% of
Net Income and ~55% of Adjusted EBITDA into GAAP Operating Income. We see significant opportunity to lever non-cash expenses over time, given our current
excess capacity. At ~3x retail unit volume, we believe leverage on fixed non-cash expenses can push our Operating Income to Adjusted EBITDA ratio above 90%.
3
 ● Adjusted EBITDA now significantly exceeds CapEx and interest expense. Our strong Q1 results mean that
our Adjusted EBITDA now significantly exceeds capital expenditures and interest expense. This milestone
means that in Q1 we officially achieved the goal we set in May 2022 to drive Adjusted EBITDA that
significantly exceeds capital expenditures and interest expense. Moreover, we achieved this goal at ~360k
annual unit volume, in line with our expectations.

The table below highlights this achievement for our actual Q1 2024 results and for an illustrative scenario
that assumes our Q1 results but includes cash interest expense on all of our Senior Secured Notes after the
conclusion of the cash or PIK election period.

We currently plan to pay cash interest on our 2028 and 2030 Senior Secured Notes on both semiannual
payment dates in 2025, which is incorporated into the scenario below.

Future Opportunities

In light of our success in Q1, a natural question to ask is how much opportunity remains for continued improvement.
The simple answer is that we see significant opportunities for fundamental margin and efficiency gains over time and
as we scale.

1. Overhead Expenses. Overhead expense in SG&A was 4.9% of revenue in Q1. We believe we currently have
the infrastructure to sell ~3x our current retail unit sales volume3, leading to a ~3.3% of revenue overhead
expense leverage opportunity and more opportunity beyond that over time. Our sequential growth in Q1
provides early visibility into this leverage opportunity. We grew units 21% in Q1 vs. Q4 with overhead
expenses approximately flat in dollar terms, leading overhead expenses as a percent of revenue to decline
from 6.2% to 4.9%, a reduction of 1.3% in a single quarter.

2. Advertising Expenses. Advertising expense was 1.8% of revenue in Q1. Notably, our four oldest cohorts of
markets, those opened in 2013 through 2016, achieved an aggregate 1.0% advertising expense as a percent
of revenue in Q1. This provides a clear path to reducing advertising by ~0.8% of revenue over time, not
including any other gains in advertising efficiency.

3
In our Q3 2023 Shareholder Letter we shared that different components of our infrastructure can accommodate between 2.9x to 5.6x annualized retail unit
volume as of Q3 2023. For illustrative purposes in this section we will base our commentary on a ~3x multiple of unit volume.

4
3. Operations Expenses. Carvana Operations Expense declined sequentially from 6.4% to 5.6% of revenue in Q1.
We see opportunities for this to decrease over time through scale and continued efficiency gains, including
those listed below.
a. Network coverage and efficiency. As we add inventory pools at more locations, primarily by adding
reconditioning at more ADESA sites, we expect lower average outbound miles per sale. In addition,
we see opportunities to reduce cost per mile through additional efficiencies in the system.
b. Scale. A portion of our operations expenses are semi-fixed, including operations management and
logistics routes that are not fully utilized. This portion of operations expenses can lever with
additional unit volume.
c. AI / Automation. We are still in the early days of rolling out generative AI and other automation
technologies into our customer care and document processing centers and see room for significant
improvement from today’s cost levels.
d. Other Efficiency Gains. We continue to see opportunities in other operations expense areas not
listed above, including technology and process improvements in limited warranty and title and
registration.

4. Gross Margin Opportunities. We have made significant progress increasing gross margins over our company’s
history, and today our teams are still working to make additional fundamental gains across all gross profit line
items.
a. Retail cost of sales - reconditioning costs. We continue to see opportunities to drive down
reconditioning costs through further development of our proprietary CARLI IRC software and
efficiency gains in parts and third-party vendor services.
b. Retail cost of sales - inbound transport costs. We continue to see opportunities to decrease inbound
transport costs as we add reconditioning capabilities at more ADESA locations, decreasing the
average number of miles each vehicle travels to the nearest reconditioning location.
c. Wholesale growth. We continue to see significant opportunities to grow our wholesale volume over
time through increasing awareness for our offering of buying cars from customers, enhancements to
our data, pricing, and processes, and further development of our new digital auction platform, ADESA
Clear.
d. Finance efficiency. We see significant opportunities to enhance and optimize our finance platform
data, scoring, pricing, and servicing and to improve our securitization cost of funds to be in line with
mature issuers.
e. Ancillary products. We see opportunities to increase ancillary product attachment rates, optimize
profit per attach, and add new products to our online checkout flow over time.

5. Non-Cash Costs and Expenses. Our non-cash costs and expenses of depreciation and amortization and
share-based compensation totaled 3.4% of revenue in Q1, of which approximately 1.3% is included in costs of
sales and 2.1% is included in SG&A expenses. Similar to overhead expenses, we view these as primarily fixed
in the near term given our excess capacity, and as a result believe we have a more than 2% of revenue
non-cash expense leverage opportunity at ~3x current retail unit volume as we grow into our existing
infrastructure.

5
 Capacity Utilization4

Margin Expansion Opportunities

Our Long Term Growth Opportunity

We have been focused on our goal of becoming the largest and most profitable automotive retailer and buying and
selling millions of cars per year. Our confidence in our ability to achieve this goal comes from the combination of the
factors detailed below:

● Large and fragmented U.S. used vehicle market. Last year there were approximately 36 million retail
transactions in the U.S. used auto market according to industry data. Prior to COVID-era disruptions, used
auto sales volume was closer to 40 million. This is a highly fragmented market with tens of thousands of
dealers. The largest player has a ~2% share and the top 100 collectively have ~11%. We believe this market
backdrop paired with our unique online retail model provides a differentiated opportunity for long-term
compound growth.

4
This table represents our infrastructure capacity utilization as previously disclosed in our Q3 2023 shareholder letter.

6
 ● Strength of our customer offering. We continue to improve our fully integrated e-commerce customer
experience through proprietary technology and efficiency initiatives. Over the last 18 months, these efforts
have driven better customer experiences at each step in the transaction. Our NPS trends prove that
customers love our offering and we expect to continue improving it, including through the benefits of scale
and efficiency.

● Industry-leading unit economics and differentiated financial model. The ability of our online retail model to
deliver industry-leading profitability is now clear. Despite a profitability focus, we grew retail units sold 21%
sequentially, levered into our fixed cost base, drove improvements in operations expense per unit, delivering
net income margin of 1.6% and industry-leading Adjusted EBITDA Margin of 7.7%.

● Unmatched, purpose-built automotive infrastructure. The physical infrastructure for multiples of growth is
already built. We have the reconditioning facilities capable of producing 1.3 million cars a year. We have 56
ADESA locations that we believe once fully built out will increase our total production capacity to
approximately 3 million cars a year.The sum of these locations comprises ~6,500 acres with over 500,000
parking spots around the country. Growing into our infrastructure will be enabled by the technology and
operational efficiency gains our teams have been focused on to make the process of reconditioning vehicles
more seamless and scalable.

Over time, we plan to continue to take market share by delivering seamless customer experiences, generating
high-quality unit economics, and scaling into our purpose-built automotive infrastructure.

Management Objectives
Consistent with the priorities shared in the last several letters, our current focus remains centered on
increasing efficiency and driving positive free cash flow. However, this letter maintains our historical format
built around the three objectives, (1) Grow Retail Units and Revenue; (2) Increase Total Gross Profit Per Unit;
and (3) Demonstrate Operating Leverage, to discuss our key results.

1
Net Income margin in FY 2023 benefited from a one-time gain on debt extinguishment of ~$878 million.

7
2
Net income margin in Q1 2024 benefitted from ~$75 million associated with positive changes in the fair value of our warrants to acquire
Root common stock.
3
Adjusted EBITDA is defined as net income (loss) plus income tax provision, interest expense, other operating (income) expense, net, other
(income) expense, net, depreciation and amortization expense in cost of sales and SG&A expenses, goodwill impairment, share-based
compensation expense in cost of sales and SG&A expenses, and restructuring costs, minus revenue related to our Root warrants and gain
on debt extinguishment. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenues. For additional information on
Adjusted EBITDA and other Non-GAAP financial metrics referenced in this letter, please see the financial tables at the end of this letter and
our Q1 2024 supplemental financial tables posted on our investor relations website.
4
EBITDA Margin is calculated as net income (loss) plus income tax provision, interest expense, and depreciation and amortization expense,
divided by revenues.

Objective #1: Grow Retail Units and Revenue

Retail units sold totaled 91,878 in Q1, a sequential increase of 21%. Revenue was $3.061 billion in Q1, a sequential
increase of 26%. The strong demand we experienced in Q1 was driven in part by conversion improvements across
customer care and logistics that deliver a more seamless, faster and improved customer experience.

Objective #2: Increase Total Gross Profit Per Unit

Year-over-year and sequential changes in Total GPU in Q1 2024 were driven by a variety of factors described below
in more detail.

For Q1 2024

● Total
o Total GPU was $6,432 vs. $4,303 in Q1 2023 and $5,283 in Q4 2023.
o Non-GAAP Total GPU was $6,802 vs. $4,796 in Q1 2023 and $5,730 in Q4 2023.5

● Retail
o Retail GPU was $3,080 vs. $1,388 in Q1 2023 and $2,812 in Q4 2023.
o Non-GAAP Retail GPU was $3,211 vs. $1,591 in Q1 2023 and $2,970 in Q4 2023.

5
Consistent with the last three quarters of financial reporting, we are presenting two metrics for total GPU and for each GPU component: GAAP gross profit per
unit and non-GAAP gross profit per unit, which excludes the impacts of depreciation and amortization expense, share-based compensation expense, Root warrant
revenue, and restructuring costs. For additional information, please see our Q1 2024 supplemental financial tables.

8
 o
The sequential increase in Retail GPU was primarily driven by wider spreads between
wholesale and retail market prices and lower seasonal retail depreciation rates.
o Year-over-year improvement in Retail GPU was primarily driven by lower average days to sale,
lower reconditioning and inbound transport costs, and wider spreads between wholesale and
retail market prices, partially offset by a lower retail inventory allowance adjustment and
higher retail depreciation rates.
● Wholesale
o Wholesale GPU was $860 vs. $883 in Q1 20236 and $526 in Q4 2023.
o Non-GAAP Wholesale GPU was $1,153 vs. $1,236 in Q1 2023 and $881 in Q4 2023.
o Wholesale Vehicle
o Wholesale Vehicle GPU was $501 vs. $555 in Q1 2023 and $368 in Q4 2023.
o Non-GAAP Wholesale Vehicle GPU was $522 vs. $580 in Q1 2023 and $394 in Q4 2023.
o Sequential improvement in Wholesale Vehicle GPU was driven by lower wholesale
depreciation rates and an increase in the ratio of wholesale units sold to retail units sold.
o Year-over-year reductions were primarily driven by higher wholesale depreciation rates
and a lower wholesale inventory allowance adjustment, partially offset by a higher ratio of
wholesale units sold to retail units sold.
● Wholesale Marketplace
o Wholesale Marketplace GPU was $359 vs. $328 in Q1 2023 and $158 in Q4 2023.
o Non-GAAP Wholesale Marketplace GPU was $631 vs. $656 in Q1 2023 and $487 in Q4
2023.
o Sequential improvements in Wholesale Marketplace GPU were primarily driven by
higher seasonal volume in Q1, while the year-over-year changes were primarily driven
by higher gross profit dollars offset by changes in the ratio of wholesale marketplace
units sold to retail units sold.
● Other
o Other GPU was $2,492 vs. $2,032 in Q1 2023 and $1,945 in Q4 2023.
o Non-GAAP Other GPU was $2,438 vs. $1,969 in Q1 2023 and $1,879 in Q4 2023.
o The sequential increase in Other GPU was primarily driven by more normalized loan sale
volume relative to originations, lower credit spreads on securitization transactions, and credit
scoring and pricing optimizations, including credit tightening in Q4.
o Year-over-year improvements in Other GPU were primarily driven by lower credit spreads on
securitization transactions and credit scoring and pricing optimizations.

6
Wholesale gross profit and wholesale GPU includes gross profit from the sale of wholesale marketplace vehicles at our acquired ADESA locations.

9
Objective #3: Demonstrate Operating Leverage
On a sequential basis, Q1 net income margin and Adjusted EBITDA margin increased by 9.9% and 5.2%,
respectively. The sequential increase in both net income margin and Adjusted EBITDA margin were driven by the
continued realization of fundamental gains in GPU paired with leverage across our cost structure as retail unit
volumes increased. Net income margin also benefited from ~$75 million associated with positive changes in the
fair value of our warrants to acquire Root common stock. This fair value change did not affect Adjusted EBITDA.

On a year-over-year basis, Q1 2024 net income margin and Adjusted EBITDA margin improved by 12.6% and 8.6%,
respectively. Year-over-year improvements were driven by a set of factors similar to those driving sequential
improvements.

The Carvana Retail and Wholesale Vehicle Operations portion of SG&A expense totaled $1,850 per retail unit sold
in Q1, a sequential decrease from $2,024 in Q4. This decrease was primarily due to our continued focus on
efficiency initiatives and leverage of the semi-fixed components we include within Carvana operations expense.

The Overhead portion of SG&A expense totaled $151 million in Q1, a sequential increase of $1 million compared
to Q4. On a per unit basis, this represented a $328 decrease sequentially.

For Q1 2024, as a percentage of revenue:

● All components of SG&A improved sequentially. Total SG&A decreased by 3.2% and non-advertising SG&A
decreased by 2.7%. Other SG&A decreased by 1.3%, compensation and benefits decreased by 1.0%,
advertising decreased by 0.6%, logistics decreased by 0.2%, and market occupancy decreased by 0.1%.
● Year-over-year, all components of SG&A improved. Total SG&A decreased by 3.2% and non-advertising
SG&A decreased by 2.9%. Other SG&A decreased by 1.2%, compensation and benefits decreased by 1.1%,
logistics decreased by 0.4%, advertising decreased by 0.3%, and market occupancy decreased by 0.2%.

10
Summary
The first quarter was exciting and validating for the team at Carvana.

It validated the key convictions we have held since the beginning.

It validated the hard work the team has put in over the last two years and demonstrated how effectively and quickly
we can move when we align on a goal and fight for it. Our teams have proven their ability to execute.

When we focused on growth, we joined Amazon, Google, and Meta as one of the four fastest companies to join the
Fortune 500.

When we focused on profitability, we increased quarterly Net Income and Adjusted EBITDA by more than $500
million in under 2 years and catapulted to industry-leading margins.

We are now focused on our long-term phase of driving profitable growth and pursuing our goal of becoming the
largest and most profitable auto retailer and buying and selling millions of cars.

The march continues,

Ernie Garcia, III, Chairman and CEO

Mark Jenkins, CFO

11
Appendix
Conference Call Details

Carvana will host a conference call today, May 1, 2024, at 5:30 p.m. EST (2:30 p.m. PST) to discuss financial
results. To participate in the live call, analysts and investors should dial (833) 255-2830 or (412) 902-6715. A
live audio webcast of the conference call along with supplemental financial information will also be accessible
on the company's website at investors.carvana.com. Following the webcast, an archived version will also be
available on the Investor Relations section of the company’s website. A telephonic replay of the conference call
will be available until Wednesday, May 8, 2024, by dialing (877) 344-7529 or (412) 317-0088 and entering
passcode 4829760#.

Forward Looking Statements

This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements reflect Carvana’s current expectations and projections with
respect to, among other things, its financial condition, results of operations, plans, objectives, strategy, future
performance, and business. These statements may be preceded by, followed by or include the words "aim,"
"anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential,"
"project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and
other words and terms of similar meaning.
Forward-looking statements include all statements that are not historical facts, including expectations
regarding our operational and efficiency initiatives, our strategy, expected gross profit per unit, forecasted
results, potential infrastructure capacity utilization, efficiency gains and opportunities to improve our results,
including opportunities to increase our margins and reduce our expenses, potential normalization of inventory,
potential benefits from new technology, and our long-term financial goals and growth opportunities. Such
forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be
important factors that could cause actual outcomes or results to differ materially from those indicated in these
statements. Among these factors are risks related to: the larger automotive ecosystem, including consumer
demand, global supply chain challenges, and other macroeconomic issues; our ability to utilize our available
infrastructure capacity and realize the expected benefits therefrom, including increased margins and lower
expenses; our ability to scale up our business; our ability to raise additional capital and our substantial
indebtedness; our history of losses and ability to maintain profitability in the future; our ability to effectively
manage our historical rapid growth; our ability to maintain customer service quality and reputational integrity
and enhance our brand; the seasonal and other fluctuations in our quarterly operating results; our relationship
with DriveTime and its affiliates; the highly competitive industry in which we participate, which among other
consequences, could impact our long-term growth opportunities; the changes in prices of new and used
vehicles; our ability to normalize our inventory or acquire desirable inventory; our ability to sell our inventory
expeditiously; and the other risks identified under the “Risk Factors” section in our Annual Report on Form
10-K for the fiscal year ended December 31, 2023.
There is no assurance that any forward-looking statements will materialize. You are cautioned not to place
undue reliance on forward-looking statements, which reflect expectations only as of this date. Carvana does
not undertake any obligation to publicly update or review any forward-looking statement, whether as a result
of new information, future developments, or otherwise.
Use of Non-GAAP Financial Measures

As appropriate, we supplement our results of operations determined in accordance with U.S. generally
accepted accounting principles (“GAAP”) with certain non-GAAP financial measurements that are used by
management, and which we believe are useful to investors, as supplemental operational measurements to
evaluate our financial performance. These measurements should not be considered in isolation or as a
substitute for reported GAAP results because they may include or exclude certain items as compared to similar
GAAP-based measurements, and such measurements may not be comparable to similarly-titled measurements

12
reported by other companies. Rather, these measurements should be considered as an additional way of
viewing aspects of our operations that provide a more complete understanding of our business. We strongly
encourage investors to review our consolidated financial statements included in publicly filed reports in their
entirety and not rely solely on any one, single financial measurement or communication.
Reconciliations of our non-GAAP measurements to their most directly comparable GAAP-based financial
measurements are included at the end of this letter.
Investor Relations Contact Information: Mike McKeever, investors@carvana.com

13
 CARVANA CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par values)
March 31, 2024 December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents $ 252 $ 530
Restricted cash 75 64
Accounts receivable, net 351 266
Finance receivables held for sale, net 866 807
Vehicle inventory 1,162 1,150
Beneficial interests in securitizations 388 366
Other current assets, including $4 and $3, respectively, due from related parties 138 138
Total current assets 3,232 3,321
Property and equipment, net 2,919 2,982
Operating lease right-of-use assets, including $9 and $10, respectively, from leases with
related parties 447 455
Intangible assets, net 48 52
Other assets 337 261
Total assets $ 6,983 $ 7,071
LIABILITIES & STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued liabilities, including $12 and $7, respectively, due to related
parties $ 705 $ 596
Short-term revolving facilities 275 668
Current portion of long-term debt 194 189
Other current liabilities, including $14 and $3, respectively, from leases with related parties 100 83
Total current liabilities 1,274 1,536
Long-term debt, excluding current portion 5,544 5,416
Operating lease liabilities, excluding current portion, including $6 and $7, respectively, from
leases with related parties 424 433
Other liabilities, including $0 and $11, respectively, due to related parties 52 70
Total liabilities 7,294 7,455
Commitments and contingencies
Stockholders' deficit:
Preferred stock, $0.01 par value - 50,000 shares authorized; none issued and outstanding as of
March 31, 2024 and December 31, 2023, respectively — —
Class A common stock, $0.001 par value - 500,000 shares authorized; 116,558 and 114,239
shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively — —
Class B common stock, $0.001 par value - 125,000 shares authorized; 85,619 shares issued
and outstanding as of March 31, 2024 and December 31, 2023, respectively — —
Additional paid-in capital 1,887 1,869
Accumulated deficit (1,598) (1,626)
Total stockholders' equity attributable to Carvana Co. 289 243
Non-controlling interests (600) (627)
Total stockholders' deficit (311) (384)
Total liabilities & stockholders' deficit $ 6,983 $ 7,071

14
 CARVANA CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per share amounts)

Three Months Ended March 31,

2024 2023
Sales and operating revenues:
Retail vehicle sales, net $ 2,175 $ 1,827
Wholesale sales and revenues, including $7 and $5, respectively, from related
parties 657 618
Other sales and revenues, including $42 and $36, respectively, from related parties 229 161
Net sales and operating revenues 3,061 2,606
Cost of sales, including $1 and $1, respectively, to related parties 2,470 2,265
Gross profit 591 341
Selling, general and administrative expenses, including $7 and $8, respectively, to
related parties 456 472
Other operating expense, net 1 1
Operating income (loss) 134 (132)
Interest expense 173 159
Other income, net (87) (3)
Net income (loss) before income taxes 48 (288)
Income tax benefit (1) (2)
Net income (loss) 49 (286)
Net income (loss) attributable to non-controlling interests 21 (126)
Net income (loss) attributable to Carvana Co. $ 28 $ (160)

Net earnings (loss) per share of Class A common stock - basic $ 0.24 $ (1.51)
Net earnings (loss) per share of Class A common stock - diluted $ 0.23 $ (1.51)

Weighted-average shares of Class A common stock outstanding - basic 116,298 106,011

Weighted-average shares of Class A common stock outstanding - diluted 212,239 106,011

15
 CARVANA CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, In millions)
Three Months Ended March 31,
2024 2023
Cash Flows from Operating Activities:
Net income (loss) $ 49 $ (286)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
activities:
Depreciation and amortization expense 82 93
Equity-based compensation expense 22 15
Loss on disposal of property and equipment 1 1
Payment-in-kind interest expense 142 —
Provision for bad debt and valuation allowance 8 10
Amortization of debt issuance costs 5 8
Unrealized gain on warrants to acquire Root Class A common stock (75) —
Unrealized gain on beneficial interests in securitizations (9) (1)
Changes in finance receivable related assets:
Originations of finance receivables (1,846) (1,428)
Proceeds from sale of finance receivables, net 1,825 1,116
Gain on loan sales (144) (64)
Principal payments received on finance receivables held for sale 39 73
Other changes in assets and liabilities:
Vehicle inventory (14) 385
Accounts receivable (87) (91)
Other assets (4) 3
Accounts payable and accrued liabilities 109 101
Operating lease right-of-use assets 8 17
Operating lease liabilities (6) (12)
Other liabilities (4) (6)
Net cash provided by (used in) operating activities 101 (66)
Cash Flows from Investing Activities:
Purchases of property and equipment (18) (32)
Proceeds from disposal of property and equipment 5 12
Payments for acquisitions, net of cash acquired — (7)
Principal payments received on and proceeds from sale of beneficial interests 20 8
Net cash provided by (used in) investing activities 7 (19)
Cash Flows from Financing Activities:
Proceeds from short-term revolving facilities 839 1,858
Payments on short-term revolving facilities (1,232) (1,689)
Proceeds from issuance of long-term debt 42 19
Payments on long-term debt (23) (37)
Payments of debt issuance costs (1) —
Net cash (used in) provided by financing activities (375) 151
Net (decrease) increase in cash, cash equivalents and restricted cash (267) 66
Cash, cash equivalents and restricted cash at beginning of period 594 628
Cash, cash equivalents and restricted cash at end of period $ 327 $ 694

16
 CARVANA CO. AND SUBSIDIARIES
OUTSTANDING SHARES AND LLC UNITS
(Unaudited)

The following table presents potentially dilutive securities, as of the end of the period, excluded from the computations of
diluted net earnings (loss) per share of Class A common stock for the three months ended March 31, 2024 and 2023,
respectively:

Three Months Ended March 31,

2024 2023
(in thousands)
(1)
Options 1,058 1,234
Restricted Stock Units and Awards (1) 330 92
Class A Units (2) — 82,963
Class B Units (2) — 723

(1) Represents number of instruments outstanding at the end of the period that were evaluated under the treasury stock method
for potentially dilutive effects and were determined to be anti-dilutive.
(2) Represents the weighted-average as-converted LLC units that were evaluated under the if-converted method for potentially
dilutive effects and were determined to be anti-dilutive.

17
 CARVANA CO. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)

Three Months Ended March 31,

2024 2023 Change
(dollars in millions, except per unit
amounts)
Net sales and operating revenues:
Retail vehicle sales, net $ 2,175 $ 1,827 19.0 %
Wholesale sales and revenues (1) 657 618 6.3 %
Other sales and revenues (2) 229 161 42.2 %
Total net sales and operating revenues $ 3,061 $ 2,606 17.5 %
Gross profit:
Retail vehicle gross profit $ 283 $ 110 157.3 %
Wholesale gross profit (1) 79 70 12.9 %
Other gross profit (2) 229 161 42.2 %
Total gross profit $ 591 $ 341 73.3 %
Unit sales information:
Retail vehicle unit sales 91,878 79,240 15.9 %
Wholesale vehicle unit sales 44,155 35,110 25.8 %
Per unit selling prices:
Retail vehicles $ 23,673 $ 23,056 2.7 %
Wholesale vehicles (3) $ 9,625 $ 11,592 (17.0)%
Per retail unit gross profit:
Retail vehicle gross profit $ 3,080 $ 1,388 121.9 %
Wholesale gross profit 860 883 (2.6)%
Other gross profit 2,492 2,032 22.6 %
Total gross profit $ 6,432 $ 4,303 49.5 %
Per wholesale unit gross profit:
Wholesale vehicle gross profit (4) $ 1,042 $ 1,253 (16.8)%
Wholesale marketplace:
Wholesale marketplace units sold 242,647 213,764 13.5%
Wholesale marketplace revenues $ 232 $ 211 10.0%
Wholesale marketplace gross profit (5) $ 33 $ 26 26.9%

(1) Includes $7 and $5, respectively, of wholesale sales and revenues from related parties.
(2) Includes $42 and $36, respectively, of other sales and revenues from related parties.
(3) Excludes wholesale marketplace revenues and wholesale marketplace units sold.
(4) Excludes wholesale marketplace gross profit and wholesale marketplace units sold.
(5) Includes $25 and $26, respectively, of depreciation and amortization expense.

18
 CARVANA CO. AND SUBSIDIARIES
COMPONENTS OF SG&A
(Unaudited)
Three Months Ended
Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024
(in millions)
(1)
Compensation and benefits $ 176 $ 163 $ 160 $ 162 $ 173
Advertising 56 57 56 59 54
Market occupancy (2) 21 18 16 16 18
Logistics (3) 35 29 29 26 29
Other (4) 184 185 172 176 182
Total $ 472 $ 452 $ 433 $ 439 $ 456

(1) Compensation and benefits includes all payroll and related costs, including benefits, payroll taxes, and equity-based compensation,
except those related to preparing vehicles for sale, which are included in cost of sales, and those related to the development of software
products for internal use, which are capitalized to software and depreciated over the estimated useful lives of the related assets.
(2) Market occupancy costs includes occupancy costs of our vending machine and hubs. It excludes occupancy costs related to
reconditioning vehicles which are included in cost of sales and the portion related to corporate occupancy which are included in other
costs.
(3) Logistics includes fuel, maintenance and depreciation related to operating our own transportation fleet, and third-party
transportation fees, except the portion related to inbound transportation, which is included in cost of sales.
(4) Other costs include all other selling, general and administrative expenses such as IT expenses, corporate occupancy, professional
services and insurance, limited warranty, and title and registration.

19
 CARVANA CO. AND SUBSIDIARIES
LIQUIDITY RESOURCES
(Unaudited)

We had the following committed liquidity resources, secured debt capacity, and other unpledged assets available as of March 31,
2024 and December 31, 2023:
March 31, December 31,
2024 2023
(in millions)
Cash and cash equivalents $ 252 $ 530
Availability under short-term revolving facilities (1) 1,407 1,006
Committed liquidity resources available $ 1,659 $ 1,536
Super senior debt capacity (2) 1,262 1,262
(2)
Pari passu senior debt capacity 250 250
(3)
Unpledged beneficial interests in securitizations 88 80
(4)
Total liquidity resources $ 3,259 $ 3,128

(1) Availability under short-term revolving facilities is the available amount we can borrow under the Floor Plan Facility and Finance Receivable
Facilities based on the pledgeable value of vehicle inventory and finance receivables on our balance sheet on the period end date. Availability
under short-term revolving facilities is distinct from the total commitment amount of these facilities because it represents the currently
borrowable amount, rather than committed future amounts that could be borrowed to finance future additional assets.
(2) Super senior debt capacity and pari passu senior debt capacity represents basket capacity to incur additional debt that could be senior or pari passu
in lien priority to the collateral securing the obligations under the Senior Secured Notes, subject to the terms and conditions set forth in the
indentures governing the Senior Secured Notes. The availability of such additional sources depends on many factors and there can be no
assurance that financing alternatives will be available to us in the future.
(3) Unpledged beneficial interests in securitizations includes retained beneficial interests in securitizations that have not been previously pledged or
sold. We historically have financed the majority of our retained beneficial interests in securitizations and expect to continue to do so in the future.
(4) Our total liquidity resources are composed of cash and cash equivalents, availability under existing credit facilities, additional capacity under the
indentures governing our Senior Secured Notes, which allow us to incur additional debt that can be senior or pari passu in lien priority as to the
collateral securing the obligations under the Senior Secured Notes, and additional unpledged securities that can be financed using traditional
asset-based financing sources.

20
 CARVANA CO. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Unaudited)

Adjusted EBITDA; Adjusted EBITDA margin; Operating income to Adjusted EBITDA conversion; Gross profit, non-GAAP; Total gross profit per retail unit, non-GAAP;
SG&A expenses, non-GAAP; and Total SG&A expenses per retail unit, non-GAAP

Adjusted EBITDA; Adjusted EBITDA margin; Operating income to Adjusted EBITDA conversion; Gross profit, non-GAAP; Total gross profit per retail unit, non-GAAP;
SG&A expenses, non-GAAP; and Total SG&A expenses per retail unit, non-GAAP are supplemental measures of operating performance that do not represent and should not be
considered an alternative to net income (loss), gross profit, or SG&A expenses, as determined by GAAP.

Adjusted EBITDA is defined as net income (loss) plus income tax provision (benefit), interest expense, other operating expense (income), net, other expense (income), net,
depreciation and amortization expense in cost of sales and SG&A expenses, goodwill impairment, share-based compensation expense in cost of sales and SG&A expenses, and
restructuring expense in cost of sales and SG&A expenses, minus revenue related to our Root Warrants and gain on debt extinguishment. Adjusted EBITDA margin is Adjusted
EBITDA as a percentage of total revenues.

Operating income to Adjusted EBITDA conversion is operating income divided by Adjusted EBITDA.

Gross profit, non-GAAP is defined as GAAP gross profit plus depreciation and amortization expense in cost of sales, share-based compensation expense in cost of sales, and
restructuring expense in cost of sales, minus revenue related to our Root Warrants. Total gross profit per retail unit, non-GAAP is Gross profit, non-GAAP divided by retail vehicle
unit sales.

SG&A expenses, non-GAAP is defined as GAAP SG&A expenses minus depreciation and amortization expense in SG&A expenses, share-based compensation expense in
SG&A expenses, and restructuring expense in SG&A expenses. Total SG&A expenses per retail unit, non-GAAP is SG&A expenses, non-GAAP divided by retail vehicle unit
sales.

We use these non-GAAP measures to measure the operating performance of our business as a whole and relative to our total revenues and retail vehicle unit sales. We believe
that these metrics are useful measures to us and to our investors because they exclude certain financial, capital structure, and non-cash items that we do not believe directly reflect
our core operations and may not be indicative of our recurring operations, in part because they may vary widely across time and within our industry independent of the performance
of our core operations. We believe that excluding these items enables us to more effectively evaluate our performance period-over-period and relative to our competitors. Adjusted
EBITDA; Adjusted EBITDA margin; Operating income to Adjusted EBITDA conversion; Gross profit, non-GAAP; Total gross profit per retail unit, non-GAAP; SG&A expenses,
non-GAAP; and Total SG&A expenses per retail unit, non-GAAP may not be comparable to similarly titled measures provided by other companies due to potential differences in
methods of calculations.

A reconciliation of Adjusted EBITDA to net income (loss), Gross profit, non-GAAP to gross profit, and SG&A expenses, non-GAAP to SG&A expenses, which are the most
directly comparable GAAP measures, and calculations of Adjusted EBITDA margin, Operating income to Adjusted EBITDA conversion, Total gross profit per retail unit, non-
GAAP, and Total SG&A expenses per retail unit, non-GAAP is as follows:

21
 For the Three Months Ended
(dollars in millions, except per unit amounts) Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024
Net income (loss) $ (286) $ (105) $ 741 $ (200) $ 49
Income tax (benefit) provision (2) — 29 (2) (1)
Other (income) expense, net (3) (8) 3 (1) (87)
Gain on debt extinguishment — — (878) — —
Interest expense 159 155 153 165 173
Operating income (loss) (132) 42 48 (38) 134
Other operating expense, net 1 5 1 1 1
Depreciation and amortization expense in cost of sales 44 44 42 39 39
Depreciation and amortization expense in SG&A expenses 49 46 45 43 43
Share-based compensation expense in SG&A expenses 15 20 18 20 23
Root warrant revenue (5) (5) (6) (5) (5)
Restructuring expense 4 3 — — —
Adjusted EBITDA $ (24) $ 155 $ 148 $ 60 $ 235

Total revenues $ 2,606 $ 2,968 $ 2,773 $ 2,424 $ 3,061

Net income (loss) margin (11.0)% (3.5)% 26.7 % (8.3)% 1.6 %
Adjusted EBITDA margin (0.9)% 5.2 % 5.3 % 2.5 % 7.7 %

Operating income $ 134

Operating income to Net income conversion 273 %
Operating income to Adjusted EBITDA conversion 57 %

22
 For the Three Months Ended
(dollars in millions, except per unit amounts) Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024
Gross profit $ 341 $ 499 $ 482 $ 402 $ 591
Depreciation and amortization expense in cost of sales 44 44 42 39 39
Root warrant revenue (5) (5) (6) (5) (5)
Gross profit, non-GAAP $ 380 $ 538 $ 518 $ 436 $ 625

Retail vehicle unit sales 79,240 76,530 80,987 76,090 91,878

Total gross profit per retail unit $ 4,303 $ 6,520 $ 5,952 $ 5,283 $ 6,432
Total gross profit per retail unit, non-GAAP $ 4,796 $ 7,030 $ 6,396 $ 5,730 $ 6,802

SG&A expenses $ 472 $ 452 $ 433 $ 439 $ 456

Depreciation and amortization expense in SG&A expenses 49 46 45 43 43
Share-based compensation expense in SG&A expenses 15 20 18 20 23
Restructuring expense in SG&A expenses 4 3 — — —
SG&A expenses, non-GAAP $ 404 $ 383 $ 370 $ 376 $ 390

Retail vehicle unit sales 79,240 76,530 80,987 76,090 91,878

Total SG&A expenses per retail unit $ 5,957 $ 5,906 $ 5,347 $ 5,769 $ 4,963
Total SG&A expenses per retail unit, non-GAAP $ 5,098 $ 5,005 $ 4,569 $ 4,942 $ 4,245

23
 For the Three Months Ended
(dollars in millions, except per unit amounts) Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024
Retail gross profit $ 110 $ 204 $ 218 $ 214 $ 283
Depreciation and amortization expense in cost of sales 16 15 15 12 12
Retail gross profit, non-GAAP $ 126 $ 219 $ 233 $ 226 $ 295

Retail vehicle unit sales 79,240 76,530 80,987 76,090 91,878

Retail gross profit per retail unit $ 1,388 $ 2,666 $ 2,692 $ 2,812 $ 3,080
Retail gross profit per retail unit, non-GAAP $ 1,591 $ 2,862 $ 2,877 $ 2,970 $ 3,211

Wholesale vehicle gross profit $ 44 $ 39 $ 28 $ 28 $ 46

Depreciation and amortization expense in cost of sales 2 3 2 2 2
Wholesale vehicle gross profit, non-GAAP $ 46 $ 42 $ 30 $ 30 $ 48

Retail vehicle unit sales 79,240 76,530 80,987 76,090 91,878

Wholesale vehicle gross profit per retail unit $ 555 $ 509 $ 347 $ 368 $ 501
Wholesale vehicle gross profit per retail unit, non-GAAP $ 580 $ 548 $ 372 $ 394 $ 522

Wholesale marketplace gross profit $ 26 $ 26 $ 22 $ 12 $ 33

Depreciation and amortization expense in cost of sales 26 26 25 25 25
Wholesale marketplace gross profit, non-GAAP $ 52 $ 52 $ 47 $ 37 $ 58

Retail vehicle unit sales 79,240 76,530 80,987 76,090 91,878

Wholesale marketplace gross profit per retail unit $ 328 $ 340 $ 271 $ 158 $ 359
Wholesale marketplace gross profit per retail unit, non-GAAP $ 656 $ 680 $ 579 $ 487 $ 631

Other gross profit $ 161 $ 230 $ 214 $ 148 $ 229

Root warrant revenue (5) (5) (6) (5) (5)
Other gross profit, non-GAAP $ 156 $ 225 $ 208 $ 143 $ 224

Retail vehicle unit sales 79,240 76,530 80,987 76,090 91,878

Other gross profit per retail unit $ 2,032 $ 3,005 $ 2,642 $ 1,945 $ 2,492
Other gross profit per retail unit, non-GAAP $ 1,969 $ 2,940 $ 2,568 $ 1,879 $ 2,438

24
 For the Years Ended December 31,
(dollars in millions, except per unit amounts) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net income (loss) $ (15) $ (37) $ (93) $ (164) $ (255) $ (365) $ (462) $ (287) $ (2,894) $ 150
Income tax provision — — — — — — — 1 1 25
Interest expense — 1 4 8 25 81 131 176 486 632
Other operating expense, net — — — 1 1 3 10 9 14 8
Other (income) expense, net — — — — — 1 (11) (3) 56 (9)
Depreciation and amortization expense in cost of
sales
Depreciation and amortization expense in SG&A — — — — — — 10 24 114 169
expenses 2 3 4 11 24 41 74 105 200 183
Share-based compensation expense in cost of sales — — — — 4 5 1 — 16 —
Share-based compensation expense in SG&A
expenses — 1 1 6 21 30 25 39 69 73
Goodwill impairment — — — — — — — — 847 —
Root warrant revenue — — — — — — — — (7) (21)
Gain on debt extinguishment — — — — — — — — — (878)
Restructuring expense (1) — — — — — — — — 57 7
Adjusted EBITDA $ (13) $ (32) $ (84) $ (138) $ (180) $ (204) $ (222) $ 64 $ (1,041) $ 339

Total revenues $ 42 $ 130 $ 365 $ 859 $ 1,955 $ 3,940 $ 5,587 $ 12,814 $ 13,604 $ 10,771
Net income (loss) margin (36.6)% (28.2)% (25.5)% (19.1)% (13.0)% (9.3)% (8.3)% (2.2)% (21.3)% 1.4 %
Adjusted EBITDA margin (31.0)% (24.6)% (23.0)% (16.1)% (9.2)% (5.2)% (4.0)% 0.5 % (7.7)% 3.1 %

Gross profit $ — $ 1 $ 19 $ 68 $ 197 $ 506 $ 794 $ 1,929 $ 1,246 $ 1,724

Depreciation and amortization expense in cost of
sales — — — — — — 10 24 114 169
Share-based compensation expense in cost of sales — — — — 4 5 1 — 16 —
Root warrant revenue — — — — — — — — (7) (21)
Restructuring expense in cost of sales (1) — — — — — — — — 7 —
Gross profit, non-GAAP $ — $ 1 $ 19 $ 68 $ 201 $ 511 $ 805 $ 1,953 $ 1,376 $ 1,872

Retail vehicle unit sales 2,105 6,523 18,761 44,252 94,108 177,549 244,111 425,237 412,296 312,847
Total gross profit per retail unit $ (201) $ 206 $ 1,023 $ 1,539 $ 2,090 $ 2,852 $ 3,253 $ 4,537 $ 3,022 $ 5,511
Total gross profit per retail unit, non-GAAP $ (201) $ 206 $ 1,013 $ 1,537 $ 2,136 $ 2,878 $ 3,298 $ 4,593 $ 3,337 $ 5,984

SG&A expenses $ 15 $ 37 $ 109 $ 223 $ 425 $ 787 $ 1,126 $ 2,033 $ 2,736 $ 1,796
Depreciation and amortization expense in SG&A 2 3 4 11 24 41 74 105 200 183
expenses
Share-based compensation expense in SG&A — 1 1 6 21 30 25 39 69 73
expenses
Restructuring expense in SG&A expenses (1) — — — — — — — — 50 7
SG&A expenses, non-GAAP $ 13 $ 33 $ 104 $ 206 $ 380 $ 716 $ 1,027 $ 1,889 $ 2,417 $ 1,533

Retail vehicle unit sales 2,105 6,523 18,761 44,252 94,108 177,549 244,111 425,237 412,296 312,847
Total SG&A expenses per retail unit $ 6,976 $ 5,623 $ 5,810 $ 5,039 $ 4,516 $ 4,433 $ 4,613 $ 4,781 $ 6,636 $ 5,741
Total SG&A expenses per retail unit, non-GAAP $ 6,166 $ 5,119 $ 5,543 $ 4,655 $ 4,038 $ 4,033 $ 4,207 $ 4,442 $ 5,862 $ 4,900

(1) Restructuring includes costs related to our May 2022 and November 2022 reductions in force, as well as lease termination and other restructuring expenses.
25
 For the Three Months Ended March 31,
(dollars in millions, except per unit
amounts) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net income (loss) $ (2) $ (7) $ (17) $ (38) $ (55) $ (81) $ (184) $ (82) $ (506) $ (286) $ 49
Income tax benefit — — — — — — — — — (2) (1)
Interest expense — — 1 2 3 16 29 30 64 159 173
Other operating expense, net — — — — — — 1 2 1 1 1
Other (income) expense, net — — — — 1 — 16 (9) 12 (3) (87)
Depreciation and amortization expense in
cost of sales — — — — — — 2 5 8 44 39
Depreciation and amortization expense in
SG&A expenses 1 — — 1 6 7 16 22 37 49 43
Share-based compensation expense in cost of
sales — — — — — 1 1 — 8 — —
Share-based compensation expense in SG&A
expenses — 1 — — 1 5 6 8 28 15 23
Root warrant revenue — — — — — — — — — (5) (5)
Restructuring expense — — — — — — — — — 4 —
Adjusted EBITDA $ (1) $ (6) $ (16) $ (35) $ (44) $ (52) $ (113) $ (24) $ (348) $ (24) $ 235

Total revenues $ 7 $ 23 $ 73 $ 160 $ 360 $ 756 $ 1,098 $ 2,245 $ 3,497 $ 2,606 $ 3,061
Net income (loss) margin (33.2)% (28.7)% (23.7)% (24.1)% (14.6)% (10.9)% (16.8)% (3.7)% (14.5)% (11.0)% 1.6 %
Adjusted EBITDA margin (27.9)% (24.3)% (21.5)% (21.3)% (11.9)% (6.7)% (10.3)% (1.1)% (10.0)% (0.9)% 7.7 %

Gross profit $ — $ — $ 4 $ 10 $ 34 $ 88 $ 138 $ 338 $ 298 $ 341 $ 591

Depreciation and amortization expense in
cost of sales — — — — — — 2 5 8 44 39
Share-based compensation expense in cost of
sales — — — — — 1 1 — 8 — —
Root warrant revenue — — — — — — — — — (5) (5)
Gross profit, non-GAAP $ — $ — $ 4 $ 10 $ 34 $ 89 $ 141 $ 343 $ 314 $ 380 $ 625

Retail vehicle unit sales 315 1,212 3,783 8,334 18,464 36,766 52,427 92,457 105,185 79,240 91,878
Total gross profit per retail unit $ (28) $ 117 $ 1,046 $ 1,169 $ 1,854 $ 2,408 $ 2,640 $ 3,656 $ 2,833 $ 4,303 $ 6,432
Total gross profit per retail unit, non-GAAP $ (28) $ 117 $ 1,046 $ 1,169 $ 1,854 $ 2,429 $ 2,689 $ 3,710 $ 2,985 $ 4,796 $ 6,802

SG&A expenses $ 2 $ 7 $ 20 $ 46 $ 85 $ 153 $ 276 $ 397 $ 727 $ 472 $ 456

Depreciation and amortization expense in
SG&A expenses 1 — — 1 6 7 16 22 37 49 43
Share-based compensation expense in SG&A — 1 — — 1 5 6 8 28 15 23
expenses
Restructuring expense in SG&A expenses — — — — — — — — — 4 —
SG&A expenses, non-GAAP $ 1 $ 6 $ 20 $ 45 $ 78 $ 141 $ 254 $ 367 $ 662 $ 404 $ 390

Retail vehicle unit sales 315 1,212 3,783 8,334 18,464 36,766 52,427 92,457 105,185 79,240 91,878
Total SG&A expenses per retail unit $ 6,609 $ 5,476 $ 5,454 $ 5,520 $ 4,604 $ 4,161 $ 5,265 $ 4,294 $ 6,912 $ 5,957 $ 4,963
Total SG&A expenses per retail unit, non-
GAAP $ 5,552 $ 4,844 $ 5,186 $ 5,400 $ 4,224 $ 3,835 $ 4,846 $ 3,969 $ 6,294 $ 5,098 $ 4,245
26