Carvana Co. (CVNA) shares surged 13.76% in after-hours trading on Wednesday following the release of its second-quarter earnings report, which significantly exceeded analyst expectations. The online used car retailer demonstrated robust growth and profitability, showcasing the strength of its business model in a competitive automotive market.

The company reported earnings of $1.28 per diluted share for Q2, a substantial increase from $0.14 in the same period last year and well above the FactSet analyst consensus estimate of $0.97. Revenue also impressed, climbing to $4.84 billion, up from $3.41 billion a year earlier and surpassing the expected $4.53 billion. This represents a remarkable 41.94% year-over-year increase in sales.

Carvana's performance was driven by strong retail unit growth, with 143,280 units sold in Q2, marking a 41% increase compared to the previous year. The company also reported a net income of $308 million and an Adjusted EBITDA of $601 million, resulting in margins of 6.4% and 12.4% respectively. These results underscore Carvana's ability to scale efficiently while improving profitability. Looking ahead, the company anticipates continued growth, projecting full-year 2025 Adjusted EBITDA between $2.0 to $2.2 billion, up from $1.38 billion in the previous year.