Shares of used-car dealer Carvana jumped after it handily beat expectations for both revenue and earnings per share, while just narrowly beating forecasts for the number of cars sold.

The stock was up 16.6% at $388.88 in after hours trading.

For the second quarter ending in June, the online car dealer posted revenue of $4.84 billion, above the estimates of analysts polled by FactSet of $4.58 billion and up 42% from the same period in 2024. Earnings of $1.28 a share beat the expected $1.17 a share—more than triple the 37 cents a share reported in the same quarter last year.

While retail units sold surged 41% from last year to 143,280, that figure only narrowly beat estimates that called for 142,328.

“Our record Q2 results further validate the strength and differentiation of the Carvana model,” said Ernie Garcia, Carvana founder and CEO. “We continue to unlock the scale benefits of our model, driving profitable growth and even better customer experiences.”

The company expects a sequential increase in retail units sold in the third quarter and adjusted earnings before interest, taxes, depreciation, and appreciation of $2 billion to $2.2 billion for 2025. That would be up for an increase from $1.38 billion in 2024.

Carvana’s stock was trading mostly flat before the close, around $337 a share. But investors have pushed its price up 65% year to date and more than 160% over the last 52 weeks.

Before results, some analysts voiced concern over the effect of car tariffs on Carvana’s bottom line as this was the first quarter when their effects would start to be seen. President Donald Trump placed a 25% tariff on imported cars in April, then added another 25% tariff on used car parts in early May.

Unit sales indicate that they have done little to dampen consumer interest in used vehicles, whose sales price averages $25,512 versus $48,907, according to Kelley Blue Book.

After restructuring its debt load in 2023, the online car dealer is “emerging as a more profitable and nimble operator that is gaining share and demonstrating unit economics well above peers’,” J.P. Morgan analysts wrote in a note last week. They rate the stock as Overweight.

While 13 of the 24 analysts tracked by FactSet who cover the company rate it a Buy, Carvana could still face some headwinds. Those include lackluster subprime credit trends and an affordability pinch if shoppers shut out of the new car market rush to buy used cars instead.

That is according to Evercore ISI analysts, who have a Hold rating on Carvana stock. “The bar is high,” they write, for the car dealer to sustain its growth surge amid tariff uncertainty and recession risk.

Its latest earnings report shows it has passed that test.