Shares of Carvana Co. (CVNA) are soaring 21.20% in pre-market trading on Thursday following the release of its impressive second-quarter earnings report. The online used car retailer significantly outperformed analyst expectations, showcasing robust growth and improved profitability.

Carvana reported earnings of $1.28 per share for Q2, substantially higher than the $0.97 per share analysts had predicted and a dramatic increase from $0.14 in the same period last year. Revenue also impressed, reaching $4.84 billion, up 42% year-over-year and surpassing the expected $4.53 billion. The company's performance was driven by strong retail unit growth, with 143,280 vehicles sold in Q2, marking a 41% increase compared to the previous year.

CEO Ernie Garcia attributed the company's success to its unique, efficient, and vertically integrated business model. Looking ahead, Carvana anticipates continued growth, projecting a sequential increase in retail units sold for Q3 2025 and full-year adjusted EBITDA between $2.0 to $2.2 billion, up from $1.38 billion in the previous year. The strong quarterly results have prompted several analysts to raise their target prices for Carvana, with firms like D.A. Davidson, Piper Sandler, and BTIG significantly increasing their price targets.