By Nate Wolf

Carvana's board approved a 5-for-1 stock split that will make shares easier for individual investors and the company's own employees to purchase.

The used-car retailer will put the stock split to a shareholder vote at its annual meeting on May 5. If approved, owners of Class A and Class B common stock as of the close of the stock market on May 6 will receive four additional shares, and trading will begin on a split-adjusted basis the next day.

Carvana said the move -- its first ever stock split -- was intended to make the stock more affordable for staff. All full-time Carvana employees are eligible to earn equity after a given tenure, and the company also offers a discounted employee stock purchase plan.

"We're proud to have an incredible team that truly owns outcomes and to give each team member an opportunity to participate in the value we create together over time," CEO Ernie Garcia said in a statement.

Carvana stock closed trading on Thursday at $292.64. It has declined 31% this month after a mixed quarterly earnings report in February and a short-seller report alleging undisclosed related-party deals. Carvana called those allegations "inaccurate and intentionally misleading."

Stockholders have had quite the ride since the company went public for $15 a share in 2017. Shares soared to more than $300 each in 2021 at the height of the pandemic-era car-buying boom before slumping to as low as $5 by the end of 2022. Carvana lost $1.6 billion that year.

But the company has returned to profitability and rapidly grown sales and earnings in the years since, capturing market share in a fragmented industry. The stock has followed. Even after its rough start to 2026, Carvana has gained 62% over the last 12 months. It hit an all-time closing high of $478.45 on Jan. 22.

CEO Garcia last month reiterated the company's goal to sell 3 million vehicles at retail a year at a 13.5% adjusted Ebitda margin by some point between 2030 and 2035. The company sold just under 600,000 retail units in 2025 and posted a total Ebitda margin of 11%, posting a record net income of $1.9 billion. Ebitda stands for earnings before interest, taxes, depreciation, and amortization.

Write to Nate Wolf at nate.wolf@barrons.com

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March 13, 2026 09:05 ET (13:05 GMT)

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