Carvana, the fast-growing used-vehicle retailer, hasn't posted a net profit since going public in 2017, and it doesn't forecast one for the third quarter. But adjusted for interest, taxes, depreciation and amortization, it's poised to stop losing money.
The company said in a release Tuesday, Sept. 22, that it expects a breakeven third quarter by that measure as it sets records for retail vehicle sales, total revenue, total gross profit per vehicle and EBITDA margin.
The improving third-quarter metrics reflect how well-positioned the online retailer was for changing consumer behavior as a result of the coronavirus. The pandemic forced many dealers into online-only sales and temporarily sapped used-vehicle sales in March and April. But used-vehicle sales have since rebounded on pent-up demand and low new-vehicle inventory.