TLDR
- The board of Carvana has greenlit a 5-for-1 forward stock split, marking a first for the company, subject to May 5 shareholder approval.
- Should it pass, split-adjusted trading commences May 7 with shares continuing under ticker symbol “CVNA.”
- The initiative aims to enhance stock accessibility for retail investors and company team members.
- Shares of CVNA climbed approximately 3% during premarket hours following the disclosure.
- While the stock has declined 31% in 2026, it remains up 62% over the trailing twelve-month period.
The board of directors at Carvana has given the green light to a 5-for-1 forward stock split — a historic first for the online used-car retailer. Following the news, shares climbed roughly 3% in premarket activity to approximately $302.
Shareholder approval remains a requirement before implementation. The proposal will be put to a vote during the company’s Annual Meeting of Stockholders scheduled for May 5, 2026. Upon approval, stockholders holding Class A and Class B common shares at the close of trading on May 6 will be issued four additional shares for each existing share. Split-adjusted trading is planned to commence on May 7.
The stock split will be executed via an amendment to the company’s Certificate of Incorporation.
Mark Jenkins, Chief Financial Officer, referenced Carvana’s robust 2025 results as the context for this decision. The company achieved all-time highs in both unit sales volume and profitability during the year while outpacing industry peers in growth metrics.
Chief Executive Officer Ernie Garcia positioned the decision as employee-focused. Every full-time employee qualifies for equity compensation tied to length of service, and the company maintains a discounted Employee Stock Purchase Plan.
“We’re proud to have an incredible team that truly owns outcomes,” Garcia said in a statement.
A Volatile Trading History
Carvana debuted on public markets in 2017 with shares priced at $15. The stock rocketed above $300 during 2021’s pandemic-fueled vehicle purchasing surge, only to crater to approximately $5 by late 2022. That year saw the company record a $1.6 billion loss.
The turnaround since has been dramatic. Carvana achieved profitability again and has demonstrated rapid expansion in both revenue and earnings, capturing additional market share in the highly fragmented used vehicle sector. Shares reached an all-time closing peak of $478.45 on January 22, 2026.
This year has proven turbulent, however. CVNA has retreated 31% year-to-date. Contributing factors include a disappointing quarterly earnings release in February and accusations from a short-seller claiming undisclosed related-party transactions. Carvana refuted these claims, characterizing them as “inaccurate and intentionally misleading.”
Despite 2026’s challenges, the stock maintains a 62% gain over the past year.
2025 Performance Metrics
Carvana moved nearly 600,000 retail units throughout 2025. The organization achieved an 11% total EBITDA margin and recorded net income of $1.9 billion for the full year.
Last month, CEO Garcia restated the company’s long-range objectives: reaching 3 million annual retail vehicle sales at a 13.5% adjusted EBITDA margin, with a target timeframe spanning 2030 to 2035.
Based on the current premarket valuation of roughly $302, post-split shares would trade at approximately $60.40 each.
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