Carvana Proposes 5-for-1 Stock Split After Record 2025 Performance

PHOENIX, AZ – March 13, 2026 – Carvana (NYSE: CVNA) announced its board of directors has approved a 5-for-1 forward stock split, a strategic maneuver aimed at making its shares more accessible following a year of record-setting performance. The proposal, which marks the first stock split in the online auto retailer's history, is now contingent on stockholder approval at the company's upcoming annual meeting.

The move is being positioned as a direct benefit to the company’s workforce, aligning with Carvana's long-standing culture of employee equity. It comes after a significant turnaround that saw the company achieve record profitability in 2025, pushing its stock to impressive new heights and setting the stage for this new chapter in its corporate strategy.

A Signal of Confidence After a Strong Turnaround

The decision to split the stock is rooted in a period of robust financial health for Carvana. The company's performance in 2025 marked a dramatic reversal from its struggles in 2022, when its stock price plummeted to as low as $5 per share amid a $1.6 billion loss. In stark contrast, 2025 saw the company post a net income of $1.9 billion on trailing twelve-month revenue of $20.32 billion, with diluted earnings of $8.45 per share. This return to profitability was underscored by an operating margin of 9.26% and the sale of nearly 600,000 retail units.

This financial resurgence fueled what has been described as a "staggering multiyear rally" for CVNA stock. Shares gained 62% over the last 12 months and reached a closing high of $478.45 on January 22, 2026. The stock split announcement itself was met with immediate investor approval, with shares climbing 2.73% on the news.

However, the path has not been without bumps. Despite the strong annual return, the stock is down 31% year-to-date as of March 13, a decline attributed to a mixed quarterly earnings report in February and investor concerns over rising reconditioning costs. The company has also contended with allegations from a short-seller regarding undisclosed related-party deals, which Carvana has publicly dismissed as "inaccurate and intentionally misleading." Despite these headwinds, many analysts remain bullish. William Blair reiterated its "Outperform" rating, while UBS, despite lowering its price target from $545 to $485 due to temporary costs, maintained a "Buy" rating on the stock.

Bolstering Employee Ownership and Morale

Carvana has explicitly framed the stock split as a move to support its employees. With the stock price trading near $300 per share, the cost of a single share can be a significant barrier for team members wishing to participate in the company's success.

"This is the first split in Carvana’s history, and we believe it achieves the important goal of keeping our stock accessible to all of our team members," said Mark Jenkins, Carvana's Chief Financial Officer. He noted the decision follows the significant stock appreciation from the company's record-breaking 2025.

This initiative builds on Carvana's existing programs that encourage employee ownership. The company offers equity to all tenured full-time employees and provides a discounted Employee Stock Purchase Plan. By reducing the per-share price to roughly one-fifth of its current value, the split would make it easier for employees to purchase whole shares, reinforcing the company's ethos of shared success.

Founder and CEO Ernie Garcia echoed this sentiment, stating, "‘We’re all in this together’ is more than just a Carvana value; it is a reality of how we work and what makes us successful... 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."

Attracting New Investors and Boosting Liquidity

Beyond the internal benefits, the stock split carries significant strategic implications for the broader market. While a split does not alter a company's fundamental valuation, the resulting lower share price can have a powerful psychological effect on investors. A stock trading at a lower nominal price is often perceived as more affordable, particularly to retail investors who may be hesitant to purchase shares with a three-digit price tag. This increased accessibility can lead to higher trading volumes and improved stock liquidity.

This strategy is a well-worn path for high-growth technology companies that have seen their stock prices soar. By making shares more accessible, companies like Carvana can broaden their investor base, potentially leading to greater price stability and continued interest from the market. The positive pre-market and closing gains following the announcement indicate that investors view the split as a sign of management's confidence in the company's future growth trajectory.

The Road Ahead: Logistics and Long-Term Goals

The execution of the stock split is subject to a clear timeline. The proposal will be put to a vote at Carvana's Annual Meeting of Stockholders on May 5, 2026. If the required amendment to the Certificate of Incorporation is approved, shareholders of record as of the market close on May 6 will receive four additional shares for each share they own. Trading on a split-adjusted basis is expected to begin at the market open on May 7 under the existing "CVNA" ticker.

The company has emphasized that no action is required from stockholders to receive the additional shares. This move is part of a larger vision for the company's future. CEO Ernie Garcia has previously articulated a long-term goal of selling three million vehicles annually while achieving a 13.5% adjusted EBITDA margin between 2030 and 2035. The stock split can be seen as a tactical step that aligns with this ambitious, long-term strategy, preparing the company for its next phase of growth.