Apr. 30 at 1:31 AM
$CVNA looks great until you actually compare the quarters. Q1 2026 vs Q1 2025: revenue jumped from ~
$4.2B to ~
$6.4B, but net income only went from ~
$373M to ~
$405M. Margins fell from ~8.8% to ~6.3%. That’s not scaling profit — that’s growth with declining quality.
Shareholders still get nothing. ~
$5B of debt sits ahead of equity, covenants restrict buybacks and dividends, and there’s still capacity to issue more stock via ATM. So while the company grows, equity gets diluted and cash flows to creditors.
And a meaningful chunk of “earnings” is tied to financing, loan sales, and other accounting-sensitive items — not just selling cars.
This isn’t a clean retail story. It’s a leveraged, capital-dependent model where equity is along for the ride, not the priority.
