TLDR
- The board of Carvana has greenlit a 5-for-1 forward stock split, marking the company’s first-ever such action, subject to shareholder approval on May 5.
- Upon approval, split-adjusted trading will commence on May 7 with shares continuing under the “CVNA” ticker symbol.
- The strategic move aims to increase stock accessibility for retail investors and the company’s workforce.
- Shares of CVNA climbed approximately 3% during premarket hours following the split announcement.
- Despite a 31% decline year-to-date in 2026, the stock has delivered 62% returns over the trailing twelve months.
The online used car retailer Carvana has received board approval for a 5-for-1 forward stock split, representing a first for the company since its inception. Following this news, shares climbed roughly 3% in premarket activity, reaching approximately $302.
This corporate action requires shareholder consent before implementation. Stockholders will cast their votes during the company’s Annual Meeting scheduled for May 5, 2026. Should the measure pass, owners of both Class A and Class B common stock as of the closing bell on May 6 will be issued four additional shares for each share currently held. Split-adjusted trading will kick off on May 7.
Implementation of the split requires an amendment to the company’s Certificate of Incorporation.
Mark Jenkins, the company’s Chief Financial Officer, cited Carvana’s robust 2025 results as the foundation for this decision. The company achieved unprecedented records in both vehicle sales volume and profitability while outpacing industry growth rates.
Chief Executive Officer Ernie Garcia emphasized the employee-centric rationale behind the split. Every full-time team member qualifies for equity compensation tied to their tenure, and the company maintains a discounted Employee Stock Purchase Plan for staff participation.
“We’re proud to have an incredible team that truly owns outcomes,” Garcia said in a statement.
A Stock That’s Been Through It
Carvana made its public market debut in 2017 with shares priced at $15. The stock skyrocketed beyond $300 in 2021 amid the pandemic-driven surge in online vehicle purchases, only to crater to approximately $5 by year-end 2022. That year brought a staggering $1.6 billion loss.
The turnaround has been remarkable. Carvana achieved profitability and has demonstrated rapid expansion in both revenue and earnings, capturing additional market share within the highly fragmented used vehicle industry. Shares reached an all-time peak closing price of $478.45 on January 22, 2026.
However, 2026 has presented challenges. Year-to-date, CVNA has declined 31%. A lackluster quarterly earnings release in February combined with a short-seller publication alleging hidden related-party transactions pressured the stock lower. The company rejected these claims as “inaccurate and intentionally misleading.”
Looking at the trailing twelve-month period, CVNA remains up 62%.
2025 By The Numbers
Throughout 2025, Carvana moved just under 600,000 retail vehicles. The company achieved an 11% total EBITDA margin and recorded all-time high net income of $1.9 billion for the fiscal year.
Chief Executive Garcia restated the company’s ambitious long-range objective last month: reaching 3 million annual retail vehicle sales with a 13.5% adjusted EBITDA margin, targeting achievement within the 2030 to 2035 timeframe.
Based on the current premarket valuation of roughly $302 per share, the post-split price would land at approximately $60.40 per share.
