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.
- Should shareholders approve the measure, split-adjusted shares will commence trading on May 7 under the existing ticker symbol “CVNA.”
- Company leadership says the split aims to enhance stock accessibility for retail investors and company staff members.
- Shares of CVNA climbed approximately 3% during premarket hours following the disclosure.
- Year-to-date, the stock has declined 31% in 2026, though it’s posted a 62% gain over the trailing twelve months.
The board of directors at Carvana has given the green light to a 5-for-1 forward stock split — a first-time event for the online used car platform. Following the news, shares climbed roughly 3% in early premarket activity to approximately $302.
Shareholder consent remains a requirement for the split to proceed. Voting is slated for the company’s Annual Meeting of Stockholders on May 5, 2026. Upon approval, shareholders of Class A and Class B common stock on record at the close of business on May 6 will be issued four additional shares for each share they currently own. Split-adjusted trading will commence on May 7.
Implementation of the split requires an amendment to the company’s Certificate of Incorporation.
Mark Jenkins, the company’s CFO, cited Carvana’s robust 2025 results as the foundation for this strategic decision. The platform achieved record-breaking figures in both vehicle sales volume and profitability throughout the year while maintaining industry-leading growth rates.
Chief Executive Ernie Garcia emphasized the employee-centric rationale behind the decision. Every full-time employee qualifies for equity compensation tied to their length of service, 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 debuted on public markets in 2017 with an initial price of $15 per share. During the pandemic-driven surge in online car purchases, shares rocketed beyond $300 in 2021, only to plummet to approximately $5 by late 2022. That year saw the company record a staggering $1.6 billion net loss.
The turnaround since has been remarkable. Carvana has restored profitability while accelerating both revenue and earnings growth, capturing additional market share within the highly fragmented used vehicle sector. Shares reached an all-time peak closing price of $478.45 on January 22, 2026.
The current year hasn’t been without turbulence, however. CVNA has retreated 31% year-to-date. Contributing factors include a lackluster quarterly earnings release in February and claims from short sellers alleging undisclosed transactions with related parties. Carvana has categorically rejected these accusations as “inaccurate and intentionally misleading.”
Looking at the past twelve months, CVNA maintains a 62% gain.
2025 By The Numbers
During 2025, Carvana moved just shy of 600,000 retail vehicles. The enterprise delivered an 11% total EBITDA margin alongside record net income reaching $1.9 billion for the full year.
Last month, CEO Garcia reinforced the organization’s ambitious long-range objective: achieving annual retail vehicle sales of 3 million units with an adjusted EBITDA margin of 13.5%, with expected achievement falling somewhere between 2030 and 2035.
Based on the current premarket valuation near $302, the post-split share price would land at roughly $60.40.
