TLDR
- The board of Carvana has greenlit a 5-for-1 forward stock split, marking a historic first for the company, contingent on a May 5 shareholder vote.
- Upon approval, split-adjusted trading will commence on May 7, continuing under the existing ticker symbol “CVNA.”
- The corporate action aims to enhance stock accessibility for retail investors and the company’s workforce.
- Shares of CVNA climbed approximately 3% during premarket hours following the disclosure.
- While the stock has declined 31% year-to-date in 2026, it has surged 62% 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 milestone corporate action in the company’s timeline. Following the disclosure, shares climbed roughly 3% in premarket activity, trading near the $302 level.
This corporate decision requires ratification by shareholders. Voting will take place during the company’s Annual Meeting of Stockholders scheduled for May 5, 2026. Should the measure pass, shareholders of record holding either Class A or Class B common stock at the close of trading on May 6 will be issued four additional shares for each existing share. Split-adjusted trading will commence on May 7.
Implementation of the split requires modifying Carvana’s Certificate of Incorporation through an official amendment.
Chief Financial Officer Mark Jenkins referenced the company’s robust 2025 results as the context for this strategic decision. Last year, Carvana achieved unprecedented milestones in both vehicle sales volume and profitability while outpacing industry competitors in growth metrics.
Chief Executive Ernie Garcia emphasized the employee-centric rationale behind the split. The company extends equity compensation eligibility to all full-time staff based on their length of service, complemented by a discounted Employee Stock Purchase Plan offering.
“We’re proud to have an incredible team that truly owns outcomes,” Garcia said in a statement.
A Volatile Trading History
Carvana made its public market debut in 2017 with shares priced at $15. The stock experienced a dramatic surge beyond $300 in 2021 amid the pandemic-driven surge in online vehicle purchasing, only to crater to approximately $5 by year-end 2022. That year saw the company record a staggering $1.6 billion in losses.
The company has since orchestrated a remarkable turnaround. Carvana achieved profitability once again and has accelerated both revenue and earnings expansion while capturing additional market share in the highly fragmented pre-owned vehicle sector. Shares reached an all-time peak closing price of $478.45 on January 22, 2026.
The current year has proven challenging, however. CVNA has retreated 31% since January 1. A disappointing quarterly report in February combined with a short-seller publication claiming undisclosed conflicts of interest both pressured the shares. Carvana categorically rejected these claims, characterizing them as “inaccurate and intentionally misleading.”
Despite recent headwinds, CVNA maintains a 62% gain over the past year.
2025 Performance Highlights
During 2025, Carvana moved approximately 600,000 retail units. The operation generated an 11% total EBITDA margin alongside record net income reaching $1.9 billion annually.
Last month, CEO Garcia restated the organization’s ambitious long-range target: achieving 3 million annual retail vehicle transactions at a 13.5% adjusted EBITDA margin, with an expected timeline spanning 2030 through 2035.
Based on the current premarket trading level near $302, the post-split price per share would calculate to roughly $60.40.
