Carvana Announces Third Quarter 2017 Financial Results - Secures New $1.4 Billion Financing Commitment From Ally - Averages $1,742 Gross Profit Per Unit Sold

PHOENIX – Carvana Co. , a leading eCommerce platform for buying used cars, today announced financial results for its third quarter ended Sept. 30, 2017. Carvana’s complete third quarter 2017 financial results and management commentary can be found by accessing the Company’s shareholder letter at: https://investors.carvana.com/financial-reports/quarterly-results/2017. “Carvana continued its rapid growth in Q3, and we expect to end 2017 with triple-digit growth in unit sales and revenue, progress toward our mid-term GPU target of $3,000, and a truly national footprint. We achieved several significant company milestones during Q3, as we launched a record nine markets and opened our first West Coast inspection and reconditioning center in Phoenix, bringing the Carvana experience coast to coast,” said Ernie Garcia, Carvana co-founder and CEO. “Looking forward, we expect to see accelerated growth in Q4, putting us in a strong position as we enter 2018.”

Third Quarter 2017 Financial Summary

Carvana achieved significant unit and revenue growth in Q3 2017, coupled with increased total gross profit per unit. All financial comparisons are versus Q3 2016, unless otherwise noted.

• Retail units sold totaled 11,719, an increase of 133%

• Revenue totaled $225.4 million, an increase of 128%

• Total gross profit was $20.4 million, an increase of 202%

• Total gross profit per unit was $1,742, an increase of $395

• Net loss was $39.8 million, an increase of 81%

• EBITDA margin was (15.9%), an improvement from (20.3%)

• GAAP basic and diluted net loss per Class A share was $0.29 based on 15 million shares of

Class A common stock outstanding

• Adjusted net loss per Class A share, a non-GAAP measure, was $0.29, based on 137 million adjusted shares of Class A common stock outstanding assuming the exchange of all outstanding LLC Units for shares of Class A common stock

• We opened our West Coast inspection and reconditioning center in Phoenix

• We opened nine new markets, bringing our end-of-quarter total to 39

Recent Events

We’ve already completed a few notable accomplishments in Q4, including:

• We entered into agreements with Ally to fund $1.4 billion in future Carvana retail contracts, increasing their total funding commitment for our financing platform to approximately $2 billion.

• We entered into a master sale-leaseback agreement providing for up to $75 million for our real estate construction projects, which can support our investments in existing vending machines and other present and future projects on our balance sheet.

Q4 and 2017 Outlook

We anticipate strong unit and revenue growth to close out the year, as well as continued EBITDA margin improvement. We expect total GPU to decline sequentially in Q4 due to normal seasonal factors, including our annual Cyber Monday promotion, but to increase significantly year-over-year and resume growing in

Q1 2018.

Our Q4 guidance is as follows:

• Retail unit sales of 13,600 – 15,000, an increase of 143% – 168% year-over-year

• Total revenue of $257 million – $287 million, an increase of 140% – 168% year-over-year

• Total gross profit per unit of $1,500 – $1,650

• EBITDA margin of (16.0%) – (14.0%)

We are updating our FY 2017 guidance as follows:

• Retail unit sales of 44,300 – 45,700, an increase of 136% – 144% year-over-year

• Revenue of $850 million – $880 million, an increase of 133% – 141% year-over-year, reflecting a forecasted slight decrease in retail average selling price

• Total gross profit per unit of $1,500 – $1,550, as compared to $1,023 in FY 2016

• EBITDA margin of (17.0%) – (16.4%), reflecting our decision to more quickly open new markets during the year than our previous plan

• Raising our market opening guidance to 21 – 23, bringing our end-of-year total to 42 – 44, an increase over our prior guidance of 37 – 39

For more information regarding the non-GAAP financial measures, please see the reconciliations of our non-GAAP measurements to their most directly comparable GAAP-based financial measurements included at the end of this press release. Guidance for EBITDA margin excludes depreciation and amortization expense and interest expense. We have not reconciled EBITDA guidance to GAAP net loss as a result of the uncertainty regarding, and the potential variability of, interest expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort. Depreciation and amortization expense, which is a component of the reconciliation between EBITDA and GAAP net loss, is expected to be between 1.0% and 1.5% of total revenues for both Q4 2017 and FY 2017.