12:08 PM EDT, 07/28/2025 (MT Newswires) -- Carvana ( CVNA ) is likely to post Q2 revenue ahead of consensus estimates, helped by strong retail unit sales growth and better vehicle profitability, Wedbush Securities said in a note Monday.

The brokerage now sees revenue for the quarter at $4.71 billion, up 38.1% from a year earlier and roughly 3% ahead of consensus.

It expects gross profit per unit of about $7,327, nearly unchanged from last year but about 2% higher than current expectations, and adjusted earnings before interest, taxes, depreciation and amortization of $564 million, which matches Street estimates.

The firm said Carvana ( CVNA ) is on pace to report record adjusted EBITDA and retail units sold for Q2. That would keep it in line with plans for significant full-year growth. Its updated model also calls for a larger gain in adjusted EBITDA this year as operating leverage improves.

Wedbush added that vehicle GPU trends have been better than expected but that gains in "other GPU" will likely be limited. Collateral spreads on second-quarter securitizations came in lower than in recent periods, it said. The firm linked recent margin improvements to a heavier mix of non-prime loans and better spreads on some Q1 deals.

Longer term, the firm's forecast suggests Carvana ( CVNA ) could reach one million annual retail unit sales around 2028. For 2025, it sees adjusted EBITDA margins rising to 11%, up from 10.1% in 2024.

Wedbush kept a neutral rating on Carvana ( CVNA ) shares but lifted its price target to $320 from $290.

Shares of Carvana ( CVNA ) were up 1.5% in recent trading.

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