Dear Shareholders,

The second quarter was another excellent quarter for Carvana.

In the quarter, we grew unit sales 38% to 197k units, almost double what we sold just two years ago. This once again made us the fastest-growing company in automotive retail.

We also earned over $500 million in Net income and $769 million in Adjusted EBITDA, crossing $2 billion and $3 billion in annual Net income and Adjusted EBITDA run rates, respectively, for the first time.

Our Net income and Adjusted EBITDA margins were 7% and 10.4%, respectively, which once again made us the most profitable automotive retailer by a significant margin of 2-3x.

This marks 10 straight quarters of being the fastest-growing and most profitable automotive retailer - achieving both by large margins.

Since we went public in 2017, we have said that we believe the biggest driver of our results for the foreseeable future will be our execution. We still believe it.

We believe it because the demand and financial sides of the equation are clear and have positive scaling properties. The experience we deliver our customers is simple, fun, and fair, building our brand and driving word of mouth, and because the vertically integrated business model we have built is capable of delivering superior financial results - and both get better as we get bigger.

The supply side of our business, however, gets better through our execution. We have to continually scale the machine and make every part of it more efficient. The good news is that we have the team to do it, and our high levels of steady growth and financial performance prove it. And, all that building is a long-term moat that is very hard to replicate.

The evidence that execution is the most important driver of our success continues to show up in simple ways. Later in the letter, we present graphs that show the growth rates of both production and sales in various regions throughout the company. The takeaway is clear.

We give our customers the most selection and the simplest experience. We are the fastest growing.

Our business model delivers financial results that far exceed the competition. We are the most profitable.

We have only 2% market share of used retail and 1.5% market share of all automotive retail. Our runway is huge.

And the primary driver of our progress in any given period is the quality of our execution. And we are executing.

We remain firmly on the path to selling 3 million cars per year and to achieving 13.5% Adjusted EBITDA margin by 2030 to 2035.