Overview
- Carvana shares closed down 14.2% at $410.04 on Wednesday after the report surfaced, erasing 2026 gains and marking the stock’s second-worst day in a year.
- Gotham City Research claims Carvana overstated 2023–2024 profits by more than $1 billion versus roughly $550 million in net income the company reported for those years.
- The report contends Carvana’s earnings hinge on related parties DriveTime and Bridgecrest, alleging DriveTime subsidies account for over 73% of EBIT.
- Gotham published what it says are 2024 audited financials for DriveTime and Bridgecrest obtained via FOIA, which outlets including CNBC have not independently verified.
- Carvana called the report “inaccurate and intentionally misleading,” said related-party transactions are properly disclosed, and affirmed a Feb. 18 release for its 2025 results.