Carvana Co at JPMorgan Global Technology, Media and Communications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Rajat Gupta - JPMorgan - Analyst : <_ALACRA_META_ABSTRACT>So if you take the 180 per week edition, that's like adding 1% capacity every week to each IRC, if I did the math right. It doesn't seem like a crazy number. My question really is, if you're having this conversation a year from now, and I hopefully, you'll come, and the number is say like 40 or 50 a week instead of 180, what would have gone wrong?

Question: Rajat Gupta - JPMorgan - Analyst : Are there any one or two things you would point out about Atlanta or some of the older cohorts that have performed, like the metrics you mentioned on the earnings call, Atlantic growth was similar to the overall company from 1Q '22 to 1Q '25. Are there one or two areas or things you could point to that's allowed Atlanta to continue to grow at that pace? Is it just a simple word of mouth? Is it inventory pools, conversion, like what's --? Again, like just help us like get more comfortable with the demand side.

Question: Rajat Gupta - JPMorgan - Analyst : I think that's a good way to put it. It's very clear. And then the other side of this equation, unlike a new car industry, you cannot manufacture used cars. To sell more used cars, you need to source more used cars. How do you help solve the supply side of the equation? And 3 million, again, it's a small number relative to the size of the market, but it's still a big number. No other retailer has done that under one hood. Is supply a challenge? Should we be worried about that either from consumers or from auction? Is it more localized? How do you solve for supply, and that should not be a constrained to hit these targets?

Question: Rajat Gupta - JPMorgan - Analyst : Understood. Maybe on that supply side, how important is it getting access to or the first look to the lease returns as part of that $3 million target? I think on the earnings call, you mentioned you expect the business mix or inventory mix to look pretty similar, even at that $3 million. So that would imply lease cars probably is not that important, but just curious how you think about the off-lease supply supporting that $3 million target and maybe you want to touch on the franchise acquisition, if that's going to help eventually?

Question: Rajat Gupta - JPMorgan - Analyst : Understood. On the margin targets, it was interesting that you decided not to give a gross margin versus SG&A number, but more an EBITDA number. I'm curious, internally, how do you look at your economics, are you trying to solve for individual line items like retail GPU, finance GPU? Or are you looking at retail and finance as one bucket? Or you're just looking at EBITDA per unit as one bucket. I think help us think if the way looking at these metrics has changed internally in this company?

Question: Rajat Gupta - JPMorgan - Analyst : That's helpful. You gave yourself from flexibility in those margins in those -- in your letter that at some point, you want to give yourself margin flexibility to grow. Can you talk a little bit about where you think you might need to invest or add some slack you to get that growth? Is it GPU? Is it SG&A? Where does price fall into that equation? Just help us through like maybe rank ordering some of the things you could do that might have the highest return on growth?

Question: Rajat Gupta - JPMorgan - Analyst : Got it. I wanted to touch on the lending business briefly. Your gain on sale margins, the progress made over the last 18 months has been quite phenomenal. I mean there's always been some benefits on the gap between rates and EPRs. But loss expectations are still high. What factors would you attribute to this improvement? Is it just residual pricing, more demand for the resides? Is the new partners coming on? Like help us like walk through that on the sustainability?

Question: Rajat Gupta - JPMorgan - Analyst : Yes. Sure. I have one more question on balance sheet cash flow returning to the audience. say you get your targets in 5 years or 10 years or 15 years, like you're going to be generating tens of billions of cash flow over that period. What's going to be the use of that cash? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 7:50PM, CVNA.N - Carvana Co at JPMorgan Global Technology, Media and Communications Conference

Question: Rajat Gupta - JPMorgan - Analyst : Would you consider just owning resets more using the balance sheet for the finance company, things like that or --?

Question: Rajat Gupta - JPMorgan - Analyst : Fair enough. Just want to open it up to the audience here if anyone has a question. Anyone here? All right. You do? All right. There we go. Unidentified Participant I think I can anticipate the answer. But I believe the company brought a new car dealer Stellantis. I'm just kind of curious what the strategy is around.

Question: Rajat Gupta - JPMorgan - Analyst : Thank you. Any other questions? I just have a couple more here. I wanted to talk a little bit about AI and how you're starting to leverage that within the company. What internal data set do you think is more underutilized or undervalued today within the company and which could potentially become a differentiator long term for Carvana, given how much you collected over the last 10, 12 years. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 7:50PM, CVNA.N - Carvana Co at JPMorgan Global Technology, Media and Communications Conference

Question: Rajat Gupta - JPMorgan - Analyst : That makes sense. Any questions? I had one question, a little off topic, just culture and philosophy related. Is there an internal debate, maybe one or two debates in the company that keeps resurfacing at the leadership level but never gets fully resolved.

Question: Rajat Gupta - JPMorgan - Analyst : I think there are no further questions. I mean I think that's a good way to end. So thanks, Ernie. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 7:50PM, CVNA.N - Carvana Co at JPMorgan Global Technology, Media and Communications Conference