Great. Thanks everyone. My name is Rajat Gupta, a member of the Automotive Equity Research. Very pleased to have with us CFO of Carvana, Mark Jenkins. Thanks, Mark, for being here. Yeah, it's great to be here. Rajat mentioned that it's our sixth consecutive year at the conference, so always great to be here and happy to be speaking with you all. Okay, so I thought today I would start with just a few slides about what's happening in the business today, where are we from a growth perspective, and what are some of the key drivers of that growth? It will be a relatively short discussion, and then we will hand it over to Rajat for Q&A. That's the typical safe harbor on the first slide. Okay. So we're having a very strong growth year so far. I think there's a few different ways to look at our growth performance. I think I can start just by comparing our growth within our industry. We're now at the scale where we're selling around 800,000 used vehicles per year, just under that run rate in Q2, and we're growing at 38% year-over-year. So that's very significant growth at very significant scale within our industry. Moreover, we achieved that growth in Q2 of 38% retail units sold growth year-over-year in an industry that was down low to mid-single digits year-over-year. So we're really making very significant share gains. We have a model that's built to scale, and we're growing very quickly. Taking a look outside our industry, we're also performing very well. Our offering is resonating with customers, and we're growing very quickly, even if you look across multiple industries. I called out, in my prepared remarks on our earnings call based on organic growth in the most recent quarter, we're in the top 5% of companies within the S&P 500 index. So we're growing very quickly, looking across a broad base of companies and industries. Finally, adding a little bit more context for that. We think at this scale, the $20 billion revenue scale, we got here very quickly. One of the faster companies to achieve the $20 billion revenue scale when we look out across similar e-commerce or other disruptors. Today growing at the $20 billion, moving to $30 billion revenue scale, continuing to grow at very strong rates. Most important message I think so far this year is this offering that we have, buying and selling used cars online, it's really resonating with customers. We have a model that is built to scale and can scale very effectively, even at very significant unit and revenue levels, and we're growing very quickly. Now, a natural question from that might be, what is driving this outsized growth 40 points faster than industry, one of the leading growth companies in the S&P 500 index, and performing well against some very meaningful historical benchmarks? Well, I think it starts with the customer experience. We have a truly online customer experience for buying and selling a used car. It starts with the shopping experience. These are mobile images up here because you can do all this from the palm of your hand. It starts with searching through many tens of thousands of cars from the palm of your hand. You can pick one and do further research on it, taking advantage of our proprietary 360-degree photobooth technology to really get to know the car before you order it and have it shipped to you. You can do all aspects of the used car transaction, whether it's getting a trade in, attaching financing or ancillary products, completing the entire transaction, all the way through signing contracts with your thumb on your phone. You can do this all in a true e-commerce experience while sitting in your living room watching TV. That's a great experience. After you order the car, we deliver it to you using our proprietary logistics network. It's a first-party logistics network that's backed with our own first-party technology to ensure that we can get the car to your door quickly, cost effectively, and reliably. Then finally, we'll provide great customer care, whether you want to phone in chat or text with us. We'll provide great customer care to make sure that purchase is exactly what you're looking for. This is a full soup to nuts e-commerce experience and one that is resonating very strongly with customers. That's the first part of the story on where this growth is coming from. The second part of the story is our operational chain. I think in Q2, I think one of the things that I really appreciated about the data in Q2 is that it's showing very strong evidence that where we scale the business, we see the strongest growth. I think this chart on the left, this bar chart, shows production growth. Production is basically where are we growing the process of inspecting, reconditioning, and putting cars up on the website. In the region, the top two regions, making up around a third of the country where we grew production the most, we also grew sales the most. Almost 55% growth in the Midwest and Northeast regions where we grew production. I think that what that illustrates is, hey, the model is really working. We scale the operational chain. That creates sources of positive feedback that drive very strong growth. The fact that in a third of the country we are growing at 55% because we grew production around 55% or just over in that region, I think is a very powerful testament to the fact that there is very significant positive feedback and the model is performing very well from an operational and demand fulfillment perspective. Just say a little word about that. How does that positive feedback actually work functionally? I think there is a few key drivers. So one, when we add more production, we have more selection on the site. That increases conversion. When we add selection in more locations, that puts more cars closer to customers, which lowers the delivery time to those customers, which also increases conversion. Both of those things increase conversion to sales. In addition to that, as conversion increases, our marketing efficiency increases. We can spend more on marketing in an efficient way that further drives sales, which in turn gives us more incentive to further add production lines and increase production. This positive feedback cycle is something that we have seen over the life of the business, but I think it was particularly evident in Q2 just with the really strong outsize growth that we saw in the regions, the Midwest and Northeast, where we grew production the most and saw the most powerful effects of this positive feedback cycle. A natural follow-on from that then is if production is demonstrating itself to be a key driver of sales growth, and again, this is sales growth that is happening at very high rates and at a very large scale. A natural question might be, okay, so how are you scaling production capacity? We are executing a three-part plan today to scale production capacity. Part one is to increase the number of lines. So basically, you could think of our production facilities as factories where the traditional footprint facility has eight different lines that we can run cars through at any given time, four lines wide by two shifts deep. Staffing existing facilities to add more production lines in existing facilities is lever number one for production growth. The second is integrating ADESA locations. ADESA is a large national wholesale auction business that we acquired in 2022, and one of the advantages of that ADESA business is that it has great real estate and the ability to add retail reconditioning capacity to the ADESA auction locations. That is something that we started doing in mid-2024. Since mid-2024, we have integrated 19 ADESA locations into the Carvana retail reconditioning network. Integrating those locations primarily means adding software and Carvana management processes to deliver Carvana-style retail reconditioning. That has successfully helped us grow production, and is a strategy we will continue to pursue. Then finally is full build-outs of ADESA locations. Again, when we acquired ADESA in 2022, it came with 56 nationwide sites that have a significant real estate footprint and capacity for us to build more retail reconditioning facilities. We kicked off construction of the first full build-out of an ADESA facility in the second quarter. That will be a third component of our overall production growth plan. So three-part plan for continuing to grow production. Production, in turn, is a key driver of our sales growth, as I pointed to on the previous slide, but it is not the only driver. As we scale production, we also need to scale the other three key parts of our operational chain, which is long-haul logistics, which connects our inspection and reconditioning centers out to customers' markets. Second, we need to scale our last-mile delivery network, which allows us to take those cars to the customer's door. Finally, we need to continue to scale our centralized customer care and transaction processing functions, which are based in Tempe. Scaling this operational chain is the key strategic focus for us at the moment. We are seeing strong evidence that when we scale the operational chain, we support very strong growth and differentiated customer experiences. The last point that I will make on this is I think we are very excited about where the business is today, but we view ourselves as very early in the overall story of selling cars online. Just one data point on that we have talked about in past years and this year is the economy as a whole, the retail sector within the economy as a whole, now has around a 20% e-commerce penetration. Think of that as you can buy the good online and have it delivered to your door in a seamless, integrated experience. Auto retail is far earlier than that, in call it the low single digits of e-commerce penetration with Carvana being the primary experience where customers can get a true e-commerce experience. We view ourselves as just very early in the overall story, with a long runway for growth. We plan to pursue that growth by focusing on strong execution across the operations of the business and driving a very strong customer experience that I pointed to on the second slide. That is our main story, main takeaway today. Growing incredibly strongly, going to continue to focus on execution, and we are really in the early days of seeing this all play out. Thank you for that and happy to take questions. Great. Thanks, Mark. Maybe I will start off with just the most recent quarter. Sure. You were pretty fired up on the call. Was it the aftermarket reaction that led that, and was it something that you felt like was not being appreciated in the results that it put out? Sure. I do think this was a great quarter. I do not know if this can go backwards. I only see forwards on this. If I could, I would click back to that regional bar chart that I showed. The thing that energized me. Nice job. The thing that energized me about the quarter is just the fact that at today's scale, and what does today's scale mean? Our run rate revenue in the second quarter was around the $30 billion level. Our run rate Adjusted EBITDA in the second quarter was around the $3 billion level. We are operating now at very significant scale. The fact that at that scale, we actually have a large portion of the country where we are growing by 55%, to me, is just a very exciting start. I think because it is very rare. I think everyone in this room has studied more companies than we have time to study. Based on what we know, these levels of growth rates at the $30 billion revenue scale, it is very rare and I think points to the strength of our customer offering as well as the scalability of our business model. If you zoom in further and within certain regions, that growth rate was 55%, and that 55% was just really tightly correlated with how much were we able to increase production capacity year-over-year in the quarter. To me, that is a very powerful story, and again, just speaks to the strength of the customer offering and the scalability of the business model. Got it. No, that makes sense. Maybe let us go back to December, when the reconditioning issues had surfaced. I am curious, if you could help us visualize what that looked like inside the organization. How did those issues impact just the broader system or the machine? Where are you with those constraints today? Sure, yeah. I think on the topic of production growth, you are pointing to in late 2025, early 2026, we faced some production headwinds that caused production costs to rise and caused production throughput to be below our targeted production throughput. I think the primary driver of that was between mid 2024 and late 2025, we added 16 new facilities that was on a starting base of 18 facilities. So we saw over an 18-month period, very significant growth in the number of facilities that we were managing. I think that in turn gave us some catching up to do on just making sure that all facilities were operating at the target level of efficiency. I think so far this year, we have made great strides. On the cost front, labor hours per unit produced have really normalized, and we saw some of our best ever levels in the second quarter on that metric. In addition, we are starting to see the year-over-year growth rate in production across the company as a whole move off of its lows from earlier this year. I think there have been some really good trends after expansive growth in the number of locations we were managing, which caused some cost to rise and throughput to fall relative to target. I think we have seen some really nice trends recently on that rebounding. What are those driven by? It is really operational intensity, better processes, and we are also in the early phases of rolling out a second phase of major software improvements across the centers that are really focused on helping managers simplify the job of managing these complex reconditioning centers. Got it. When you talked about those three phases on the earnings call, the Phase 1 is done on the cost side. Phase 2 is production ramping up. Phase 3 is just the mix realigning. Are you close to the end of Phase 2 or are you in the middle of Phase 2? Has Phase 3 started in some ways? Where are we in that trajectory? Yeah, sure. I think the three phases are normalize labor efficiencies to get costs in line. Two is increase total throughput, and then three is increase total throughput with the sort of normalized mix of cars. There, I would say we still have room to further increase production growth and further normalize mix going through the inspection reconditioning centers. But the trends are positive there, and we're moving in the right direction on both increasing year-over-year growth in production as well as starting to normalize mix. But that will all be a continual process where we'll look to make further gains on that over time. Got it. Maybe double-clicking a little deeper into the second quarter. Could you help us understand what were the sacrifices or I would say unit economics decisions you had to make in that quarter? There were a lot of things moving around. You had your own constraints that you were working through. You had the FTC guidelines where dealers had to add back all their fees and the advertised pricing. You were already entering the year with cuts to your Prime APR. Just help us understand all the different aspects of the business that you had to flex in the second quarter to put out the results you did. Sure. Yeah. I think the second quarter was a very strong quarter from a profitability perspective. Over $750 million of Adjusted EBITDA, over $500 million of net income, record profitability levels, excluding one-time items in the case of net income, that we've seen as a company. So we're growing those profitability metrics very quickly as well, as we're growing units. I think from a different driver perspective, there's a number of different things going on in the quarter. So one, fuel prices are up. We estimate that had a roughly $75 per car impact on our bottom-line economics in the second quarter. In addition, benchmark rates are going up. That also had an impact on our bottom-line economics in the quarter, because we are impacted when rates are moving quickly. When they're moving quickly up, it has a negative impact. When they're moving quickly down, it has a positive impact, other things being equal. So there were a couple of external drivers in the quarter that impacted profit per unit. But overall, we had a very strong profitability quarter. In terms of different levers we're managing, we have lots of different levers to manage in the business to drive our targeted balance of volume and profitability. A really powerful one I talked about, growing production is a very powerful lever. But also, we have levers that we can adjust, whether it's the sticker prices of cars that we're listing on the site, interest rates, trade-in offers, shipping fees. We have lots of different levers that we can adjust. Marketing is another one. And we'll adjust those from quarter to quarter, just based on the dynamics we're seeing. Overall, I think those things are less important than the overall results, which are very strong unit and revenue growth, and very strong growth in bottom-line profitability metrics. Got it. Following up on the FTC dynamic, if you did a like for like comparison of what this meant for the industry, or the 96% of independent dealers out there, on average, they would have to raise their prices or advertise prices by $400-$500, which would mean your prices look that much more attractive. Help us think through the decision of not maybe taking more advantage of that. Was it a deliberate decision or you just didn't want to show a big increase on your website? We could see small increments of this come through the P&L, which seems like should be a direct benefit to at least retail GPU. Yeah, sure. Some people in this room, maybe everyone in this room, is aware in really starting in the second quarter, the FTC started to really communicate stronger enforcement of the idea that dealers, if they have doc or dealer fees that they are charging at the tail end of a transaction, they really need to start including those fees in their headline price that they list online. Over the course of the second quarter, we saw, based on our data, more and more dealers comply with that FTC commentary. As a result, we saw appreciation in retail sticker prices, those headline sticker prices that you see if you're shopping for a car online. We saw those drift up more than they typically would in the second quarter. In the second quarter, you can either see appreciation or depreciation depending on the year. Last year, we saw a little bit of appreciation. This year, we saw stronger appreciation, which we link to dealers' efforts to comply with this. A notable fact is Carvana has never charged doc or dealer fees. Directionally, we would expect that as dealers have to incorporate those more into headline prices, we would expect that to be a long-term benefit to our offering, which never had doc or dealer fees. How big of a benefit? I think it's hard to say. At one end of the spectrum, customers always perfectly understood doc and dealer fees, and so there's no real change in the economics that customers are evaluating when they're shopping online. At the other end of the spectrum, customers really didn't incorporate doc and dealer fees in their early shopping decisions. Likely, the truth is somewhere in between, and I think it's hard for us to say exactly where. But at least conceptually, we think this change should have a long-term benefit for us as a dealer that has never charged doc and dealer fees. Both from demand and profitability, I would imagine, right? Conceptually, you can always do one or the other, or some mix of both. Yeah. Okay. Got it. Just wanted to pause for a second to see if any question in the audience. There you go. Yep. Thanks. You are obviously running your own game or program and doing an excellent job. When you think about some of the factors beyond your control, some of the vehicle demographics and the supply of used that is going to be available to you, particularly on the younger vehicle side, what does that do for Carvana from a, we will call it a three-plus year old, three to seven-year-old vehicle demographic that should inflect positively starting in the back half of this year? Sure. On industry supply dynamics, I first and foremost think of those as affecting the industry as a whole and also affecting customers. In particular, if there is more supply of used vehicles available, in theory, that allows the price of used cars to actually come down a bit, making them more affordable for customers. That is a good who do care about affordability. If it is a good thing for customers, I think overall we would view it as a good thing for us because there is just more customers that are finding used vehicles affordable now, if there is more supply available. That would be the number one way I would think about more supply coming back online as it has the opportunity to make used cars a little bit more affordable for customers, which is a positive for industry demand, other things being equal. Looks like you launched your Prime Day deal this morning. I think it has been a while since we have seen APRs actually go back up. I am curious if this is just more a reflection of some of the benchmark rate increases that we have seen over the last six months, and you feel like this is the right time to maybe start passing those on, because you are a little more comfortable when it comes to some of the other constraints operationally that you had in 2Q not repeating in 3Q. Sure. Yeah. I think the way we think about interest rates in the finance platform is benchmarks are a key driver. I think the two-year Treasury rate is a key benchmark rate that impacts the customer-facing rate on auto loans. I think that is broadly an industry effect, but we are very focused on the two-year Treasury rate. Generally speaking, our approach is to, as the two-year Treasury rate moves, we generally speaking look to pass on that rate into our customer rates. That may happen to a varying degree. It may happen with varying degrees of delay. It may not always be instantaneous. As an overall thought process and approach, we generally think of passing on changes in the two-year Treasury rate into our customer rates, again, with some variability in the precise ratio of pass-through and the timing of pass-through. Got it. The reason you did not do it in the second quarter is because you had some of this pricing appreciation. Yeah. You didn't want to do both rate increases and pricing at the same time. Is this kind of like a toggle? Is it a very deliberate approach, not just from a customer standpoint, but also internal, just to keep putting pressure on your operating team? Just help us think through the decision there, both externally and internally on not making broad-based changes For the customer monthly payment, for example. Yeah. I do think in operating a business at this scale and growth rate, managing some degree of stability in levers is valuable. I do think we are always testing and trying to learn and continue to optimize the business. But making multiple big moves at the same time, I think we have a little bit of pull against that. We may do it, but I do think having some degree of stability is helpful, like when we're managing the business on a day-to-day basis. In addition to that, I think, a way we are thinking about managing the business today is really, we have multi-year goals that then flow into an operational plan, and we work really hard, all the teams around Carvana, whether it is in the production centers, in the logistics network, last mile delivery network, customer care centers, or in all the product engineering analytic functions that are managing pricing and marketing and different dynamics from our home office. We really work hard to stick to our operational plan and just make sure that all the elements of the business are moving as closely in lockstep as possible as we march down the path to our multi-year goals. Got it. If you look at your guidance for this year, even at the high end, it would imply that margins are down year-over-year, or you can look at EBITDA per unit that is likely to be down year-over-year. And your plan to 13.5% margin obviously implies a pretty sizable lift from here on. Can you help us think through two or three big drivers or levers in the cost structure or the gross margin side that can help you get there? What is going to be the top three drivers? Maybe you can rank order them. Sure. Yeah. I think where we are in the business today, there is significant opportunity for operating leverage in the future, and that operating leverage takes a variety of forms. Another word we use to describe it is for future fundamental gains. Let me talk through a few of those. So one is just continuing to lever overhead expenses. We have a large fixed cost base that takes the form of technology expenses, corporate expenses, and facilities expenses that span across the country. That fixed cost base is underutilized today. We have meaningful opportunity to continue to push more units through our existing physical infrastructure, as well as to have our corporate and technology function support significantly higher volumes of units than we are selling today. So I think overhead leverage, fixed cost leverage is a key driver over time. That is something we have really demonstrated in the past and expect to demonstrate in the future. A second is advertising leverage. We believe advertising is a key part of our three driver growth plan, which includes continue to improve the product offering, increase awareness, understanding and trust, and scale selection and other benefits of scale. Advertising is a component of that second pillar. But in the fullness of time, we believe advertising expense per unit will be much lower than what it is today. And the data point that we look toward there is advertising per unit has been several hundred dollars lower than today's company-wide levels in our more mature markets. So I think advertising leverage is a second driver. I could go on and on, but just to give a couple more. I think if you then start to look at some of the more operational expenses, I think there's meaningful opportunities for leverage in the more variable components of our cost structure. I think those come from additional scale benefits. I think there's network density benefits of adding more inventory pools and continuing to increase utilization in the multi-car as well as the last mile delivery network. There's gains there from network density. In addition, AI continues to be an opportunity for driving costs lower. I think it can continue to help us with things like centralized customer care, as well as the various aspects of transaction processing, title and registration, et cetera. I think we've made gains there, but there's opportunity for further gains. That's just a list of places I see opportunity in the cost structure. Moving on to GPU, we also see opportunity for fundamental gains. There's opportunities to sell more ancillary products in the checkout flow and increase attachment. There's opportunities for further fundamental gains in the finance and wholesale platforms, as well as in aspects of retail GPU. Much like we have seen in the past, we really see opportunities across all elements of the cost structure to further drive fundamental gains and operating leverage. Understood. Since we have CFO here, I wanted to make sure I asked some of the balance sheet questions. You upsized the deal, got price yesterday. You're refinancing all the 2030s. It looks like you're going to save $45 million-ish annual interest expense from the deal. Are you moving closer to maybe more talking about EPS versus EBITDA, going forward? Do you think we're at that stage as a company? Sure, yeah. A few points on that. First of all, shout out to Mike and Meg, who are not here today but led this week's term loan B deal. Outstanding reception. We're refinancing just under $1.7 billion of senior secured notes at just under 3 point lower interest rate, leading to the approximately $45 million in interest cost savings. That's a big win. There was very strong demand for the notes. I think it's another point of evidence of the sources of positive feedback in the model. As we get bigger, we get better, and having lower cost of capital is another example of how as we get bigger, we get better, plays out. Anyway, that was a really nice win, and appreciate you mentioning it. I think going to your point about, hey, how are you looking at profitability of the business? We're showing very strong leverage in line items below Adjusted EBITDA. Operating income growth in the second quarter was even faster than Adjusted EBITDA growth. Net income growth in the quarter was approaching 70%, much faster than line items that were further up the income statement. I think what that speaks to, a 70% year-over-year growth in net income is there's a lot of leverage through the entire cost structure. Not just the operating expense line items that lead up to Adjusted EBITDA, the non-GAAP operating expense line items, but also in those additional GAAP expenses such as depreciation and interest. We're showing very strong leverage through those. That's a great thing for shareholders. Net income growth. Growing at that rate, obviously is a benefit. Understood. I think we're out of time here. Okay. Thanks everyone for listening. Thanks, Mark. Thank you, Raj. Really appreciate it.