Carvana reported its first-ever annual profit on Thursday, helped by its pact with bondholders to cut its outstanding debt by $1 billion, sending the used car retailer's stock up by a fifth in after-hours trading.
The company also forecast an adjusted core profit for the first quarter "significantly above" $100 million.
Carvana became popular during the Covid-19 pandemic when demand for used cars shot up because a global chip crunch squeezed production of new cars.
The company, struggling to stay liquid, struck a deal in July with most of its term bondholders to cut its outstanding debt.
The company reported a net income of $450 million for 2023, including an $878 million gain on debt extinguishment, compared with a loss of $1.59 billion in 2022.
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Carvana