Carvana tops Q3 revenue estimate as unit sales rise 39%

Carvana Co. (CVNA) said on Oct. 28 that third-quarter 2026 revenue rose 42% to $8.04 billion, topping the $7.84 billion consensus estimate compiled by Finnhub.

Net income was $483 million, up from $263 million a year earlier. The company sold 217,385 retail units, a record for any quarter and up 39% from 155,941 a year earlier. It set company records for revenue, gross profit, GAAP operating income and Adjusted EBITDA in the quarter, according to its earnings release.

Here's how the company did:

• Revenue: $8.04 billion vs. $5.65 billion a year earlier
• Revenue estimate: $7.84 billion, according to Finnhub
• GAAP diluted earnings per share: 39 cents vs. 21 cents a year earlier
• Net income: $483 million vs. $263 million a year earlier
• Adjusted EBITDA: $800 million vs. $637 million a year earlier

The company did not give an adjusted per-share figure in the release.

Unit sales and margins

Carvana Co. Chairman and CEO Ernie Garcia said in the release: "We are just beginning to realize the potential of the machine we are building."

Retail vehicle sales rose 53.8% to $6.14 billion. Gross profit was $1.521 billion, up 32.5% from a year earlier.

Gross profit per retail unit was $6,997, down $365 from a year earlier. The company said the decrease was primarily driven by its decision to give customers lower interest rates on loans relative to benchmark rates, and by lower wholesale gross profit per unit as retail units grew faster than wholesale marketplace gross profit.

Adjusted EBITDA margin was 10.0%, down from 11.3%. Adjusted EBITDA totaled $800 million, an increase of $163 million.

Net income was reduced by a $53 million loss on debt extinguishment tied to the early redemption of its Senior Secured Notes due 2030.

Outlook

For the fourth quarter, the company expects a sequential increase in retail units sold. It also expects Adjusted EBITDA in the higher end of its previously communicated range of $2.7 billion to $3.0 billion for full-year 2026, as long as the environment remains stable.

Changes to reporting for 2027

The company said it plans to shift its primary reporting focus in 2027 from non-GAAP metrics to their GAAP counterparts, including operating income and net income.

Its mid-term goal is now 3 million retail units a year at a 12.5% operating margin between 2030 and 2035. The company said this margin target is equivalent, on a GAAP basis, to the 13.5% Adjusted EBITDA margin target it introduced in early 2025.

Beginning with the fourth-quarter 2026 earnings call, the company does not plan to provide quarterly or annual financial outlooks.