Carvana Co.
CVNA · NYSE
Dec 2026
Next quarter
Expected to report Feb 17, 2027 — estimated from last year’s reporting date.
Consensus is $0.38 EPS for Dec 2026 across 5 estimates, ranging $0.31 to $0.51.
CVNA Sep 2026
- 17.02%
- +15.68%
- $0.47
- $0.39
- —
- $8.04B
Reported results
- $8.04B
- 18.92%
- $714.00M
- 8.88%
- $289.00M
Highlights
- Retail growth: Carvana sold 217,385 retail vehicles, up 39.4% year over year and its first quarter above 200,000 units, while the broader industry was approximately flat.
- EPS miss: Diluted EPS was $0.39, 17.0% below the $0.47 consensus; it compared with $0.21 a year earlier.
- Record scale: Revenue rose 42.4% year over year to $8.04 billion and 8.9% sequentially; operating income reached a record $714 million, up 29.3% year over year and 5.0% from Q2.
- Profitability mix: Consolidated net income was $483 million versus $263 million a year ago, while net income attributable to Carvana was $289 million, down from $310 million in Q2. Adjusted EBITDA was $800 million, up $163 million year over year, but its margin narrowed to 10.0% from 11.3%.
- GPU pressure: Total gross profit per retail unit fell $365 year over year to $6,997; non-GAAP GPU declined $410 to $7,093. Management attributed pressure to customer rate concessions, weaker wholesale GPU, rising benchmark rates and fuel costs.
- Capacity and growth runway: The current retail run rate is about 870,000 units annually. Carvana cited approximately 1.5 million units of built-out capacity and real estate to support 3 million; 21 ADESA sites now have integrated retail production capabilities.
- Debt refinancing: Carvana replaced $1.66 billion of 9% 2030 secured notes with a Term Loan B, recording a $53 million extinguishment loss but expecting approximately $45 million of annual interest savings.
- Near-term outlook: For Q4, Carvana expects sequential retail unit growth and full-year 2026 Adjusted EBITDA toward the high end of its $2.7–$3.0 billion range. Starting with the Q4 call, it plans to stop providing quarterly and annual financial outlooks.
Analysis
Carvana delivered record revenue, operating income and Adjusted EBITDA, but diluted EPS of $0.39 missed the $0.47 consensus by 17.0%. Revenue of $8.04 billion increased 42.4% year over year and 8.9% from Q2; operating income of $714 million rose 29.3% year over year and 5.0% sequentially. Retail units grew 39.4% to 217,385 against an approximately flat industry, extending a run of roughly 40% growth. Consolidated net income rose to $483 million from $263 million a year earlier, though net income attributable to Carvana was $289 million, below Q2’s $310 million. The year-ago comparison also included $154 million of other expense, primarily warrant fair-value changes.
The defining tension was rapid growth alongside lower per-unit economics and a softer Adjusted EBITDA margin. Total GPU declined $365 to $6,997, and Adjusted EBITDA margin fell to 10.0% from 11.3%, despite EBITDA rising to $800 million. Management pointed to lower customer loan rates relative to benchmarks, wholesale profit growing more slowly than retail sales, and an estimated $200-per-unit impact from rising fuel prices and benchmark rates. Carvana emphasized that expanding reconditioning capacity is central to sustaining growth: it expects sequential unit growth in Q4, but acknowledged that inventory production remains a constraint. It also announced a shift toward GAAP reporting and longer-term goals rather than periodic financial guidance in 2027.
Retail unit growth
- Record volume: Retail units sold reached 217,385, up 39.4% from 155,941 a year ago and above 200,000 for the first time. Management said this was the eighth consecutive quarter of approximately 40% growth, while the industry was roughly flat.
- Runway: The current sales pace equates to about 870,000 retail units annually. Carvana estimated this represents roughly 2% of the used-vehicle market and 1.5% of the overall market.
- Selection: Website inventory was 87,370 units at quarter-end, up from 67,236 a year earlier. Management said availability growth still lagged sales growth and identified expanding production as the principal opportunity to support further unit gains.
Profitability and earnings
- Top line and operating income: Revenue increased 42.4% year over year to $8.040 billion, while operating income grew 29.3% to $714 million. From Q2, revenue rose from $7.38 billion and operating income from $680 million.
- Net income and EPS: Consolidated net income was $483 million, compared with $263 million a year earlier. Of that, $194 million was attributable to non-controlling interests, leaving $289 million attributable to Carvana; that compares with $310 million in Q2. Diluted EPS was $0.39 versus $0.21 a year ago and $0.47 expected.
- Margins: Net income margin expanded to 6.0% from 4.7%, while Adjusted EBITDA rose to $800 million from $637 million and its margin declined to 10.0% from 11.3%. Operating margin also eased, to 8.9% from 9.8%. A $53 million pretax debt-extinguishment charge affected current-quarter net income; the prior-year period included $120 million of warrant fair-value losses.
GPU and cost drivers
- Total GPU: GAAP total gross profit per retail unit fell $365 year over year to $6,997; non-GAAP GPU declined $410 to $7,093. Total gross profit nevertheless rose 32.5% to $1.521 billion as volume grew.
- Mix within GPU: Management said non-GAAP retail GPU increased $85, helped by wider retail-to-wholesale price spreads and partly offset by higher non-vehicle costs. Non-GAAP wholesale GPU decreased $196 as retail growth outpaced wholesale marketplace gross profit, and non-GAAP other GPU fell $299, primarily reflecting lower customer interest rates relative to benchmarks and rising benchmark rates.
- Operating pressures and offsets: Carvana estimated that higher fuel prices and rapidly rising benchmark rates reduced unit economics by about $200 per unit. Non-GAAP SG&A per retail unit was approximately flat year over year: $109 per unit of higher operations expense, mainly fuel and logistics, was more than offset by a $159 reduction in overhead per unit; advertising rose $45 per unit.
Production capacity
- ADESA integration: Carvana integrated retail production capabilities at two ADESA locations in Q3, bringing the total to 21 sites. Three full buildouts are under construction, with production expected to begin in 2027.
- Capacity base: The company cited approximately 1.5 million units of annual capacity at currently built-out sites and real estate that could support 3 million annual retail units. It plans to invest in excess reconditioning capacity ahead of further growth.
- Execution constraint: Management said Q3 production set a record and slightly exceeded retail sales, but acknowledged more work is needed to grow available inventory and train teams for new facilities. New sites can initially carry higher costs as production ramps and processes mature.
Debt and liquidity
- Refinancing: In August, Carvana used a $1.66 billion Term Loan B, together with cash, to redeem the remaining 2030 Senior Secured Notes, which carried a 9% coupon. The transaction generated a $53 million net debt-extinguishment loss and is expected to save about $45 million in annual interest expense.
- Credit metrics: Management reported net debt to trailing-twelve-month Adjusted EBITDA of 0.8x and Adjusted EBITDA to interest expense of 6.9x, both company records. Cash and cash equivalents were $3.049 billion at September 30.
- Liquidity resources: The company reported $5.12 billion of committed liquidity, including cash and revolving-facility availability, and $7.50 billion of total liquidity resources when additional debt capacity and unpledged securitization interests were included.
Outlook and reporting
- Q4 and 2026: Assuming a stable environment, Carvana expects retail units sold to increase sequentially in Q4 and full-year Adjusted EBITDA toward the high end of its previously communicated $2.7–$3.0 billion range.
- Longer-term targets: The company reiterated its goal of 3 million annual retail units and a 13.5% Adjusted EBITDA margin. Beginning in 2027, it plans to express the margin goal on a GAAP basis as a 12.5% operating margin, with a 2030–2035 timeframe.
- Guidance change: Carvana plans to stop providing quarterly and annual financial outlooks beginning with its Q4 2026 earnings call, shifting forward-looking communication toward longer-term goals and progress. It also plans to make GAAP measures—including GPU, SG&A, operating income and net income—its primary reporting focus in 2027.
