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Thu, 29 Oct 2026
BreakingEarnings

Carvana sells a record 217,000 cars as revenue jumps 42%

Q3 diluted EPS (GAAP) of $0.39 per Class A share was below a $0.47 Nasdaq.com consensus, Polstob's comparison shows. Shares were 8.21% higher in still-moving after-hours trade at 6:07 PM ET.

By AI markets desk·Sources: 5 sources·Published ·AI-generated·2 min read
Key facts
  • Retail units sold · Q3 2026 (to 30 September)217,385 cars +39% y/y
  • Revenue · Q3 2026 (to 30 September)8.04 $bn +42% y/y
  • Diluted EPS per Class A share (GAAP) · Q3 2026 (to 30 September)0.39 $ vs $0.21 a year earlier
  • Adjusted EBITDA margin (non-GAAP) · Q3 2026 (to 30 September)10.0 % vs 11.3% a year earlier
  • 2026 adjusted EBITDA outlook (non-GAAP) · Outlook of 28 October 20262.7-3.0 $bn Range unchanged; now 'higher end'

Carvana sold a record 217,385 retail vehicles in the third quarter, up 39% and its first quarter above 200,000, according to its shareholder letter. Revenue rose 42% to $8.04bn, while the broader industry was roughly flat, Carvana says. The online used-car seller released the results via Business Wire at 4:05 PM ET (21:05 CET) on 28 October 2026, a FinancialContent copy shows. Net income rose to $483m from $263m, and diluted EPS per Class A share was $0.39, against $0.21 a year earlier. Net income included a $53m loss on the early redemption of notes due 2030, the letter says.

Change
ItemsQ3 2026Q3 2025Change
Retail units sold217,385155,941+39.4%
Revenue$8,040m$5,647m+42.4%
Net income$483m$263m+83.7%
Adjusted EBITDA (non-GAAP)$800m$637m+25.6%

Source: Carvana Q3 2026 shareholder letter (Form 8-K, Exhibit 99.1), Quarter to 30 September 2026.

The EPS figure was below the $0.47 consensus from five estimates shown on Nasdaq.com, about 17% lower by Polstob's calculation. The site lists $0.42 for the June quarter, the same as Carvana's diluted EPS per Class A share in its July letter, so the bases match. Revenue of $8.04bn was above a $7.67bn consensus cited by Investing.com.

Gross profit per car slipped. Adjusted EBITDA (non-GAAP) rose to $800m, but its margin fell to 10.0% from 11.3%, and the GAAP operating margin dropped to 8.9% from 9.8%. GAAP total gross profit per unit fell $365 to $6,997, and non-GAAP total gross profit per unit fell $410 to $7,093. Carvana attributes the decline mainly to lower loan rates for buyers relative to benchmark rates and to lower wholesale profit per unit, partly offset by wider spreads between retail and wholesale prices. It also estimates that higher fuel prices and benchmark interest rates cut unit economics by about $200 per car.

Range

Carvana 2026 adjusted EBITDA outlook (non-GAAP)

$2.7bn Low end$3bn High end

Source: Carvana Q3 2026 shareholder letter (Form 8-K, Exhibit 99.1), Range first given 29 July 2026; reaffirmed 28 October 2026.

Provided the environment stays stable, Carvana now expects 2026 adjusted EBITDA (non-GAAP) in the higher end of its $2.7bn to $3.0bn range, which it gave in July without that steer, and a sequential rise in retail units in the fourth quarter. The range itself is unchanged. From 2027 the company plans to report mainly on GAAP measures, recasting its goal as 3 million retail units a year with a 12.5% GAAP operating-margin target for the 2030-2035 period. It says it does not plan to give quarterly or annual outlooks from its fourth-quarter 2026 earnings call onwards.

“We are just beginning to realize the potential of the machine we are building.”

Ernie Garcia, Founder and Chief Executive Officer, Carvana · sec.gov

Garcia's comment came in the results press release. Carvana shares were up 8.21% at $63.91 in after-hours trading as of 6:07 PM ET (23:07 CET) on 28 October, according to Nasdaq.com, after closing down 0.29% at $59.06 in the regular session. After-hours prices were still moving. The release did not address the move.