Carvana (CVNA) · Automotive
Carvana Q3 2026 earnings: summary, key numbers & outlook
Results filed 28 Oct 2026 · Quarter ended 30 Sep 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Carvana reported record Q3 2026 revenue of $8.040 billion, an increase of 42%, with net income of $483 million, an increase of $220 million, and Adjusted EBITDA of $800 million, an increase of $163 million.
Carvana sold 217,385 retail units in the third quarter, up 39% from a year ago and its first quarter above 200,000. Revenue reached $8.040 billion, up 42%. Net income was $483 million (6.0% margin) and Adjusted EBITDA was $800 million (10.0% margin, down from 11.3%). Gross profit per unit fell $365 to $6,997 as Carvana gave customers lower loan rates, and higher fuel prices and benchmark interest rates cost about $200 per unit.
For the fourth quarter, management expects retail units to rise from the third quarter and full-year 2026 Adjusted EBITDA in the higher end of the $2.7 to $3.0 billion range, if the environment stays stable. Carvana will report GAAP metrics as its primary focus in 2027 and stop giving quarterly or annual outlooks after the Q4 2026 call. The tension is keeping rapid growth while per-unit profit faces pressure from rates, fuel and customer giveback.
Key numbers
- Revenue · GAAP
- $8.040 billion
- Net income · GAAP
- $483 million
- Diluted EPS (Class A) · GAAP
- $0.39
- GAAP operating income · GAAP
- $714 million
- GAAP operating margin · GAAP
- 8.9%
- Adjusted EBITDA · non-GAAP
- $800 million
- Adjusted EBITDA margin · non-GAAP
- 10.0%
an increase of 42%
an increase of $220 million
an increase of $162 million
a decrease from 9.8%
an increase of $163 million
a decrease from 11.3%
| Segment or metric | Value | Change |
|---|---|---|
| Retail units sold | 217,385 | an increase of 39% |
| Retail vehicle sales, net | $6.1B | 53.8% |
| Wholesale sales and revenues | $1.3B | 10.6% |
| Other sales and revenues | $594.0M | 25.3% |
| Total gross profit per retail unit | $6,997 | a decrease of $365 |
| Wholesale vehicle unit sales | 111,119 | 38.3% |
Where each number comes from
- Revenue: “Revenue totaled $8.040 billion, an increase of 42% •Total Gross profit was $1.521 billion, an increase of 32%”
- Net income: “Net income margin was 6.0%, an increase from 4.7% ◦Net income totaled $483 million, an increase of $220 million1”
- Diluted EPS (Class A): “Basic and diluted net earnings per Class A share were $0.40 and $0.39, respectively, based on 721 million and 740 million shares”
- GAAP operating income: “GAAP Operating margin was 8.9%, a decrease from 9.8% ◦GAAP Operating income was $714 million, an increase of $162 million”
- GAAP operating margin: “GAAP Operating margin was 8.9%, a decrease from 9.8% ◦GAAP Operating income was $714 million, an increase of $162 million”
- Adjusted EBITDA: “Adjusted EBITDA margin was 10.0%, a decrease from 11.3% ◦Adjusted EBITDA totaled $800 million, an increase of $163 million”
- Adjusted EBITDA margin: “Adjusted EBITDA margin was 10.0%, a decrease from 11.3% ◦Adjusted EBITDA totaled $800 million, an increase of $163 million”
- Retail units sold: “Retail units sold totaled 217,385, an increase of 39% •Revenue totaled $8.040 billion, an increase of 42%”
- Retail vehicle sales, net: “Retail vehicle sales, net | $6,144 | $3,996 | 53.8% | $16,479 | $10,381 | 58.7%”
- Wholesale sales and revenues: “Wholesale sales and revenues (1) | 1,302 | 1,177 | 10.6% | 3,723 | 3,064 | 21.5%”
- Other sales and revenues: “Other sales and revenues (2) | 594 | 474 | 25.3% | 1,646 | 1,274 | 29.2%”
- Total gross profit per retail unit: “Total Gross profit per unit ("GPU") was $6,997, a decrease of $365 •Non-GAAP Total GPU was $7,093, a decrease of $410”
- Wholesale vehicle unit sales: “Wholesale vehicle unit sales | 111,119 | 80,369 | 38.3% | 299,745 | 216,593 | 38.4%”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q3 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $8.0B | +42.4% | +9.0% |
| Operating income | $714.0M | +29.3% | +5.0% |
| Net income | $289.0M | +91.4% | −6.8% |
| Free cash flow | $491.0M | +59.9% | +162.6% |
| Gross margin | 18.9% | −1.4 pts | +0.1 pts |
| Operating margin | 8.9% | −0.9 pts | −0.3 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Adjusted EBITDA | full year 2026 | $2.7 to $3.0 billion |
Key takeaways
Record quarter: 217,385 units and $8.040 billion revenue
Retail units sold rose 39% and revenue rose 42%, while the industry was approximately flat, which Carvana attributes to market share gains.
Net income rose to $483 million
Net income margin was 6.0%, up from 4.7%, even with a $53 million loss on debt extinguishment.
Adjusted EBITDA margin slipped to 10.0%
Adjusted EBITDA was $800 million, up $163 million, but margin fell from 11.3% as Total GPU decreased by $365 to $6,997.
Fuel and rates cost about $200 per unit
Management estimates elevated fuel prices and rapidly rising benchmark interest rates hurt unit economics by ~$200 per unit, and says it lowered customer loan rates by over 100 basis points relative to benchmark.
Carvana will drop outlooks and favor GAAP
Beginning with the Q4 2026 earnings call it does not plan to give quarterly or annual outlooks, and it converts its goal to a 12.5% Operating margin on 3 million retail units annually.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $3.5B * |
| Q1 2025 | $4.2B |
| Q2 2025 | $4.8B |
| Q3 2025 | $5.6B |
| Q4 2025 | $5.6B * |
| Q1 2026 | $6.4B |
| Q2 2026 | $7.4B |
| Q3 2026 | $8.0B |
Data
| Q4 2024 | 7.3% |
| Q1 2025 | 9.3% |
| Q2 2025 | 10.6% |
| Q3 2025 | 9.8% |
| Q4 2025 | 7.6% |
| Q1 2026 | 9.0% |
| Q2 2026 | 9.2% |
| Q3 2026 | 8.9% |
Data
| Q4 2024 | $36.0M |
| Q1 2025 | $205.0M |
| Q2 2025 | -$2.0M |
| Q3 2025 | $307.0M |
| Q4 2025 | $379.0M |
| Q1 2026 | $56.0M |
| Q2 2026 | $187.0M |
| Q3 2026 | $491.0M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Carvana's main Q3 2026 results?
Carvana reported revenue of $8.040 billion, up 42%, net income of $483 million, and Adjusted EBITDA of $800 million. It sold 217,385 retail units, up 39%.
What is Carvana's outlook for the fourth quarter and full year 2026?
Management expects a sequential increase in retail units sold in Q4 and full-year Adjusted EBITDA in the higher end of the previously communicated $2.7 to $3.0 billion range, as long as the environment remains stable.
Why did Adjusted EBITDA margin fall to 10.0%?
Total GPU decreased by $365 year over year to $6,997, driven by lower customer loan rates relative to benchmarks and lower wholesale GPU. Fuel prices and rising benchmark rates also cost about $200 per unit.
Is Carvana changing how it reports and guides?
Yes. In 2027 it plans to shift its primary reporting focus to GAAP metrics, and starting with the Q4 2026 earnings call it does not plan to provide quarterly or annual financial outlooks. Its mid-term goal becomes 3 million retail units annually at a 12.5% Operating margin.
How much capacity and liquidity does Carvana have?
The current footprint has fully built out annual capacity for approximately 1.5 million retail units, with real estate for 3 million. Total liquidity resources were $7,503 million as of September 30, 2026, including $3,049 million of cash and cash equivalents.
Documents
SEC filing
Call recording
Call recording on YouTube ↗. Official replay ↗.