Carvana Revenue Hits $8.040 Billion as Sales Grow 39% in Third Quarter
Key Facts
Carvana posted record quarterly revenue of $8.040 billion in the third quarter of 2026, up 42% year over year, alongside a record number of retail vehicle sales. The company said it sold 217,385 vehicles, an increase of 39% from the same period last year. Revenue growth, however, did not prevent adjusted EPS from missing estimates; it came in at $0.39, versus the $0.47 forecast by Zacks. Revenue, by contrast, exceeded Zacks’ estimate of $7.67 billion by 4.87%. The results therefore pair record sales growth with pressure on earnings per share, despite the company reporting strong quarterly profits.
Carvana’s net income reached $483 million, equivalent to a net margin of 6.0% of revenue. The company also reported record adjusted EBITDA of $800 million, with a 10.0% margin. These figures indicate that business growth remained profitable, even as EPS fell short of analysts’ estimates. The company said the number of customers it serves doubled over the previous two years, while it expanded selection, accelerated delivery and lowered interest rates on customer loans. It linked the expansion of its customer base to its services and initiatives, while unit economics remained under pressure during the quarter.
Gross profit per unit declined year over year by $365 under the GAAP measure and by $410 under the non-GAAP measure. Carvana attributed the decline mainly to lowering customer loan rates relative to benchmark rates and to lower wholesale market profit per unit. The company estimated that higher fuel prices and rising benchmark interest rates reduced unit economics by about $200. This reflects pressure on the return generated by each vehicle, even as vehicle sales and total revenue increased. The company distinguished these two factors from the increase in operating expenses it recorded during the period.
Selling, general and administrative expenses rose by $210 million compared with the third quarter of 2025, reaching $805 million in the third quarter of 2026. The company said in its quarterly report that the increase was primarily related to a higher number of retail units sold. Additional expenses included increases in headcount and spending on advertising, logistics, fuel and information technology. By contrast, net interest expense fell to $98 million from $125 million in the comparable period, a year-over-year decline of $27 million. The different directions of these items show that higher operating expenses coincided with lower net interest costs, while fuel and benchmark interest rate pressures remained present in unit economics.
Carvana operates a logistics network spanning 316 metropolitan statistical areas, while its in-house distribution network served more than 80% of the U.S. population as of September 30, 2026. This infrastructure gives the company broad reach to meet demand and deliver vehicles, but it comes as the company reported higher logistics and fuel expenses alongside increased sales. Carvana shares, listed under the ticker CVNA, closed at $68.31 on October 29, 2026. The daily trading range was not included in the available figures. The most prominent figure in the company’s outlook for the coming period is its forecast for sequential growth in retail units in the fourth quarter.
Carvana said it expects adjusted EBITDA for fiscal 2026 to come in in the upper half of its previous range of $2.7 billion to $3.0 billion, provided the environment remains stable. This follows a company-record $800 million of the measure in the third quarter. In its letter to shareholders, the company said, "Over the past two years, we doubled the number of customers we serve." The company also expects retail units to rise in the fourth quarter compared with the third quarter, without specifying a target figure in its guidance. This outlook puts sales growth and execution of the annual plan at the center of attention for next quarter’s results.