Carvana Reports Record Q3 2026: Retail Units Up 39%, Raises FY26 Adj. EBITDA Expectations to High End

Carvana Co. (CVNA) Q3 2026 Financial Results Summary

Carvana Co. filed Form 8-K under Item 2.02 announcing record financial and operating results for the third quarter ended September 30, 2026.

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1. Key Financial and Operational Highlights

• Retail Units Sold: 217,385, an increase of 39% YoY, marking the company's first quarter exceeding 200,000 retail units and its eighth consecutive quarter of ~40% unit growth.
• Total Revenue: $8.040 billion, an increase of 42% YoY.
• Total Gross Profit: $1.521 billion, up 32% YoY.
• Gross Profit per Unit (GPU): GAAP Total GPU was $6,997 (down $365 YoY), and Non-GAAP Total GPU was $7,093 (down $410 YoY), impacted by passing rate savings to consumers and lower wholesale GPU as retail volume outpaced wholesale marketplace gains.
• GAAP Operating Income: $714 million (8.9% operating margin), up $162 million from Q3 2025.
• Net Income: $483 million (6.0% net margin), up $220 million YoY. Net income was impacted by a $53 million loss on early debt extinguishment of Senior Secured Notes due 2030.
• Adjusted EBITDA: $800 million (10.0% margin), compared to $637 million in Q3 2025.
• Earnings Per Share: Basic EPS of $0.40 and Diluted EPS of $0.39 based on 740 million diluted Class A shares (1.127 billion shares assuming full conversion of LLC units).

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2. Balance Sheet and Liquidity

• Cash and Cash Equivalents: $3.049 billion as of September 30, 2026 (up from $2.327 billion at FYE 2025).
• Restricted Cash: $123 million.
• Vehicle Inventory: $3.456 billion, up from $2.408 billion at FYE 2025 to support accelerating retail sales volume.

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3. Capacity & Expansion

• Integrated retail production capabilities at two additional ADESA locations during Q3, bringing the total integrated footprint to 21 sites.
• Initiated construction on two additional full ADESA buildout sites (totaling three currently under construction), expected to enter production in 2027.
• Footprint currently supports built-out annual production capacity of ~1.5 million units, with real estate holdings capable of supporting up to 3.0 million units annually.

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4. Guidance and Forward-Looking Updates

• Q4 2026 Outlook: Expects sequential growth in retail units sold and full-year 2026 Adjusted EBITDA tracking toward the higher end of the $2.7 billion to $3.0 billion range.
• 2027 Reporting Transition: Shifting core reporting focus from Non-GAAP metrics to GAAP standards (Total GPU, Operating Income, and Net Income).
• Long-Term Target: Formalized a mid-term goal to sell 3 million retail units annually at a 12.5% GAAP Operating Margin between 2030 and 2035 (equivalent to the prior 13.5% Adjusted EBITDA margin objective).
• Guidance Practice Change: Starting with the Q4 2026 earnings release, Carvana will discontinue quarterly and annual quantitative guidance, focusing instead on multi-year strategic targets.