Carvana (NYSE:CVNA) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Carvana (NYSE:CVNA) announced its quarterly earnings data on Wednesday. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.05), FiscalAI reports. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The business had revenue of $8.04 billion during the quarter, compared to analysts’ expectations of $7.71 billion. During the same quarter in the previous year, the firm earned $1.03 earnings per share. Carvana’s revenue was up 42.4% on a year-over-year basis.

Here are the key takeaways from Carvana’s conference call:

• Record Q3 results: Retail units sold rose 39% to 217,385, revenue increased 42% to $8.04 billion, and Adjusted EBITDA reached a record $800 million.
• Carvana reported its strongest balance sheet position to date, with net debt to trailing-12-month Adjusted EBITDA at 0.8x; refinancing $1.7 billion of notes is expected to reduce annual interest expense by approximately $45 million.
• Management expects sequential increases in retail units and Adjusted EBITDA in the fourth quarter, with full-year 2026 Adjusted EBITDA toward the higher end of its previously stated $2.7 billion–$3.0 billion range.
• The company continues investing in inventory production, reconditioning capacity, advertising, and new facilities; management said inventory availability remains below desired levels and that new sites may initially carry higher costs.
• Adjusted EBITDA margin declined to 10% from 11.3%, pressured by a shift toward higher-priced vehicles, lower other gross profit per unit from customer rate concessions and higher benchmark rates, as well as elevated fuel and logistics costs.

Carvana Trading Up 14.9%

CVNA stock opened at $67.87 on Thursday. Carvana has a twelve month low of $54.46 and a twelve month high of $97.38. The stock has a market capitalization of $74.69 billion, a price-to-earnings ratio of 37.54, a price-to-earnings-growth ratio of 1.71 and a beta of 3.55. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94. The firm’s fifty day simple moving average is $65.89 and its two-hundred day simple moving average is $69.64.

Analyst Ratings Changes

Several equities analysts have commented on CVNA shares. Stephens reiterated an “overweight” rating and set a $83.00 price objective (down from $91.50) on shares of Carvana in a research report on Tuesday, October 6th. Needham & Company LLC reduced their price objective on Carvana from $120.00 to $100.00 and set a “buy” rating on the stock in a research note on Thursday. Morgan Stanley reissued an “overweight” rating on shares of Carvana in a research note on Thursday. Bank of America restated a “neutral” rating on shares of Carvana in a research report on Thursday. Finally, BNP Paribas Exane lowered their price objective on Carvana from $86.00 to $69.00 and set a “hold” rating for the company in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $81.74.

Key Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record third-quarter revenue of $8.04 billion, up 42.4% year over year and above the $7.71 billion analyst consensus. Vehicle sales increased nearly 40%, highlighting strong demand for used cars. Carvana Profit Soars as Vehicle Sales Climb Nearly 40%
• Positive Sentiment: The company generated quarterly profit of approximately $289 million, reported positive free cash flow and improved its net debt position to the best level in nearly five years. These trends support the investment case by indicating stronger financial flexibility. Carvana Continues To Improve
• Positive Sentiment: Needham lowered its price target from $120 to $100 but maintained a Buy rating, implying substantial potential upside from the referenced share price. The target reduction reflects greater caution, but the continued Buy rating signals that the analyst views the long-term growth story favorably. Needham Price Target Update
• Neutral Sentiment: Management is targeting 3 million annual retail units and a 12.5% operating margin over the 2030–2035 period. The ambitious goals provide a long-term growth narrative, but execution and margin expansion remain important risks. Carvana Q3 2026 Earnings Call Transcript
• Negative Sentiment: Third-quarter adjusted earnings of $0.39 per share missed estimates ranging from $0.44 to $0.47. Lower gross profit per unit and margin pressure offset the strong sales performance, while earnings also declined from $1.03 per share a year earlier. Carvana Misses Q3 Earnings Estimates

Insider Transactions at Carvana

In related news, VP Stephen R. Palmer sold 5,000 shares of the company’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $61.64, for a total transaction of $308,200.00. Following the transaction, the vice president directly owned 120,865 shares in the company, valued at approximately $7,450,118.60. This represents a 3.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the company’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $61.64, for a total transaction of $3,929,550.00. Following the transaction, the chief financial officer owned 1,142,502 shares in the company, valued at $70,423,823.28. The trade was a 5.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 358,161 shares of company stock worth $24,164,285. 15.19% of the stock is currently owned by insiders.

Carvana Company Profile

Carvana Co (NYSE: CVNA) is an online automotive retailer that sells used vehicles through its digital platform. Customers can browse vehicles, review detailed descriptions and vehicle history information, arrange financing, complete transactions online and choose home delivery or pickup at a Carvana location.

The company also provides vehicle trade-in services and offers related products, including vehicle protection plans and other automotive services. Carvana is known for its automated, glass-enclosed vehicle vending machines, which provide an alternative pickup experience in select markets.

Founded in 2012 and headquartered in Tempe, Arizona, Carvana began operations as an online used-car retailer in 2013 and went public in 2017.