Carvana (NYSE: CVNA) revenue jumps 42% and it plans to stop giving outlooks

Posted by Stuart Ham on Oct 29th, 2026

What happened

Carvana Co. (NYSE: CVNA) reported third-quarter revenue of $8.04 billion, up 42% from a year earlier. Retail units sold rose 39% to 217,385, the company's first quarter above 200,000.

Net income was $483 million, up $220 million from $263 million in the third quarter of 2025. The net income margin rose to 6.0% from 4.7%. GAAP operating income reached $714 million, up $162 million.

Both years include one-time items. This year's net income was reduced by a $53 million loss on debt extinguishment, tied to the early redemption of the Senior Secured Notes due 2030. Last year's was reduced by $120 million from changes in the fair value of warrants.

Adjusted EBITDA was $800 million, up $163 million, but the margin fell to 10.0% from 11.3%. Carvana expects full-year 2026 Adjusted EBITDA at the higher end of its earlier range of $2.7 billion to $3.0 billion. It also expects retail units to rise from this quarter. Both expectations hold as long as the environment remains stable.

Key numbers

Metric	Latest	Change	Source
Revenue	$8.04 billion	from $5.65 billion, +42.4%	SEC 8-K
Retail units sold	217,385	from 155,941, +39.4%	SEC 8-K
Net income	$483 million	from $263 million, +$220 million	SEC 8-K
GAAP operating income	$714 million	from $552 million, +29.3%	Calculated from SEC 8-K
Adjusted EBITDA margin	10.0%	from 11.3%, -1.3 percentage points	SEC 8-K
Total gross profit per retail unit	$6,997	from $7,362, -$365	SEC 8-K

Read more: Carvana (CVNA) company research

Why it matters

The quarter shows Carvana turning fast growth into larger profits. OptimistFi has argued that owning the stock makes sense if the 2024-2025 turnaround is a lasting reset of the operating model, not a one-year rebound in retail margins. Eight straight quarters of retail unit growth near 40% fit that reading.

The company says the industry was about flat, so it credits its growth to market share gains. It also says its margins have been about 2x the industry average for the 10th quarter in a row.

Profit is growing more slowly than sales. OptimistFi's calculation shows operating income rose 29.3% from the year-earlier quarter, below the pace of revenue. The GAAP operating margin slipped to 8.9% from 9.8%.

Selling, general and administrative expenses rose 35.3% to $805 million from $595 million. That outpaced the 32.5% rise in gross profit.

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Where unit economics slipped

Total gross profit per retail unit was $6,997, down $365 from a year earlier. Carvana blames lower loan rates it gave customers relative to benchmark rates. It also cites lower wholesale gross profit per unit, as retail units grew faster than wholesale marketplace gross profit. Wider spreads between retail and wholesale prices partly offset both.

The company also estimates that high fuel prices and rapidly rising benchmark interest rates cut unit economics by $200 per unit. With those pressures, and an outlook that holds only if conditions stay stable, one quarter cannot prove the reset is durable.

Capacity for the 3 million goal

Carvana's current retail run rate is 870,000 units per year, which it puts at about 2% of the used market. Its footprint has fully built-out annual capacity for about 1.5 million retail units, with real estate to support 3 million.

In the quarter it integrated retail production at two ADESA locations, bringing the total to 21 integrated sites. Three full buildout sites are under construction, and the company expects all of them to begin production in 2027.

What changes in 2027 reporting

In 2027, Carvana plans to move its main reporting from non-GAAP metrics to GAAP ones, including Total GPU, SG&A expense, operating income and net income. It will restate its mid-term goal as 3 million retail units a year at a 12.5% operating margin between 2030 and 2035. The company views that as equivalent to the 13.5% Adjusted EBITDA margin target it introduced in early 2025.

Starting with the Q4 2026 earnings call, Carvana does not plan to give quarterly or annual financial outlooks. It will focus on its longer-term goals. By OptimistFi's calculation, the quarter's GAAP operating margin is 3.6 percentage points short of the new target.

What's next

The Q4 2026 earnings call is the next test, and the first under the new outlook policy.

A drop in units from this quarter, or a full-year result below the expected range, would weaken the case for a durable reset. Delivering both would support it.