Carvana Posts Record 217,385 Retail Units and $8.0B Revenue, but EPS Misses at $0.39

Carvana (CVNA) reported record third-quarter results Wednesday after the close, with revenue of $8.04 billion, up 42% from a year earlier, and a record 217,385 retail vehicles sold, up 39%. Revenue beat the $7.7 billion estimate provided to MarketCatalyst, while EPS of $0.39, as provided, missed the $0.44 estimate. Net income rose to $483 million from $263 million. Carvana expects retail units sold to rise sequentially in the fourth quarter and full-year 2026 adjusted EBITDA toward the high end of its $2.7 billion to $3.0 billion range.

Third-quarter results

By our calculation, revenue beat the provided estimate by about 4%, while EPS missed by about 11%. Net income rose faster than operating income, up $220 million versus $162 million. Part of the difference was below the operating line: net interest expense fell to $98 million from $125 million, and other expense was $11 million versus $154 million a year earlier, partly offset by a $53 million loss on debt extinguishment versus $14 million. GAAP operating margin was 8.9%, down from about 9.8% by our calculation, so both operating and adjusted EBITDA margins narrowed even as profit grew in dollars.

Where the revenue came from

Retail revenue grew faster than retail units (+54% versus +39%), which by our calculation points to higher revenue per vehicle. By our calculation, retail vehicles were about 76% of total revenue.

Outlook

If conditions stay stable, Carvana said it expects a sequential increase in retail units sold in the fourth quarter and full-year 2026 adjusted EBITDA toward the higher end of its previously communicated $2.7 billion to $3.0 billion range. The company does not provide a GAAP reconciliation for the forecast because it cannot reliably predict fair value changes or one-time and restructuring expenses. Founder and CEO Ernie Garcia said in the release, "We are just beginning to realize the potential of the machine we are building."

Capacity to grow

According to the data provided, Carvana operates 21 integrated production sites with 1.5 million units of fully built-out annual capacity, and its real estate footprint could support up to 3 million annual retail sales. Carvana sold 217,385 retail units in the quarter, so by our calculation its quarterly pace implies an annualized rate of roughly 870,000 units, or about 58% of the stated 1.5 million built-out capacity.

What it means

Carvana is growing unit volume and revenue quickly, but the quarter also shows the trade-off: adjusted EBITDA margin fell as volume rose. The EPS miss and the margin contraction are what investors will weigh against the record units. Retail gross profit per unit, the fourth-quarter setup and the drivers of the lower margin are the open questions.

Sources: Carvana, "Carvana Announces Record Third Quarter 2026 Results" (Oct. 28), and its earnings date announcement. Estimates, EPS, the revenue breakdown and the capacity figures are as provided to MarketCatalyst. This is informational, not a recommendation to buy or sell.