Carvana Q3 revenue hits record $8 billion as retail sales climb 39%

On the Dash: 

• Carvana sold a record 217,385 retail units in the third quarter, up 39% year over year, as revenue increased 42% to $8.04 billion.
• The online retailer generated record adjusted EBITDA of $800 million, a 10% margin, alongside $483 million in net income and $714 million in GAAP operating income.
• Carvana expects retail unit sales to increase sequentially in the fourth quarter and anticipates full-year adjusted EBITDA near the higher end of its previously communicated $2.7 billion to $3 billion range, assuming stable conditions.

Carvana sold 217,385 retail units in the third quarter, marking a 39% increase year over year. The company reported Wednesday that total revenue rose by 42% to $8.04 billion, setting quarterly records for both retail units sold and revenue generated.  Founder and CEO Ernie Garcia noted that the company has doubled its customer base over the past two years, while offering twice the selection, faster deliveries and lower interest rates on customer loans. 

Net income reached $483 million, resulting in a 6% net income margin. Adjusted EBITDA climbed to a record $800 million, achieving a 10% margin, down from 11.3% a year earlier. GAAP operating income also set a record at $714 million, corresponding to an 8.9% operating margin. Carvana said it paired its growth with industry-leading profitability. 

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Looking ahead, Carvana expects retail units sold to increase sequentially in the fourth quarter, assuming market conditions remain stable. The company forecasts that full-year 2026 adjusted EBITDA will fall toward the higher end of its previously stated range of $2.7 billion to $3 billion. The results through the third quarter position the company for what management anticipates will be a strong finish to the year.

Notably, Carvana’s forward-looking statements point to potential benefits from infrastructure capacity, new technology including artificial intelligence and the integration of ADESA. The company also cited its ability to build out reconditioning facilities as a factor that could cause actual results to differ. Nevertheless, Carvana cautioned that these expectations carry risks and uncertainties.