Carvana Beats Revenue; Earnings Miss Expectations

In the third quarter of 2026, Carvana Co. (CVNA) announced that its earnings per share were 39 cents, falling short of the Zacks Consensus Estimate of 47 cents. However, revenues saw a substantial increase of 42.4% year-over-year, reaching $8.04 billion, and surpassing the consensus mark. This top-line growth was driven by record retail volumes.

Retail unit sales achieved a new record of 217,385, a significant increase of 38.9% from the previous year. While strong volume supported profitability, increased logistics costs and rising interest rates impacted unit economics. Carvana's total gross profit rose by 32.5% to $1.52 billion. The company continues to expand its production capacity, with plans for new buildout sites expected to begin production in 2027.

Carvana's financial position strengthened, with cash and cash equivalents totaling $3.05 billion as of September 30, 2026. Net cash provided by operating activities increased to $900 million for the first nine months of 2026. The company has also refinanced significant debt, resulting in annual interest expense savings. Management has raised its 2026 adjusted EBITDA expectations and is focusing on long-term profitability goals.