Carvana Will Stop Giving Financial Outlooks After Quarter With $483 Million Net Income
The used-car retailer also plans to move its main reporting to standard accounting measures in 2027 and recast its long-term margin goal.
Carvana, the online used-car retailer, said it will stop giving quarterly and annual financial outlooks starting with its fourth-quarter 2026 earnings call, announcing the change alongside a record third quarter in which net income reached $483 million, according to its shareholder letter filed Wednesday in an 8-K.
A record quarter, thinner margin
Carvana sold 217,385 retail units in the third quarter, up 39% from a year earlier and its first quarter above 200,000. Revenue was $8.040 billion, up 42%.
Net income rose $220 million to $483 million, and Adjusted EBITDA rose $163 million to $800 million. The adjusted margin slipped to 10.0% from 11.3%. Net income was reduced by a $53 million loss on early redemption of notes due 2030.
Gross profit per retail unit fell $365 to $6,997. The company pointed to lower loan rates it gave customers and slower growth in wholesale profit, and estimated that elevated fuel prices and rapidly rising benchmark interest rates cost about $200 per unit.
The company also said the broader industry was approximately flat, so its growth came from market share gains.
Reporting shift for 2027
In 2027, Carvana plans to make standard accounting measures such as operating income and net income its primary reporting focus, replacing adjusted measures. It will convert its mid-term goal to 3 million retail units a year at a 12.5% operating margin between 2030 and 2035, which it views as equivalent to its 13.5% Adjusted EBITDA margin target.
The company said that now that it is in a long-term profitable growth phase, it will focus forward-looking communication on those longer-term goals and its progress toward them.
Last outlook, and the balance sheet
For the fourth quarter, Carvana expects retail units to rise from the third quarter, as long as the environment stays stable. It expects full-year 2026 Adjusted EBITDA at the higher end of its $2.7 billion to $3.0 billion range.
Total liquidity resources were $7.503 billion at September 30, including $3.049 billion in cash. Carvana's platform sells used cars online, with home delivery or pickup at its vending machines, and it integrated retail production at two more ADESA sites in the quarter, for 21 in total.
Carvana's conference call began at 5:30 p.m. ET Wednesday.
Its fourth-quarter call will be the first at which Carvana gives no quarterly or annual financial outlook.
Sources
- 8-K Filing — CARVANA CO. (CVNA) — SEC EDGAR
- Exhibit ex99_1q32026.htm — CARVANA CO. 8-K exhibit — SEC EDGAR
- Exhibit ex99_2q32026.htm — CARVANA CO. 8-K exhibit — SEC EDGAR
- Carvana beats revenue estimates as record sales offset lower GPU, profits (CVNA:NYSE) | Seeking Alpha — seekingalpha.com
- Carvana Co. (CVNA) Stock Price, News, Quote & History - Yahoo Finance — Yahoo Finance
- Why Is Carvana (CVNA) Expanding Community Ties And Same Day Delivery? — Yahoo Finance
- Tech: Rude awakening for online used-car platforms — The Edge Malaysia
