Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Retail units sold | 217,385 | Up 39% |
| Revenue | $8.04 billion | Up 42% |
| Adjusted EBITDA | $800 million | Up $163 million |
| Net income | $483 million | Up $220 million |
| Net income margin | 6% | Up from 4.7% |
Guidance and outlook
- We expect a sequential increase in retail units sold and adjusted EBITDA in the higher end of our previously communicated range of $2.7 billion to $3.0 billion for the full year 2026.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record-breaking results across key metrics and emphasized the scalability of their platform while maintaining a clear path to long-term margin goals. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Other GPU and Interest Rates
Asked: How is Carvana managing other GPU in a rising interest rate environment?
Answer: Management explained they pass benchmark rate increases to customers, though there can be lag times, and they continue to focus on fundamental gains to improve the customer offering.
SG&A Leverage
Asked: Where is the biggest opportunity for SG&A leverage?
Answer: Management sees opportunities across overhead, advertising, and operations, noting that fixed costs and technology investments should leverage well as the company scales.
Agentic AI
Asked: What is the opportunity for Carvana with agentic AI?
Answer: Management believes their vertically integrated, deterministic system is well-positioned to benefit from AI, which can reduce digital friction and reward companies with fundamentally better solutions.
Inventory and Production
Asked: Why did retail unit growth accelerate while the broader market decelerated?
Answer: Management attributed the growth primarily to their ability to scale the supply chain and increase production capacity, which remains their biggest constraint and focus.
What to watch before the next call
- The company's ability to continue scaling production capacity in inspection and reconditioning centers.
- The impact of rising fuel and logistics costs on operations expense per unit.
- The integration of fully constructed facilities and the associated management of operational efficiency.
