Carvana stock weighs record Q3 scale against margin pressure

Carvana reported record third-quarter results on October 28, 2026, as retail volume and revenue reached new highs. The Morningstar page carrying the Business Wire release said the company sold 217,385 retail units in the quarter ended September 30, up 39 percent from a year earlier.

Revenue increased 42 percent to 8.040 billion US dollars, making the period Carvana's first quarter above the 8 billion US dollar mark. Net income reached 483 million US dollars, compared with 263 million US dollars in the year-earlier quarter, while GAAP operating income rose to 714 million US dollars from 552 million US dollars.

Scale drives another record quarter

Adjusted EBITDA climbed to 800 million US dollars from 637 million US dollars. The adjusted EBITDA margin, however, fell to 10.0 percent from 11.3 percent as revenue expanded faster than the non-GAAP profit measure. Net income margin improved to 6.0 percent from 4.7 percent, and GAAP operating margin stood at 8.9 percent.

Carvana founder and Chief Executive Ernie Garcia said the company had doubled the number of customers served over the past two years while expanding selection, accelerating deliveries and lowering loan rates. Management's comments frame scale and customer experience as central drivers of growth, while the margin figures show that investors still need to watch the cost of that expansion.

Fourth-quarter execution matters

For the fourth quarter, Carvana expects retail unit sales to increase sequentially as long as market conditions remain stable. The company also expects full-year adjusted EBITDA toward the upper end of its previously communicated 2.7 billion to 3.0 billion US dollar range.

The outlook gives the stock a clear near-term test: sustaining volume growth while protecting profitability. Higher interest rates, fuel costs, inventory availability and the pace of infrastructure expansion remain relevant operating factors, particularly because the company is pursuing further scale.

Carvana stock traded at 65.59 euros on Lang & Schwarz at 12:38 CET on Wednesday, November 11, 2026.

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