10-Q · April 29, 2026
Carvana reported Q1 2026 revenue of $4.98B, a decline from $5.65B in Q4 2025, and EPS of $1.69, which also represented a miss against the $1.49 consensus estimate. Despite the revenue decrease, retail vehicle sales…
Earnings analysis · 10-Q
CVNA earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Carvana delivered very strong top-line and unit growth in Q3 2026, with revenue up 42.4% year over year to $8.040 billion and retail units up 39.4% to 217,385. Profitability improved in absolute dollars, but gross…
Read full summary
Carvana delivered very strong top-line and unit growth in Q3 2026, with revenue up 42.4% year over year to $8.040 billion and retail units up 39.4% to 217,385. Profitability improved in absolute dollars, but gross margin fell to approximately 18.9%, operating margin declined to approximately 8.9%, and EPS of $0.39 was below the $0.44 consensus estimate. Operating cash flow and liquidity strengthened, although per-unit economics weakened and debt remained elevated at $5.2 billion.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.39
What stood out
-
Revenue growth accelerated
Revenue increased 42.4% year over year to $8.040 billion and rose approximately 8.9% sequentially from $7.38 billion in Q2 2026. Retail vehicle sales led growth, increasing 53.8% year over year to $6.144 billion.
-
Strong volume and traffic growth
Retail units sold increased 39.4% year over year to 217,385, while wholesale units increased 38.3% to 111,119. Average monthly unique visitors also rose to 23.790 million from 19.636 million.
-
Gross profit up, margin compressed
Gross profit increased 32.5% year over year to $1.521 billion, but gross margin was approximately 18.9%, down from 20.3% in Q3 2025 and broadly flat versus 18.8% in Q2 2026.
-
Profits grew despite operating leverage
Operating income was approximately $714 million, implying an operating margin of approximately 8.9%, down from 9.8% in Q3 2025 and 9.2% in Q2 2026. Net income increased to $483 million from $263 million year over year.
-
Cash generation improved
Operating cash flow increased to $900 million from $606 million in the first nine months. Cash used in investing activities was $129 million, including property and equipment purchases, implying approximately $771 million of operating cash flow less investing outflows before other investing items.
-
Liquidity position strengthened
Liquidity resources increased to $7.503 billion from $6.739 billion at December 31, 2025, including $3.049 billion of cash and $2.071 billion of availability under short-term revolving facilities.
What to watch
-
Per-unit economics remain under pressure
Total gross profit per retail unit declined 5.0% year over year to $6,997 from $7,362, while wholesale gross profit per unit fell 18.2% to $708. This indicates continued pressure on per-unit economics despite 39.4% retail unit growth.
-
Leverage and refinancing exposure
Outstanding principal indebtedness increased to $5.2 billion from $5.0 billion at December 31, 2025. The company also recorded a $53 million debt-extinguishment loss related to redeeming $1.660 billion of 2030 Senior Secured Notes.
-
Fuel and interest-rate sensitivity
The company stated that sustained gasoline-price increases could reduce consumers' disposable income and increase transportation and logistics costs; it also reported a $17 million annual interest-expense sensitivity to a one-percentage-point change in one-month Term SOFR before the interest-rate swap.
Management's outlook
The 10-Q does not provide new numeric revenue or EPS guidance. Management expects operating expenses to increase as retail, wholesale, and wholesale marketplace units grow, and expects primary cash sources to fund operating activities and commitments for at least the next 12 months. The prior outlook referenced in the accompanying earnings materials called for Q4 retail units to increase sequentially and full-year 2026 Adjusted EBITDA toward the higher end of $2.7-$3.0 billion; beginning with the Q4 2026 earnings call, Carvana does not plan to provide quarterly or annual financial outlooks.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.