Carvana Posts Record $8.04 Billion Q3 Revenue, 217,385 Sales

Carvana just posted the biggest quarter in its history. The online used-car retailer sold a record 217,385 retail vehicles in the three months ended September 30, 2026, and revenue climbed 42 percent from a year earlier to $8.04 billion — the first time the company has topped $8 billion in a single quarter.

The results, reported on October 28, cap a run of rapid growth for a business that only a few years ago was fighting for survival. Net income reached $483 million, up $220 million from the same quarter last year, while adjusted earnings before interest, taxes, depreciation and amortization hit a record $800 million.

A record quarter by the numbers

Carvana’s third-quarter release set out a clean sweep of company records. Retail unit sales rose 39 percent year over year to 217,385, the first quarter in which the company has sold more than 200,000 cars. Total revenue of $8.040 billion compared with $5.647 billion in the third quarter of 2025.

Profitability improved alongside the growth. Net income of $483 million carried a 6.0 percent margin, while GAAP operating income reached $714 million, an 8.9 percent margin. Adjusted EBITDA of $800 million was also a record, up $163 million from a year earlier, at a 10.0 percent margin.

Management framed the quarter as evidence that the model is scaling rather than simply discounting to win sales. On the company’s earnings call, executives put the current annualized run rate at roughly 870,000 retail units and $32 billion in revenue — about double the level of two years ago — and pointed to eight consecutive quarters of growth of around 40 percent in what they described as a broadly flat wider auto industry.

What drove the growth

Carvana attributes the expansion to a combination of wider selection, faster delivery and more financing options, alongside the steady build-out of its reconditioning and logistics network. The company has spent the past two years rebuilding that network after its near-collapse in 2022, when falling used-car prices and heavy debt left its future in doubt.

That rebuild is now showing up in volume. Selling 217,385 cars in a quarter requires reconditioning, photographing, transporting and delivering vehicles at industrial scale, and the company said its capacity has kept pace with demand. Founder and chief executive Ernie Garcia has said the number of customers served has roughly doubled over the past two years.

The growth also reflects the state of the wider car market. With new vehicles expensive and monthly payments elevated, many buyers have turned to late-model used cars instead. Online sellers that can show a car in detail, offer financing at the point of sale and deliver to a driveway have an advantage over traditional lots, particularly for shoppers outside major metro areas.

Profitability is still the test

Record revenue alone would not have been enough to impress investors. What stood out in the third quarter was that profit grew with it. Net income nearly doubled from the prior-year quarter in dollar terms, and operating income set a record of its own.

That matters because Carvana’s business is capital-intensive: it buys cars, reconditions them, holds inventory and moves vehicles across the country. Margins are won or lost on buying discipline, reconditioning costs and how quickly inventory turns. A 10.0 percent adjusted EBITDA margin on $8.04 billion of revenue suggests those operations are holding up even as the company grows quickly.

The test ahead is whether that margin can keep expanding. Management has set a long-term goal of building a business capable of delivering 3 million retail units a year at a 13.5 percent adjusted EBITDA margin. That target is well above current levels on both volume and profitability, and reaching it would require years of continued execution rather than a single strong quarter.

What comes next

For the fourth quarter, Carvana expects retail unit sales to increase sequentially from the third quarter’s record, assuming market conditions remain stable. It also expects full-year 2026 adjusted EBITDA toward the high end of its previously communicated range of $2.7 billion to $3.0 billion.

The fourth quarter is typically a telling period for car sellers. Holiday spending competes with big-ticket purchases, and tax-refund season has not yet arrived. A sequential increase in units in that environment would be a further sign that demand is holding up.

Investors will also be watching inventory and pricing. Used-car values can move quickly, and a retailer holding a large stock of vehicles is exposed if prices fall. Carvana ended the quarter with inventory valued at $3.46 billion, according to its earnings materials, up from $2.41 billion at the end of 2025 as it scaled production — a reminder that growth consumes cash even when profits rise.

For now, though, the third quarter gives Carvana something it has not always had: momentum on both sales and profit at the same time. If the fourth quarter delivers the sequential growth management expects, the company will close 2026 as a materially larger — and more profitable — business than it started it.

Frequently asked questions

How many cars did Carvana sell in Q3 2026?

Carvana sold 217,385 retail units in the third quarter of 2026, up 39 percent from a year earlier and a company record — its first quarter above 200,000 units.

What was Carvana’s revenue in Q3 2026?

Revenue reached $8.040 billion, up 42 percent year over year from $5.647 billion, also a company record and the first quarter above $8 billion.

Was Carvana profitable in Q3 2026?

Yes. Net income was $483 million, up $220 million from a year earlier, and adjusted EBITDA hit a record $800 million. GAAP operating income was $714 million.

What is Carvana’s outlook for Q4 2026?

Carvana expects retail unit sales to rise sequentially in the fourth quarter and full-year 2026 adjusted EBITDA toward the high end of its $2.7 billion to $3.0 billion range, assuming stable market conditions.

Sources

Carvana press release: Carvana Announces Record Third Quarter 2026 Results; Business Wire release: Carvana Announces Record Third Quarter 2026 Results; Motley Fool earnings call transcript, October 28, 2026: Carvana (CVNA) Q3 2026 Earnings Call Transcript.