Carvana Q3 revenue jumps to record, surpassing estimates as customer base doubled
Overview
US car e-commerce platform's Q3 revenue rose 42% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 slightly beat analyst expectations
Company sold record 217,385 retail units, up 39% yr/yr
Outlook
Carvana expects a sequential increase in retail units sold in Q4
Company expects full-year 2026 Adjusted EBITDA at high end of $2.7-$3.0 bln range
Carvana outlook assumes stable market conditions in Q4
Result Drivers
CUSTOMER BASE EXPANSION - Co said doubling its customer base and improved unit economics contributed to results
PRODUCT OFFERING AND SERVICE - Co attributed results to expanded selection, faster delivery, and lower loan rates
INFRASTRUCTURE UTILIZATION - Co cited improved infrastructure capacity and reconditioning facilities as supporting margins
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $8.04 bln | $7.70 bln (20 Analysts) |
Q3 Net Income | $483 mln | ||
Q3 Adjusted EBITDA | Slight Beat* | $800 mln | $795.21 mln (20 Analysts) |
Q3 Adjusted EBITDA Margin | 10.00% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"
Wall Street's median 12-month price target for Carvana Co is $83.00, about 40.1% above its October 27 closing price of $59.23
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 35 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)