Carvana Co. (NYSE:CVNA) shares are trading higher Thursday after the company reported record third-quarter results Wednesday after the market closed, with revenue beating expectations.
- Carvana shares are climbing with conviction. Why is CVNA stock surging?
Carvana Beats on Revenue with Record $8.04B, Misses on Earnings per Share
Carvana reported third-quarter earnings per share of 39 cents, missing the consensus estimate of 42 cents. It reported revenue of $8.040 billion, up 42% from a year earlier and a company record, beating the consensus estimate of $7.70 billion. It was the first quarter above $8 billion in revenue. Retail units sold rose 39% to a record 217,385. Net income was $483 million, up $220 million, for a margin of 6.0%. Adjusted EBITDA rose $163 million to a record $800 million, for a margin of 10.0%, and GAAP operating income was a record $714 million, for a margin of 8.9%.
“In the last two years, we have doubled the number of customers we serve while continuing to lead the industry in unit economics,” said Ernie Garcia, Carvana’s founder and CEO.
Carvana Refinances $1.7B of Debt, While Adjusted EBITDA Margin Slips to 10.0%
Carvana refinanced $1.7 billion of senior secured notes due 2030 with a term loan, which it said saves about $45 million in annual interest, and net debt fell to 0.8 times trailing adjusted EBITDA. Adjusted EBITDA margin fell from 11.3% a year earlier, mainly because of a shift toward higher-priced vehicles and lower interest rates offered to customers. Management said reconditioning capacity remains its main operational constraint, and that it plans to emphasize GAAP operating income and net income starting in 2027.
Carvana Expects More Retail Units in Q4 and Adjusted EBITDA at the High End of Its Range
Carvana expects a sequential increase in retail units sold in the fourth quarter, as long as the environment remains stable. It also expects full-year 2026 adjusted EBITDA at the higher end of its previously communicated range of $2.7 billion to $3.0 billion.
Carvana Shares Surge
CVNA Price Action: At the time of publication, Carvana shares are trading 7.96% higher at $63.75, according to data from Benzinga Pro.
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