Carvana (CVNA) Q3 2026 Earnings: Revenue Up 42%, Margin Down 0.9 Pts
By Chad Hartman
Published · Last updated
Carvana (CVNA) reported Q3 FY2026 revenue of $8.04 billion, up 42.4%, and diluted EPS of $0.39 per post-split share for the quarter ended September 30, 2026. Its net income margin rose to 6.0% from 4.7%, yet GAAP operating margin fell 0.9 points to 8.9%: the gain sits below the operating line, where a $120 million year-ago warrant charge gave way to a $53 million debt-extinguishment charge. Carvana released results and filed its 10-Q on October 28, 2026.
| Field | Value |
|---|---|
| Company | Carvana ($CVNA) |
| Quarter | Q3 FY2026, period ended September 30, 2026 |
| Earnings release | October 28, 2026 (Form 8-K) |
| 10-Q filed | October 28, 2026 |
| Revenue | $8.04 Billion (+42.4% YoY) |
| Diluted EPS | $0.39 (8-K, post five-for-one split; YoY n/a) |
| Operating margin | 8.9% (-0.9 pts YoY) |
| Operating cash flow (TTM) | TTM unreliable (see data warning); Q3 2026 single quarter $555.0 Million |
| Net margin vs operating margin (YoY change) | +1.3 pts net, -0.9 pts operating |
Carvana Q3 2026 Revenue, Operating Margin and EPS
Carvana's Q3 2026 revenue was $8.04 billion, up 42.4% from $5.65 billion a year earlier and the highest of the last 16 quarters. Operating income hit a record, but the margin on it slipped.
Revenue growth of 42% would be expected to carry margins upward, since fixed logistics and reconditioning capacity spreads over more cars. Instead gross profit grew 32.5%.
The Data: Retail units sold rose 39.4% to 217,385, and revenue per retail unit rose 10.3% to $28,263. Gross margin fell to 18.9% from 20.3%. Operating margin was 8.9%, down 0.9 points from 9.8% and 0.3 points from 9.2% in Q2; it ranks seventh of the last 16 quarters although operating income of $714 million ranks first. Diluted shares of 739.91 million were up 1.2%, which takes about one point off EPS growth.
Why: Gross profit per unit fell 5.0% to $6,997, a $365 decline. The 8-K attributes it to lower customer loan rates relative to benchmarks and to wholesale profit scaling slower than retail units. The 10-Q's per-unit table splits it: other gross profit per unit fell to $2,733 from $3,040 and wholesale to $708 from $866, while retail rose to $3,556 from $3,456. A retail price per unit $2,638 higher (derived) inflates revenue without adding matching profit.
Each added revenue dollar earned less operating profit than the one before it.
What Carvana's 10-Q Shows Beyond the Press Release
Carvana's Q3 2026 net income was $483 million against $263 million a year earlier per the 8-K, lifting net margin 1.3 points to 6.0%. The operating line, where the 10-Q's figures sit, moved the other way.
The Data: GAAP operating income rose $162 million to $714 million. The 8-K's Adjusted EBITDA margin fell 1.3 points to 10.0%, the mirror image of the net margin's rise. The 8-K footnotes two items: a $53 million loss on early redemption of the Senior Secured Notes due 2030 in Q3 2026, and a $120 million warrant fair-value charge in Q3 2025. Of the $220 million rise in net income, $67 million is the swing between those two items (derived).
Why: Adding both back, net income was $536 million against $383 million, up 40% (derived, before tax effects), against the 84% headline and 29.3% operating income growth. Management also estimates about $200 per unit lost to fuel prices and rising benchmark rates, which covers just over half of the $365 per-unit decline and leaves the rest to the customer-rate give-back the 8-K names. Operating margin depends on neither item.
Net income growth of 84% overstates operating momentum by roughly 55 points.
Carvana Q3 2026 Free Cash Flow, Debt and Share Count
Carvana's Q3 2026 operating cash flow was $555 million, up 60.9% year over year and the second highest of the last 16 quarters, against net income of $483 million. Cash conversion reversed from Q2, when operating cash flow of $238 million was 0.46 times net income; Q3's was 1.15 times (derived).
The Data: Capital expenditure of $64 million was the highest of the last 16 quarters. Free cash flow, which GeminIQ's pre-calculated Free Cash Flow defines as operating cash flow less capital expenditure, was $491 million, against $187 million in Q2 and $307 million a year earlier. Total debt was $5.16 billion at September 30, 2026 against $4.98 billion at December 31, 2025.
Why: Senior Secured Notes fell $1.66 billion to $2.27 billion while a new Term Loan B added $1.66 billion, so the debt moved between instruments and the $53 million loss was the cost of moving it. Share count did not offset anything: no shares were sold under the at-the-market program in Q3, against 7.4 million shares and $539 million of proceeds a year earlier, and equity-based compensation was $24 million in both quarters.
The balance sheet changed lenders, not leverage.
Carvana's 2026 Guidance After Q3
In its October 28, 2026 8-K, Carvana guided full-year 2026 Adjusted EBITDA to the higher end of its $2.7 billion to $3.0 billion range, and said it will stop giving quarterly or annual outlooks beginning with the Q4 2026 call.
The Data: The July 8-K guided a sequential increase in Q3 retail units; Carvana sold 217,385 against 197,325 in Q2, up 10.2% (derived). Q3 Adjusted EBITDA was $800 million at a 10.0% margin, down from 10.4% in Q2. From 2027 the company will frame its mid-term goal as 3 million units a year at a 12.5% GAAP operating margin between 2030 and 2035, which it calls equivalent to its 13.5% Adjusted EBITDA target.
Why: The equivalence holds in the quarter's own numbers: Adjusted EBITDA margin of 10.0% sits 3.5 points below 13.5%, and operating margin of 8.9% sits 3.6 points below 12.5% (derived). Moving the target onto the operating income line puts it on a figure the 10-Q reports, as filed, every quarter.
With the quarterly guide gone, each filing's operating margin becomes the only running measure of progress toward the 2030 goal.
How CVNA Stock Has Moved After Past Earnings Reports
Across Carvana's last 12 10-Q filings, filed November 2, 2023 to July 29, 2026, the one-month return was positive after 8 and the median was +6.3%. The three-month median was +18.2%, positive after 9 of 12.
The Data: One-month returns ranged from -35.7% after the FY2024 Q4 filing to +51.8% after the FY2023 Q4 filing. The past three Q3 filings were followed by one-month returns of +5.0%, +25.1% and -12.4%. This filing has no return yet because its window has not elapsed. These figures describe how Carvana's stock moved after its past filings; they are a historical association, not a forecast. The Earnings Reaction Heat Map carries every window.
Why: Both extremes are fourth-quarter filings, so the dispersion concentrates in the annual report rather than in the Q3 filings, whose range is narrower. Form 4 filings through September 14, 2026 show 91 insider sales totaling $334.4 million and 2 purchases totaling $1.6 million over 12 months, against 241 sales of $2.38 billion and no purchases the prior 12 months. The sales-to-purchases ratio far exceeds the roughly 3:1 norm, yet dollar sales fell 86% (derived).
When a release leads with the margin that improved, the margin to check is the one that sits above the items its footnotes name.
Frequently Asked Questions
Is Carvana doing well financially?
Carvana was profitable on a GAAP basis in Q3 2026, with net income of $483 million and operating income of $714 million. Its operating margin was 8.9%, down from 9.8% a year earlier. GeminIQ's pre-calculated Current Ratio was 4.05x, against total debt of $5.16 billion.
When does Carvana report earnings?
Carvana reported Q3 2026 results and filed its 10-Q on October 28, 2026, a day earlier than its Q3 2025 filing on October 29, 2025. Last year it filed its fourth-quarter 2025 results on February 18, 2026. That is a pattern from the filing record, not a forecast of the next date.
Does Carvana pay a dividend?
Carvana paid no dividend in Q3 2026 or Q3 2025: dividends paid were $0 in both quarters. Its 10-Q states that Class B common stock holders are not entitled to receive dividends.
Where can I verify Carvana's Q3 2026 figures?
Carvana's Q3 2026 10-Q was filed on October 28, 2026 under accession number 0001690820-26-000067. The earnings letter is Exhibit 99.1 to the same-day 8-K.
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All financial figures cited in this article reference CARVANA CO.'s Q3 2026 10-Q (filed October 28, 2026, period ending September 30, 2026), with guidance and management commentary drawn from the company's Form 8-K earnings release (filed October 28, 2026). All SEC filings are publicly available at SEC EDGAR and SEC EDGAR.
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