Carvana Co. (CVNA)

Carvana reported third-quarter 2026 revenue of $8.04 billion, up 42 percent, on 217,385 retail units sold, up 39 percent 16. Net income was $483 million 1.

Profit on each car sold fell: total gross profit per unit was $6,997, down $365 from a year earlier 2. The company named lower loan rates for customers and lower wholesale profit, and put the hit from fuel prices and rising benchmark interest rates at about $200 per unit 2.

Adjusted EBITDA, a profit measure that leaves out interest, taxes and some non-cash items, was $800 million, a 10.0 percent margin against 11.3 percent a year earlier 2. For the fourth quarter, the company expects retail units to rise from the third and full-year Adjusted EBITDA at the higher end of its $2.7 to $3.0 billion range 1.

The SEC told the company in September 2026 that it had concluded an investigation, which the company believes primarily related to a short seller's report, and did not intend to recommend an enforcement action 3. Beginning with the fourth-quarter 2026 call, the company plans to stop giving quarterly or annual outlooks 2.

Carvana Co. was formed as a Delaware holding company in 2016 to run the business of Carvana Group, after the first customers were served from Atlanta in January 2013 4. CNBC reported that Carvana went public in 2017 after spinning off from DriveTime, the dealership group run by Ernest Garcia II 9.

The model was simple to state: shoppers browse a website, finance and trade in a car online, and the car is delivered or picked up from a glass vending tower 4. Through 2025 the company had sold 2.8 million retail vehicles and booked $84.1 billion in revenue since 2012 4.

Cars come mainly from customers who trade in or sell their vehicles, from auctions and from wholesale suppliers 4. Each car is inspected and reconditioned at one of the company's sites, and cars that miss its standards are sold wholesale 4.

The biggest early bet on scale came in February 2022, when KAR Global agreed to sell its ADESA US physical auction business to Carvana for $2.2 billion in cash 10. The deal covered 56 vehicle logistics centers, which the company has since been converting into reconditioning sites 104.

Then demand cooled, and the inventory built for growth became a burden 13. CBT News wrote that Carvana stocked up on inventory just as new vehicle supplies recovered, leaving a rapidly depreciating surplus and fewer customers 13. Yahoo Finance reported that the company announced layoffs in 2022 and faced bankruptcy speculation in December 2022 11.

Retail units fell: Carvana sold 312,847 vehicles in 2023, a drop of 24 percent from the year before, Yahoo Finance reported 11. PYMNTS, relaying CNBC, said layoffs and other cuts had removed $1.1 billion of annual expenses 12.

Growth returned and then accelerated 4. Retail units sold rose 43.3 percent to 596,641 in the year ended December 31, 2025, from 416,348 a year earlier, and revenue rose 48.6 percent to $20,322 million from $13,673 million 4. The annual report says each retail sale also feeds the finance, add-on product and trade-in streams, which is why units are the company's main measure 4.

In January 2025 a short-selling firm, Hindenburg Research, published a report alleging accounting and loan-sale problems and dealings with DriveTime 84. Bloomberg reported the report said the Garcias sold $3.6 billion in stock between August 2020 and August 2021 8. Carvana called the arguments intentionally misleading and inaccurate 9, and the SEC matter that followed was closed in September 2026 3.

In the year ended December 31, 2025, the company also acquired five Stellantis franchise dealerships, its first step into new cars, for $160 million in total 4. In May 2026 stockholders approved a five-for-one stock split, effected on 8 May 3.

Used cars sold online

Carvana describes itself as an e-commerce platform for buying and selling used cars 4. In 2025 retail vehicle sales were $14,537 million on 596,641 units, about 72 percent of revenue (computed) 4.

In the third quarter of 2026, retail revenue per unit was $28,263, up from $25,625, and the website offered 87,370 vehicles 3. Customers get a seven-day return policy, and the company says 4.7 out of 5.0 rated it in over 245,000 surveys 4.

Rivals named in the annual report include CarMax, Amazon, AutoTrader, CarGurus, Edmunds and Costco's auto program 4. The report puts the top ten used-car retailers at under 10 percent of the market in 2024 4. The research for this page found no named outlet scoring the service 4.

The logistics network spans 316 metropolitan areas and serves over 80 percent of the U.S. population, the annual report says 4. Carvana also names carmakers such as Ford, General Motors, Toyota and Tesla among possible competitors 4.

Wholesale and the ADESA sites

Wholesale sales and revenues include cars that do not meet retail standards plus fees from a marketplace where other sellers list cars 4. They were $4,052 million in 2025 on 297,643 wholesale units 4.

In the third quarter of 2026, wholesale sales and revenues were $1,302 million, against $1,177 million a year earlier 3. The company says its wholesale marketplace does not scale at the same rate as retail 2.

The company integrated retail production at two more ADESA locations in the third quarter, bringing the total to 21 sites 2. Its footprint is built out for about 1.5 million retail units a year, with real estate for 3 million 2.

Financing and add-on products

Other sales and revenues, mainly gains on selling the loans Carvana originates and commissions on service contracts, GAP coverage and insurance, were $1,733 million in 2025 4. These carry a 100 percent gross margin 4.

In the third quarter of 2026, other sales and revenues were $594 million, up from $474 million 3. That line grows with retail units because each sale can carry a loan, a service contract and insurance 4.

Loans go to securitization trusts the company sponsors or to partners such as Ally under forward-flow agreements 4. Service contracts are administered by DriveTime, and insurance runs through Root, which pays the company warrants 4.

New cars from Stellantis dealerships

The shareholder letter says the company's seven Stellantis franchise dealerships now supply new vehicles on Carvana.com 2. CBT News reported that Carvana paid a combined $200 million for the seven, and that its new-vehicle registrations rose 65 percent from March to June, per LocaliQ 7.

The 10-Q describes a $300 million floor plan line from Stellantis Financial Services that finances the new-car inventory 3. Some Stellantis dealers question allocation and long-distance sales, CBT News reported 7.

Sites, people and problems

At the end of 2025 Carvana owned 5.3 million square feet of interior space and 4,176 acres, and leased 5.9 million square feet and 3,132 acres, apart from its Tempe headquarters 4. Ernie Garcia III is chairman and chief executive, and Mark Jenkins is chief financial officer 2.

The earlier SEC inquiry has closed 3. The 10-K still lists a January 2025 short seller's report among its legal matters 4.

The umbrella, in words

Carvana Co. is a holding company; its listed Class A stock trades on the NYSE as CVNA 4. Its exhibit of subsidiaries names Carvana Co. Sub LLC, Carvana Group LLC, Carvana Operations HC LLC, Carvana LLC (Arizona) and ADESA US Auction LLC 5.

It invested in Root: shares of Series A convertible preferred stock and warrants for Class A stock, a minority stake 4. It agreed a master dealer agreement with DriveTime, which administers service contracts, and the Garcia family owns substantially all of DriveTime 43.

The Garcia Parties together hold about 83 percent of the voting power, with ten votes per Class B share, so Carvana is a controlled company under NYSE rules 4. Ernest Garcia III is the chief executive 2.

For the fourth quarter, the company expects a sequential rise in retail units and full-year 2026 Adjusted EBITDA at the higher end of $2.7 to $3.0 billion, as long as the environment stays stable 1.

The company's stated goal is to sell 3 million cars a year at a 13.5 percent Adjusted EBITDA margin 2. In 2027 it plans to restate this as a 12.5 percent operating margin, to be reached between 2030 and 2035 2.

Three full buildouts at ADESA locations are under construction, and the company expects all three to begin production in 2027 2. The letter adds that it will keep investing in infrastructure ahead of growth 2.

The annual report lists steps management may take: acquire more vehicles from customers, shorten days to sale, use existing reconditioning capacity, extend logistics and sell loans to more partners 4. These are stated intentions, not results 4.

The letter puts the current retail run rate at 870,000 units a year, about 2 percent of the used market 2. The company calls that an early stage of realizing the potential of its machine 2.

The letter says the company will invest in capacity ahead of demand, expecting extra reconditioning room to give operating flexibility now and a base for growth over the medium and long term 2. It describes the gap between the footprint it has and the volume it targets as an advantage 2.

CBT News noted that the company's forward-looking statements point to possible benefits from spare capacity, artificial intelligence and the integration of ADESA, with risks and uncertainties attached 6.

From 2027 the primary reporting focus shifts from non-GAAP measures to GAAP ones 2. From the fourth-quarter 2026 call the company plans no quarterly or annual outlooks, and will speak about longer-term goals instead 2.