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Carvana's Q3 vehicle sales increased 39% to 217,385 units.
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However, EPS of $0.39 missed analysts' consensus estimate of $0.48.
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Carvana CEO Ernest Garcia aims to sell three million vehicles annually and achieve a 13.5% adjusted EBITDA margin.
Carvana (CVNA) stock jumped 8% overnight after the online used-car retailer reported record third-quarter sales and revenue, with retail vehicle sales climbing 39% year-on-year to 217,385 units and revenue surging 42% to $8.04 billion. CEO Ernest Garcia also reaffirmed ambitious long-term targets for sales growth and profitability.
Carvana stock is up 2.1% so far this year and is on track to reverse a seven-week losing streak.
Carvana Reports Record Sales And Revenue
The Phoenix-based company's Q3 revenue rose to $8.04 billion, surpassing analysts' expectations of $7.7 billion, according to Fiscal.ai. Carvana reported net income of $483 million, an 83% surge. However, earnings of $0.39 per share missed the Street's estimate of $0.48. Adjusted EBITDA climbed to a quarterly record of $800 million, with a 10% margin.
Carvana said its sales growth outpaced the wider auto market, where sales stayed mostly flat year over year. The company gained customers from rivals, while high new-car prices encouraged more budget-conscious buyers to choose used vehicles.
Carvana expects adjusted EBITDA for 2026 to land near the upper end of its previously announced outlook of $2.7 billion to $3 billion.
Carvana CEO Says Company Now Focuses On Profit
During the Q3 earnings call, CEO Garcia said Carvana is pursuing a major expansion plan to increase annual vehicle sales to three million and reach an adjusted EBITDA margin of 13.5%.
"This is our first quarter with over 200,000 sales. Our run rate is now 870,000, double what it was just two years ago. This was also our first quarter with $8 billion of revenue. We are the most profitable automotive retailer with margins that are approximately twice the industry average for the 10th quarter in a row," said Garcia.
Carvana recovered from its financial troubles after restructuring its debt in 2023, cutting debt by about $1.2 billion and delaying interest payments.
CVNA Stock: Retail View
On Stocktwits, retail sentiment around the stock shifted to 'neutral' from 'bullish'.
A user said , "10-year bonds at 5.5% or 6% will wreck this stock!"
CVNA stock has cratered 30% year-to-date.
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Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy . This article was originally published on StockTwits .
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