Key Highlights

  • CVNA shares are trading 15.44% higher at $68.17 on Thursday, October 29, 2026.
  • Retail units sold grew 39.4% to 217,385, the first quarter above 200,000.
  • Total net revenue climbed 42.4% to $8.04 billion from $5.65 billion.
  • Net income of $483 million compares with $263 million a year earlier, and adjusted EBITDA reached $800 million.
  • Total gross profit per unit declined 5.0% to $6,997 from $7,362.

Carvana Share Gain: What Is Behind the 15.44% Rise After the Third-Quarter Letter?

Carvana (NYSE:CVNA) shares are trading 15.44% higher at $68.17 on Thursday, October 29, 2026, which implies a prior close near $59.05 (calculated). The company released its third-quarter 2026 shareholder letter on Wednesday, October 28, 2026 and hosted its call that evening.

Retail units sold grew 39.4% to 217,385 from 155,941, the first quarter above 200,000, and wholesale units grew 38.3% to 111,119. Management said unit growth has held near 40% for eight straight quarters while the industry was roughly flat.

Revenue and Profit: What Drove Net Income Almost to Double?

Total net revenue grew 42.4% to $8.04 billion. Retail vehicle sales rose 53.8% to $6.14 billion, wholesale sales and revenues gained 10.6% to $1.30 billion, and other sales and revenues increased 25.3% to $594 million.

Net income was $483 million, a 6.0% margin, compared with $263 million. Net income attributable to Carvana was $289 million, and diluted EPS for Class A shares was $0.39 versus $0.21. GAAP operating income grew to $714 million from $552 million, and adjusted EBITDA went up to $800 million from $637 million.

Results absorbed a $53 million loss on early redemption of the 2030 senior secured notes. Year-earlier net income was lowered by $120 million from warrant fair value changes.

Unit Economics: Should the 5.0% Slip in Gross Profit Per Unit Raise Concern?

Total gross profit grew 32.5% to $1.52 billion, yet total gross profit per unit declined to $6,997 from $7,362. Retail gross profit per unit gained 2.9% to $3,556, while wholesale dropped 18.2% to $708 and other dropped 10.1% to $2,733. Management linked the decline to lower loan rates passed to customers relative to benchmarks.

High fuel prices and quickly rising benchmark rates trimmed about $200 per unit. Adjusted EBITDA margin was 10.0% against 11.3%, and adjusted EBITDA per unit was $3,680 against $4,085. SG&A per retail unit improved to $3,703 from $3,816.

Carvana brought retail production online at two more ADESA sites, for a total of 21, with three full buildouts under construction for 2027. Fully built-out capacity is about 1.5 million retail units a year.

Outlook and Reporting Shift: What Does Ending Guidance Mean?

Carvana expects 2026 adjusted EBITDA toward the upper end of its $2.7 billion to $3.0 billion range, and a sequential increase in fourth-quarter retail units if conditions hold steady. Starting with the fourth-quarter call, it will no longer provide quarterly or annual financial outlooks and will make GAAP measures its main focus in 2027.

The medium-term goal is 3 million retail units a year at a 12.5% GAAP operating margin, which the company treats as equal to its earlier 13.5% adjusted EBITDA target. Cash was $3.05 billion at September 30, 2026, up from $2.33 billion at year-end, and no share buybacks were disclosed. On the 1.127 billion fully converted share count, equity value is roughly $76.8 billion at $68.17 (calculated).

What to Watch Next: Will Unit Growth Persist Without Guidance?

The fourth-quarter report is the next dated marker and the first without a formal outlook. Watch points are retail units against the stated sequential increase, gross profit per unit as benchmark rates shift, and the 2027 start at the three ADESA buildouts.