Carvana misses profit forecast as revenue beats expectations

The company will stop issuing quarterly and annual financial outlooks from its fourth-quarter 2026 earnings call.

Carvana reported third-quarter earnings of $0.39 per share on a diluted basis, under generally accepted accounting principles (GAAP). That was $0.06 below expectations. Revenue came in at $8.04 billion, above the $7.84 billion that had been expected.

Ernie Garcia, the company's chairman and chief executive, said gross profit per unit fell. He pointed to lower interest rates offered to customers on car loans, measured against benchmark rates, and to weaker margins on wholesale sales. Wider gaps between retail and wholesale prices partly offset the decline.

For the fourth quarter, Carvana expects retail units sold to rise from the third quarter. That outlook assumes a stable operating environment. The company also expects full-year 2026 adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) to land at the higher end of its earlier range of $2.7 billion to $3.0 billion.

Revenue beat expectations while profit fell short, and the gap sits in margins. The larger change may be the decision to stop giving quarterly and annual financial outlooks. Starting with the fourth-quarter 2026 earnings call, Carvana will shift its forward-looking comments to longer-term goals. If that holds, the expected fourth-quarter unit increase and the higher-end Adjusted EBITDA language may be the last near-term figures investors can measure the company against.