Carvana Co. - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did CVNA Beat Earnings? Q3 2025 Results
Carvana posted a mixed but record-breaking Q3 2025, delivering explosive revenue growth while falling short on the bottom line. The online used-car retailer reported earnings of $1.03 per share, missing the $1.32 consensus estimate by 21.97%, partly weighed down by a $120 million hit from declining fair value of Root warrants. Revenue, however, told a different story, climbing 54.5% year-over-year to $5.65 billion, well ahead of the $5.10 billion analysts expected, as record retail unit volume of 155,941 vehicles, up 44% from a year ago, combined with higher average selling prices to drive the top-line beat. Operationally, <a href="https://247wallst.com/investing/2025/10/29/earnings-live-complete-carvana-cvna-q3-coverage/">the results were striking</a>, with GAAP operating income reaching a record $552 million at a 9.8% margin and Adjusted EBITDA hitting a record $637 million. Looking ahead, management expects Q4 retail units above 150,000 and guided full-year 2025 Adjusted EBITDA at or above $2.2 billion, reinforcing confidence in its long-term target of 3 million units annually at a 13.5% Adjusted EBITDA margin.
- Record 155,941 retail units sold, up 44% YoY
- Higher average selling prices per retail vehicle ($25,625 vs $23,405 YoY)
- Gross revenue treatment for vehicles from large retail marketplace partner boosted revenue per unit
- Operating leverage with non-GAAP SG&A per unit declining to $3,418 from $3,737 YoY
- Other gross profit per unit increased to $3,040 from $3,000 YoY
- Net interest expense declined to $125 million from $157 million YoY
“In Q3, Carvana once again drove industry-leading growth and profitability while crossing over $20 billion revenue run rate scale for the first time. We continue to focus on unlocking the structural advantages of our vertically integrated model that strengthen our business and separate our customer offering. This effort has already driven new milestones in speed, selection, convenience, and efficiency and we are even more excited about what's possible on the road ahead.”
Carvana CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Carvana expects retail units sold above 150,000 as long as the environment remains stable. For full year 2025, the company expects Adjusted EBITDA at or above the high end of its previously communicated range of $2.0 to $2.2 billion. Long-term, Carvana continues to target selling 3 million retail units per year at a 13.5% Adjusted EBITDA margin within 5 to 10 years. By year-end 2025, the company expects fully built-out annual retail production capacity of over 1.5 million units. In 2026, Carvana plans to continue integrating ADESA locations at a similar rate and begin construction on full build-outs at select ADESA locations.
CVNA YoY Financials
CVNA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.