CVNA Q3 2025 Earnings

Call Details

• Call Title: Carvana Q3 2025 Earnings Call
• Date: October 29, 2025 at 9:30 PM UTC
• Management Team:
  • Ernie Garcia (Chief Executive Officer)
  • Mark Jenkins (Chief Financial Officer)
  • Meg Kehan (Investor Relations)

Call Summary

Financial Performance

• Retail units sold totaled 155,941 in Q3, an increase of 44% year over year and a company record.
• Revenue was $5.647B in Q3, an increase of 55% year over year and a company record.
• Adjusted EBITDA was $637M in Q3, an increase of $208M year over year and a company record, with an adjusted EBITDA margin of 11.3% compared to 11.7% a year ago.
• GAAP operating income was $552M in Q3, an increase of $215M year over year, producing a GAAP operating margin of 9.8% versus 9.2% a year ago.
• Net income was $263M in Q3, an increase of $115M year over year, representing a net income margin of 4.7% compared to 4.0% a year ago.
• Non-GAAP retail GPU decreased by $77 per unit, non-GAAP wholesale GPU decreased by $168 per unit, and non-GAAP other GPU increased by $63 per unit versus the prior year.
• The company converted approximately 87% of adjusted EBITDA into GAAP operating income in Q3, up from 79% in the prior year.
• Inventory turn time was approximately flat year over year while customer selection increased by nearly 50%, per the prepared remarks.

Guidance

• For Q4 2025, the company expects retail units sold above 150,000, conditional on a stable environment.
• For full-year 2025, the company expects adjusted EBITDA at or above the high end of the previously communicated range of $2.0B to $2.2B.
• The company expects sequential changes in retail GPU, wholesale GPU, and other GPU in Q4 to be in a similar range to last year, driven primarily by seasonality.
• Advertising expense in Q4 is expected to be similar to or slightly higher than Q3 on a dollar basis.
• The company plans to pass some finance and ancillary product gains back to customers in Q4, which will affect other GPU comparables versus Q3 2025.
• Guidance assumes a stable macro environment and reflects seasonal patterns including higher depreciation rates in Q4.