Carvana (CVNA) sold 217,385 retail vehicles in the third quarter, its first period above 200,000 units, as the online used-car retailer extended a run of roughly 40% year-over-year unit growth.

The increase of 39% from a year earlier put the company at double the scale it had two years prior, the company said, while the broader industry was approximately flat. Sequential volume rose from 197,325 units in the second quarter.

Revenue totaled $8.040 billion, up 42% from a year earlier. Retail vehicle sales, net, were $6.144 billion, up 53.8%. Wholesale sales and revenues were $1.302 billion, up 10.6%. Per-retail-unit revenue was $28,263.

Total gross profit was $1.521 billion, up 32% year-over-year. GAAP total gross profit per unit fell $365 to $6,997; Non-GAAP total GPU fell $410 to $7,093. The company said the declines were driven primarily by lower loan rates versus benchmarks and lower wholesale GPU as retail units scaled faster than wholesale marketplace gross profit, partly offset by higher retail-wholesale spreads. Retail vehicle gross profit per unit was $3,556. Wholesale gross profit per wholesale unit was $963.

Net income was $483 million, a 6.0% margin, up $220 million from a year earlier. The quarter included a $53 million loss on early redemption of Senior Secured Notes due 2030. Adjusted EBITDA was $800 million, a 10.0% margin. GAAP operating income was $714 million, an 8.9% margin. Basic and diluted net earnings per Class A share were $0.40 and $0.39.

The company said overall unit economics were negatively impacted by about $200 per unit from elevated fuel prices and rapidly rising benchmark interest rates. SG&A expense was $805 million.

Cash and cash equivalents were $3.049 billion at September 30, 2026. Vehicle inventory was $3.456 billion.

Carvana integrated retail production at two ADESA locations, bringing integrated sites to 21, and began construction on two additional full ADESA buildouts, for three full buildouts under construction that the company expects to begin production in 2027. It said fully built-out annual capacity is approximately 1.5 million retail units, with real estate to support 3 million retail units. The company introduced new vehicles on Carvana.com from seven Stellantis franchise dealerships.

For the fourth quarter, Carvana expects a sequential increase in retail units sold and Adjusted EBITDA in the higher end of its previously communicated $2.7 to $3.0 billion full-year 2026 range, as long as the environment remains stable. Beginning with the fourth-quarter earnings call, the company said it does not plan to provide quarterly or annual financial outlooks. In 2027 it plans to shift primary reporting to GAAP metrics and convert its mid-term goal to selling 3 million retail units annually at a 12.5% operating margin between 2030 and 2035.