CVNA

EX-99.1

2 ex99_1q32026.htm

EX-99.1

Document

Exhibit 99.1

Dear Shareholders,

The third quarter was another excellent quarter for Carvana.

It was another big step on our path to selling 3 million cars at 13.5% Adjusted EBITDA margin per year.

Starting with the strides we are making toward 3 million: In the quarter, we sold 217,000 units - our first quarter over 200,000.

That’s up just under 40% from a year ago, and with eight straight quarters of growth in that same range, we are now double the size we were just two years ago.

For context, the industry was once again approximately flat compared to last year. This makes clear that our growth is coming from market share gains as customers continue to migrate to Carvana because of the experience we offer, the selection we provide, and the value we deliver.

We are the fastest-growing automotive retailer for deep, sustainable reasons.

Moving to the margins we are generating: in the third quarter we produced just under $500 million of Net income and $800 million of Adjusted EBITDA resulting in a 6% Net income margin and a 10% Adjusted EBITDA margin. We achieved these results despite a backdrop of rapid increases in both interest rates and fuel prices.

For the 10th quarter in a row, our margins are about 2x that of the industry average. These results reflect a business built differently from the ground up.

We have a business model that benefits from a different supply chain, a different technology stack, and greater vertical integration, creating a fundamentally different customer experience and the economics that come with it.

We are the most profitable automotive retailer for deep, sustainable reasons.

Over the last two years, we have driven up our Net Promoter Score by 9 points and provided our customers with twice as much selection, delivery times that are 2 days faster, lower interest rates on their loans relative to benchmarks, and a continually simplifying process.

The moat is widening.

And we’re nowhere near done improving the machine. We still see opportunity in every step of the customer experience and in every line item of our financial statements.

Our current retail unit run rate puts us at a scale of 870,000 units per year. Excitingly, this is about 2% share of the used market and about 1.5% of the market overall. We have built a powerful machine and we are early in the process of realizing its potential.

Summary of Q3 2026 Results

Q3 2026 Financial Results: All financial comparisons stated below are versus Q3 2025 unless otherwise noted. Complete financial tables appear at the end of this letter.

•Retail units sold totaled 217,385, an increase of 39%

•Revenue totaled $8.040 billion, an increase of 42%

•Total Gross profit was $1.521 billion, an increase of 32%

•Total Gross profit per unit ("GPU") was $6,997, a decrease of $365

•Non-GAAP Total GPU was $7,093, a decrease of $410

•Net income margin was 6.0%, an increase from 4.7%

◦Net income totaled $483 million, an increase of $220 million1

•Adjusted EBITDA margin was 10.0%, a decrease from 11.3%

◦Adjusted EBITDA totaled $800 million, an increase of $163 million

•GAAP Operating margin was 8.9%, a decrease from 9.8%

◦GAAP Operating income was $714 million, an increase of $162 million

•Basic and diluted net earnings per Class A share were $0.40 and $0.39, respectively, based on 721 million and 740 million shares of Class A common stock outstanding, respectively

◦Assuming full conversion of LLC units and other dilutive effects, there would have been 1.127 billion shares of Class A common stock outstanding

1 Net income in Q3 2026 was negatively impacted by $53 million from Loss on debt extinguishment associated with the early redemption of our Senior Secured Notes due 2030. Net income in Q3 2025 was negatively impacted by $120 million associated with changes in the fair value of warrants.

1

Outlook

Our results through Q3 position us well for a strong finish to 2026. Looking toward the fourth quarter, we expect the following as long as the environment remains stable:

•A sequential increase in retail units sold, and

•Adjusted EBITDA2 in the higher end of our previously communicated range of $2.7 to $3.0 billion for the full year 2026.

A Note on 2027 Reporting

Over the past several years, we have focused our reporting and targets on non-GAAP financial metrics, including Non-GAAP GPU, Non-GAAP SG&A expense, and Adjusted EBITDA, which we believe have provided the clearest illustration of our business performance. As we marched toward industry-leading profitability, these metrics served as useful markers of our progress.

At our current scale and profitability, GAAP profitability metrics, including Operating income and Net income, have become a simpler and clearer framing for our targets and execution. Accordingly, in 2027, we plan to shift our primary reporting focus from our historical Non-GAAP metrics to their GAAP counterparts, including Total GPU and its components, SG&

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