CARVANA CO. Quarterly Report for Q3 Ended Sep 30, 2025

Summary

Carvana Co. reported significant revenue growth in the third quarter of 2025, with total net sales and operating revenues increasing by 54.5% year-over-year to $5.65 billion. This growth was driven primarily by a substantial increase in retail vehicle sales, up 57.1%, and wholesale sales, up 49.7%. The company also saw strong performance in other revenue streams, including gains on loan sales and complementary product commissions. Despite the revenue surge, total gross profit per unit saw a slight decrease of 0.9%, attributed to higher retail depreciation rates and lower spreads between retail and wholesale market prices, though overall gross profit improved significantly due to higher sales volumes. Carvana's liquidity position remains strong, with total liquidity resources of $6.44 billion as of September 30, 2025, bolstered by substantial cash and cash equivalents and significant availability under its revolving credit facilities. The company also actively managed its debt, including the voluntary redemption of a portion of its 2028 Senior Secured Notes. While the company demonstrated robust top-line growth and improved profitability on a consolidated basis, investors should note the continued increase in selling, general, and administrative expenses, which rose by 26.9%, primarily due to higher advertising and headcount costs associated with increased retail unit sales.

Key Highlights

• 1Total net sales and operating revenues surged by 54.5% to $5.65 billion in Q3 2025, driven by strong performance across retail and wholesale segments.
• 2Retail vehicle sales increased by 57.1% to $4.0 billion, while wholesale sales grew by 49.7% to $1.2 billion.
• 3Total gross profit increased by 42.3% to $1.15 billion, although total gross profit per retail unit experienced a slight decrease of 0.9% to $7,362.
• 4Selling, general, and administrative expenses increased by 26.9% to $595 million, reflecting investments in growth initiatives and higher headcount.
• 5The company maintained a strong liquidity position with $2.14 billion in cash and cash equivalents and $1.93 billion in available revolving credit facilities as of September 30, 2025.
• 6Carvana voluntarily redeemed $559 million of its 2028 Senior Secured Notes, demonstrating active debt management.

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