Carvana Co. (NYSE:CVNA) shares fell almost 14% after the used car retail platform’s third quarter earnings fell short of expectations, despite record revenue and strong growth in retail unit sales.
The company posted earnings per share of $1.03, below the analyst estimate of $1.33, and down from $1.28 in the prior quarter.
Revenue reached a record $5.65 billion, up 55% year-over-year and surpassing analyst projections of $5.10 billion.
Retail unit sales hit 155,941, a 44% increase from a year earlier, setting a new quarterly high.
The company reported net income of $263 million with a 4.7% margin, adjusted EBITDA of $637 million with a 11.3% margin, and GAAP operating income of $552 million with a 9.8% margin.
Looking ahead, Carvana expects Q4 retail unit sales to exceed 150,000 and anticipates full-year 2025 adjusted EBITDA at or above the high end of its prior $2 billion to $2.2 billion guidance.
“In Q3, Carvana once again drove industry-leading growth and profitability while crossing over $20 billion revenue run rate scale for the first time," Carvana CEO Ernie Garcia said in a statement.
“We continue to focus on unlocking the structural advantages of our vertically integrated model that strengthen our business and separate our customer offering.”