"Carvana enters Q3 earnings following six straight profitable quarters and record-high margins, with investors focused on whether its structural efficiency gains and unit growth can sustain as volume expansion normalizes. Wall Street expects $5.1B revenue and $1.32 EPS, up ~39% and ~20% respectively. The call will center on ADESA reconditioning benefits, margin durability, and ROI from stepped-up marketing investments. Nvidia made early investors rich, but there is a new class of 'Next Nvidia Stocks' that could be even better; learn more here."
"CEO Ernie Garcia called Q2 "another exciting quarter" where Carvana became both the fastest-growing and most profitable automotive retailer in the U.S., achieving a 41% unit increase and 10.6% GAAP operating margin. CFO Mark Jenkins added that adjusted EBITDA reached $601 million with 12.4% margins and 85% conversion to operating income - a sign of structural leverage in the model"
Carvana reports Q3 2025 after the close following six quarters of positive net income and a historic Q2 with record revenue, margins, and units sold. Management cited a 41% unit increase, a 10.6% GAAP operating margin, and adjusted EBITDA of $601 million with 12.4% margins and 85% conversion to operating income. Wall Street expects roughly $5.1 billion in revenue and $1.32 in EPS, implying about 39% revenue growth and 20% EPS growth. Investors will watch ADESA integration and reconditioning benefits, margin durability at record highs, and ROI from stepped-up marketing as volume expansion normalizes.
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