Carvana (CVNA) said its third-quarter 2026 net income included a $53 million loss on debt extinguishment, a notable item affecting the used-vehicle retailer’s GAAP result for the period.
The company’s October 2026 supplemental financial presentation centered on quarterly unit economics, expenses and adjusted profitability. However, the materials provided did not include the underlying figures from the referenced tables, limiting quantitative comparisons of retail and wholesale volumes, gross profit per unit, selling, general and administrative expenses, and adjusted EBITDA.
Carvana evaluates its operations using non-GAAP gross profit, non-GAAP SG&A expense and adjusted EBITDA. It defines adjusted EBITDA as net income or loss adjusted for taxes, net interest expense, specified operating and other items, depreciation and amortization, share-based compensation, debt-extinguishment gains or losses, restructuring expenses and noncash warrant-related revenue.
Under the company’s framework, non-GAAP gross profit less non-GAAP SG&A expense equals adjusted EBITDA. Non-GAAP gross profit excludes depreciation and amortization and share-based compensation recorded in cost of sales, while also removing revenue associated with warrants earned through commercial partnerships. The company described that warrant revenue as noncash.
Carvana also separates SG&A into operations and overhead categories. Operations costs tend to be more variable but include semi-fixed components such as management payroll and costs arising from underused logistics capacity. Overhead is generally more fixed, although corporate payroll and technology spending can introduce some variability.
The company cautioned that its non-GAAP measures are not alternatives to gross profit, SG&A expense or net income calculated under U.S. GAAP. The supplemental presentation did not provide a management outlook or quantified forward guidance.
Find out more
Comments