Carvana Co. stock research
FY2025 Q3
Carvana (CVNA) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased from the prior quarter and the same quarter last year, while gross profit was flat sequentially but higher year-over-year. Gross margin declined from both comparator periods, reflecting that cost of revenue grew faster than revenue; the filing notes a continued focus on profitability initiatives.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased from the prior quarter and the same quarter last year, while gross profit was flat sequentially but higher year-over-year. Gross margin declined from both comparator periods, reflecting that cost of revenue grew faster than revenue; the filing notes a continued focus on profitability initiatives.
- The strongest observable margin driver was the faster growth of cost of revenue relative to revenue, which compressed the margin.
- Sequentially, gross margin weakened as cost of revenue increased while gross profit held steady. Year-over-year, gross margin declined despite a higher gross profit, as cost of revenue expanded at a greater pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.3%
Gross profit
$1.1B
Revenue
$5.6B
Cost of revenue
$4.5B
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-1.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $3.5B | $763.0M | $2.8B | 21.5% |
| Mar 31, 2025 | $4.2B | $929.0M | $3.3B | 22.0% |
| Jun 30, 2025 | $4.8B | $1.1B | $3.8B | 22.0% |
| Sep 30, 2025 | $5.6B | $1.1B | $4.5B | 20.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.7 pts
Year-over-year change
Sep 30, 2024
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the faster growth of cost of revenue relative to revenue, which compressed the margin.
Sequentially, gross margin weakened as cost of revenue increased while gross profit held steady. Year-over-year, gross margin declined despite a higher gross profit, as cost of revenue expanded at a greater pace.
Monitor the trend of cost of revenue in relation to revenue growth, as it directly impacts gross margin.