Carvana Co. stock research
FY2026 Q1
Carvana (CVNA) Gross Margin — Quarter Ended Mar 31, 2026
Revenue, cost of revenue, and gross profit all increased from the prior quarter and the year-ago period. Gross margin improved sequentially but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue, cost of revenue, and gross profit all increased from the prior quarter and the year-ago period. Gross margin improved sequentially but weakened relative to the same quarter last year.
- Sequentially, the proportion of cost of revenue relative to revenue decreased, which improved gross margin. Year-over-year, that proportion increased, weakening the margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.8%
Gross profit
$1.3B
Revenue
$6.4B
Cost of revenue
$5.2B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-2.2 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 |
|---|---|---|---|---|
| Jun 30, 2025 | $4.8B | $1.1B | $3.8B | 22.0% |
| Sep 30, 2025 | $5.6B | $1.1B | $4.5B | 20.3% |
| Dec 31, 2025 | $5.6B | $1.1B | $4.6B | 18.8% |
| Mar 31, 2026 | $6.4B | $1.3B | $5.2B | 19.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+1.0 pts
Year-over-year change
Mar 31, 2025
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Sequentially, the proportion of cost of revenue relative to revenue decreased, which improved gross margin. Year-over-year, that proportion increased, weakening the margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as the year-over-year increase in its proportion contributed to the gross margin decline.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Carvana Co. (CVNA) | 19.8% |