CAR: Q3 earnings softened; FY 2026 Adjusted EBITDA outlook is ~$850M

What happened

CAR reported that third-quarter revenue declined 2% year over year and Adjusted EBITDA, a measure of operating earnings, fell 8%. Net income was $199 million. The company’s fiscal 2026 Adjusted EBITDA outlook is approximately $850 million, while year-to-date Adjusted Free Cash Flow improved to $198 million.

Confirmed

Global impact / market context

The weaker quarterly revenue and operating earnings point to pressure on the business’s ability to generate earnings from sales. The roughly $850 million full-year outlook gives investors a benchmark, while improved free cash flow may support spending or debt payments, though no use of the cash is specified.

Analyst inference

The figures combine near-term deterioration with a stronger year-to-date cash-flow measure and a forward earnings outlook. Investors may compare later results with the $850 million expectation and assess whether cash generation can hold up if revenue and operating earnings remain under pressure.

Analyst inference

What to watch

1. Check upcoming quarterly revenue and Adjusted EBITDA against the reported year-over-year declines to see whether the third-quarter weakness continues or reverses. Analyst inference
2. Compare full-year Adjusted EBITDA results with the approximately $850 million fiscal 2026 outlook; the supplied article does not state whether this is revised guidance. Confirmed
3. Track year-to-date Adjusted Free Cash Flow against the reported $198 million and look for disclosure of whether it funds operations, spending, or debt payments. Analyst inference

Evidence

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