Carvana shares tumble after fourth quarter Adjusted EBITDA miss

Investing.com -- Carvana Co (NYSE: CVNA) shares plunged 23.2% in after-hours trading Wednesday after the online used car retailer reported fourth quarter Adjusted EBITDA that fell short of analyst expectations, overshadowing strong revenue growth.

The e-commerce platform for buying and selling cars posted fourth quarter Adjusted EBITDA of $511 million, missing the consensus estimate of $535.7 million. Revenue came in at $5.6 billion, surpassing analysts' expectations of $5.24 billion and representing a 58% increase YoY. The company sold 163,522 retail units during the quarter, up 43% from the same period last year.

Despite the EBITDA miss, Carvana reported record fourth quarter net income of $951 million, which included a substantial net non-cash benefit of $618 million. The company achieved a net income margin of 17.0% and an operating margin of 7.6% for the quarter.

"In 2025, Carvana grew 43% year-over-year, delivered record unit economics, and passed significant value back to customers through better selection, faster delivery times, and lower costs," said Ernie Garcia, Carvana founder and CEO. "Achieving all of this at once is rare and speaks to the powerful positive feedback our model generates as we grow."

For the full year 2025, Carvana sold a record 596,641 retail units, up 43% YoY, generating total revenue of $20.3 billion, a 49% increase from the previous year. The company reported full-year net income of $1.9 billion and Adjusted EBITDA of $2.2 billion.

Looking ahead, Carvana expects significant growth in both retail units sold and Adjusted EBITDA in 2026, including sequential increases in both metrics for the first quarter, assuming stable market conditions.

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