Carvana shares drop sharply following fourth quarter profit miss
The online retailer saw its stock tumble today as rising operational costs impacted earnings. Despite record revenue, the firm missed analyst expectations.
Insights:
Carvana Co. reported fourth-quarter adjusted profit below Street expectations on February 18, 2026, leading to a roughly 25% decline in the company's shares during after-hours trading. The profit miss was primarily driven by higher costs, including elevated reconditioning expenses and higher retail depreciation rates, which overshadowed a strong period of growth for the online auto retailer.
