Carvana Co (NYSE:CVNA) shares tumbled 23.2% in after-hours trading Wednesday after the online used car retailer reported fourth quarter Adjusted EBITDA of $511 million, missing analyst expectations of $535.7 million. The e-commerce platform for buying and selling cars posted revenue of $5.6 billion, surpassing estimates of $5.24 billion and representing a 58% increase year-over-year.

Despite the EBITDA miss, Carvana achieved record fourth quarter net income of $951 million, including a substantial $618 million non-cash benefit. The company sold 163,522 retail units during the quarter, up 43% from the same period last year. For the full year 2025, Carvana sold a record 596,641 retail units, generating total revenue of $20.3 billion, a 49% increase from the previous year.

CEO Ernie Garcia emphasized the company's strong performance, noting growth of 43% year-over-year and record unit economics. Carvana expects significant growth in both retail units sold and Adjusted EBITDA in 2026, including sequential increases for the first quarter, assuming stable market conditions. The stock's sharp decline reflects investor sensitivity to profitability metrics despite impressive revenue growth and market share gains in the competitive online used car market.