Stock prices for online used car dealer Carvana plummeted 25% in after-hours trading Wednesday following the company’s disappointing fourth-quarter earnings report that fell short of Wall Street predictions due to rising operational expenses.
The disappointing financial results brought an end to what had otherwise been an exceptional year for the company famous for its towering car vending machines. Carvana’s stock value more than doubled throughout 2025, and the business achieved inclusion in the prestigious S&P 500 index.
The company attributed the earnings shortfall to increased operational expenses during the final quarter, specifically citing vehicle reconditioning costs that exceeded projections at multiple facilities, combined with elevated retail depreciation rates that added pressure to per-unit expenses.
When excluding certain items, Carvana reported earnings of $1.06 per share, falling below analyst predictions of $1.10 per share according to LSEG data compilation.
Total quarterly expenses reached approximately $2.16 billion for the period.
The company’s net income climbed to $951 million, representing a significant increase from the previous year’s $159 million.
Revenue for the quarter surged roughly 58% to reach $5.6 billion during the final three months of 2025, driven by robust consumer demand for used vehicles as Americans cope with elevated living costs and economic impacts from tariff policies.
