New York, Feb 18, 2026, 11:41 EST — Regular session
- CVNA picked up roughly 2% during the regular U.S. session.
- Options traders are bracing for a move of more than 10% once earnings land.
- Management’s update on demand and financial transparency is in sharp focus for investors.
Carvana Co. (CVNA) gained 1.9% Wednesday to end at $357.65, with shares moving in a range from $339.16 up to $366.25. Investors pushed the online used-car retailer’s stock higher ahead of its quarterly earnings, set to drop after the bell.
The report has sparked a fresh bout of volatility. Carvana options are pricing in a potential move of roughly 13.5% up or down by week’s end. Shares are off close to 15% year to date. (Investopedia)
It’s not just the numbers—trust is in play here. Gotham City Research, the short seller, challenged Carvana’s accounting and ties to DriveTime last month. DriveTime, for its part, is a sister firm under the Garcia family’s control. Carvana pushed back against the allegations. (Financial Times)
The broader market moved higher, SPY—an ETF tracking the S&P 500—rose roughly 0.8%. Used-car stocks caught a bid as well, CarMax jumped 7.4%, while ACV Auctions added 3.6%.
Carvana is projected to report fourth-quarter revenue near $5.23 billion, with earnings coming in at $1.12 per share, figures from Benzinga Pro show. Jay Woods, chief market strategist at Freedom Capital Markets, called this “a major inflection point technically.” He’s bracing for “highly volatile” trading as the results land. (Benzinga)
Traders are set to dig into unit sales and gross profit per vehicle, and they’ll be watching closely for any upticks in inventory sourcing costs. Adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — is also on the radar, serving as a quick pulse check on operating momentum.
Financing poses its own set of challenges. Carvana relies heavily on consumer credit for vehicle sales—if loan terms tighten or delinquencies tick up, that can hit both demand and margins in short order.
But there’s risk in both directions. Disappointing numbers, tepid guidance, or any remarks that leave those transparency worries hanging could send the stock tumbling to recent lows again—and quickly.
Carvana will post its fourth-quarter and full-year 2025 numbers after the U.S. market shuts on Wednesday, with a conference call set for 5:30 p.m. ET. (Carvana)
