New York, Feb 12, 2026, 13:38 EST — Regular session
- Carvana shares dropped nearly 5% in afternoon trading, continuing a sharp decline that began Wednesday
- A U.S. court order in the securities lawsuit compelled the company to turn over previously withheld email attachments related to DriveTime
- Investors are gearing up for Carvana’s earnings report, set for release after the market closes on Feb. 18
Carvana Co shares dropped 4.9% Thursday afternoon, slipping to $346.36 after a volatile day that saw prices fluctuate between $328.88 and $370.28.
The drop shines a spotlight on a legal battle slowly making its way into the stock tape just before next week’s earnings. Carvana has been a headline grabber for investors for weeks, and these discovery disputes only add fuel to the fire.
Timing is everything now. The company’s report drops in six days, while court proceedings advance simultaneously. This overlap could make traders pull back quickly, then jump right back in just as fast.
On Feb. 10, U.S. Magistrate Judge John Z. Boyle signed a court order in In re Carvana Co Securities Litigation forcing “Garcia Sr.” to hand over email attachments he’d been withholding under a March 2025 e-discovery order. The ruling makes clear that if any part of a message or its attachments is responsive, then the entire communication and its attachments must be produced—except for privileged content. 1
The order references an existing protective framework allowing parties to label materials as confidential and control their use beyond the case. While this limits document access, it doesn’t eliminate the chance of added courtroom disputes.
Carvana dropped roughly 10% on Wednesday, shaken by investor nerves ahead of its earnings release and ongoing legal troubles, according to Investing.com. 2
The company plans to release its fourth-quarter and full-year 2025 earnings once markets close on Wednesday, Feb. 18, followed by a conference call and webcast at 5:30 p.m. ET. 3
Wall Street will focus on familiar metrics — retail units sold and gross profit per unit, which shows the money made per vehicle after direct costs — along with how costs and financing trends shape up. Zacks Equity Research expects earnings near $1.10 per share on roughly $5.19 billion in revenue. 4
A separate filing revealed some insider selling amid the stock’s movement. Carvana executive Thomas Taira sold 1,047 Class A shares at $398.54 on Feb. 9, following a Rule 10b5-1 plan — a pre-set trading strategy designed to avoid trades based on insider knowledge — and still held 66,625 shares afterward, the Form 4 showed. 5
The downside is clear-cut: as more court battles spill into earnings week, the stock’s risk premium climbs. A weak quarter or cautious comments on demand and unit economics could trigger a sharper sell-off.
Carvana’s next major event is Feb. 18, with earnings released after the market closes and a Q&A session to follow. Investors will be watching closely to see if the discovery dispute triggers another wave of filings before that date.
