New York, Feb 22, 2026, 12:47 ET — Markets have wrapped up for the day.
- Carvana closed out Friday at $336.62, ticking 1.2% higher after a bumpy week of trading.
- A new warning on reconditioning and depreciation costs continues to hang over investors.
- U.S. inflation numbers are due next week, with producer prices set for release on Feb. 27—those figures could move the needle for rate expectations and shake up the auto lending sector.
Carvana Co shares edged up 1.2% to $336.62 Friday, after moving between $318.18 and $344.90 throughout the session. The U.S. stock market is closed Sunday, set to resume trading Monday.
Cost concerns remain front and center as the next session kicks off. Carvana fell short of Wall Street’s fourth-quarter profit forecasts after taking a hit from increased expenses. CFO Mark Jenkins signaled more of the same for the first quarter, telling analysts, “We do expect those cost dynamics to play out in Q1.” 1
Shares slid roughly 8% Thursday, with traders weighing up higher reconditioning costs and increased depreciation. At least four brokerages, among them J.P. Morgan and RBC, lowered their price targets following the results. Carvana, meanwhile, disputed new allegations made by short seller Gotham City Research. Stephens analyst Jeff Lick noted that premium-priced stocks like these can tumble sharply on even a slight earnings miss. 2
Carvana disclosed the results in its shareholder letter and a press release, both linked to a Form 8-K dated Feb. 18, according to a filing. 3
Carvana reported a 43% jump in 2025 retail units sold, hitting 596,641, with revenue up 49% to $20.3 billion. Net income landed at $1.9 billion. For 2026, the company is projecting “significant growth” in both retail units sold and adjusted EBITDA, provided conditions remain steady. 4
Reconditioning costs—everything from inspections to minor repairs and cleaning—go into prepping cars for resale. If those expenses climb, or if retail values drop faster than anticipated, profit on each vehicle can decline, regardless of how many units are sold.
Rates play a role here as well. On Friday, Reuters pointed to higher-than-expected underlying U.S. inflation in December, a move that’s fueling bets the Fed will wait until at least June to lower rates. Producer price data is up next on the watchlist. For auto retailers, persistent inflation could translate to tougher financing for customers and closer monitoring of loan portfolios. 5
If costs remain sticky through March while used-vehicle prices falter, that’s a clear risk. Legal or regulatory headlines tied to the short-seller allegations could also keep the stock volatile, Friday’s rebound notwithstanding.
When traders return Monday, attention turns to whether the post-earnings slide has bottomed out—or if new analyst commentary keeps up the pressure on valuations and spending discipline.
Eyes now turn to the U.S. Producer Price Index for January, set for release Feb. 27 at 8:30 a.m. ET. Any hint of easing pipeline inflation will be closely watched. For Carvana, the focus is on whether the coming quarter finally delivers relief on reconditioning and depreciation, or just serves up more unwelcome surprises. 6
