Carvana Co. shares fell 4.3% to $67.08 in mid-day trading on Tuesday, extending declines after the company’s second-quarter 2026 earnings report disappointed investors.
The online auto retailer projected full-year adjusted EBITDA of $2.7 billion to $3.0 billion, below the roughly $3 billion forecasted by analysts. Revenue reached record levels, and retail units sold surged 38% year-over-year, but management cited gross profit per unit compression and rising reconditioning costs as reasons for the guidance shortfall.
The company also announced a $1.66 billion senior secured Term Loan B facility priced at Term SOFR plus 225 basis points. The financing aims to refinance higher-cost 2030 secured notes, reduce annual cash interest expense by approximately $45 million, and extend the company’s debt maturity profile.
Two board directors, J. Danforth Quayle and Ira Platt, sold a combined $3.3 million in shares on August 13 and 14 under pre-arranged trading plans, according to filings.
BTIG maintained its Buy rating and $87 price target for Carvana, while raising its Q3 2026 EBITDA estimate after observing a 50 basis point increase in prime borrower APRs during the first half of August. Wells Fargo also lifted its earnings-per-share estimates following an investor relations meeting, highlighting sustained market share gains in the Northeast and Midwest.
The broader market added pressure, with the NASDAQ down 1.09%, the S&P 500 down 0.52%, and the Dow Jones down 0.14% on the same day.
