Carvana Co. shares tumbled 7.96% over the 24-hour period, driven by a sharp post-market selloff after the online used-car retailer reported second-quarter earnings. While the company delivered record revenue and topped analyst estimates for both sales and profit, investors focused on a softer-than-expected full-year outlook and contracting profit margins.

Carvana issued its first-ever full-year adjusted EBITDA guidance of $2.7 billion to $3.0 billion, with the midpoint falling below the $2.97 billion analyst consensus. The guidance miss was attributed in part to reduced supply of newer used vehicles, which has kept wholesale prices elevated and pressured dealer margins across the industry. The adjusted EBITDA margin also narrowed to 10.4% from 12.4% a year earlier, signaling that profitability growth is not keeping pace with rapid top-line expansion.

The post-earnings selloff reflects aggressive expectations that had been built into the stock during a pre-earnings rally. Despite the decline, Carvana executives expressed confidence in the company's trajectory, highlighting 10 consecutive quarters of growth and a long-term goal of selling three million cars annually.