Carvana Co. (CVNA) shares plummeted 9.59% in after-hours trading on Wednesday, despite reporting record third-quarter results. The online used-car retailer posted impressive revenue growth but fell short on earnings per share, leading to a mixed market reaction.

For Q3 2025, Carvana reported revenue of $5.65 billion, a 55% increase year-over-year and significantly above analyst expectations of $5.08 billion. The company sold 155,941 retail units, up 44% from the previous year. However, earnings per share came in at $1.03, missing the Wall Street estimate of $1.26. Despite the earnings miss, Carvana achieved a record adjusted EBITDA margin of 11.3% and net income of $263 million for the quarter.

Looking ahead, Carvana provided an optimistic outlook, expecting to sell over 150,000 vehicles in Q4 and projecting full-year adjusted EBITDA at or above the high end of its previously communicated range of $2.0 billion to $2.2 billion. The company also announced plans to expand its annual retail production capacity to over 1.5 million units by the end of 2025. However, investors seem cautious about the sustainability of this growth, possibly contributing to the stock's sharp decline despite the strong revenue performance and positive forward guidance.