Feb 18 (Reuters) - Carvana CVNA.O shares slumped 15% after the bell on Wednesday as the online used-car retailer missed fourth-quarter profit expectations on higher costs.

The downbeat results cap what had been a stellar year for the retailer known for its iconic vending machines for used vehicles.

Its shares more than doubled in 2025 and the company entered the benchmark S&P 500.

Carvana pointed to higher costs during the quarter, driven by reconditioning expenses that came in above expectations at several production sites, along with higher retail depreciation rates that further pressured per-unit cost.

Excluding items, profit was $1.06 per share, compared to Street expectations of $1.10, as per data compiled by LSEG.

Expenses for the quarter came in at about $2.16 billion.

Net income was $951 million, up from $159 million a year earlier.

Quarterly revenue jumped about 58% to $5.6 billion in the last three months of 2025 on strong demand for pre-owned vehicles from Americans battling higher cost of living and the trickle-down effects of tariffs.