1019 ET - The negative after-hours reaction to Carvana's 4Q print reflected investor concerns about the company's potential to improve profitability following higher reconditioning costs and an adjusted Ebitda miss, Wedbush analysts write in a note. But the reaction was overdone, they write, adding that their long-term thesis is unchanged. Gross profit per unit is expected to normalize over coming quarters, and the reconditioning costs per unit would have been $220 lower if all the company's locations were as efficient as the top 25%. "We continue to hold a favorable view of Carvana's growth trajectory and competitive position," they write. Carvana is down 5.5%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

February 19, 2026 10:19 ET (15:19 GMT)

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