Carvana Co. (CVNA) shares plummeted 15.74% in post-market trading on Wednesday, following the release of the online used-car retailer's fourth-quarter financial results.

The sharp decline came despite the company reporting record revenue of $5.60 billion, which exceeded analyst estimates. However, investors focused on a miss in key profitability metrics, as Adjusted EBITDA came in at $511 million, falling short of consensus expectations. The sequential decline in Adjusted EBITDA and its margin raised concerns about rising costs, including higher-than-anticipated vehicle reconditioning expenses.

Furthermore, the company's outlook for the year ahead offered few specific figures, describing expectations for "significant growth" in sales and profits but warning of cost pressures. This murky forecast, coupled with the profitability miss, outweighed the strong top-line growth in the eyes of investors, leading to the post-market sell-off.