Carvana Co. (CVNA) shares tumbled 6.77% in post-market trading on Wednesday, following the online used-car retailer's second-quarter earnings report. 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 reported Q2 revenue of $7.38 billion, up 52% year-over-year and well above the $6.91 billion consensus estimate. Retail units sold hit a record 197,325, a 38% jump from a year ago. Adjusted EBITDA came in at $769 million, slightly ahead of analyst forecasts. However, the company 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 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 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 post-earnings selloff also reflects aggressive expectations that had been built into the stock during a pre-earnings rally, with shares having climbed in the days ahead of the report. Despite the post-market 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.