Want to see ACVA full AI Analyst Report?
Top Page
ACV Auctions
(NYSE:ACVA)
Select Model
Select Model
Rating:60Neutral
Price Target:
$11.00
▲(51.10% Upside)
Action:Reiterated
Date:09/12/26
The score is driven primarily by improving financial performance (strong revenue growth, expanding gross margin, narrowing losses, and positive TTM cash flow) tempered by continued net losses, higher leverage, and cash-flow volatility. The pending all-cash acquisition provides a significant positive corporate catalyst, while technical signals are mixed and valuation remains unattractive on a P/E basis due to unprofitability.
Positive Factors
Revenue and margin improvement
Strong revenue expansion alongside materially higher gross margin and narrower operating losses indicates improving platform economics. If sustained, this combination can increase operating leverage, support reinvestment in marketplace capabilities, and move ACV closer to durable profitability over the next several quarters.
Negative Factors
Profitability remains negative
Despite improving gross and operating margins, ACV continues to generate a net loss, showing that scale benefits have not yet fully covered its cost base. Persistent unprofitability limits internally funded growth, reduces resilience if conditions weaken, and leaves execution dependent on further margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin improvement
Strong revenue expansion alongside materially higher gross margin and narrower operating losses indicates improving platform economics. If sustained, this combination can increase operating leverage, support reinvestment in marketplace capabilities, and move ACV closer to durable profitability over the next several quarters.
Read all positive factors
ACV Auctions (ACVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend YieldN/A
Average Volume (3M)11.47M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth13.30%
EPS Growth4.45%
CountryUS
Employees3,200
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.36
Shares Outstanding169,807,980
10 Day Avg. Volume8,698,478
30 Day Avg. Volume11,472,644
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)3.18
Price to Sales (P/S)1.80
P/FCF Ratio19.79
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue1.49
Enterprise Value/Gross Profit2.38
Enterprise Value/Ebitda-356.50
Forecast
1Y Price Target
$8.67Price Target Upside19.05% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)0.2
Revenue Forecast (FY)$848.17M
ACV Auctions Business Overview & Revenue Model
Company Description
ACV Auctions Inc. manages a sophisticated digital exchange where buyers and sellers converge for the online auctioning of wholesale vehicles. Beyond this core offering, the company delivers extensive data services that provide insights into the co...
How the Company Makes Money
ACV Auctions primarily makes money by charging fees tied to wholesale vehicle transactions conducted on its marketplace platform. A core revenue stream is marketplace service revenue from auctions—typically consisting of transaction-based fees pai...
ACV Auctions Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook: the company reported record revenue and strong adjusted EBITDA performance, demonstrated product and commercial momentum (ViPR, ClearCar, ACV Transport/Capital), and reinforced full-year revenue and EBITDA guidance while improving operating leverage. Headwinds remain from a contracting dealer wholesale market, compressed conversion rates due to a seller-buyer price disconnect, higher cost-of-revenue mix from no-reserve sales, and short-term operating cash flow volatility driven by marketplace float. Management presented these challenges as temporary and actionable, emphasizing investments in field capacity, AI-driven efficiency, and new product rollouts to drive durable market share and margin expansion.Positive Updates
Record Revenue and Unit Sales
Revenue of $214 million in Q2 2026, a 10% year-over-year increase; record unit sales of 211,000 vehicles sold in the quarter.
Negative Updates
Dealer Wholesale Market Contraction and Conversion Pressure
Third-party dealer wholesale volumes contracted ~6% year-over-year in the quarter (June down 6%, July reported down 8%); management cited a ~600 basis point price disconnect between sellers and buyers that compressed conversion rates and materially impacted unit growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Unit Sales
Revenue of $214 million in Q2 2026, a 10% year-over-year increase; record unit sales of 211,000 vehicles sold in the quarter.
Read all positive updates
Company Guidance
ACV reaffirmed its 2026 guidance: Q3 revenue of $219M–$225M (growth of 10%–13% YoY) with adjusted EBITDA of $21M–$24M (10%–11% margin); full‑year revenue of $845M–$855M (growth of 11%–13%) and adjusted EBITDA of $73M–$77M (≈27% YoY), with adjusted EBITDA margin expected to expand ~100 basis points year‑over‑year. Management expects non‑GAAP OpEx (excluding cost of revenue) to grow ≈6% in 2026 (vs. 12% in 2025), cost of revenue as a percentage of revenue to be modestly higher than 2025, and modest go‑to‑market investments (roughly $10M this year) to drive back‑half unit growth; they also reiterated they expect positive operating cash flow in H2 and that guidance assumes dealer‑wholesale market stabilization in the back half of the year.ACV Auctions Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 801.34M | 759.61M | 637.16M | 481.23M | 421.53M | 358.44M |
| Gross Profit | 500.78M | 471.49M | 388.95M | 236.78M | 184.88M | 153.68M |
| EBITDA | -3.35M | -11.44M | -37.96M | -53.88M | -89.75M | -67.92M |
| Net Income | -63.15M | -66.14M | -79.70M | -75.26M | -102.19M | -78.18M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 1.09B | 984.15M | 922.92M | 914.92M | 982.96M |
| Cash, Cash Equivalents and Short-Term Investments | 242.26M | 271.50M | 270.10M | 411.33M | 495.98M | 579.08M |
| Total Debt | 205.00M | 190.00M | 123.00M | 115.00M | 76.67M | 3.85M |
| Total Liabilities | 689.47M | 655.93M | 544.14M | 466.40M | 429.20M | 426.86M |
| Stockholders Equity | 389.89M | 429.68M | 440.00M | 456.53M | 485.72M | 556.10M |
Cash Flow | ||||||
| Free Cash Flow | 5.95M | 69.13M | 60.86M | -46.05M | -98.57M | 71.26M |
| Operating Cash Flow | 33.38M | 78.23M | 65.40M | -17.89M | -75.17M | 85.29M |
| Investing Cash Flow | -14.34M | -74.05M | -15.86M | -110.97M | -282.98M | -129.27M |
| Financing Cash Flow | -91.39M | 42.97M | -7.87M | 30.63M | 72.93M | 376.25M |
ACV Auctions Technical Analysis
Positive
7.28
Price Trends
8.58
Positive
7.63
Positive
6.93
Positive
Market Momentum
0.60
Positive
75.20
Negative
46.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACVA, the sentiment is Positive. The current price of 7.28 is below the 20-day moving average (MA) of 10.29, below the 50-day MA of 8.58, and above the 200-day MA of 6.93, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 75.20 is Negative, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACVA.
ACV Auctions Risk Analysis
ACV Auctions disclosed 54 risk factors in its most recent earnings report. ACV Auctions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ACV Auctions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $70.30B | 21.69 | 46.57% | ― | 53.98% | 159.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $4.29B | 102.32 | 13.88% | 5.49% | 12.46% | -211.41% | |
60 Neutral | $1.77B | -28.78 | -14.99% | ― | 13.30% | 4.45% | |
58 Neutral | $7.85B | 25.01 | 4.80% | ― | 4.09% | -40.01% | |
56 Neutral | $5.23B | 7.09 | 33.18% | ― | -0.06% | 35.87% | |
48 Neutral | $274.98M | -4.16 | 73.63% | ― | 97.00% | -42.04% |
* Consumer Cyclical Sector Average
ACVA
ACV Auctions
10.44
1.37
15.10%
AN
AutoNation
157.07
-61.14
-28.02%
KMX
CarMax
53.79
9.68
21.95%
OPLN
OPENLANE
35.68
8.89
33.18%
CVNA
Carvana Co
63.20
-8.81
-12.23%
UXIN
Uxin
1.12
-2.28
-67.06%
ACV Auctions Corporate Events
Business Operations and StrategyM&A Transactions
Copart to Acquire ACV Auctions in Cash Merger
Positive
Sep 10, 2026
On September 10, 2026, ACV Auctions entered into a definitive merger agreement under which Copart will acquire all outstanding ACV shares for $10.50 per share in cash, valuing the deal at about $1.9 billion and representing a roughly 45% premium t...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
ACV Auctions Announces CFO Transition and Leadership Changes
Positive
Aug 10, 2026
On August 10, 2026, ACV announced the resignation of Chief Financial Officer William Zerella, who informed the company on August 6, 2026 that he would depart to become CFO at another firm. Zerella’s decision was not tied to any dispute over ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.