Acv Auctions, Inc. (ACVA)
NYSE:ACVA
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ACV Auctions
(NYSE:ACVA)
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Rating:64Neutral
Price Target:
$7.00
▲(39.44% Upside)
Action:Reiterated
Date:06/03/26
ACVA’s score is driven primarily by improving fundamentals—rapid revenue growth, materially higher gross margins, and sustained positive operating/free cash flow—reinforced by a generally constructive earnings outlook with reaffirmed 2026 guidance and improving adjusted EBITDA. Offsetting these positives are continued GAAP losses (negative P/E) and a mixed technical picture where shorter-term momentum is strong but the stock remains below its 200-day moving average.
Positive Factors
Sustained revenue growth & margin expansion
Multi-year top-line growth coupled with a large gross margin expansion reflects durable demand, improving pricing power and scale advantages. Higher gross margins materially narrow losses, support reinvestment in product and go‑to‑market, and underpin a credible path toward sustained profitability.
Negative Factors
Persisting GAAP losses
Despite improving adjusted metrics, ongoing GAAP net losses and negative ROE mean the business has not yet converted operational improvements into sustainable accounting profitability. This extends the reliance on continued margin expansion and cash generation to justify reinvestment and capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth & margin expansion
Multi-year top-line growth coupled with a large gross margin expansion reflects durable demand, improving pricing power and scale advantages. Higher gross margins materially narrow losses, support reinvestment in product and go‑to‑market, and underpin a credible path toward sustained profitability.
Read all positive factors
ACV Auctions (ACVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.13B
Dividend YieldN/A
Average Volume (3M)3.65M
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth15.86%
EPS Growth18.72%
CountryUS
Employees2,900
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.35
Shares Outstanding174,584,900
10 Day Avg. Volume2,633,854
30 Day Avg. Volume3,647,904
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 Cap0.82
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit1.87
Enterprise Value/Ebitda-183.44
Forecast
1Y Price Target
$7.67Price Target Upside52.72% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.21
Revenue Forecast (FY)$850.79M
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 generates revenue by facilitating wholesale used-vehicle transactions on its digital marketplace and charging fees tied to those transactions. Key revenue streams include: (1) Marketplace/auction transaction fees: ACV earns ...
ACV Auctions Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted multiple strong operational and financial achievements — record revenue, double-digit top-line growth, strong adjusted EBITDA expansion, improving unit economics, product momentum (VIPER, ACV Capital growth), and a solid balance sheet with a $50 million ASR. Challenges included a mid-single-digit industry decline driven in part by severe weather, higher cost of revenue mix from increased no-reserve sales, modest legacy SaaS declines, and limited near-term VIPER scale. Overall, the positives (revenue and EBITDA beats, healthy guidance reaffirmation, product/AI traction, and capital returns) materially outweigh the headwinds.Positive Updates
Record Revenue and Strong Profitability
Q1 revenue of $204 million, a 12% year-over-year increase, at the high end of guidance. Adjusted EBITDA was $17 million, exceeding the high end of guidance and up 23% year-over-year. Non-GAAP net income was $7 million, at the high end of guidance.
Negative Updates
Adverse Market Conditions and Weather Impact
Dealer wholesale market was negatively affected by severe weather in Q1, producing a mid-single-digit decline in dealer wholesale volumes in the quarter. Management now expects the dealer wholesale market to decline mid-single digits for the year (company referenced a ~5% industry decline).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Strong Profitability
Q1 revenue of $204 million, a 12% year-over-year increase, at the high end of guidance. Adjusted EBITDA was $17 million, exceeding the high end of guidance and up 23% year-over-year. Non-GAAP net income was $7 million, at the high end of guidance.
Read all positive updates
Company Guidance
ACV reaffirmed 2026 guidance while assuming the dealer wholesale market will decline mid-single-digits, guiding Q2 revenue of $213–217M (up 10–12% YoY) and adjusted EBITDA of $18–20M (8–9% margin), and full‑year revenue of $845–855M (11–13% growth) with adjusted EBITDA of $73–77M (≈28% YoY growth); management expects 2026 OpEx to grow ≈8% (down from 12% in 2025) including ~$11M of go‑to‑market spend, adjusted EBITDA margin to expand ~100 bps, cost of revenue as a % of revenue to be modestly higher than 2025, and non‑GAAP OpEx (ex cost of revenue) to grow ≈8%. These targets build on Q1 results of $204M revenue (+12% YoY), $17M adjusted EBITDA (+23% YoY) and $7M non‑GAAP net income, with ARPU at $542 (+6% YoY), adjusted EBITDA per unit up 20% YoY, $341M cash ($230M marketplace float) and $200M debt, and the company also announced a share repurchase program up to $100M (including a $50M ASR).ACV Auctions Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 781.10M | 759.61M | 637.16M | 481.23M | 421.53M | 358.44M |
| Gross Profit | 496.54M | 471.49M | 388.95M | 236.78M | 184.88M | 153.68M |
| EBITDA | -5.08M | -11.46M | -37.96M | -53.88M | -89.75M | -67.92M |
| Net Income | -62.22M | -66.14M | -79.70M | -75.26M | -102.19M | -78.18M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.09B | 984.15M | 922.92M | 914.92M | 982.96M |
| Cash, Cash Equivalents and Short-Term Investments | 340.97M | 271.50M | 270.10M | 411.33M | 495.98M | 579.08M |
| Total Debt | 200.00M | 190.00M | 123.00M | 115.00M | 76.67M | 3.85M |
| Total Liabilities | 804.46M | 655.93M | 544.14M | 466.40M | 429.20M | 426.86M |
| Stockholders Equity | 430.92M | 429.68M | 440.00M | 456.53M | 485.72M | 556.10M |
Cash Flow | ||||||
| Free Cash Flow | 69.69M | 69.13M | 60.86M | -46.05M | -98.57M | 71.26M |
| Operating Cash Flow | 88.12M | 78.23M | 65.40M | -17.89M | -75.17M | 85.29M |
| Investing Cash Flow | -57.98M | -74.05M | -15.86M | -110.97M | -282.98M | -129.27M |
| Financing Cash Flow | 18.85M | 42.97M | -7.87M | 30.63M | 72.93M | 376.25M |
ACV Auctions Technical Analysis
Positive
5.02
Price Trends
5.63
Positive
5.65
Positive
7.15
Negative
Market Momentum
0.15
Negative
59.30
Neutral
76.31
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 5.02 is below the 20-day moving average (MA) of 6.09, below the 50-day MA of 5.63, and below the 200-day MA of 7.15, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 76.31 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.13B | -18.06 | -14.27% | ― | 15.86% | 18.72% | |
64 Neutral | $556.24M | 21.68 | 5.71% | ― | 0.90% | -35.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | $52.91M | -0.80 | -53.29% | ― | 41.94% | 72.15% | |
44 Neutral | $422.36M | -8.99 | 48.78% | ― | 94.12% | -12.61% | |
41 Neutral | $76.61M | -0.18 | -117.02% | ― | 160.50% | -13248.56% |
* Consumer Cyclical Sector Average
ACVA
ACV Auctions
6.48
-9.38
-59.14%
CARS
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9.95
-1.59
-13.78%
UXIN
Uxin
1.92
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-49.61%
CANG
Cango
0.19
-3.91
-95.37%
VRM
Vroom, Inc.
10.16
-18.10
-64.05%
ACV Auctions Corporate Events
Executive/Board ChangesShareholder Meetings
ACV Auctions Shareholders Back Board, Pay and Auditor
Positive
Jun 2, 2026
On May 27, 2026, ACV Auctions Inc. held its Annual Meeting of Stockholders, where shareholders elected Brian Hirsch and Eileen Kamerick as Class II directors to serve on the board until the 2029 Annual Meeting, reinforcing the company’s exis...
Business Operations and StrategyStock Buyback
ACV Auctions Launches $50 Million Accelerated Share Buyback
Positive
May 13, 2026
On May 12, 2026, ACV Auctions Inc. entered into an accelerated share repurchase agreement with Citibank to buy back $50 million of its common stock under its existing share repurchase program. The company will pay $50 million on May 13, 2026, rece...
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.