ACV Auctions (ACVA) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: N/A
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 30.08%
• EPS Growth: 21.11%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.07
• Shares Outstanding: 172,107,120
• 10 Day Avg. Volume: 1,896,496
• 30 Day Avg. Volume: 2,479,569
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 6.55
• Enterprise Value/Ebitda: -154.09
• 1Y Price Target: $18.13
• Price Target Upside: 103.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 57 Neutral
• Price Target: $9.50 ▲(6.74% Upside)

ACV Auctions' strong revenue growth and cash flow management are offset by profitability challenges and a bearish technical outlook. The earnings call provided positive long-term prospects, but macroeconomic uncertainties and reduced guidance weigh on the stock's valuation.

Positive Factors

Revenue Growth

ACV Auctions' strong revenue growth indicates a robust market presence and effective business model, supporting long-term expansion and shareholder value.

AI-Driven Innovations

The development of AI-driven tools positions ACV Auctions as a technology leader, enhancing operational efficiency and competitive advantage in the automotive marketplace.

Financial Flexibility

The expanded credit facility enhances ACV Auctions' financial flexibility, supporting strategic growth initiatives and strengthening its market position.

Negative Factors

Profitability Challenges

Persistent negative margins and low return on equity indicate challenges in achieving profitability, which could hinder long-term financial sustainability.

Market Uncertainty

Macroeconomic uncertainties leading to reduced revenue guidance highlight potential risks to growth and stability in the near to medium term.

Lower Conversion Rates

Lower conversion rates could impact sales volume and revenue growth, posing a challenge to maintaining momentum in the competitive automotive market.

ACV Auctions Business Overview & Revenue Model

Company Description

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.

How the Company Makes Money

ACV Auctions generates revenue primarily through transaction fees charged to dealers on each vehicle sold through its platform. The company earns a percentage of the sale price as a commission, which serves as a key revenue stream. Additionally, ACV may offer subscription-based services or premium features that provide dealers with enhanced insights or tools for managing their transactions. Partnerships with automotive dealers and financing institutions further bolster its revenue by expanding the customer base and facilitating seamless transactions. The company also benefits from ancillary services, such as inspection fees, that contribute to its overall earnings.

ACV Auctions Financial Statement Overview

Summary

ACV Auctions shows strong revenue growth and cash flow management, but struggles with profitability and shareholder returns. The balance sheet is stable with moderate leverage, yet negative margins and return on equity are concerns.

Income Statement

ACV Auctions shows a positive revenue growth trend with a 4.91% increase in TTM, indicating a growing market presence. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 59.57%, suggesting efficient cost management. Despite growth, the persistent negative margins highlight challenges in achieving profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.42, indicating manageable debt levels. The equity ratio stands at 39.43%, showing a solid equity base. However, the negative return on equity (-14.41%) points to inefficiencies in generating returns for shareholders, which is a concern for long-term sustainability.

Cash Flow

The cash flow statement reveals a robust free cash flow growth of 31.96% in TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 0.21 indicates a positive cash conversion cycle. The free cash flow to net income ratio exceeds 1, suggesting effective cash management despite net losses. Overall, cash flow performance is a strong point for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	707.24M	637.16M	481.23M	421.53M	358.44M	208.36M
Gross Profit	404.37M	388.95M	236.78M	184.88M	153.68M	95.31M
EBITDA	-17.18M	-46.57M	-53.88M	-89.75M	-67.92M	-32.65M
Net Income	-64.28M	-79.70M	-75.26M	-102.19M	-78.18M	-41.02M
Balance Sheet
Total Assets	1.14B	984.15M	922.92M	914.92M	982.96M	404.55M
Cash, Cash Equivalents and Short-Term Investments	304.73M	270.10M	411.33M	496.68M	579.76M	233.72M
Total Debt	186.50M	123.00M	131.68M	76.67M	3.85M	6.90M
Total Liabilities	689.49M	544.14M	466.40M	429.20M	426.86M	544.24M
Stockholders Equity	448.78M	440.00M	456.53M	485.72M	556.10M	-139.69M
Cash Flow
Free Cash Flow	99.96M	60.86M	-46.05M	-97.66M	71.26M	1.48M
Operating Cash Flow	98.25M	65.40M	-17.89M	-74.26M	85.29M	10.37M
Investing Cash Flow	-105.51M	-15.86M	-110.97M	-283.89M	-129.27M	-19.67M
Financing Cash Flow	50.55M	-7.87M	30.63M	72.93M	376.25M	60.76M

ACV Auctions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACVA, the sentiment is Negative. The current price of 8.9 is below the 20-day moving average (MA) of 9.14, below the 50-day MA of 10.10, and below the 200-day MA of 14.63, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 42.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACVA.

ACV Auctions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAR	―	$2.79B	35.48	6.27%	―	11.45%	741.65%
CARS	―	$651.94M	17.27	8.37%	―	0.68%	67.41%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ACVA	―	$1.54B	―	-14.18%	―	30.08%	21.11%
CANG	―	$678.93M	―	-31.61%	―	348.38%	-1821.85%
UXIN	―	$521.61M	-12.78	―	―	―	―
VRM	―	$135.76M	―	-45.88%	―	-90.19%	79.52%

ACV Auctions Corporate Events

ACV Auctions Faces Financial Impact from Bankruptcy

On September 10, 2025, ACV Auctions Inc. announced that a customer of its subsidiary, ACV Capital LLC, filed for Chapter 7 bankruptcy, affecting an $18 million line of credit. The company is assessing the collateral’s value and potential financial impact, while planning to pursue all available remedies to protect its interests.

The most recent analyst rating on (ACVA) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on ACV Auctions stock, see the ACVA Stock Forecast page.

ACV Auctions Earnings Call: Strong Growth Amid Challenges

The recent earnings call for ACV Auctions, Inc. painted a picture of robust financial performance, marked by significant year-over-year growth in both revenue and adjusted EBITDA. This growth was primarily driven by strong execution in ACV Capital and Transport. However, the company did not shy away from acknowledging the challenges posed by macroeconomic uncertainties and lower conversion rates, which led to a slight reduction in revenue guidance for the year. Despite these hurdles, ACV’s investment in AI-driven innovations and its strong financial position suggest positive long-term prospects.

ACV Auctions Reports Revenue Growth Amid Losses

ACV Auctions Inc. operates a wholesale auction marketplace facilitating business-to-business used vehicle sales between dealerships, offering additional services such as vehicle transportation and financing. In its latest earnings report for the quarter ended June 30, 2025, ACV Auctions reported a total revenue of $193.7 million, an increase from $160.6 million in the same period last year. Despite the revenue growth, the company posted a net loss of $7.3 million, an improvement from the $17.1 million loss in the previous year. Key financial metrics showed an increase in marketplace and service revenue, driven by auction marketplace and other marketplace revenues. The company’s operating expenses also rose, primarily due to increased costs in operations and technology, and selling, general, and administrative expenses. Looking ahead, ACV Auctions remains focused on expanding its marketplace platform and enhancing its service offerings to capture a greater share of the wholesale vehicle market, while managing operational costs and striving for profitability.