ACV Auctions (ACVA) AI Stock Analysis

• Market Cap: $826.84M
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 23.40%
• EPS Growth: 8.46%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): >-0.01
• Shares Outstanding: 174,071,580
• 10 Day Avg. Volume: 2,893,922
• 30 Day Avg. Volume: 2,535,870
• PEG Ratio: 1.10
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 1.80
• P/FCF Ratio: 19.79
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: -64.32
• 1Y Price Target: $9.63
• Price Target Upside: 102.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $5.00 ▲(5.26% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by improving financial trajectory and constructive 2026 guidance (growth and adjusted EBITDA expansion), partially offset by very weak technicals (strong downtrend despite oversold readings). Valuation is constrained by negative earnings, while the credit facility expansion modestly improves financial flexibility.

Positive Factors

Revenue growth & margin expansion

Sustained top-line growth alongside a large increase in gross margin indicates improving unit economics and pricing power in ACV's marketplace. That combination supports durable operating leverage and a clearer path to profitability over the next several quarters if vehicle volumes and mix hold steady.

Improved operating and free cash flow

Material improvement to operating and free cash flow reduces reliance on external financing and gives management optionality to invest in growth (go-to-market, Viper) or de-risk operations. Continued cash generation enhances resilience through cyclical used-vehicle periods over a 2–6 month horizon and beyond.

Product traction and network scale

Significant product-level adoption and a growing buyer/seller network strengthen ACV's competitive moat by raising switching costs and improving fill rates. Durable product traction across ClearCar, ACV Max and Guarantee supports recurring transaction fees and ancillary revenue as adoption broadens over multiple quarters.

Negative Factors

Ongoing GAAP unprofitability

Despite improving margins, the company remains GAAP-loss making which limits financial flexibility and increases execution risk. If revenue growth or margin expansion slows, ACV may need to cut investments or draw more on credit lines, making profitability a key medium-term hurdle.

Elevated arbitration and cost-of-revenue pressure

Higher arbitration-related costs directly erode gross margins and reflect operational or control weaknesses in transaction quality. Even with remediation plans, persistent arbitration risks could structurally raise cost of revenue and slow margin recovery over several quarters if not fully resolved.

Rising leverage and funding sensitivity

A higher leverage profile reduces the cushion against revenue or margin shocks and increases sensitivity to funding conditions. While the credit facility was expanded, continued reliance on debt amplifies risk if cash flow generation falters or if market conditions tighten in the medium term.

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

Fundamentals are improving with strong revenue growth, expanding gross margin, narrowing losses, and positive operating/free cash flow in 2024–2025. Offsetting this, profitability remains negative and leverage has trended up, keeping the profile in “scaling, not-yet-profitable” territory.

Income Statement

Revenue growth is strong over the period, with 2025 revenue up meaningfully versus 2024 and gross margin expanding (about 49% in 2023 to ~62% in 2025), signaling improving unit economics. Losses are narrowing as net margin improves from roughly -24% (2022) to about -9% (2025). However, profitability is still negative (EBITDA and net income remain below zero), and the business has not yet demonstrated consistent earnings power despite the top-line growth.

Balance Sheet

The balance sheet appears generally stable with positive equity in recent years and moderate leverage, with debt-to-equity moving from low levels earlier in the period to ~0.44 in 2025. Total assets and equity have been relatively steady, suggesting no major balance-sheet deterioration. The key weakness is that returns remain negative due to ongoing net losses, and leverage has trended upward since 2021, reducing flexibility if profitability improvements stall.

Cash Flow

Cash generation has improved materially: operating cash flow turned positive after negative results in 2022–2023 and remained positive in 2024–2025, with free cash flow also positive and growing (2025 higher than 2024). This is a notable strength versus continued accounting losses, indicating better working-capital discipline and/or improved cash efficiency. The main risk is that cash flow relative to revenue is still modest, and sustained positive free cash flow will need to hold as the company scales.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	759.61M	637.16M	481.23M	421.53M	358.44M
Gross Profit	471.49M	388.95M	236.78M	184.88M	153.68M
EBITDA	-11.46M	-37.96M	-53.88M	-89.75M	-67.92M
Net Income	-66.14M	-79.70M	-75.26M	-102.19M	-78.18M
Balance Sheet
Total Assets	1.09B	984.15M	922.92M	914.92M	982.96M
Cash, Cash Equivalents and Short-Term Investments	271.50M	270.10M	411.33M	495.98M	579.08M
Total Debt	190.00M	123.00M	115.00M	76.67M	3.85M
Total Liabilities	655.93M	544.14M	466.40M	429.20M	426.86M
Stockholders Equity	429.68M	440.00M	456.53M	485.72M	556.10M
Cash Flow
Free Cash Flow	69.13M	60.86M	-46.05M	-98.57M	71.26M
Operating Cash Flow	78.23M	65.40M	-17.89M	-75.17M	85.29M
Investing Cash Flow	-74.05M	-15.86M	-110.97M	-282.98M	-129.27M
Financing Cash Flow	42.97M	-7.87M	30.63M	72.93M	376.25M

ACV Auctions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 4.75 is below the 20-day moving average (MA) of 7.05, below the 50-day MA of 7.84, and below the 200-day MA of 11.03, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 17.99 is Positive, neither overbought nor oversold. The STOCH value of 15.13 is Positive, 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
CARS	68 Neutral	$637.61M	23.22	6.11%	―	0.20%	-20.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ACVA	61 Neutral	$826.84M	-12.27	-16.33%	―	23.40%	8.46%
CANG	57 Neutral	$300.47M	-0.29	-25.80%	―	1434.51%	-1207.73%
UXIN	50 Neutral	$692.73M	-17.29	―	―	―	―
VRM	44 Neutral	$86.42M	-0.85	-52.02%	―	-81.31%	87.13%

ACV Auctions Corporate Events

ACV Auctions Expands and Extends Revolving Credit Facility

On December 12, 2025, ACV Capital Funding II LLC, an affiliate of ACV Auctions, amended its Revolving Credit and Security Agreement to expand its revolving credit facility from $125 million to $200 million, extend the scheduled commitment termination date from June 20, 2026 to December 10, 2027, and adjust certain eligibility and concentration limit definitions for dealers and vehicles. In connection with this amendment, the applicable margin used to calculate the interest rate on loans under the facility was reduced by 0.25%, collectively enhancing ACV Capital II’s funding capacity, lowering its borrowing costs, and potentially strengthening ACV Auctions’ ability to finance dealer inventory and support growth in its digital wholesale marketplace.

The most recent analyst rating on (ACVA) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on ACV Auctions stock, see the ACVA Stock Forecast page.