ACV Auctions (ACVA)
NYSE:ACVA
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ACV Auctions
(NYSE:ACVA)
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Rating:61Neutral
Price Target:
$5.50
▲(27.02% Upside)
Action:ReiteratedDate: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
Improved Cash Generation
Sustained positive operating and free cash flow indicates the business is converting revenue into cash, reducing reliance on external funding. This improvement supports reinvestment in product, underwriting and marketplace flow over the next 2–6 months and enhances financial flexibility while scaling.
Negative Factors
Elevated Arbitration Costs
Higher arbitration-related costs have meaningfully pressured gross margins and may recur until remediation completes. Persistent arbitration exposure can erode unit economics, require reserves or pricing changes, and slow margin recovery even as revenue grows over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
Sustained positive operating and free cash flow indicates the business is converting revenue into cash, reducing reliance on external funding. This improvement supports reinvestment in product, underwriting and marketplace flow over the next 2–6 months and enhances financial flexibility while scaling.
Read all positive factors
ACV Auctions (ACVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$753.73M
Dividend YieldN/A
Average Volume (3M)2.72M
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth23.40%
EPS Growth8.46%
CountryUS
Employees2,900
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding174,071,580
10 Day Avg. Volume2,233,258
30 Day Avg. Volume2,716,698
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 Cap0.89
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit1.43
Enterprise Value/Ebitda-58.72
Forecast
1Y Price Target
$11.81Price Target Upside172.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.19
Revenue Forecast (FY)$848.90M
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 cus...
How the Company Makes Money
ACV Auctions makes money primarily by facilitating wholesale used-vehicle transactions through its digital marketplace and charging fees tied to those transactions. Key revenue streams include: (1) Marketplace/auction transaction fees: fees charge...
ACV Auctions Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, meaningful adjusted EBITDA expansion, product traction (ClearCar, ACV Max, ACV Guarantee), geographic and network expansion, and a solid cash position — all supporting a credible profitable growth outlook and upbeat 2026 guidance. Notable near-term headwinds include elevated arbitration-related cost of revenue, some deceleration in unit growth versus tough comparables, market uncertainty (seasonality and weather), and deliberate 2026 investments (go-to-market and Viper) that will temporarily weigh on incremental margins. Management articulated remediation steps for arbitration and conservative guidance that assumes investments will drive more growth later in the year.Positive Updates
Q4 and Full-Year Revenue Growth
Q4 revenue of $184 million, up 15% year-over-year; full-year 2025 revenue grew 19% year-over-year.
Negative Updates
Higher Arbitration and Cost of Revenue Pressure
Non-GAAP cost of revenue as a percentage of revenue increased approximately 400 basis points year-over-year in Q4, primarily driven by elevated arbitration costs in a specific customer cohort; management expects normalization in 2026 after mitigation steps.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 and Full-Year Revenue Growth
Q4 revenue of $184 million, up 15% year-over-year; full-year 2025 revenue grew 19% year-over-year.
Read all positive updates
Company Guidance
ACV guided to 2026 revenue of $845M–$855M (up 11%–13% YoY, described as low‑double‑digit growth with slightly higher growth assumed in H2), adjusted EBITDA of $73M–$77M (≈28% YoY growth) and a roughly 100‑basis‑point improvement in adjusted EBITDA margin; Q1 2026 guidance is $200M–$204M revenue (9%–12% growth) and $14M–$16M adjusted EBITDA (7%–8% margin). Management expects non‑GAAP OpEx (ex cost of revenue) to grow ~9% in 2026 (down from 12% in 2025), which includes about $11M of incremental go‑to‑market spending, plus additional capital investment for Viper/related units (incremental capex/headcount described as high‑single‑digit NIMs in modeling). The company finished Q4 with $270M cash (including $171M marketplace flow) and $190M of debt.ACV Auctions Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| 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
Negative
4.33
Price Trends
5.52
Negative
6.76
Negative
9.16
Negative
Market Momentum
-0.31
Negative
35.99
Neutral
41.98
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 4.33 is below the 20-day moving average (MA) of 4.54, below the 50-day MA of 5.52, and below the 200-day MA of 9.16, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $753.73M | -20.68 | -15.10% | ― | 23.40% | 8.46% | |
61 Neutral | $571.71M | 36.66 | 4.17% | ― | 0.20% | -20.57% | |
57 Neutral | $155.73M | -0.94 | -54.82% | ― | 1434.51% | -1207.73% | |
50 Neutral | $612.32M | -20.84 | 46.72% | ― | ― | ― | |
47 Neutral | $85.59M | -12.98 | -38.32% | ― | -81.31% | 87.13% |
* Consumer Cyclical Sector Average
ACVA
ACV Auctions
4.33
-10.01
-69.80%
CARS
Cars
9.75
-1.50
-13.33%
UXIN
Uxin
2.97
-1.12
-27.38%
CANG
Cango
0.44
-3.36
-88.50%
VRM
Vroom, Inc.
16.44
-17.46
-51.50%
ACV Auctions Corporate Events
Business Operations and StrategyPrivate Placements and Financing
ACV Auctions Expands and Extends Revolving Credit Facility
Positive
Dec 18, 2025
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 terminat...
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.