ACV Auctions (ACVA) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: N/A
• Average Volume (3M): 5.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: 23.40%
• EPS Growth: 8.46%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.07
• Shares Outstanding: 172,171,220
• 10 Day Avg. Volume: 3,344,823
• 30 Day Avg. Volume: 5,225,889
• PEG Ratio: -21.00
• Price to Book (P/B): 8.09
• Price to Sales (P/S): 5.59
• P/FCF Ratio: 58.51
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: -79.39
• 1Y Price Target: $12.56
• Price Target Upside: 62.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): $758.34M

• Rating: 46 Neutral
• Price Target: $7.00 ▼(-9.56% Downside)

ACV Auctions' stock score is primarily influenced by its financial performance and technical analysis. The company shows revenue growth and a solid gross profit margin but faces significant challenges in profitability and cash flow sustainability. Technical indicators suggest bearish momentum, further impacting the score. Valuation concerns due to a negative P/E ratio and lack of dividend yield also weigh on the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and effective business strategies, suggesting sustained demand and market presence.

Cash Flow Management

Robust cash flow management enhances financial flexibility, enabling strategic investments and operational resilience over time.

AI-Driven Innovations

Investments in AI innovations can drive efficiency and competitive advantage, positioning the company for future growth and market leadership.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder long-term financial health, affecting the company's ability to reinvest and reward shareholders.

Reduced Revenue Guidance

Lowered revenue guidance reflects market uncertainties, potentially impacting investor confidence and strategic planning.

Flat Volume Expectations

Flat volume expectations suggest potential market saturation or competitive pressures, which could limit growth opportunities.

ACV Auctions Business Overview & Revenue Model

Company Description

ACV Auctions is a leading digital automotive marketplace that specializes in facilitating wholesale transactions for used vehicles. The company operates in the automotive sector, providing a platform that connects dealers with a streamlined auction process for buying and selling cars. ACV Auctions offers a range of services, including real-time auction capabilities, vehicle inspections, and data analytics, enabling dealerships to efficiently manage their inventory and make informed purchasing decisions.

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 demonstrates growth in revenue and maintains a solid gross profit margin, but struggles with profitability and cash flow sustainability. The balance sheet shows moderate leverage, which is a positive, but the negative return on equity is concerning. Overall, the company is on a growth trajectory but faces challenges in achieving profitability and sustaining cash flow growth.

Income Statement

ACV Auctions shows a modest revenue growth rate of 3.99% TTM, indicating some positive momentum. However, the company struggles with profitability, evidenced by a negative net profit margin of -9.09% and a negative EBIT margin of -7.99% TTM. The gross profit margin remains relatively healthy at 57.18% TTM, suggesting efficient cost management at the gross level. Overall, the income statement reflects growth but also highlights significant profitability challenges.

Balance Sheet

The company's debt-to-equity ratio of 0.42 TTM indicates moderate leverage, which is manageable. However, the return on equity is negative at -14.41% TTM, reflecting ongoing losses. The equity ratio stands at 37.25% TTM, suggesting a reasonable level of equity financing. The balance sheet shows stability in terms of leverage but highlights concerns regarding profitability and returns.

Cash Flow

ACV Auctions has a strong free cash flow to net income ratio of 1.02 TTM, indicating effective cash generation relative to net income. However, the free cash flow growth rate is negative at -27.38% TTM, signaling potential cash flow challenges. The operating cash flow to net income ratio of 0.21 TTM suggests that operating cash flows are covering net income, albeit at a modest level. The cash flow statement reflects adequate cash generation but also points to potential risks in sustaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	735.48M	637.16M	481.23M	421.53M	358.44M	208.36M
Gross Profit	428.81M	388.95M	236.78M	184.88M	153.68M	95.31M
EBITDA	-20.18M	-37.96M	-53.88M	-89.75M	-67.92M	-32.65M
Net Income	-72.72M	-79.70M	-75.26M	-102.19M	-78.18M	-41.02M
Balance Sheet
Total Assets	1.17B	984.15M	922.92M	914.92M	982.96M	404.55M
Cash, Cash Equivalents and Short-Term Investments	316.02M	270.10M	411.33M	495.98M	579.08M	233.72M
Total Debt	220.00M	123.00M	115.00M	76.67M	3.85M	6.90M
Total Liabilities	732.05M	544.14M	466.40M	429.20M	426.86M	544.24M
Stockholders Equity	434.45M	440.00M	456.53M	485.72M	556.10M	-139.69M
Cash Flow
Free Cash Flow	63.69M	60.86M	-46.05M	-98.57M	71.26M	1.48M
Operating Cash Flow	87.37M	65.40M	-17.89M	-75.17M	85.29M	10.37M
Investing Cash Flow	-152.95M	-15.86M	-110.97M	-282.98M	-129.27M	-19.67M
Financing Cash Flow	78.27M	-7.87M	30.63M	72.93M	376.25M	60.76M

ACV Auctions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACVA, the sentiment is Neutral. The current price of 7.74 is above the 20-day moving average (MA) of 6.92, below the 50-day MA of 8.44, and below the 200-day MA of 13.18, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 95.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$643.33M	17.05	6.11%	―	0.20%	-20.57%
KAR	66 Neutral	$2.70B	29.02	6.99%	―	12.29%	347.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CANG	52 Neutral	$273.40M	―	-31.90%	―	349.96%	-1838.02%
ACVA	46 Neutral	$1.35B	―	-16.33%	―	23.40%	8.46%
UXIN	41 Neutral	$564.90M	-13.84	―	―	―	―
VRM	38 Underperform	$118.39M	-0.63	-52.02%	―	-81.31%	87.13%

ACV Auctions Corporate Events

ACV Auctions Reports Record Revenue Amid Challenges

ACV Auctions, Inc. has reported a mixed sentiment during its latest earnings call, highlighting both impressive growth and significant challenges. The company achieved record revenue and growth across several segments, despite facing increased arbitration costs and a market-induced guidance revision. However, the focus on AI-powered innovations and geographic expansion suggests optimism for sustained long-term growth.

ACV Auctions Reports Record Q3 2025 Revenue

ACV Auctions, Inc. is a digital automotive marketplace and data services provider, focusing on transforming the automotive industry with innovative solutions for sourcing, selling, and managing used vehicles. In its third quarter of 2025, ACV Auctions reported record revenue of $200 million, driven by increased market share and strong adoption of its Marketplace Services, despite challenging market conditions. The company achieved a non-GAAP net income of $11 million and an Adjusted EBITDA of $19 million, reflecting significant growth compared to the previous year. Key financial highlights include a 16% year-over-year increase in total revenue and a 10% rise in Marketplace Units transacted. Looking ahead, ACV Auctions anticipates full-year 2025 revenue between $756 million and $760 million, with a focus on sustaining growth in dealer wholesale and executing its commercial wholesale strategy. The company’s management remains optimistic about its ability to navigate the current economic environment and deliver robust financial performance.

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.