ACV Auctions (NASDAQ:ACVA) Releases Quarterly Earnings Results, Misses Estimates By $0.10 EPS

ACV Auctions (NASDAQ:ACVA) announced its quarterly earnings data on Monday. The company reported ($0.11) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.10), Briefing.com reports. ACV Auctions had a negative net margin of 12.51% and a negative return on equity of 12.94%. The company’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.16) EPS.

Here are the key takeaways from ACV Auctions’ conference call:

• Q4 revenue came in at $184 million (+15% YoY) with 193,000 vehicles sold, adjusted EBITDA of $8 million (+36% YoY) and a non‑GAAP net loss of $1 million, beating the high end of guidance.
• 2026 guidance targets $845–855 million in revenue (11–13% growth) and $73–77 million in adjusted EBITDA (~28% growth) while investing ~$11M in go‑to‑market spend plus additional VIPER CapEx (total incremental investment approaching ~$20M) and expecting adjusted EBITDA margin to expand ~100 bps.
• Product and AI traction is driving adoption — ACV Guarantee mix rose to 19% in Q4, ClearCar customers boosted wholesale volumes >50% after launch, ACV MAX cohorts increased wholesale ~40% in one quarter, and VIPER has 200+ hand‑raisers with plans to deploy 100–200 early units to expand rooftop TAM.
• Non‑GAAP cost of revenue increased ~400 bps YoY due to elevated arbitration costs in a specific customer cohort; management has implemented litigation and operational steps that show early improvement in 2026, but arbitration remains a material near‑term risk.
• Operational scale and monetization levers are strengthening — ACV Transportation grew 20% in Q4 with margins at the midterm low‑20s target and ACV Capital grew 48% in Q4 while the company is adding inspectors and territory managers to accelerate regional growth.

ACV Auctions Price Performance

Shares of ACVA stock traded down $1.02 during midday trading on Monday, reaching $5.64. 7,697,714 shares of the company were exchanged, compared to its average volume of 2,858,578. The company’s 50 day moving average price is $7.94 and its two-hundred day moving average price is $8.87. The company has a market cap of $970.36 million, a P/E ratio of -11.50 and a beta of 1.63. ACV Auctions has a 12 month low of $4.95 and a 12 month high of $17.79. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.56 and a current ratio of 1.56.

Insider Activity at ACV Auctions

In related news, CEO George Chamoun acquired 31,172 shares of the stock in a transaction that occurred on Monday, December 15th. The shares were acquired at an average price of $7.97 per share, for a total transaction of $248,440.84. Following the completion of the purchase, the chief executive officer directly owned 2,618,714 shares of the company’s stock, valued at $20,871,150.58. The trade was a 1.20% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ACV Auctions

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ACVA. Virtu Financial LLC acquired a new stake in shares of ACV Auctions during the fourth quarter worth $96,000. Invesco Ltd. increased its stake in ACV Auctions by 11.3% in the 4th quarter. Invesco Ltd. now owns 182,256 shares of the company’s stock worth $1,462,000 after purchasing an additional 18,573 shares in the last quarter. Corient Private Wealth LLC acquired a new stake in ACV Auctions during the 4th quarter worth about $89,000. Mercer Global Advisors Inc. ADV purchased a new stake in ACV Auctions during the fourth quarter valued at about $221,000. Finally, Veradace Capital Management LLC purchased a new position in shares of ACV Auctions in the fourth quarter worth approximately $6,420,000. 88.55% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Citigroup lowered their target price on ACV Auctions from $17.00 to $13.00 and set a “buy” rating for the company in a report on Friday, November 21st. Jefferies Financial Group downgraded ACV Auctions from a “buy” rating to a “hold” rating and set a $9.00 price objective for the company. in a research note on Thursday, December 11th. The Goldman Sachs Group dropped their target price on ACV Auctions from $21.00 to $13.00 and set a “buy” rating on the stock in a research report on Friday, November 7th. Bank of America reissued an “underperform” rating and set a $6.00 price target (down previously from $16.50) on shares of ACV Auctions in a report on Thursday, November 6th. Finally, Needham & Company LLC lowered their price target on shares of ACV Auctions from $14.00 to $9.00 and set a “buy” rating for the company in a research report on Thursday, November 6th. Six equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $11.85.

About ACV Auctions

ACV Auctions operates a digital marketplace that connects automotive dealers through a mobile-first platform for wholesale vehicle auctions. The company’s software enables dealers to list, inspect and bid on used vehicles in real time, leveraging smartphone-based condition reporting, high-resolution imagery and data analytics to streamline the buying and selling process. ACV Auctions also offers subscription-based access to its auction platform, supplemental reconditioning services and financing tools designed to help dealers optimize inventory turn and reduce risk.

Since its founding in 2014, ACV Auctions has expanded its technology offerings beyond core auction services to include dealer management integrations, transportation logistics coordination and title management solutions.