ACV Auctions Inc. (NASDAQ:ACVA) Financial Overview and Future Outlook
- ACV Auctions Inc. has been given a price target of $16 by Needham, indicating a potential upside of about 43.5% from its current trading price.
- The company reported a revenue of $194 million for the second quarter of 2025, with a non-GAAP net income of $12 million and an Adjusted EBITDA of $19 million.
- ACV anticipates a 2025 revenue between $765 million and $775 million, aiming for a year-over-year growth of 20% to 22%, and an Adjusted EBITDA between $68 million and $72 million.
ACV Auctions Inc. (NASDAQ:ACVA) is a leading digital automotive marketplace and data services provider. The company connects buyers and sellers of used vehicles through its online platform, offering a range of services to facilitate transactions. ACV competes with other automotive marketplaces, striving to expand its market share and enhance its service offerings.
On August 12, 2025, Chris Pierce from Needham set a price target of $16 for ACVA. At that time, the stock was priced at $11.15, suggesting a potential upside of about 43.5%. Currently, the stock is trading at $11.14, having experienced a 16.55% decrease, with a drop of $2.21. The stock has fluctuated between $10.26 and $11.30 today.
ACV recently announced its financial results for the second quarter of 2025, reporting a revenue of $194 million. Despite a GAAP net loss of $7 million, the company achieved a non-GAAP net income of $12 million and an Adjusted EBITDA of $19 million. These figures highlight the company's ability to generate positive cash flow despite reported losses.
Looking ahead, ACV anticipates its 2025 revenue to range between $765 million and $775 million, reflecting a year-over-year growth of 20% to 22%. The company projects a GAAP net loss between $51 million and $47 million, with an Adjusted EBITDA expected to be between $68 million and $72 million. This outlook indicates continued growth and operational improvements.
ACV's CEO expressed satisfaction with the second quarter results, emphasizing record revenue and Adjusted EBITDA achievements. The positive outcomes were attributed to increased market share and strong adoption of their Marketplace Services. The company's suite of dealer solutions also gained traction, supporting its commercial clients effectively.
| Symbol | Price | %chg |
|---|---|---|
| TURI.JK | 1560 | 0 |
| IMAS.JK | 1100 | 1.36 |
| MPMX.JK | 950 | 0 |
| BOGA.JK | 575 | 1.74 |
ACV Auctions Inc. (NASDAQ:ACVA) Stock Update and Analysis
- Needham maintains a "Buy" rating for ACV Auctions but lowers the price target from $25 to $16, indicating a cautious outlook.
- The stock price of ACV Auctions experienced a significant drop of approximately 18.35%, closing at $10.90 the day before the Q2 2025 earnings call.
- ACVA's market capitalization stands at approximately $1.97 billion, with a trading volume of 1,932,620 shares, highlighting active investor interest despite recent volatility.
On August 12, 2025, Needham adjusted its rating for ACV Auctions Inc. (NASDAQ:ACVA) to "Buy," maintaining its previous grade. At that time, the stock was priced at $10.91. Despite this positive rating, Needham revised the price target for ACV Auctions, lowering it from $25 to $16. This adjustment reflects a more cautious outlook on the stock's potential growth.
The day before Needham's announcement, ACV Auctions held its Q2 2025 earnings conference call. Key figures, including CEO George G. Chamoun, discussed the company's performance. The stock price of ACVA was $10.90, showing a decrease of approximately 18.35%. This drop represents a $2.45 decline, indicating market reactions to the company's recent performance.
During the trading day, ACVA's stock price fluctuated between a low of $10.26 and a high of $13.68. Over the past year, the stock has seen a high of $23.46 and a low of $10.26. This volatility highlights the challenges and opportunities faced by the company in the competitive online auction market.
ACVA has a market capitalization of approximately $1.97 billion, reflecting its size and presence in the industry. The trading volume for the day was 1,932,620 shares, indicating active investor interest. As ACVA continues to navigate the market, its performance and strategic decisions will be closely watched by investors and analysts alike.
ACV Auctions Inc. (NASDAQ: ACVA) Financial Performance and Stock Sale
- ACVA reported first-quarter earnings of $0.04 per share, surpassing the Zacks Consensus Estimate.
- The company's revenue for the quarter ending March 2025 was $182.7 million, exceeding expectations and indicating strong growth.
- Despite a GAAP net loss, ACVA achieved a non-GAAP net income of $7 million and an Adjusted EBITDA of $14 million.
ACV Auctions Inc. (NASDAQ: ACVA) is a leading digital automotive marketplace and data services partner. The company specializes in providing a platform for buying and selling vehicles, primarily targeting dealers. Operating within the Zacks Internet - Commerce industry, ACVA competes with other online automotive marketplaces and has demonstrated strong financial performance as evidenced by its recent earnings report.
On May 12, 2025, Peer Andrew, VP, Corporate Controller & CAO at ACVA, sold 10,261 shares of Class A Common Stock at $17.18 each. Despite this sale, Andrew still holds 60,384 shares. This transaction follows ACVA's report of impressive first-quarter earnings of $0.04 per share, surpassing the Zacks Consensus Estimate of $0.02 per share and marking a significant improvement from the previous year's break-even earnings.
ACVA's revenue for the quarter ending March 2025 was $182.7 million, exceeding the Zacks Consensus Estimate by 0.16%. This represents a notable increase from the $145.69 million reported in the same quarter last year. The company has consistently exceeded consensus revenue estimates over the past four quarters, highlighting its strong financial health and growth trajectory.
Despite a GAAP net loss of $15 million, ACVA achieved a non-GAAP net income of $7 million and an Adjusted EBITDA of $14 million, surpassing its guidance. The company anticipates 2025 revenue to range between $765 million and $785 million, reflecting a year-over-year growth of 20% to 23%. However, it projects a GAAP net loss between $50 million and $60 million.
The price-to-sales ratio is about 4.48, and the enterprise value to sales ratio is approximately 4.30. The debt-to-equity ratio is about 0.38, suggesting moderate debt levels. The current ratio of approximately 1.50 indicates reasonable liquidity to cover short-term liabilities.
ACV Auctions Inc. (NASDAQ: ACVA) Financial Performance and Stock Sale
- ACVA reported first-quarter earnings of $0.04 per share, surpassing the Zacks Consensus Estimate.
- The company's revenue for the quarter ending March 2025 was $182.7 million, exceeding expectations and indicating strong growth.
- Despite a GAAP net loss, ACVA achieved a non-GAAP net income of $7 million and an Adjusted EBITDA of $14 million.
ACV Auctions Inc. (NASDAQ: ACVA) is a leading digital automotive marketplace and data services partner. The company specializes in providing a platform for buying and selling vehicles, primarily targeting dealers. Operating within the Zacks Internet - Commerce industry, ACVA competes with other online automotive marketplaces and has demonstrated strong financial performance as evidenced by its recent earnings report.
On May 12, 2025, Peer Andrew, VP, Corporate Controller & CAO at ACVA, sold 10,261 shares of Class A Common Stock at $17.18 each. Despite this sale, Andrew still holds 60,384 shares. This transaction follows ACVA's report of impressive first-quarter earnings of $0.04 per share, surpassing the Zacks Consensus Estimate of $0.02 per share and marking a significant improvement from the previous year's break-even earnings.
ACVA's revenue for the quarter ending March 2025 was $182.7 million, exceeding the Zacks Consensus Estimate by 0.16%. This represents a notable increase from the $145.69 million reported in the same quarter last year. The company has consistently exceeded consensus revenue estimates over the past four quarters, highlighting its strong financial health and growth trajectory.
Despite a GAAP net loss of $15 million, ACVA achieved a non-GAAP net income of $7 million and an Adjusted EBITDA of $14 million, surpassing its guidance. The company anticipates 2025 revenue to range between $765 million and $785 million, reflecting a year-over-year growth of 20% to 23%. However, it projects a GAAP net loss between $50 million and $60 million.
The price-to-sales ratio is about 4.48, and the enterprise value to sales ratio is approximately 4.30. The debt-to-equity ratio is about 0.38, suggesting moderate debt levels. The current ratio of approximately 1.50 indicates reasonable liquidity to cover short-term liabilities.
ACV Auctions Gains 2% as Needham Boosts Price Target to $28
ACV Auctions Inc. (NASDAQ:ACVA) shares rose more than 2% intra-day today after Needham analysts raised their price target on the stock to $28 from $26, maintaining a Buy rating and naming the company as a top pick on the Needham Conviction List for the third consecutive year. The updated outlook reflects ACV’s strong position as a leader in dealer-to-dealer auctions and its promising growth trajectory.
According to the analysts, ACV is positioned for sustained expansion, benefiting from improving market conditions and the gradual normalization of dealer behavior. The company’s growth is further supported by plans to expand its total addressable market (TAM) into commercial auction supply, unlocking additional revenue opportunities.
The analysts raised fourth-quarter estimates due to higher year-over-year auction conversion rates, driven by improving retail demand amidst tight used vehicle supply. Similar market dynamics are expected to persist into fiscal 2025, prompting increased unit and revenue projections. While incremental margins may face short-term pressure as ACV invests in building its commercial pipeline, these margins are projected to grow significantly in fiscal 2026 as the company solidifies its leadership in dealer-to-dealer auctions and gains market share among commercial sellers.
ACV Auctions Gains 2% as Needham Boosts Price Target to $28
ACV Auctions Inc. (NASDAQ:ACVA) shares rose more than 2% intra-day today after Needham analysts raised their price target on the stock to $28 from $26, maintaining a Buy rating and naming the company as a top pick on the Needham Conviction List for the third consecutive year. The updated outlook reflects ACV’s strong position as a leader in dealer-to-dealer auctions and its promising growth trajectory.
According to the analysts, ACV is positioned for sustained expansion, benefiting from improving market conditions and the gradual normalization of dealer behavior. The company’s growth is further supported by plans to expand its total addressable market (TAM) into commercial auction supply, unlocking additional revenue opportunities.
The analysts raised fourth-quarter estimates due to higher year-over-year auction conversion rates, driven by improving retail demand amidst tight used vehicle supply. Similar market dynamics are expected to persist into fiscal 2025, prompting increased unit and revenue projections. While incremental margins may face short-term pressure as ACV invests in building its commercial pipeline, these margins are projected to grow significantly in fiscal 2026 as the company solidifies its leadership in dealer-to-dealer auctions and gains market share among commercial sellers.
