Second quarter revenue of $194 million
Second quarter GAAP net income (loss) of ($7) million
Second quarter non-GAAP net income of $12 million
Second quarter Adjusted EBITDA of $19 million
Expects 2025 revenue of $765 million to $775 million, growth of 20% to 22% YoY, GAAP net income (loss) of ($51) million to ($47) million and Adjusted EBITDA of $68 million to $72 million

BUFFALO, N.Y., Aug. 11, 2025 (GLOBE NEWSWIRE) -- ACV (NYSE:ACVA), a leading digital automotive marketplace and data services partner for dealers and commercial clients, today reported results for its second quarter ended June 30, 2025.

"We are pleased with our second quarter results, delivering record revenue and Adjusted EBITDA, despite challenging market conditions in the back half of the quarter. Results were driven by continued market share gains and strong adoption of our Marketplace Services. Our suite of dealer solutions gained further market traction, and we executed on initiatives to support our commercial wholesale strategy," said George Chamoun, CEO of ACV.

"The dealer wholesale market grew modestly year-over-year with growth decelerating throughout the quarter, reflecting weakening retail demand and elevated trade retention rates at dealerships. We continue to experience strong adoption across our growing marketplace, however we believe it is prudent to update our revenue guidance to reflect ongoing crosscurrents in the macroeconomic environment. We remain committed to delivering on our profitability objectives and as such, are maintaining the midpoint of our Adjusted EBITDA guidance. We believe ACV remains well positioned to deliver sustainable growth in dealer wholesale, execute on our emerging commercial wholesale strategy, and scale our business model," concluded Chamoun.

Second Quarter 2025 Highlights

Revenue of $194 million, an increase of 21% year over year
Marketplace and Service Revenue of $176 million, an increase of 22% year over year
Marketplace GMV of $2.7 billion, an increase of 12% year over year
Marketplace Units of 210,429, an increase of 13% year over year
GAAP net income (loss) of ($7) million, compared to GAAP net income (loss) of ($17) million in the second quarter of 2024.
Non-GAAP net income of $12 million, compared to non-GAAP net income of $3 million in the second quarter of 2024.
Adjusted EBITDA of $19 million, compared to Adjusted EBITDA of $7 million in the second quarter of 2024

Third Quarter and Full-Year 2025 Guidance

Based on information as of today, ACV is providing the following guidance:

Third Quarter of 2025:
- Total revenue of $198 million to $203 million, an increase of 16% to 18% year over year
- GAAP net income (loss) of ($13) million to ($11) million
- Non-GAAP net income of $11 million to $13 million
- Adjusted EBITDA of $18 million to $20 million
Full-Year 2025:
- Total revenue of $765 million to $775 million, an increase of 20% to 22% year over year
- GAAP net income (loss) of ($51) million to ($47) million
- Non-GAAP net income of $38 million to $42 million
- Adjusted EBITDA of $68 million to $72 million

Our financial guidance includes the following assumptions:

The dealer wholesale market is expected to be flat to modestly down year over year in 2025.
Conversion rates and wholesale price depreciation expected to follow normal seasonal patterns.
Non-GAAP Operating Expense (excluding Cost of Revenue) is expected to increase approximately 11% year-over-year.
Third quarter non-GAAP net income guidance excludes approximately $19 million of stock-based compensation expense and approximately $3 million of intangible amortization.
Full-year non-GAAP net income guidance excludes approximately $70 million of stock-based compensation expense and $11 million of intangible amortization.

ACV's Second Quarter Results Conference Call

ACV will host a conference call and live webcast today, August 11, 2025, at 5:00 p.m. ET to discuss the financial results. To access the live conference call participants are invited to dial 877-704-4453 (international callers please dial 1-201-389-0920) approximately 10 minutes prior to the start of the call. A live webcast and replay of the call will be available on the Company's investor relations website at https://investors.acvauto.com/. Participants are encouraged to join the webcast unless asking a question.

About ACV Auctions

ACV is on a mission to transform the automotive industry by building the most trusted and efficient digital marketplace and data solutions for sourcing, selling and managing used vehicles with transparency and comprehensive insights that were once unimaginable. ACV offerings include ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar.

For more information about ACV, visit www.acvauto.com.

Information About Non-GAAP Financial Measures

ACV provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that they assist our investors to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.

Non-GAAP Financial Measures

Adjusted EBITDA is a financial measure that is not presented in accordance with GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.

We define Adjusted EBITDA as net loss, adjusted to exclude: depreciation and amortization; stock-based compensation expense; interest (income) expense; provision for income taxes; and other one-time non-recurring items, when applicable, such as acquisition-related and restructuring expenses.

Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that (1) it does not properly reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (3) it does not consider the impact of stock-based compensation expense, (4) it does not reflect other non-operating income and expenses, including interest income and expense, (5) it does not consider the impact of any contingent consideration liability valuation adjustments, (6) it does not reflect tax payments that may represent a reduction in cash available to us,(7) it does not include the amortization of acquired intangible assets but it does include the revenue that these acquired intangible assets contribute to the enterprise, and (8) it does not reflect other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss and other results stated in accordance with GAAP.

Non-GAAP net income (loss), and non-GAAP operating expenses, are financial measures that are not presented in accordance with GAAP, provide investors with additional useful information to measure operating performance and current and future liquidity when taken together with our financial results presented in accordance with GAAP. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our continuing operations.

We define non-GAAP net income (loss) as net income (loss), adjusted to exclude: stock-based compensation expense, amortization of acquired intangible assets, and other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. We define non-GAAP operating expenses as operating expenses adjusted to exclude the same items that are excluded from non-GAAP net income (loss).

In the calculation of non-GAAP net income (loss) and non-GAAP operating expenses we exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period. We exclude amortization of acquired intangible assets from the calculation of non-GAAP net income (loss) and non-GAAP operating expenses. We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the underlying intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition.

We exclude contingent consideration liability valuation adjustments associated with the purchase consideration of transactions accounted for as business combinations. We also exclude certain other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses, because we do not consider such amounts to be part of our ongoing operations nor are they comparable to prior period nor predictive of future results.

Non-GAAP net income (loss) and non-GAAP operating expenses are presented for supplemental informational purposes only, have limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that: (1) they do not consider the impact of stock-based compensation expense; (2) although amortization is a non-cash charge, the underlying assets may need to be replaced and non-GAAP net income (loss) and non-GAAP net income do not reflect these capital expenditures; (3) they do not consider the impact of any contingent consideration liability valuation adjustments; (4) they do not include the amortization of acquired intangible assets but non-GAAP net income (loss) does include the revenue that these acquired intangible assets contribute to the enterprise; and (5) they do not consider the impact of other one-time charges, such as acquisition-related and restructuring expenses, which could be material to the results of our operations. In addition, our use of non-GAAP net income (loss) and non-GAAP operating expenses may not be comparable to similarly titled measures of other companies because they may not calculate non-GAAP net income (loss) and non-GAAP operating expenses in the same manner, limiting their usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider non-GAAP net income (loss) and non-GAAP operating expenses alongside other financial measures, including our net loss, operating expenses, and other results stated in accordance with GAAP.

Information About Operating and Financial Metrics

We regularly monitor the following operating and financial metrics in order to measure our current performance and estimate our future performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used by other companies.

Operating and Financial Metrics

Marketplace GMV - Marketplace GMV is primarily driven by the volume and dollar value of Marketplace Unit transactions. We believe that Marketplace GMV acts as an indicator of our success, signaling satisfaction of dealers and buyers, and the health, scale, and growth of our business. We define Marketplace GMV as the total dollar value of vehicles transacted within the applicable period, excluding any auction and ancillary fees.

Marketplace Units - Marketplace Units is a key indicator of our potential for growth in Marketplace GMV and revenue. It demonstrates the overall engagement of our customers and our market share of wholesale transactions in the United States. We define Marketplace Units as the number of vehicles transacted within the applicable period. Marketplace Units transacted includes any vehicle that successfully reaches sold status, even if the auction is subsequently unwound, meaning the buyer or seller does not complete the transaction. These instances have been immaterial to date. Marketplace Units excludes vehicles that were inspected by ACV, but not sold. Marketplace Units have generally increased over time as we have expanded our territory coverage, added new dealer partners and increased our share of wholesale transactions from existing customers.

Forward-Looking Statements

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our financial guidance for the fourth quarter of 2024 and the full year of 2024. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events.

The forward-looking statements contained in this presentation are based on ACV's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances that may cause ACV's actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. These risks and uncertainties include, but are not limited to: (1) our history of operating losses; (2) our limited operating history; (3) our ability to effectively manage our growth; (4) our ability to grow the number of participants on our marketplace platform; (5) general market, political, economic, and business conditions including any possible impact from new, reinstated or adjusted tariffs; (6) our ability to acquire new customers and successfully retain existing customers; (7) our ability to effectively develop and expand our sales and marketing capabilities; (8) our ability to successfully introduce new products and services; (9) breaches in our security measures, unauthorized access to our marketplace platform, our data, or our customers' or other users' personal data; (10) risk of interruptions or performance problems associated with our products and platform capabilities; (11) our ability to adapt and respond to rapidly changing technology or customer needs; (12) our ability to compete effectively with existing competitors and new market entrants; (13) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the United States and other jurisdictions where we elect to do business; (14) the impact that economic conditions could have on our or our customers' businesses, financial condition and results of operations; and (15) the impact of such economic conditions in the wholesale dealer market included in our guidance for the second quarter of 2025 and full year 2025, and the related impact on the performance of our marketplace and our operating expenses, stock-based compensation expense and intangible amortization. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission ("SEC"), including in the section entitled "Risk Factors" in our Form 10-K for the year ended December 31, 2024, filed with the SEC on February 19, 2025. Additional information will be made available in other filings and reports that we may file from time to time with the SEC. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law.

Investor Contact:

Tim Fox

tfox@acvauctions.com

Media Contact:

Maura Duggan

mduggan@acvauctions.com


ACV AUCTIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data)

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
*Revenue:*
Marketplace and service revenue	$	175,995		$	144,126		$	341,932		$	273,940
Customer assurance revenue		17,708			16,498			34,468			32,373
Total revenue		193,703			160,624			376,400			306,313
*Operating expenses:*
Marketplace and service cost of revenue (excluding depreciation & amortization)		74,319			64,253			143,721			119,946
Customer assurance cost of revenue (excluding depreciation & amortization)		16,909			14,558			30,886			27,372
Operations and technology		45,801			39,694			89,991			77,763
Selling, general, and administrative		52,972			51,912			111,990			105,765
Depreciation and amortization		10,897			8,848			21,438			16,635
Total operating expenses		200,898			179,265			398,026			347,481
Loss from operations		(7,195	)		(18,641	)		(21,626	)		(41,168	)
*Other income (expense):*
Interest income		2,152			2,329			4,041			5,360
Interest expense		(2,286	)		(606	)		(4,196	)		(1,141	)
Total other income (expense)		(134	)		1,723			(155	)		4,219
Loss before income taxes		(7,329	)		(16,918	)		(21,781	)		(36,949	)
*(Benefit from) provision for income taxes*		(31	)		145			334			585
Net loss	$	(7,298	)	$	(17,063	)	$	(22,115	)	$	(37,534	)
Weighted-average shares - basic and diluted		170,472			164,384			169,415			163,637
Net loss per share - basic and diluted	$	(0.04	)	$	(0.10	)	$	(0.13	)	$	(0.23	)


ACV AUCTIONS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands)

	June 30, 2025			December 31, 2024
Assets
*Current Assets:*
Cash and cash equivalents	$	258,365		$	224,065
Marketable securities		46,368			46,036
Trade receivables (net of allowance of $4,368 and $6,372)		209,880			168,770
Finance receivables (net of allowance of $5,097 and $4,191)		207,068			139,045
Other current assets		16,254			15,281
Total current assets		737,935			593,197
Property and equipment (net of accumulated depreciation of $5,804 and $5,227)		10,135			7,625
Goodwill		183,676			180,478
Acquired intangible assets (net of amortization of $34,998 and $28,972)		86,206			90,816
Capitalized software (net of amortization of $52,842 and $38,499)		75,648			68,571
Other assets		44,673			43,462
Total assets	$	1,138,273		$	984,149
Liabilities and Stockholders' Equity
*Current Liabilities:*
Accounts payable	$	430,646		$	345,605
Accrued payroll		12,100			16,725
Accrued other liabilities		19,912			18,836
Total current liabilities		462,658			381,166
Long-term debt		186,500			123,000
Other long-term liabilities		40,332			39,979
Total liabilities		689,490			544,145
Commitments and Contingencies
*Stockholders' Equity:*
Preferred Stock		—			—
Common Stock		172			168
Common Stock - Class B		—			—
Additional paid-in capital		971,390			944,891
Accumulated deficit		(524,430	)		(502,315	)
Accumulated other comprehensive income (loss)		1,651			(2,740	)
Total stockholders' equity		448,783			440,004
Total liabilities and stockholders' equity	$	1,138,273		$	984,149


ACV AUCTIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)

	Six months ended June 30,
		2025			2024
*Cash Flows from Operating Activities*
Net loss	$	(22,115	)	$	(37,534	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		21,449			16,682
Stock-based compensation expense, net of amounts capitalized		32,028			29,794
Provision for bad debt		3,111			5,055
Other non-cash, net		2,266			119
Changes in operating assets and liabilities, net of effects from purchases of businesses:
Trade receivables		(41,714	)		(19,158	)
Other operating assets		(1,059	)		3,036
Accounts payable		85,423			37,641
Other operating liabilities		950			11,856
Net cash provided by operating activities		80,339			47,491
*Cash Flows from Investing Activities*
Net increase in finance receivables		(71,564	)		(1,851	)
Purchases of property and equipment		(4,205	)		(2,872	)
Capitalization of software costs		(17,932	)		(14,855	)
Purchases of marketable securities		(24,833	)		(21,607	)
Maturities and redemptions of marketable securities		24,888			69,699
Sales of marketable securities		—			122,698
Acquisition of businesses (net of cash acquired)		—			(155,209	)
Net cash used in investing activities		(93,646	)		(3,997	)
*Cash Flows from Financing Activities*
Proceeds from long term debt		220,000			340,000
Payments towards long term debt		(156,500	)		(345,000	)
Payment of debt issuance costs		(1,457	)		(1,702	)
Proceeds from exercise of stock options		531			6,812
Payment of RSU tax withholdings in exchange for common shares surrendered by RSU holders		(17,636	)		(13,110	)
Proceeds from employee stock purchase plan		2,534			1,998
Other financing activities		(74	)		(23	)
Net cash provided by (used in) financing activities		47,398			(11,025	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		209			(68	)
Net increase in cash, cash equivalents, and restricted cash		34,300			32,401
*Cash, cash equivalents, and restricted cash, beginning of period*		224,065			182,571
*Cash, cash equivalents, and restricted cash, end of period*	$	258,365		$	214,972

The following table presents a reconciliation of non-GAAP net income (loss) to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Net income (loss)	$	(7,298	)	$	(17,063	)	$	(22,115	)	$	(37,534	)
Stock-based compensation		15,454			14,965			32,028			29,794
Amortization of acquired intangible assets		2,591			3,013			5,364			5,226
Amortization of capitalized stock based compensation		1,504			980			2,967			1,908
Acquisition-related costs		—			1,187			403			3,306
Litigation-related costs ⁽¹⁾		—			—			1,100			1,553
Other		—			145			—			189
Non-GAAP Net income (loss)	$	12,251		$	3,227		$	19,747		$	4,442

⁽¹⁾ Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our underlying operating performance

The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Adjusted EBITDA Reconciliation
Net income (loss)	$	(7,298	)	$	(17,063	)	$	(22,115	)	$	(37,534	)
Depreciation and amortization		10,904			8,880			21,450			16,682
Stock-based compensation		15,454			14,965			32,028			29,794
Interest expense (income)		134			(1,723	)		155			(4,219	)
Provision for income taxes		(31	)		145			334			585
Acquisition-related costs		—			1,187			403			3,306
Litigation-related costs ⁽¹⁾		—			—			1,100			1,553
Other		(586	)		687			(870	)		1,180
Adjusted EBITDA	$	18,577		$	7,078		$	32,485		$	11,347

⁽¹⁾ Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our underlying operating performance

The following table presents a reconciliation of Non-GAAP total operating expenses (excluding cost of revenue) to GAAP total operating expenses, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:

	Three months ended June 30,				Six months ended June 30,
		2025		2024		2025		2024
Total operating expenses	$	200,898	$	179,265	$	398,026	$	347,481
Non-GAAP Adjustments:
Marketplace and service cost of revenue (excluding depreciation & amortization)		74,319		64,253		143,721		119,946
Customer assurance cost of revenue (excluding depreciation & amortization)		16,909		14,558		30,886		27,372
Stock-based compensation		15,173		14,759		31,442		29,339
Amortization of acquired intangible assets		2,591		3,013		5,364		5,226
Amortization of capitalized stock-based compensation		1,504		980		2,967		1,908
Acquisition-related costs		—		1,187		403		3,307
Other		—		145		1,100		1,743
Non-GAAP Total operating expenses (excluding cost of revenue)	$	90,402	$	80,370	$	182,143	$	158,640

The following table presents a reconciliation of non-GAAP net income (loss) to GAAP net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented (in millions):

	Three months ended September 30, 2025		Year ended December 31, 2025
Non-GAAP net income (loss) to net income (loss) guidance Reconciliation
Net income (loss)	($13) - ($11)		($51) - ($47)
Non-GAAP Adjustments:
Stock-based compensation	$19		$70
Intangible amortization	$3		$11
Amortization of capitalized stock-based compensation	$2		$6
Other		—	$2
Non-GAAP net income	$11 - $13		$38 - $42

ACV Announces Second Quarter 2025 Results