ACV Auctions Inc. (ACVA) AI Stock Analysis
ACVA AI stock analysis summary
AI ResearchACV Auctions Inc. operates a digital wholesale vehicle marketplace and data services platform. The company grew FY2025 revenue by 19.2% to $759.6M and generated positive free cash flow of $69.1M. However, it posted a trailing twelve months net loss with an operating margin of -2.8% and a profit margin of -7.9%.
- Market cap
- $1.78B
- Revenue (TTM)
- $801.3M
- P/E
- — fwd 37.3x
- 1Y return
- 21.1% S&P 500 16.8%
- Avg. target
- $9.00 -14.3% vs last close
Bull case
- Revenue grew at a 29.5% 5-year CAGR from FY2020 to FY2025, reaching $759.6M in FY2025.
- Gross margin expanded steadily over four fiscal years, rising from 42.9% in FY2021 to 62.1% in FY2025.
- ACVA produced $69.1M in free cash flow in FY2025 and carried $37.3M in net cash as of June 30, 2026.
Bear case
- The company remains unprofitable on a trailing twelve-month basis, recording a net profit margin of -7.9% and an operating margin of -2.8%.
- Wall Street's mean price target of $9.00 sits 14.3% below the stock's closing price of $10.50.
- ACVA's forward P/E of 37.3x represents a significant premium to the US-listed Consumer Cyclical peers median of 14.1x.
What ACV Auctions does
ACV Auctions Inc., headquartered in Buffalo, New York, operates a digital marketplace designed to facilitate the online auction of wholesale vehicles. Established in 2014, the company connects buyers and sellers while transforming the vehicle auction process through technology. In addition to its auction platform, ACV Auctions offers data services that provide insights into vehicle condition and market value, empowering participants to make informed decisions. The company also provides financing services tailored for automotive dealers and buyers to streamline transactions, supporting efficient purchasing processes across the automotive industry nationwide.
Growth and profitability
ACV Auctions demonstrated strong top-line expansion, achieving a 5-year revenue CAGR of 29.5% from FY2020 to FY2025. Annual revenue expanded from $358.4M in FY2021 to $759.6M in FY2025, which saw 19.2% year-over-year growth. Gross margin improved from 42.9% in FY2021 to 62.1% in FY2025. Operating margin narrowed its losses from -21.4% in FY2021 to -8.1% in FY2025, while net income stood at -$66.1M with EPS of $0.17 in FY2025. Over the trailing twelve months, revenue reached $801.3M, supported by 10.4% year-over-year quarterly revenue growth in the quarter ended June 30, 2026.
Balance sheet and cash flow
As of June 30, 2026, ACV Auctions held $242.3M in cash and short-term investments alongside total debt of $205.0M, resulting in net cash of $37.3M. The company reported a current ratio of 1.52, shareholders' equity of $389.9M, and a debt-to-equity ratio of 0.53. In FY2025, operating cash flow reached $78.2M and free cash flow was $69.1M, with capital expenditures of $9.1M. Over five years, the share count increased by 9.8%.
Valuation and performance
ACVA holds a market cap of $1.78B and an enterprise value of $1.73B. The stock trades at a forward P/E of 37.3x and a price-to-sales ratio of 2.2x, which both sit above the US-listed Consumer Cyclical peers median forward P/E of 14.1x and price-to-sales of 0.7x. Over the past year, ACVA returned 21.1%, outpacing the S&P 500 return of 16.8%. However, its 5-year return of -49.1% trails the S&P 500 gain of 83.0%. The stock trades 49.8% above its 200-day average.
What analysts expect
Wall Street analysts maintain 2 Strong Buy, 0 Buy, 6 Hold, and 2 Sell ratings on ACVA. The mean price target is $9.00, representing a 14.3% decline from the last close of $10.50. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $848.4M and EPS of $0.19, reflecting 10.3% EPS growth. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- A high beta of 1.76 signals that the stock is considerably more volatile than the broader market.
- Short interest stands at 8.4% of float, indicating lingering skepticism from market participants.
- The company maintains total debt of $205.0M against shareholders' equity of $389.9M, yielding a debt-to-equity ratio of 0.53.
- Long-term returns have lagged the market significantly, falling 49.1% over five years compared to an 83.0% increase for the S&P 500.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ACVA AI stock analysis
This page is an AI-written research summary of ACV Auctions Inc. (ACVA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ACVA income statement, ACVA balance sheet, ACVA key metrics, ACVA analyst forecast, ACVA chart. See the ACVA stock overview for the latest quote and news.
ACVA AI stock analysis FAQ
Does ACV Auctions pay a dividend?
No, ACV Auctions does not pay a dividend. The company directs its capital toward business operations and capital expenditures, which totaled $9.1M in FY2025.
What are analysts forecasting for ACVA's revenue and earnings?
Analysts estimate current fiscal year revenue of $848.4M and EPS of $0.19. For the next fiscal year, analysts expect revenue of $945.4M and EPS of $0.31, representing 60.4% EPS growth.
What is the financial position of ACVA's balance sheet?
As of June 30, 2026, ACVA held $242.3M in cash and short-term investments against $205.0M in total debt, resulting in a net cash position of $37.3M and a current ratio of 1.52.
When is ACV Auctions' next earnings report scheduled?
ACV Auctions is scheduled to report its quarterly earnings on November 4, 2026, having beaten EPS estimates in each of the trailing 4 quarters.