ACV Auctions Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did ACVA Beat Earnings? Q1 2025 Results
ACV Auctions posted a mixed first quarter for 2025, delivering a notable earnings miss while holding its revenue line with quiet consistency. The digital wholesale auctioneer reported a loss of $0.09 per share, falling well short of the $0.02 consensus estimate, a gap of 522.54%, even as revenue of $182.70 million edged just past the $182.10 million forecast and climbed 25.4% year over year. The real story beneath the headline numbers was operational momentum, with Adjusted EBITDA more than tripling to $13.91 million and non-GAAP net income rising sharply to $7.50 million, fueled by 208,025 units transacted and a 28% jump in Marketplace and Service Revenue. A modest dealer wholesale market hampered by used vehicle inventory shortages added a note of caution, but management reiterated full-year 2025 guidance of $765 million to $785 million in revenue and $65 million to $75 million in Adjusted EBITDA, with second-quarter revenue expected between $193 million and $198 million, signaling confidence in sustained growth despite macro headwinds.
- Market share gains in dealer wholesale driven by leading digital marketplace position
- 28% YoY growth in Marketplace and Service Revenue
- Marketplace units grew 19% YoY to 208,025
- Marketplace GMV grew 13% YoY to $2.6 billion
- Suite of dealer solutions gained further market traction
- Adjusted EBITDA exceeded high-end of guidance range with continued margin expansion
“We are very pleased with our first quarter results. We delivered strong revenue growth and Adjusted EBITDA above the high-end of our guidance range, along with continued margin expansion. ACV's leading market position resulted in additional share gains, our suite of dealer solutions gained further market traction, and we executed on initiatives to support our commercial wholesale strategy.”
ACV Auctions CEO, on the earnings call
Forward Guidance & Outlook
ACV reiterated full-year 2025 guidance of $765 million to $785 million in revenue (20-23% YoY growth), GAAP net loss of ($60) million to ($50) million, and Adjusted EBITDA of $65 million to $75 million. For Q2 2025, the company expects revenue of $193 million to $198 million (20-23% YoY growth), GAAP net loss of ($13) million to ($11) million, and Adjusted EBITDA of $18 million to $20 million. Guidance assumes the dealer wholesale market will be approximately flat year over year in 2025, with conversion rates and wholesale price depreciation following normal seasonal patterns. Revenue growth is expected to outpace non-GAAP operating expense growth by approximately 500 basis points.
ACVA YoY Financials
ACVA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.