ACV Auctions Inc
NYSE:ACVA
ACV Auctions Inc
In the ever-evolving landscape of automotive commerce, ACV Auctions Inc. has carved out a distinct niche by transforming the way dealers buy and sell used vehicles. Founded in 2014, ACV Auctions emerged to tackle inefficiencies within the traditional auction model. It recognized the frustrations dealers faced with the time-consuming and often opaque physical auctions. By leveraging digital technology, ACV developed an online platform that facilitates real-time, 20-minute auctions. Sellers can upload detailed vehicle information and inspection reports, ensuring transparency and enabling buyers to make informed decisions quickly. The process significantly reduces the time vehicles spend in inventory, allowing sellers to receive faster payments while buyers gain access to a broader array of options.
The company's business model thrives on the fundamental concept of efficiency. Revenue is generated primarily through transaction fees levied on each vehicle sold on the platform, combined with ancillary services like transportation and floorplan financing. By enabling seamless transactions and offering value-added services, ACV Auctions streamlines the supply chain between wholesale automotive sellers and buyers. This digital transformation not only ensures a faster turnaround but also infuses the market with greater trust and competitiveness, marking ACV Auctions as a disruptive force within the used car industry. The success of this model is evidenced by the company's rapid growth and its role in reshaping how dealers perceive vehicle sourcing and inventory management.
In the ever-evolving landscape of automotive commerce, ACV Auctions Inc. has carved out a distinct niche by transforming the way dealers buy and sell used vehicles. Founded in 2014, ACV Auctions emerged to tackle inefficiencies within the traditional auction model. It recognized the frustrations dealers faced with the time-consuming and often opaque physical auctions. By leveraging digital technology, ACV developed an online platform that facilitates real-time, 20-minute auctions. Sellers can upload detailed vehicle information and inspection reports, ensuring transparency and enabling buyers to make informed decisions quickly. The process significantly reduces the time vehicles spend in inventory, allowing sellers to receive faster payments while buyers gain access to a broader array of options.
The company's business model thrives on the fundamental concept of efficiency. Revenue is generated primarily through transaction fees levied on each vehicle sold on the platform, combined with ancillary services like transportation and floorplan financing. By enabling seamless transactions and offering value-added services, ACV Auctions streamlines the supply chain between wholesale automotive sellers and buyers. This digital transformation not only ensures a faster turnaround but also infuses the market with greater trust and competitiveness, marking ACV Auctions as a disruptive force within the used car industry. The success of this model is evidenced by the company's rapid growth and its role in reshaping how dealers perceive vehicle sourcing and inventory management.
Revenue: Q4 revenue reached $184 million, up 15% year-over-year and at the high end of guidance.
EBITDA: Adjusted EBITDA was $8 million in Q4, up 36% year-over-year and above the high end of guidance.
Unit Growth: 193,000 vehicles sold in Q4; full-year unit growth was 12% year-over-year, with over 86,000 units added.
Guidance: 2026 revenue expected between $845–$855 million (11%–13% growth) and adjusted EBITDA of $73–$77 million (about 28% growth).
AI & Product Innovation: Continued investment in AI-powered solutions (e.g., ACV Max, Viper, guarantee offerings) is driving dealer adoption and higher wallet share.
Market Share & Penetration: Dealer network expanded to 15,000 unique sellers and over 22,000 unique buyers; franchise rooftop penetration hit 35%.
Cost Discipline: Strong expense control led to margin improvement; 2026 OpEx growth expected to slow to 9%.
Competitive & Market Trends: Management remains confident despite a flat dealer wholesale market and competitive pressures, driven by digital adoption and unique offerings.
