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    ACVA
    Earnings call· Jun 2026(Q2 FY26)

    ACV Auctions Q2 FY26 earnings call ACVA

    Aug 10, 2026 Source

    Executive summary

    ACV Auctions Inc. Q2 FY26 — Record Adjusted EBITDA Amidst Market Headwinds

    ACV delivered strong Q2 FY26 results, achieving record adjusted EBITDA and revenue despite challenging wholesale market conditions and compressed conversion rates. The company is focused on profitable growth, leveraging AI for efficiency and investing in field capacity and new product launches like ViPR, while expecting market stabilization and accelerated unit growth in the second half of the year.

    Highlights

    5

    • Record revenue with adjusted EBITDA of $21 million exceeding the high end of guidance.

    • Market share gains, selling 211,000 vehicles in the quarter despite a 6% market contraction.

    • ACV Transport revenue grew 19% year over year with 125,000 transports delivered.

    • ACV Capital attach rates reached a new record in the high teens.

    • ViPR officially launched commercially with engagement from half of the top 50 dealer groups.

    Concerns

    3

    • Macro headwinds caused conversion rates to compress below expectations in June and July, impacting unit growth by 600 basis points.

    • Dealer wholesale market volumes contracted approximately 6% year over year.

    • Non-GAAP cost of revenue as a percentage of revenue increased approximately 300 basis points year over year due to higher mix of no-reserve sales.

    Guidance & targets

    6
    CategoryTargetConfidence
    Q3 Revenue
    $219 million to $225 million
    high materiality
    High
    Q3 Adjusted EBITDA
    $21 million to $24 million
    high materiality
    High
    Full-year Revenue
    $845 million to $855 million
    high materiality
    High
    Full-year Adjusted EBITDA
    $73 million to $77 million
    high materiality
    High
    Full-year Cost of Revenue as % of Revenue
    modestly higher than in 2025
    medium materiality
    Medium
    Full-year Non-GAAP OpEx (excluding cost of revenue) Growth
    approximately 6% year over year
    medium materiality
    High

    Operational metrics

    28
    Revenue
    $214 million10% year over year
    Q2 FY26

    Record revenue for the quarter.

    Adjusted EBITDA
    $21 million
    Q2 FY26

    Exceeded the high end of guidance.

    Non-GAAP Net Income
    $10 million
    Q2 FY26

    At the high end of guidance range.

    Units Sold
    211,000
    Q2 FY26

    Company gained market share.

    Dealer Wholesale Market Volume Contraction
    6%year over year
    Q2 FY26

    Overall market contraction.

    Dealer Wholesale Market Volume Contraction
    8%
    July

    Third-party data from NAAA.

    Auction and Assurance Revenue
    55%6% year over year
    Q2 FY26

    Against a tough comparison of 20% growth in Q2 FY25.

    Auction and Assurance ARPU
    $5546% year over year
    Q2 FY26

    Average revenue per unit for auction and assurance services.

    Marketplace Services Revenue
    41%17% year over year
    Q2 FY26

    Reflecting continued strong performance for ACV Transport and ACV Capital.

    Transports Delivered
    125,000
    Q2 FY26

    Strong execution by the transport team.

    SaaS and Data Services Revenue
    4%3% year over year
    Q2 FY26

    Driven by further adoption of ACV MAX.

    Non-GAAP Cost of Revenue as % of Revenue
    increased approximately 300 basis pointsyear over year
    Q2 FY26

    Primarily driven by a higher mix of no-reserve sales.

    Adjusted EBITDA per Unit
    increasing 11%year over year
    Q2 FY26

    Delivered record adjusted EBITDA per unit.

    Adjusted EBITDA per Unit
    over $300
    Q2 FY26

    Most profitable region continues to expand EBITDA per unit.

    Non-GAAP Operating Expense (excluding cost of revenue) as % of Revenue
    decreased approximately 300 basis pointsyear over year
    Q2 FY26

    Reflecting operating leverage while investing in key growth initiatives.

    OpEx Growth
    approximately 6%decline from 12% in 2025
    2026

    Expected OpEx growth, including additional go-to-market spending.

    Adjusted EBITDA Margin Increase
    approximately 100 basis pointsyear over year
    2026

    Expected increase despite growth investments.

    Cash and Cash Equivalents
    $242 million
    end of Q2 FY26

    Strong capital structure.

    Debt
    $205 million
    end of Q2 FY26

    Total debt outstanding.

    Marketplace Float
    $175 million
    end of Q2 FY26

    Included in cash balance, fluctuates based on business trends.

    Accelerated Share Repurchase Program
    $50 million
    last quarter

    Program announced last quarter, progressing.

    Go-to-Market Investment
    around $10 million
    FY26

    Investment for various go-to-market roles, including VCIs and sales roles.

    Salespeople Increase
    15% to 20%
    by year-end

    Expected increase in salespeople in the field.

    ViPR Units Built/Deployed
    over 100
    this year

    Units being built and deployed in 2026.

    ViPR Units Target
    over 500 units
    2027

    Goal for ViPR units in 2027, potentially up to 1,000 units.

    Conversion Rate Impact
    600 basis points
    June and July

    Impact on unit growth due to macro headwinds and price disconnect.

    Emerging Regions Unit Growth
    mid-teens
    Q2 FY26

    Result of increased go-to-market investment in these regions.

    No-Reserve Sales Mix
    mid-20%growing reasonably well
    Q2 FY26

    Expected to grow to around 30% of overall units long-term.

    Industry KPIs

    2
    MetricValueDetails
    Volume211,000vehicles
    EBITDA margin10% to 11%%

    Product announcements

    1
    ProductTypeDetails
    ViPRlaunch

    Deals & partnerships

    4
    Top 5 fleet consignorRemarketing vehicles

    Recently began remarketing vehicles from this consignor on ACV's platform.

    Second large-scale consignorRemarketing vehicles

    In final stages of securing this consignor for the commercial wholesale segment.

    Large captive finance off-lease companyIntegration for vehicle remarketing

    Integrating with this company to add to the marketplace.

    Top 4 rental car consignorAdding to marketplace

    Adding this consignor to ACV's marketplace.

    Risks & headwinds

    5
    Macroeconomic Headwinds

    uncertain macroeconomic conditions

    Mitigation: Committed to delivering double-digit revenue growth and increased adjusted EBITDA while investing in growth objectives.

    Conversion Rate CompressionJune and July

    600 basis points impact on unit growth

    Mitigation: Expects conditions to stabilize; dealers will eventually need to sell cars due to floor plan fees and declining values. Leaning in to educate dealers.

    Dealer Wholesale Market ContractionQ2 FY26 and July

    volumes contracting approximately 6% year over year (Q2); down 8% (July)

    Mitigation: Expects market to stabilize in the back half of the year with easier comps; increased field investments to drive unit growth.

    Higher Cost of RevenueQ2 FY26

    Non-GAAP cost of revenue as a percentage of revenue increased approximately 300 basis points year over year

    Mitigation: Offset by OpEx efficiencies; no-reserve sales (driver of higher cost) are accretive to adjusted EBITDA and drive conversion rates.

    Diesel Fuel Price IncreaseQ2 FY26

    increase in diesel fuel during the quarter

    Mitigation: Leveraging AI to optimize transport pricing and strong team execution to maintain transport revenue margin and attach rate.

    What to watch in Q3 FY26

    5

    ViPR unit deployment and adoption

    Next quarter / H2 FY26
    Currentover 100 units built this year
    TargetProgress towards over 500 units in 2027, successful integrations with dealer software vendors

    Why it matters

    ViPR is a key new lever for unit growth and network expansion, differentiating ACV's offering and solving a critical dealer problem.

    We are already engaged with half of the top 50 dealer groups in the country, and our pipeline continues to grow... our goals are over 500 units. Next year, I don't know, it could be significantly more than that.

    Q&A highlights

    5

    Why prioritize EBITDA over aggressive growth given a large total addressable market and competitor scaling, and would ACV consider strategic partnerships to accelerate investments?

    Management is increasing sales force (15-20% more salespeople by year-end) and inspectors, but achieving overall OpEx efficiency through AI and scale benefits. They expect better unit numbers in H2. They declined to comment on strategic partnerships.

    “We are hiring pretty materially on the field from a sales perspective. We have a number of roles open. We've been hiring throughout the year... probably somewhere in the nature of -- let me just do the quick math. 15% to 20% at least more salespeople by the end of the year, maybe even a little bit higher than that.”

    asked by Rajat Gupta · answered by George Chamoun

    2 min read7 chapters

    Detailed Narrative

    01

    Q2 Performance Highlights

    ACV reported record revenue and adjusted EBITDA exceeding guidance, driven by strong execution despite a challenging wholesale market. The company sold 211,000 vehicles, gaining market share while the overall market contracted by 6% year over year. Adjusted EBITDA per unit increased 11% year over year, with the most profitable region delivering over $300 per unit.

    02

    Strategic Growth Initiatives

    ACV is focusing on three key objectives: expanding its dealer partner network through increased field capacity and no-reserve offerings, strong performance in ACV Transport (19% revenue growth and 125,000 transports delivered) and ACV Capital (record attach rates in the high teens), and gaining traction with emerging initiatives like ViPR and commercial wholesale.

    03

    ViPR Commercial Launch and Adoption

    The company officially launched ViPR commercially, with strong early engagement from half of the top 50 dealer groups. ViPR aims to help dealers acquire vehicles from consumers at scale and identify service upsell opportunities. Management plans to build over 100 units this year and targets over 500 units in 2027, with potential for up to 1,000, pending further integrations with leading dealer software vendors.

    04

    Commercial Wholesale Segment Momentum

    ACV is making significant progress in the commercial wholesale market, attracting large fleet and rental car consignors. The new digital model and end-to-end experience, supported by a live software platform (AutoIMS integration) and new greenfield locations (e.g., Chicago), are expected to accelerate wholesale volumes, particularly in Q4.

    05

    Financial Discipline and OpEx Efficiency

    Adjusted EBITDA of $21 million exceeded the high end of guidance due to strong unit economics and expense discipline. Non-GAAP operating expense growth is expected to be approximately 6% in 2026, a decline from 12% in 2025, reflecting operating leverage and AI-driven efficiencies across the organization, allowing for increased sales force hiring.

    06

    Market Headwinds and Stabilization Outlook

    Macro headwinds🌐 led to a 600 basis point compression in conversion rates in June and July due to a price disconnect as used car values declined. However, management expects market conditions to stabilize in the back half of the year, with easier year-over-year comps and increased field investments driving unit growth. Positive operating cash flow is anticipated in H2 FY26.

    07

    CFO Transition

    Bill Zerella is stepping down as Chief Financial Officer, and Tim Fox, previously Vice President of Investor Relations, has been appointed as the new CFO. The company expressed confidence in Tim's proven financial acumen and deep understanding of ACV's strategy to advance its goals and create shareholder value.

    AI-generated summary of the company’s earnings call. Not investment advice.