ACV Auctions(US:ACVA)2025-11-05 21:11Revenue Performance - Third quarter revenue reached $200 million, representing a 16% year-over-year increase[6] - Marketplace and Service Revenue totaled $177 million, up 13% year-over-year[7] - Marketplace GMV was $2.7 billion, reflecting a 9% year-over-year growth[7] - Marketplace Units transacted were 218,065, an increase of 10% year-over-year[7] - Total revenue for the three months ended September 30, 2025, was $199,561,000, representing a 16.4% increase from $171,329,000 in the same period of 2024[29] - Marketplace and service revenue increased to $176,510,000 for the three months ended September 30, 2025, up from $155,908,000, marking a 13.2% growth year-over-year[29] - Customer assurance revenue rose to $23,051,000 for the three months ended September 30, 2025, compared to $15,421,000 in 2024, reflecting a 49.5% increase[29] - Fourth quarter revenue is expected to be between $180 million and $184 million, a 13% to 15% increase year-over-year[10] - Full-year 2025 revenue guidance is set at $756 million to $760 million, indicating a 19% year-over-year growth[10] Profitability and Losses - Adjusted EBITDA for the third quarter was $19 million, compared to $11 million in the same quarter of 2024[7] - Non-GAAP net income for the full year 2025 is projected to be between $27 million and $29 million[10] - GAAP net loss for the third quarter was ($24) million, compared to a loss of ($16) million in Q3 2024[7] - Net loss for the three months ended September 30, 2025, was $24,465,000, compared to a net loss of $16,029,000 in 2024, indicating a 52.5% increase in losses[29] - Non-GAAP net income of $11,179,000 for the three months ended September 30, 2025, compared to $7,629,000 in 2024, a 46.5% increase[34] - Adjusted EBITDA for the three months ended September 30, 2025, was $18,651,000, up from $11,170,000 in the same period of 2024, reflecting a 67.1% increase[34] - Non-GAAP net loss for Q3 2025 is projected between $4 million and $2 million, while GAAP net loss is estimated between $23 million and $21 million[35] Operating Expenses - Operating expenses totaled $223,278,000 for the three months ended September 30, 2025, an increase of 18.5% from $188,468,000 in the same period of 2024[29] - Total operating expenses for Q3 2025 were $223.3 million, up from $188.5 million in Q3 2024, representing a 18.5% increase[35] - Non-GAAP total operating expenses (excluding cost of revenue) for Q3 2025 were $94.9 million, compared to $83.9 million in Q3 2024, reflecting a 13.0% increase[35] - Stock-based compensation for Q3 2025 amounted to $15 million, compared to $58 million for the year ended December 31, 2025[35] - Marketplace and service cost of revenue (excluding depreciation & amortization) for Q3 2025 was $70.9 million, up from $67.1 million in Q3 2024, a 4.0% increase[35] - Customer assurance cost of revenue (excluding depreciation & amortization) increased to $22.1 million in Q3 2025 from $14.2 million in Q3 2024, a significant 55.5% increase[35] Balance Sheet and Cash Flow - Cash and cash equivalents increased to $265,343,000 as of September 30, 2025, up from $224,065,000 at the end of 2024[31] - Total assets grew to $1,166,496,000 as of September 30, 2025, compared to $984,149,000 at the end of 2024, representing an 18.5% increase[31] - Long-term debt increased to $220,000,000 as of September 30, 2025, compared to $123,000,000 at the end of 2024, indicating a significant rise in leverage[31] Other Financial Metrics - Tricolor bankruptcy losses accounted for $18.7 million in Q3 2025, with total losses for the year expected to reach $19 million[35] - Amortization of acquired intangible assets for Q3 2025 was $2.6 million, down from $3.4 million in Q3 2024[35] - Acquisition-related costs were recorded at $0 in Q3 2025, compared to $0.2 million in Q3 2024[35] - The dealer wholesale market is anticipated to decline in the mid-single digits year-over-year in the fourth quarter[10]