ACV Auctions (NasdaqGS:ACVA) Q4 2025 Earnings call February 23, 2026 05:00 PM ET Speaker8Greetings, and welcome to the ACV Q4 2025 earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tim Fox, Vice President of Investor Relati ...

HIGHLIGHTS Q4-25 EARNINGS PRESENTATION FEBRUARY 23, 2026 © 2026 ACV Auctions, Inc. FORWARD LOOKING STATEMENTS Statements in this presentation regarding future performance and future expectations, beliefs, goals, plans or prospects include forward looking statements for purposes of federal and state securities laws, including statements regarding ACV's avenues for long term growth and total addressable market expansion, our financial guidance for the first quarter and full year of 2026, and operational and p ...

Here's a look at the details from the quarter. CPRT stock is moving. Watch the price action here.Q2 Details Copart reported quarterly earnings of 36 cents per share, which missed the consensus estimate of 40 cents, according to data from Benzinga Pro. Quarterly revenue of $1.12 billion missed the Street estimate of $1.14 billion and was down from $1.16 billion in the same period last year.The company will hold a conference call on Thursday at 5:30 p.m. ET to discuss the results. Expert IdeasCopart stock car ...

back:Income taxes(30.9)3.1(27.8)Finance interest expense—27.327.3Interest expense, net of interest income9.6—9.6Depreciation and amortization20.13.223.3EBITDA24.667.391.9Non-cash stock-based compensation3.91.15.0Securitization interest—(24.9)(24.9)Severance1.40.72.1Foreign currency OPENLANE, Inc. Reports 2025 Financial Results [Accessibility Statement] Skip NavigationFourth Quarter Highlights- Cash flow from operating activities of $126 million- Adjusted EBITDA of $76 million, representing 5% YoY growth- In ...

Core Thesis - ACV Auctions Inc. is positioned for growth in the digital vehicle auction market, leveraging technology and innovative solutions to capture market share and improve dealer relationships [1][2][4]. Company Overview - ACV Auctions Inc. operates a digital-first marketplace for dealer-to-dealer vehicle transactions, aiming to disrupt traditional physical auctions [2]. - The company's shares were trading at $7.74 as of December 1st, with a forward P/E of 40.82 [1]. Business Performance - Despite lowering Q2 revenue and EBITDA guidance due to inventory issues among dealers, the underlying business remains strong, with marketplace listings and dealer retention meeting targets [3]. - Unit growth is adjusting for seasonal trends, indicating solid performance [3]. Market Position and Growth Potential - The dealer-to-dealer market is currently 15-20% below pre-COVID volumes but is expected to stabilize, with digital adoption at 20-30%, presenting long-term growth opportunities [4]. - ACV is well-positioned in the U.S. market, despite competitors like OPENLANE reporting higher growth due to geographic and vehicle-type differences [3][4]. Strategic Initiatives - ACV is deploying AI-powered inspection tools and a Viper drive-through solution to enhance dealer efficiency and loyalty [5]. - A commercial rollout is expected to scale from 60,000 units in 2025 to 225,000, expanding the total addressable market [5]. - Operating leverage is anticipated to improve, with incremental margins in the 35-40% range achievable as initiatives scale [5]. Valuation and Upside Potential - Trading at less than 5x projected $350 million EBITDA, ACV's strong fundamentals, technology leadership, and market expansion offer significant upside potential [6].

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 16% on a 7% increase in gross transactional value (GTV) [3][14] - Adjusted earnings per share rose by 31%, driven by higher operating income and lower net interest expense [17] - Adjusted EBITDA as a percentage of GTV expanded to 8.4%, up from 7.8% in the prior year [16] Business Line Data and Key Metrics Changes - Automotive GTV increased by 6%, driven by a 9% increase in unit volumes, partially offset by a decline in average price per vehicle sold [14] - Service revenue increased by 8% on higher GTV and a higher service revenue take rate [15] - GTV in the commercial, construction, and transportation sector increased by 9%, with a 14% increase when excluding the impact of the Yellow Corporation bankruptcy [9][15] Market Data and Key Metrics Changes - The US insurance average selling price (ASP) increased approximately 2.5% [14] - The total loss frequency across all categories rose by nearly 70 basis points to 22.6% [14] - The active buyer base expanded, indicating resilience in the platform [8] Company Strategy and Development Direction - The company announced a significant expansion of its partnership with the US General Services Administration (GSA), expecting to provide services for approximately 35,000 remarketed vehicles annually [4][5] - A new operating model was introduced to unlock sustainable growth and drive long-term value for shareholders [10][11] - The company is focused on strategic acquisitions and pruning to sharpen its focus and simplify operations [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to deepen engagement with existing partners and expand into adjacent opportunities [6][7] - The macro environment remains favorable for salvage volumes, driven by inflation gaps between vehicle repair costs and used vehicle values [14] - Full-year 2025 GTV growth is expected to range between 0% and 1%, with adjusted EBITDA guidance raised to $1.35 billion-$1.38 billion [18] Other Important Information - The company recognized approximately $10 million in restructuring charges during the quarter, primarily related to severance costs [16] - The new operating model is expected to generate over $25 million in total run rate savings by the second quarter of 2026 [13] Q&A Session Summary Question: Can you provide insights on the full-year guidance and segment performance? - Management clarified that the GTV guidance was tightened to 0%-1% and discussed the strong performance in Q3, which was in line with expectations [21][22] Question: Can you elaborate on the GSA agreement and its financial implications? - The GSA contract adds disposition services, which were not previously provided, and the ASPs will be accretive to the salvage space [24][26] Question: What are the motivations behind the recent acquisition in Western Australia? - The acquisition strengthens the geographic footprint and aligns with the broader growth strategy in the region [30][31] Question: How does the company view market share opportunities in the automotive sector? - Management emphasized focusing on performance and maintaining high service-level agreements, which they believe will enhance market share [32][33] Question: What factors led to narrowing the GTV range for Q4? - The range was narrowed to provide a more pointed guide as the company approaches the end of the year, considering the absence of significant CAT events [43][45] Question: What is the company's exposure to the used car market and subprime credit issues? - The company primarily deals with slightly damaged cars, minimizing exposure to higher-value vehicles and broader economic concerns [46][48] Question: Can you clarify the nature of the GSA contract vehicles? - The vehicles involved are primarily those with heavy usage, appealing to the buyer base, and will be a mix of different types of buyers [53][54]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 16% on a 7% increase in gross transactional value (GTV) [3][16] - Adjusted earnings per share rose by 31%, driven by higher operating income and lower net interest expense [17] - Adjusted EBITDA as a percentage of GTV improved to 8.4%, up from 7.8% in the prior year [16] Business Line Data and Key Metrics Changes - Automotive GTV increased by 6%, supported by a 9% increase in unit volumes, despite a decline in average price per vehicle sold [13][15] - Service revenue increased by 8% due to higher GTV and an increased service revenue take rate [15] - GTV in the commercial, construction, and transportation sector grew by 9%, with a higher average price per lot sold [15] Market Data and Key Metrics Changes - The US insurance average selling price (ASP) increased by approximately 2.5% [13] - The total loss frequency across all categories rose by nearly 70 basis points to 22.6% [14] - Excluding the impact of the Yellow Corporation bankruptcy, GTV growth in the commercial, construction, and transportation sector would have been approximately 14% [15] Company Strategy and Development Direction - The company announced a significant expansion of its partnership with the US General Services Administration (GSA), providing disposition services for approximately 35,000 remarketed vehicles annually [4][5] - A new operating model was introduced to enhance efficiency and drive long-term value for shareholders, expected to generate over $25 million in total run rate savings by Q2 2026 [12][60] - The company is focused on strategic acquisitions and geographic expansion, with a recent agreement to acquire Smith Broughton Auctioneers for approximately $38 million [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to deepen engagement with existing partners while expanding into adjacent opportunities [6] - The macroeconomic environment remains complex, but the company is committed to investing in growth and enhancing operational efficiency [9] - Full-year 2025 GTV growth is expected to range between 0% and 1%, with adjusted EBITDA guidance raised to $1.35 billion-$1.38 billion [18] Other Important Information - The company divested DDI Technologies to streamline operations and focus on core capabilities [11][12] - The new operating model aims to improve clarity and focus within the organization, reducing management layers from eight to four or five [59][60] Q&A Session Summary Question: Can you provide insights on the full-year guidance and segment performance? - Management clarified that the GTV guidance was tightened to 0%-1% and highlighted strong Q3 performance aligned with expectations [21][23] Question: What are the details of the GSA agreement regarding vehicle volume and economics? - The GSA contract adds disposition services, with ASPs expected to be accretive to salvage space ASPs [25][26] Question: What is the motivation behind the recent acquisition in Western Australia? - The acquisition enhances geographic coverage and aligns with the company's growth strategy in Australia [30] Question: How does the company view market share opportunities in the automotive sector? - Management emphasized focusing on performance and operational excellence to capture market share, without disclosing specific deals [33] Question: What factors influenced the decision to narrow the Q4 guidance range? - The tightening of the range was based on a clearer outlook as the year progresses, considering the absence of significant CAT events compared to the previous year [43][44] Question: What is the company's exposure to the used car market and subprime credit issues? - The company primarily deals with slightly damaged cars, minimizing exposure to higher-value vehicles and benefiting from a repossession business [46][48]

Financial Data and Key Metrics Changes - Q3 revenue reached $200 million, growing 16% year over year, compared to a tough comparison of 44% growth in Q3 2024 [5][15] - Adjusted EBITDA was $19 million, with a margin improvement of 280 basis points year over year [15][16] - Non-GAAP net income was $11 million, also at the midpoint of guidance [16] Business Line Data and Key Metrics Changes - Auction and assurance revenue accounted for 56% of total revenue, growing 10% year over year, with auction and assurance ARPU at $508, which declined 3% quarter over quarter [16][17] - Marketplace Services revenue comprised 40% of total revenue, growing 28% year over year, driven by record revenue from ACV Transport and ACV Capital [15][17] - ACV Capital team delivered strong revenue performance with 70% growth in Q3 [11] Market Data and Key Metrics Changes - The dealer wholesale market is expected to decline in the mid-single digits in Q4, reflecting a more challenging market environment [20] - Emerging regions like Southern California and the Midwest saw unit growth exceeding 20% in Q3 [8] Company Strategy and Development Direction - The company focuses on three pillars: growth, innovation, and scale, with a strong emphasis on leveraging AI to enhance marketplace experiences [5][6] - The strategy includes enhancing field engagement models in emerging regions and launching new innovations to drive market share gains [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering the dealer wholesale market despite current macro challenges, emphasizing that it is too early to assume a structural change [27][30] - The company anticipates strong adjusted EBITDA growth of over 100% while continuing to invest in long-term growth objectives [5][21] Other Important Information - The company updated its 2025 guidance to reflect ongoing macro challenges while still expecting 19% year-over-year growth [4][20] - The ACV Guarantee program saw an increase in units sold from 11% in Q2 to 18% in Q3, indicating strong buyer engagement [12] Q&A Session Summary Question: Has the dealer wholesale market changed structurally? - Management believes it is too early to assume a long-term structural change in the dealer wholesale market, which is expected to recover as macro factors stabilize [27] Question: How have competitive dynamics changed? - The company reported significant quarter-over-quarter growth, indicating strong performance against competitors despite market softness [30] Question: Can you explain the moderation in auction ARPU? - Management noted targeted regional pricing campaigns to support market share, expecting ARPU to increase sequentially in Q4 [36][40] Question: What is the outlook for the 2026 wholesale market? - Management suggests assuming a flat market for 2026 due to macro uncertainties, while aiming for mid-teen market share gains [41][45] Question: What is the status of ACV Capital? - The company is taking a cautious approach to ACV Capital, lowering revenue forecasts for Q4 while maintaining confidence in long-term growth [71][73] Question: How is the company leveraging its technology? - The company is using AI to provide accurate pricing and improve decision-making for dealers, enhancing their ability to sell vehicles effectively [102]

Q3 2025 Performance Highlights - ACV Auctions achieved revenue of $200 million in Q3 2025, representing a 16% year-over-year growth compared to $171 million in Q3 2024[13] - Marketplace units reached 218,000 in Q3 2025, up from 198,000 in Q3 2024[13] - Adjusted EBITDA was $19 million in Q3 2025, compared to $11 million in Q3 2024[13] Growth Initiatives - The company is focused on transforming the automotive market with a data-driven platform[16] - ACV Auctions is leveraging technology to expand its product suite and data services[16] - The company aims to deliver growth at scale with attractive unit economics and long-term operating leverage[16] Financial Outlook - Q4 2025 revenue is projected to be between $180 million and $184 million, representing a year-over-year growth of 13% to 15%[65] - Full year 2025 revenue is expected to be between $756 million and $760 million, a growth of approximately 19% year-over-year[65] - Adjusted EBITDA for full year 2025 is projected to be between $56 million and $58 million, with an Adjusted EBITDA margin of 7% to 8%[65] Revenue Diversification - The company has diversified revenue streams, including SaaS & Data Services, Marketplace Services, Transportation, Capital, and Auction & Assurance[54]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $498 million for Q3 2025, representing an 8% year-over-year growth [19] - Adjusted EBITDA for the quarter was $87 million, reflecting a 17% increase, with an adjusted EBITDA margin of approximately 17%, which is an expansion of 130 basis points year-over-year [19][20] - Consolidated SG&A expenses increased by 14% to $111 million, primarily due to higher performance-related incentives and targeted investments [19] Business Line Data and Key Metrics Changes - The marketplace segment processed a gross merchandise value (GMV) of $7.3 billion, a 9% increase, driven by a 19% growth in dealer category and 4% in commercial category [21] - Auction fees in the marketplace grew by 20%, primarily due to volume growth in the U.S. dealer business [22] - Adjusted EBITDA for the marketplace segment was $44 million, representing a 22% growth and an adjusted EBITDA margin of 11% [23] Market Data and Key Metrics Changes - Dealer-to-dealer volumes increased by 14% year-over-year, marking the fourth consecutive quarter of double-digit volume increases [5][35] - The U.S. market contributed significantly to the growth, with dealer volumes in the high teens year-over-year [35] - The company noted a decline in commercial vehicle volumes, but the rate of decline was less than in the previous quarter [8] Company Strategy and Development Direction - The company's strategy focuses on making wholesale easy by enhancing marketplace offerings, technology, and customer experience [6][7] - The company aims to expand its market share with North America's largest franchise dealer groups and increase dealer registrations on its platform [10][12] - The company is investing in technology and innovation, including AI-driven features to improve customer experience [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of commercial vehicle volumes beginning in early 2026 and highlighted the ongoing shift from physical to digital channels in the wholesale industry [15][16] - The company is closely monitoring economic trends, including vehicle affordability and loan delinquencies, which could impact future performance [15] - Management revised the full-year 2025 adjusted EBITDA guidance to $328-$333 million, up from previous guidance, due to strong performance in the North American dealer business [28] Other Important Information - The company announced plans to repurchase approximately 53% of its outstanding Series A convertible preferred shares, funded through a term loan [27] - The company ended the quarter with a cash balance of $119 million and over $400 million in capacity on existing revolver facilities [27] Q&A Session Summary Question: Market growth and share gains - Management noted that dealer-to-dealer volumes were up 14%, with strong growth in the U.S. market, and emphasized the transition from physical to digital models as a key driver of growth [35][36] Question: Onboarding new customers - Management confirmed that onboarding for new customers is expected to occur in early Q1 2026, with technology ready for launch [41] Question: Cross-pollination between platforms - Management explained that independent dealers in the marketplace are increasingly utilizing AFC for financing, with a significant increase in registered dealers on the platform [51] Question: AuctionNet data and market performance - Management provided insights on AuctionNet data, indicating that dealer-to-dealer units were up about 14%, with growth driven by both existing and new dealers [54][57] Question: Competitor reactions - Management observed a stable competitive environment, with some smaller digital models exiting the market, and emphasized the company's leadership in digital platforms [65] Question: SG&A expenses - Management indicated that SG&A expenses may fluctuate quarterly but emphasized a focus on annual trends and cost synergies [73] Question: Purchased cars revenue - Management clarified that the growth in purchased cars revenue is driven by both European business and guarantees offered to buyers, although it is considered low-margin revenue [80][82] Question: Off-lease vehicle impact - Management discussed expectations for off-lease vehicles to increase in 2026, with a potential impact on gross margins and ARPU [90][94]