ACVA

ACV Auctions’ second quarter results fell short of Wall Street’s revenue expectations, prompting a negative market reaction. Management pointed to a contracting dealer wholesale market and compressed conversion rates as key challenges, with CEO George Chamoun citing a “price disconnect” between sellers and buyers as a major headwind. Despite these pressures, the company highlighted record revenue growth, ongoing market share gains, and strong execution in marketplace services as evidence of underlying business resilience. The leadership team also emphasized efficiency gains from artificial intelligence (AI) integration and cost discipline in operating expenses. Is now the time to buy ACVA? Find out in our full research report (it’s free). Revenue: $213.9 million vs analyst estimates of $215.2 million (10.4% year-on-year growth, 0.6% miss) Adjusted EPS: $0.06 vs analyst estimates of $0.05 (in line) Adjusted EBITDA: $20.77 million vs analyst estimates of $18.93 million (9.7% margin, 9.7% beat) The company reconfirmed its revenue guidance for the full year of $850 million at the midpoint EBITDA guidance for the full year is $75 million at the midpoint, in line with analyst expectations Operating Margin: -2.8%, in line with the same quarter last year Market Capitalization: $1.40 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rajat Gupta (JPMorgan) asked about the balance between EBITDA discipline and growth investment. CEO George Chamoun clarified that ACV is increasing field hiring and expects sales and inspection roles to rise by at least 15-20% by year-end, emphasizing both growth and cost efficiency. Bob Labick (CJS Securities) pressed for details on the ramp of new sales and inspection hires. Chamoun and CFO Timothy Fox explained that emerging regions where these investments were made already show mid-teens growth, with broader benefits expected in the second half. Andrew Boone (Citizens) probed conversion rate headwinds and market stabilization. Chamoun attributed the issue to a temporary price disconnect between buyers and sellers, while Fox noted that listing momentum remains strong and conversion rates should improve as the market stabilizes. Ryan James Powell (B. Riley Securities) asked about ViPR adoption and dealer benefits. Chamoun shared that early users report acquiring 20-50 more cars per month and that seamless integration with dealership software is a key focus for scaling adoption. Jeffrey Lick (Stephens Inc.) inquired about persistent conversion challenges and regional growth. Chamoun explained that education and relationship-building with dealers are helping address value perception, while Fox pointed to record dealer visits as evidence of progress. Looking ahead, the StockStory team will be monitoring (1) the impact of expanded field sales hiring on unit growth across both established and emerging regions, (2) the pace and depth of ViPR adoption and integration with dealership systems, and (3) the scaling of commercial wholesale partnerships, particularly with fleet and rental consignors. In addition, we will watch for sustained efficiency gains from AI-driven initiatives and improvements in dealer conversion rates as signs of successful execution. ACV Auctions currently trades at $7.95, up from $7.26 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5:00 p.m. ET Vice President of Investor Relations - Timothy Fox Chief Executive Officer - George Chamoun Chief Financial Officer - William Zerella Operator: Greetings. Welcome to the ACV Q2 2026 earnings conference call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Tim Fox, Vice President of Investor Relations. Thank you, Tim. You may begin. Timothy Fox: Good afternoon, and thank you for joining ACV's conference call to discuss our second quarter 2026 financial results. With me on the call today are George Chamoun, Chief Executive Officer, and Bill Zerella, Chief Financial Officer. Before we get started, please note that today's comments include forward-looking statements, including statements regarding future financial guidance. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to differ materially from those expressed or implied by such statements. A discussion of the risks and uncertainties related to our business can be found in our SEC filings and in today's press release, both of which can be found on our Investor Relations website. During this call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today's earnings materials, which can also be found on our Investor Relations website. With that, let me turn the call over to George. George Chamoun: Thanks, Tim. Good afternoon, everyone, and thank you for joining us. We are very pleased with our second quarter performance and execution while facing a challenging market environment. We delivered record revenue with adjusted EBITDA exceeding the high end of guidance. In addition to solid financial results, we made significant progress on our 3 key objectives. First, we continue to gain market share and expand our dealer partner network to a new record. The combination of increasing our field capacity and penetration of our no-reserve offering contributed to our growth. Second, we had another strong quarter of performance in ACV Transport and ACV Capital, along with growing adoption of our value-added dealer solutions. And third, we are gaining traction with our emerging growth initiatives, including very strong demand for ViPR and momentum in the commercial wholesale segment. While macro headwinds caused conversion rates to compress below expectations in June and July, we believe conditions will begin to stabilize and remain committed to delivering double-digit revenue growth and increased adjusted EBITDA while investing in our exciting growth objectives. We're confident that executing on this profitable growth strategy will create significant long-term shareholder value. With that, let's turn to a recap of our results on slide 4. We delivered another record revenue quarter with growth of 10% despite continuing headwinds in the dealer wholesale market with volumes contracting approximately 6% year over year. And we continue to gain market share, selling 211,000 vehicles in the quarter. Next, on slide 5, we focus on the pillars of our strategy to maximize long-term shareholder value by delivering innovation that is driving growth and scale. I'll begin with growth. On slide 7, I will highlight our growth initiatives in dealer wholesale. As we discussed last quarter, we are investing in additional field capacity to broaden our regional growth performance, which resulted in a record number of dealer visits, inspections, and dealers transacting on our marketplace. We expect that these investments, along with improving conversion rates, will yield accelerated unit growth in the coming quarters. We also continue to leverage machine learning, combining inspection data and market data to provide real-time pricing. Our platform powers ACV guarantees to sellers and delivers no-reserve auctions to buyers. Our no-reserve offering remains the fastest-growing channel on our marketplace that benefits sellers, buyers, and ACV. We're removing seller market risk, accelerating bidder engagement, and increasing buyer satisfaction, while delivering a 100% conversion rate. We're confident our guaranteed offering will continue to be a key driver of market share gains. Turning to slide 8, let's review our marketplace service offerings. The transport team had strong execution in Q2 with 19% revenue growth and 125,000 transports delivered. By leveraging AI to optimize transport pricing, we continue to drive strong growth and operating efficiency. And despite the increase in diesel fuel during the quarter, the team executed incredibly well, delivering a transport revenue margin and attach rate that remained in line with our mid-term target. Lastly, our off-platform transport service continues to gain traction from our dealer partners, creating additional growth opportunities. ACV Capital also delivers strong performance, with attach rates reaching a new record in the high teens. Our expanded go-to-market strategy, new product offerings, and process enhancements to manage portfolio risk resulted in another strong quarter for the ACV Capital team. On slide 9, we highlight how we're further differentiating ACV and creating additional growth opportunities with our suite of AI-driven products. ClearCar and ACV MAX are adding tremendous value to our dealer partners and also contributing to our wholesale market share gains. By enabling our dealer partners to optimize inventory and automate vehicle selling and buying, we strengthen their ability to source more vehicles from consumers. As a result, our top 100 ClearCar customers doubled the volume of quarterly wholesale transactions on ACV after launching ClearCar. While ClearCar has proven to be a highly effective sourcing tool for our dealer partners, while increasing wholesale volumes on ACV, we're confident that ViPR delivers even more value through a powerful suite of ACV-enabled solutions. We have received very positive feedback during our successful early access beta program and are pleased that today marks the official launch of commercial availability for ViPR. We are already engaged with half of the top 50 dealer groups in the country, and our pipeline continues to grow. Through ViPR, our industry-leading inspection data and vehicle pricing capabilities enables dealers to unlock consumer vehicle acquisition at scale in the service lane and seamlessly identifies service upsell opportunities. We are also on track to integrate with the leading dealer software vendors to create a truly seamless experience in dealership service lanes. We remain on track to grow ViPR's footprint in coming quarters, offering a ViPR bundle with wholesale to create a powerful new lever to drive unit growth and expand our network. In addition, we have also started to leverage ViPR for vehicle inspections at our remarketing centers. While it's still early, we are confident that this solution will be an additional lever to drive improved unit economics. Lastly, as we highlighted in recent quarters, the internal adoption of AI tools across ACV has enabled us to gain meaningful velocity and efficiency. As such, we have even more confidence in delivering our differentiated product roadmap to support our growth objectives. Next on slide 10, I'll wrap up the growth section with our commercial wholesale strategy, a large adjacent market with both upstream and downstream opportunities. Our team has made significant progress on our software platform, and we believe this new digital model and end-to-end experience will transform commercial vehicle remarketing. Our differentiated offering is attracting large commercial consignors. We recently began remarketing vehicles from a top 5 fleet consignor and are in the final stages of securing a second large-scale consignor. We're also integrating with a large captive finance off-lease company and adding another top 4 rental car consignor to our marketplace. The commercial segment provides another exciting growth lever for us, and we are confident that we can accelerate wholesale volumes in the coming quarters. With that, I'll hand over to Bill to take you through our financial results and how we're driving growth at scale. William Zerella: Thanks, George, and thank you for joining us today. ACV's second quarter results reinforce our commitment to deliver profitable growth while investing to drive dealer wholesale market share gains and to support key growth initiatives. On slide 12, let's begin with a brief recap of our second quarter results. Revenue of $214 million was within our guidance range, and grew 10% year over year compared to strong results in Q2 '25. Adjusted EBITDA of $21 million exceeded the high end of guidance, reflecting strong unit economics and expense discipline. Finally, non-GAAP net income of $10 million was at the high end of our guidance range. Next, on slide 13, let's review additional revenue details. Auction and assurance revenue was 55% of total revenue and grew 6% year over year against a tough comparison of 20% growth in Q2 '25. This performance reflects approximately flat unit growth in the context of a 6% decline in the dealer wholesale market. Auction and assurance ARPU of $554 grew 6% year over year. Marketplace services revenue was 41% of total revenue and grew 17% year over year, reflecting continued strong performance for ACV Transport and ACV Capital. Lastly, our SaaS and Data Services products comprise 4% of total revenue with growth of 3% year over year driven by further adoption of ACV MAX. Next, I'll review Q2 costs on slide 14. Non-GAAP cost of revenue as a percentage of revenue increased approximately 300 basis points year over year. The increase was primarily driven by a higher mix of no-reserve sales on our marketplace. As a reminder, no-reserve sales typically have modestly higher costs than standard auction sales. However, they drive strong blended conversion rates, improved marketplace liquidity, and importantly, are accretive to adjusted EBITDA. In fact, we delivered record adjusted EBITDA per unit, increasing 11% year over year in Q2. Furthermore, our 2 most profitable regions continue to expand EBITDA per unit with our most profitable region delivering over $300 per unit. Non-GAAP operating expense, excluding cost of revenue as a percentage of revenue, decreased approximately 300 basis points year over year, reflecting operating leverage in our model while continuing to invest in key growth initiatives. Moving to slide 15, I'll frame our investment strategy as we drive profitable growth. In 2026, we expect OpEx growth of approximately 6%, which is a decline from 12% in 2025. As a reminder, our 2026 OpEx includes additional go-to-market spending to support regional growth objectives. Even with these growth investments, adjusted EBITDA margin is expected to increase by approximately 100 basis points year over year. Next, I will highlight our strong capital structure on slide 16. We ended Q2 with $242 million in cash and cash equivalents, and $205 million in debt. Note that our cash balance includes $175 million of marketplace float and reflects the $50 million accelerated share repurchase program we announced last quarter. In terms of operating cash flow, the year-on-year decline for the first half of 2026 was primarily driven by the change in marketplace float. The amount of float on our balance sheet will continue to fluctuate meaningfully based on business trends in the final 2 weeks of each quarter, which has a corresponding impact on operating cash flow. Looking forward, we are expecting to generate positive operating cash flow in the back half of the year, reflecting continued adjusted EBITDA growth and margin expansion. Turning to guidance on slide 17, we are reaffirming our 2026 revenue and adjusted EBITDA guidance, despite uncertain macroeconomic conditions and our expectation that the dealer wholesale market will begin to stabilize in the back half of this year. Now for the details. Third quarter revenue is expected to be $219 million to $225 million, growth of 10% to 13%. Adjusted EBITDA is expected to be $21 million to $24 million, reflecting a 10% to 11% margin. We continue to expect 2026 revenue of $845 million to $855 million, growth of 11% to 13%. Note that full year revenue guidance assumes that our go-to-market investments are expected to drive modestly higher growth in the second half of the year. We continue to expect 2026 adjusted EBITDA to be $73 million to $77 million, growth of approximately 27% year over year. We are expecting 2026 cost of revenue as a percentage of revenue to be modestly higher than in 2025, more than offset by OpEx efficiencies. Lastly, we are expecting non-GAAP OpEx excluding cost of revenue to grow approximately 6% year over year as we continue to drive further cost optimizations. And with that, let me turn it back to George. George Chamoun: Thanks, Bill. Turning to slide 18, I will summarize. We are pleased with our Q2 execution, delivering record adjusted EBITDA of $21 million, while navigating through challenging market conditions. We continue to enhance our technology and operating models, ultimately making us more resilient. We are attracting new dealer and commercial partners to our marketplace and expanding our addressable market, which positions ACV for attractive growth as market conditions improve. We are delivering on an exciting product roadmap, powered by ACV AI to further differentiate ACV and drive operating efficiencies. With ViPR now available and our commercial offering ready, we are entering an exciting new phase of growth. We are focused on achieving strong adjusted EBITDA growth and delivering on our mid-term targets that we believe will drive significant shareholder value. We are committed to achieving these results while building a world-class team to deliver on our goals. Before we begin the Q&A session, I would like to thank Bill for his partnership and the contributions he's made during his tenure as CFO. He has been instrumental in our evolution, supporting the company through its IPO and scaling ACV into the industry leader we are today. We wish him the best in his next chapter. I'm also very pleased to welcome Tim into his new role of CFO. Tim is exceptionally well-suited, bringing proven financial acumen and a deep understanding of ACV's strategy, operations, and growth opportunities. He has played a pivotal role in shaping our financial strategy and communicating our vision to the investment community. We are confident he is the right leader to help advance our strategy to create value for shareholders. In turn, I'll turn it over to Tim so he can share closing thoughts. Timothy Fox: Thank you, George. Look, I'm very honored to be named CFO and to continue working with you and the ACV leadership team to further propel our growth trajectory and build on a really strong foundation. There's really 4 key themes that I'd like to stress. One, our business model continues to deliver with adjusted EBITDA per unit setting a new record in the quarter. Secondly, our new field investments are beginning to pay dividends. If we look at the 5 emerging regions where we've leaned in mostly on go-to-market capacity, we delivered mid-teens unit growth in the second quarter. It's starting to really pay off. Thirdly, ViPR is at an exciting inflection point as we begin to secure commercial agreements and scale production to support strong growth in 2027. And lastly, our differentiated commercial strategy is gaining real traction with major commercial consignors, and we're confident it will be another meaningful growth driver going forward. And lastly, of course, I'm supported by an incredible team here at ACV and look forward to executing on our strategy. With that, I'll turn the call over to the operator to begin our Q&A session. Operator: [Operator Instructions] Our first question comes from Rajat Gupta with JPMorgan. Rajat Gupta: I wanted to wish Bill best of luck and also congratulate Tim on the appointment. I look forward to working with you more closely. So maybe just on the quarter, it looks like you beat EBITDA numbers slightly. You're reiterating the full-year EBITDA guidance, revenue guidance, but OpEx was lowered and I'm curious if you could help understand the moving pieces there and why gross margins are trending lower, if you can help clarify that, and I have like a quick follow up. George Chamoun: Sure, Rajat, I'll start and then I'll have Tim chime in a little bit more. So really, we're really showing commitment to hitting our EBITDA numbers regardless of all the macro challenges, regardless of whatever is going on. We mentioned that there was a different conversion rates. But even with some of these challenges, you're just seeing strong execution. And we've been really informing our investors that revenue margin has changed a little bit over time, but EBITDA is growing. And I think also Bill shared on the call that in our largest regions, we hit all-time highs in EBITDA per unit. So very strong business model, very strong management from an overall OpEx perspective, you are starting to see AI help us become more efficient. So lots of benefits over here, but Tim, any more you wanna chime in? Timothy Fox: Yes, I think that covers it. We mentioned revenue margin is compressing a little bit more than we had originally thought. But that's being more than offset by OpEx efficiencies. And given the current market headwinds, we really just want to be prudent about our cost structure and continue to drive a focus on the adjusted EBITDA expansion. Rajat Gupta: Got it. Yes, I just wanted to follow up on that philosophy. I know, George, we had this conversation like a few quarters ago on an earnings call around this philosophy on EBITDA versus maybe going for growth. I mean you clearly have a competitor who is scaling pretty rapidly. It's a big TAM. Why wouldn't you prefer to accelerate some of the investments around go-to-market to maybe just target growth a little more aggressively? And just on a related point, you know, would the company still be open to partnering with a strategic partner in order to maybe just help accelerate those investments, if that is a philosophy you're leading with to protect EBITDA right now. George Chamoun: Yes, I think, Rajat, thanks for asking. I think this might help clarify. 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. And Tim shared in his remarks that in a handful of our regions, we really grew well year over year. So, we look at the overall expense envelope, we will have more salespeople across ACV out in the field selling. You know, we -- 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. So there will be more people out there selling. There will be more inspectors out there in the market hitting the market. So year over year, you'll see increase in inspectors. You'll see an increase in salespeople, but in other parts of the organization, we needed a little bit less folks on some of the other roles here. So what you saw here on our overall expense, we are a lot more efficient leveraging AI. We are a lot more efficient in producing -- building software. We're seeing us just be overall leveraging the benefits of scale. So, but yes, to your point, we are definitely leaning in more on the sales between now and the end of the year. We do think we will have our unit number will look better in the back half of the year is sort of our beliefs, and we're out there going to execute on that. On your other point, I think talking about strategic partners and things like that on a public call, I don't think this is the right time for that. But we -- yes, no comment on that. But I would say on these other efforts, Rajat, we're out there. We're feeling very good about these incremental investments we're making in the field. If you go to our website right now, you'll see we're out there recruiting for a bunch of roles. And so far, so good. Operator: Our next question comes from Bob Labick with CJS Securities. Bob Labick: Super sorry about that. I'm not in my office, so I'm clearly confused here. Anyway, congrats to Tim. And Bill, it's been a real pleasure working with you, so good luck going forward. I appreciate you guys taking the call for my questions. I wanted to kind of dig in on the last topic we were just talking about, the number of VCIs and territory managers kind of added. You talked about, you know, by year end you'll have 15% to 20% more of TMs and you'll be adding the inspectors as well. Where do you stand? Walk us through the ramp for these people. Like, how much of the benefit has been seen so far or when does that benefit of this hiring kind of show up in the numbers, not the P&L, not their costs, but in the sales numbers and in the units and things like that. George Chamoun: Yes, thanks, Bob. I'll try to go a little bit deeper into this since we've had multiple questions. So one is we're doubling down by not only having our traditional territory manager role, but we're also adding in very focused sales executives who are just opening up new rooftops. We found that as an additional area of need. As we grow out there in the field, many of our territory managers who are selling 500 to 1,000 cars a month, well, they end up, at the end of the day, spending a lot of their time farming and a little bit less hunting. So we did some work across the country opening up some sales roles and we're finding that to be a help. So the role of the territory manager, the role of these new sales executives collectively are getting us more touch points with dealers. And between the 2 of them, the expansion of the 2, we believe we're going to have a back half of the year that's going to give us the growth that we need. So was there a second question there? Timothy Fox: Yes, I mean, just to follow up and put the final point, just to reiterate a comment I made towards the end of the prepared remarks. Bob, we talked earlier in the year about basically 5 or 6 emerging regions that we needed to get a little bit more field capacity out there, including VCIs. And so what I shared was that in 5 of these regions where we really leaned in quite a bit on go-to-market investment, we have mid-teens growth. Now, granted, some of them are on the smaller side of the region, but some of them are still growing at a really, really nice pace. We had one that grew in the 30s. So I'd say it's starting to show up in certainly some of these emerging regions. We are clearly expecting it to pick up in the third quarter and then the fourth quarter, as you can infer from our guidance. So that's really kind of a back half story and certainly into '27. Bob Labick: Okay, great. And then just as it relates to the ViPR rollout, can you kind of remind us your goal for where you'll end this year with units out there? And then really the bigger point is the acceleration in '27, and if you're set to bring that on, and if there's any goals for the number of units that'll be rolled out in '27. George Chamoun: Yes, certainly. So the feedback has been tremendous. We mentioned on the call that of the top 50 dealer groups, over 50% of them today are in some type of significant conversation with us or either already ordered ViPR or about to order ViPR. So we're feeling really good about the pipeline that's developing. What we said on prior calls is that we are building over 100 of them this year, and we're starting to deploy those units. Some dealer groups have ordered 7, some dealer groups have ordered 20, they're all different sort of stages of ordering ViPR. The business model is both a subscription model and also a commitment for wholesale, where they start to commit to selling some wholesale volume with ACV. So there's sort of 2 benefits of the business model. Next year, although it's obviously a little early now, but I would say our goals are over 500 units. Next year, I don't know, it could be significantly more than that. But it's still early. I would say it's going to be a big number for us. With the amount of enthusiasm we have right now, I don't know if it could be 1,000 units, who knows. But it's going to be over 500, it's going to be out there. We're going to listen to our customers. And if they want us to build a lot of these, which it looks like they do, we're just going to build, go out there be the leader of the category overnight. Operator: Our next question comes from Andrew Boone with Citizens. Andrew Boone: I wanted to talk about macro and just the conversion rate issues that you guys saw in the quarter. Can you unpack that and then just be very specific about kind of the stabilization that you guys talked about for the guidance for the back half? Is that an improvement from current levels or what exactly does stabilization mean? And then on the commercial opportunity, it would be great to just understand what you guys are seeing today. What is attracting kind of new, large consignors to the marketplace? And what has to take place for this to be a larger portion of the business on a go-forward basis? George Chamoun: Yes, first on the price disconnect between sellers and buyers. What was it, 500 basis or 600 basis points? Timothy Fox: 600 basis points impact on unit growth. George Chamoun: Yes, 600 basis points impact. So it was a -- why would this happen is, many of you have read that used car values continue to go down. And as these used car values go down, sellers are asking for more than the buyers are willing to pay. But this dislocation is not new to us. We've seen in the past, it's typically temporary, and I'll tell you why we believe it's temporary. Dealers aren't here to collect cars on their lots. These values are going down. They're paying floor plan fees, and they got to sell these cars. So we do think there will be a shift back to wholesale and being serious about wholesaling these vehicles. So we feel good that we're out there. We're reaching all-time highs, the number of dealers we're out inspecting cars with, number of sellers, number of touch points. So we really had the listings number coming into the last quarter, we would just have a little bit higher conversion rate. We would all have been jumping up and down. And this usually corrects itself. Anymore, Tim, you wanna add in? Timothy Fox: Yes, just to emphasize the point about listings, we actually nailed the forecast with listings, which in this kind of market is a real testament to the team, the growing team out there, the kind of value that we're bringing. We did mention we have record number of sellers and buyers. So that top of funnel momentum has been great and it's very important. You get about a 300 to 350 basis point contraction in the conversion rate for the quarter. Unfortunately, it has a pretty dramatic effect on units. But again, as George said, we've seen this playbook before. It's going to be temporary. It's self-correcting over a month or 2 typically. And so we do expect the market will be better, certainly from a conversion rate perspective. And from a year-over-year growth perspective, the comps actually get a little bit easier in the back half. So whether they're flat to maybe just slightly down, but definitely better than we saw in June was down 6%. July just came out, that was down 8%. George Chamoun: Double down on that. That's dealer wholesale. Timothy Fox: Dealer wholesale, right. George Chamoun: Yes, So this is third -- Tim is speaking to third-party data from NAAA, which said dealer wholesale was down 8%. Timothy Fox: In July. Yes. So I think the direct reflection of that price dislocation out there. But we do certainly expect the market to be at least supportive in the back half and not be a continued headwind like this. Andrew Boone: Anything on commercial? George Chamoun: Oh, that's right, your other question. Commercial has been very exciting. I should have led with that question. We've had a great few months in commercial. We've got some of the largest fleet companies starting to sell cars. At least 2 of the big guys are starting to sell cars on our platform, which is very exciting, important vehicles because the buyers love these cars, great diversification of our marketplace. So we've had further momentum in the repo category, further momentum in -- across the board, both upstream and downstream. So what am I threading here, Tim? Timothy Fox: I'd say that we are expecting, to your question about growth, we are expecting commercial volumes to begin to contribute a bit more meaningfully in the back half, particularly in the fourth quarter. George Chamoun: But the software release that Bill here was talking about for too many quarters is now live and out there operationalizing and we're selling cars. So this really unique integration we've done with AutoIMS, where we can inspect a car upstream at a fleet location, you've heard me talk about assessing what type of reconditioning needs to be done or not with that vehicle. It's a very unique integration we've done. We can now go upstream to a fleet location, inspect the car, not even have to send it downstream. That software now works. We're out there leveraging it for the market first time over the last -- really this past period. So we're feeling really good about it. And then also another important milestone is we're opening up our second greenfield, Chicago, over the next 30 days. So we're very excited. As you know, we've opened up one in Houston, and now this one we're opening up in Chicago. Great market opportunity. Looking forward to expanding both our upstream and downstream opportunities. Operator: Our next question comes from Eric Sheridan with Goldman Sachs. Eric Sheridan: I'll echo the thanks to everything for Bill and congrats, Tim, on the new role. Look forward to keep working with you and with the new responsibilities. I'll have to ask a capital allocation question. Bill's gotten too used to me asking it over the years. You've been returning capital, but you're also trying to grow the business and especially the mix of value-added services. How are you guys thinking about the various return profiles of returning capital against where the stock is today as opposed to the potential return profile that presents itself over maybe a longer duration period of time if you continue to invest in the business and keep driving some of the key platform initiatives, especially value-added services forward and just how you think about striking that right balance in the years ahead. William Zerella: Tim or George, you want me to take this one? George Chamoun: Why don't you start since he asked you and then Tim can chime in. Sure. William Zerella: Yes. Yes, and thanks, Eric. So, look, we still have a really strong liquidity position. We had about $250 million in the bank at the end of the quarter, and that's after dispersing the $50 million for the ASR, which we're progressing on. So, you know, we're -- the way we think about this is we are continuing to invest in the business. We think it's the right level of investment. As George mentioned, we're starting to get much more efficient on the OpEx side. And that's why we exceeded the high end of our EBITDA guidance for the quarter despite being towards the lower end for revenue. So we think we've got the right balance in place. You know, the company is continually looking to make sure we maximize our investments as needed to drive share gains and unit growth. And as Tim said, that is starting to show up in a number of regions where we can already start to see some of that improvement in unit volume. So, I think we've got the right balance today. But at the same time, we made the decision to buy back some stock because we thought the company was undervalued and wanted to take advantage of that and put more shares back into the treasury. So I don't know, George or Tim, if you wanna add something to that. Timothy Fox: No, I think that covers that. Maybe just one point about kind of incremental margins. We're obviously the -- incremental margin profile, EBITDA margin for this year is basically flattish. That's really reflecting that $10-ish million of investment into the field capacity. If you kind of pro forma that out, incremental margins would have been around 30% from an EBITDA perspective. We do expect to start driving much more material incremental margins heading into 2027. A lot of investment being done this year. ViPR investment will continue, but we've been plowing a lot of investment there. The commercial software, as George mentioned, is largely complete from an upstream perspective. So we've got a lot of opportunity for leverage in this business going forward. Operator: Our next question comes from Chris Pierce with Needham & Company. Christopher Pierce: If I just kind of look at the model, I guess I just want to understand, if we look at Marketplace services revenue per unit, I mean, it's very possible I'm doing the math wrong, but it seems like there was a hefty jump up there. Is that just increased transport penetration and increased capital penetration, or was there something else like pricing action within the quarter there? George Chamoun: Yes, I think one is, Chris, as we've talked about in the past, that we've had -- we've been very successful in time getting a great take rate for transport, consistently growing over the years. There's a big reason why to take ACV Transport. The buyers not only get a commitment on when vehicles are delivered, which is a huge advantage, but also they get additional days for arbitration and other rights. So taking ACV Transport has been a great advantage. ACV Capital, we also mentioned on a call that the actual take rate of ACV Capital has gone up. We've done a great job of both growing ACV Capital from a take rate perspective, but also being disciplined on our approach of really backing the right dealers and having all the right process behind the scenes. So both teams -- and one more thing on transport, is ARPU, it did increase in the quarter. As you know, diesel prices did go up. And, you know, I don't think everyone in the industry necessarily did as well as we did on being disciplined on how do you handle the price changes and still hitting your margin objectives. But with the use of AI and really an incredible team here, we were able to absorb the challenges with diesel prices changing, make sure we're charging the right amount per move. So I would say all in all, just incredible execution, both on the transport team and the capital team. Christopher Pierce: Okay. Perfect. And then the 6% OpEx growth, the new guidance there, should we expect that to be higher than 2027 because of all these hirings you're making in ops and tech and that's sort of for SG&A and that this year you're not -- you're able to sort of squeeze down expenses because of the hiring that's happened midway through the year and you'll have a larger expense base next year on top of the additional hiring you're doing right now or you know, kind of how do you balance that? George Chamoun: I think more to come as a new norm, but I would say AI efficiency here is significant and we can have a larger sales team, field team, while also having additional efficiency across a broader base of ACV. So if you think about in context, there's several thousand teammates here across the board in a lot of different roles. We had several parts of our company that as we've grown, we haven't had to hire additional folks because of the use of technology, because of the leveraging AI. So, Chris, I think more to come, but generally I would say you're starting to see the new norm of a much more effective company really not needing as much personnel as we're growing. Christopher Pierce: Okay, and then just one last one for me, I know we used to talk about the SaaS and data business more and, you know, ACV MAX and things like that, but it seems like ViPR is sort of still in the spotlight. Should we think about that inventory management system and sort of helping dealers what to source, how much to pay for it? Is that still sort of, I mean, I guess, is that less of a priority? Is that a space that's getting more crowded and lead gen players try to get into that space? I just kind of want to take your temperature there. George Chamoun: Yes. Chris, I'll answer that in 2 ways. One, please go and watch the video that Tim posted and the team posted. It's a recent dealer in the Brooklyn area who has one of the more successful dealerships, like one of these malls where you have a bunch of rooftops. You've got to watch this. And what's fascinating about how he articulates on how and why he's using ClearCar, how and why he's using ACV MAX, and then why ViPR just doubled down on that more. And when you look at how exciting this is, he talks about how the only way for him to get to his objectives of selling a 1:1 new-to-used ratio is to actually be able to appraise every vehicle. So really listening to the words he's talking about on this video, how he's leveraging now ViPR to operationalize what he was already using ClearCar for. We also mentioned on the call that our top 100 customers using ClearCar have doubled their wholesale volume in ACV. So basically, we started to think about why it's a win-win. They're buying more cars from consumers. And if we can get 10 incremental or pick a number of more wholesale cars per month because of this product suite, we've already seen this with ClearCar. So we're very confident that the bundling and the integration of MAX, ClearCar, and ViPR together offers tremendous value. We have hardware companies we compete with, they don't have this benefit. We have software companies we compete with, they don't have this benefit. Unless you have this total package, you can't appraise cars quickly, on the fly, and do the things you're going to hear about in this video. So we'll kind of keep sharing with investors what we're up to. But if you kind of think about the new ACV, this is not just ACV as a wholesale company, a standalone one-trick shop here, this is going to be the leading AI automotive company in the world. That's what we're going for. And when you watch these videos and you hear it from the voice of the customer, you can see that we are way ahead of competition on helping them leverage AI, streamline buying cars out of their service drive, have the right inventory. And at the end of the day, make the right decision. So, yes, we feel very good in where we're at. Operator: Our next question comes from Naved Khan with B. Riley Securities. Ryan James Powell: This is Ryan Powell on for Naved. Wanted to ask a couple on ViPR. So first off, congrats on the launch of commercial availability. So of adopting dealers to date, how has usage trended? And, you know, we understand there are multiple benefits outside of just units, but any insight into how many incremental vehicles dealers are acquiring per month with ViPR. And then also second, the share of dealers that are opting for the wholesale commitments versus paying the flat fee. George Chamoun: Yes, certainly. So the types of things we're hearing from dealers are, one, and you'll see this in the video, they're going from appraising some of the vehicles that come to their rooftop to appraising all the vehicles. So that's one theme. That's a huge difference. Some of the feedback we've heard are dealers are buying 20 more cars a month. One told us 50 more cars a month. So these are big numbers. If they start acquiring 20, 30, 40, 50 more cars a month from consumers, there's 1 or 2 that are saying even bigger numbers. I don't want to put that out in the ecosystem yet because we'll see what the average ends up being. So, one, yes, dealers are buying more cars. And what else they're seeing is they're also catching potential issues. Some of the other customer testimonials you'll see out there, dealers found issues on the undercarriage and other related issues where they would have bought a car for the wrong amount of money because of issues with the vehicle. So catching issues. Starting to upsell consumers on opportunities within their service department. Like, for example, a car may need tires. They no longer need a human to go around and actually measure the tires. We can automatically detect if the vehicle needs tires. So, starting to do those opportunities. So, all in all, dealers are seeing this prove out. What they're asking for, which we also mentioned on the call, is better integrations with the third parties. Just to, and what you'll hear is, and what we're hearing directly, is there are a handful of vendors who run the service department software for the dealers. Those vendors are all key integrations. These are companies like myKaarma, Takion, and others. We have integrations going on with several of these vendors. They don't want ViPR just running independently. They want it to be totally seamless and we are in process with just about almost all of the leading software vendors today so getting those done between now and the end of the year will be the key to us seeing many hundreds of these being delivered next year and that's what we're working on. Ryan James Powell: And then I had a follow-up on no-reserve sales. I'm not sure if I heard a portion of sales that were guaranteed. I'm wondering if you could quantify that, and then also potential long-term mix. George Chamoun: Yes, we grew no-reserve quarter over quarter. We've been growing it reasonably well. What you saw is the overall units that were sold in the no-reserve were in the sort of mid-20% range. So growing it well, we see this probably as a long term, somewhere around 30% of our overall units, could be more. But somewhere in that range you'll see no-reserve continue to go up over the next few years is the thought process here and continue to be a differentiator. Operator: Our next question comes from John Babcock with Barclays. John Babcock: I guess just first of all, are you able to quantify the impact of the higher diesel cost in the quarter, recognizing it was offset by pricing? George Chamoun: Do you have that? Timothy Fox: We don't. We can follow up with you on that. I'd have to unpack that for you. John Babcock: Okay. And then second, just on the rental car side of things, because you did talk about adding some or potentially adding some business here, I was just wondering how we should think about quantifying that on a go-forward basis. I don't know the extent to which it's meaningful or not meaningful, but any commentary there would be useful. George Chamoun: At this point, first and foremost is we've got agreements with most of the top rental car companies. We're starting to sell units. We're starting to sell units both upstream and downstream. So If you kind of look at this as step 1 of the process is live. We're doing these integrations. We're starting to become another strong partner for the rental car companies. But I don't have any numbers to share at this time. But I'm happy that we're getting these agreements in place. I'm happy we're starting to sell cars with most of the leading rental car companies. John Babcock: Okay. And then just my last question, I was wondering if you might be able to provide a number around how much you're investing on go-to-market spending this year. I recognize the efficiencies that you're trying to gather through on the OpEx side of things, but that might be a useful number, I think, for all of us. Timothy Fox: Yes, John, think in terms of around $10 million for the full year on various go-to-market roles, including VCIs and some of the sales roles that George was highlighting earlier. Operator: Our next question comes from Jeff Lick with Stephens Inc. Jeffrey Lick: Bill, best of luck in your new role, and Tim, congrats very much. I just want to drill down on the conversion issue. You talked about the listings being there, but like a 600 bps spread. I'm just curious if you can kind of drill into, is it the seller that's pricing too high, the buyer being a little stingy, and to the extent units don't sell and you had a listing, presumably if it's not selling in your marketplace at that price, it's probably not going to sell in anyone else's. But where are these units going? Are you able to track it to maybe, help you out with how to fix the conversion issue? George Chamoun: Yes, Jeff, we have ACV MAX, which is a subset of dealers. So we see how many cars dealers are wholesaling, how many they're listing. We also can tell how many of them, are they really serious about wholesaling or they are still debating between wholesaling and retailing. So, I've also seen that with dealers over the past few weeks that they're taking our advice more often, meaning the sellers. So I'm starting to see that dealers are starting to change. It's something that we've seen over time. We're not the only ones that's reported this. Black Book has reported this. NAAA has reported this. So we're not the only ones, but at the end of the day, you do need to consult the dealers on helping them understand that used car values have gone down and continue to go down. But again, we've seen this before. Hate talking about it, but it is what it is. It's sort of, we've seen this. You go out there, you lean in, and my team's out there leaning in, educating dealers, and then it typically, over the course of a few months, addresses itself. Jeffrey Lick: And then a follow up on the 5 markets or the 5 or 6 markets that are seeing mid-teens growth. I wonder maybe if you could just elaborate on what you're seeing there that you might be able to apply elsewhere. I mean, are some of these just smaller markets? So it's the law of smaller numbers putting up a big percent or what are some of the things you're learning in these 5 markets that are seeing the growth that you could apply to some of your other markets. Timothy Fox: Yes, Jeff, it's Tim. So I'd say that there are several markets that are a little bit smaller. So it's the law of small numbers. There are actually a couple markets here that are decent size, but we still think of them as emerging markets. At the end of the day, it's about getting in front of dealers. It's about pitching the story, building relationships, test driving the platform, showing the value that we can deliver, and frankly, we just need to get more bodies in the field. And dealer visits were another record in the quarter. So this is -- there's still some ramping of that capacity that we'll see into Q3, into Q4, but very pleased with the progress there. Operator: Our final question comes from Josh Beck with Raymond James. Glenn Shell: This is Glenn Shell on for Josh Beck, and I'll just keep it at 1 question. First, congrats, Tim and Bill we'll miss you. But confirming that I heard correctly that you intend to build 500 to 1,000 units of ViPR in 2027. Is that supposed to be 1 ViPR per rooftop? And then what is that going to take to scale production? And how much investment is required to hit that 1,000 units next year? George Chamoun: Yes, so just to be clear, I first said 500, and then I think I also said it could be 1,000. But my simple answer is we haven't done next year's plan yet. Like, we're still working it. The demand is high. I think that at this point, I'm looking around the room with my team, I think the demand could be over 500 units already, but we're still a little bit early. My team has told me that the demand could be as much as 1,000, but we don't have, just so I'm clear, we don't have 500 to 1,000 folks rooftops right now that are ready to sign a contract. This is early in the process. We just announced general availability today. I do want to try to answer some of these questions instead of just saying no answer, but there's tremendous enthusiasm. So, trying to give you all a range. And then your other question is could there be more than 1 per rooftop, there is one of the top 10 dealer groups that has ordered a number of ViPR and they are actually doing 2 per rooftop. So I haven't seen that as often. Another top 5 dealer group is doing 1 per rooftop thus far and it's going to do around 20 of them. So we're not yet seeing a theme of whether there's going to be 2 or 1 per rooftop, we're seeing the part of this is you first got to get out of your beta period, which we just did, and kind of get to really commercial availability. We just started to put these contracts in front of customers. We're seeing fantastic feedback. And then on pricing and business model, it's up to the dealer if they're going to pay a larger subscription or give us more wholesale cars. And so the pricing for their subscription goes down as they wholesale more cars with us. So it's a total win-win for both companies. But you got to all think about this. We are solving their #1 problem, which is sourcing more cars. So when you hear us so enthusiastic right now, and you hear the customer so enthusiastic, it's because we're not just solving a little pain point like who's my auction? That's just one pain point. This is how am I going to source more cars as the world has changed? That's a huge problem for these dealers. So we are positioned extremely well to go out there and add value to these dealers. I think we will be rewarded by, today we are the largest dealer in digital wholesale market. I think not only will we remain, but it's going to give us an opportunity to add more value than anyone else. Operator: We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Tim Fox for closing comments. Timothy Fox: Thank you, Dylan. Thanks, everybody, for joining and all the kind words on the call today. We look forward to engaging with you on the conference circuit, hopefully this quarter. And again, I really appreciate your support and interest in ACV. I hope everybody has a great evening. Thank you. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in ACV Auctions, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ACV Auctions wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ACV Auctions (ACVA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered record revenue of $214 million, representing 10% year-over-year growth despite a 6% contraction in the broader dealer wholesale market. Attributed unit growth outperformance to increased field capacity and the expansion of the 'no-reserve' offering, which provides 100% conversion by removing seller market risk. Identified a 600 basis point headwind to unit growth caused by a price disconnect between sellers and buyers as used car values declined in June and July. Leveraged AI-driven operational efficiencies to achieve record adjusted EBITDA per unit, increasing 11% year-over-year, while total adjusted EBITDA reached $21 million. Reported that top 100 ClearCar customers doubled their wholesale volumes on ACV, validating the strategy of using consumer sourcing tools to feed the marketplace. Expanded the commercial wholesale segment by securing a top 5 fleet consignor and integrating with a large captive finance off-lease company. Successfully transitioned the CFO role from Bill Zerella to Timothy Fox, emphasizing continuity in financial strategy and operational focus. Reaffirmed full-year 2026 revenue guidance of $845 million to $855 million, assuming market stabilization and conversion rate recovery in the second half. Expects to deploy over 500 ViPR units in 2027 following its official commercial launch, targeting the top 50 dealer groups to automate service lane vehicle acquisition. Anticipates 2026 OpEx growth to moderate to 6% (down from 12% in 2025) as AI-driven efficiencies offset a $10 million incremental investment in field sales capacity. Projects positive operating cash flow in the second half of 2026, driven by adjusted EBITDA margin expansion and stabilized marketplace float. Plans to open a second greenfield remarketing center in Chicago within 30 days to support both upstream and downstream commercial wholesale opportunities. Cost of revenue as a percentage of revenue increased 300 basis points due to a higher mix of no-reserve sales, which carry higher costs but are accretive to EBITDA. Marketplace float fluctuations impacted first-half operating cash flow, though management expects this to normalize based on end-of-quarter business trends. Diesel fuel price volatility was successfully managed through AI-optimized transport pricing, maintaining margins within mid-term targets. Management flagged a temporary compression in conversion rates below expectations during June and July due to macroeconomic uncertainty. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is increasing field sales headcount by 15% to 20% by year-end while simultaneously reducing costs in other areas through AI automation. The strategy focuses on 'profitable growth,' using technology to scale without linear increases in personnel. The ViPR model combines a subscription fee with wholesale volume commitments; subscription costs decrease as dealers list more cars on ACV. Early feedback indicates dealers are acquiring 20 to 50 incremental cars per month from consumers using the tool. Growth in transport and capital attach rates (high teens) drove service revenue up 17% year-over-year. Management noted that their most profitable regions are now delivering over $300 in EBITDA per unit, providing a blueprint for emerging markets. New software integrations with AutoIMS allow for upstream inspections at fleet locations, reducing the need to move vehicles to physical auctions. Commercial volumes are expected to contribute more meaningfully to the top line starting in the fourth quarter of 2026.

Interested in ACV Auctions Inc.? Here are five stocks we like better. Strong Q2 performance: ACV Auctions reported revenue of $214 million, up 10% year over year, while adjusted EBITDA reached a record $21 million and exceeded the high end of guidance despite a 6% decline in dealer wholesale volumes. Marketplace conversion pressure: Lower used-car values widened the gap between seller expectations and buyer pricing, reducing conversion rates and limiting unit growth. ACV is expanding its field sales and inspection capacity, particularly in emerging regions, to support future growth. Growth initiatives and outlook: Transportation, financing and no-reserve auctions boosted results, while the company commercially launched its AI-powered VIPER product and expanded commercial remarketing efforts. ACV reaffirmed 2026 revenue guidance of $845 million to $855 million and adjusted EBITDA guidance of $73 million to $77 million. ACV Auctions (NYSE:ACVA) reported second-quarter 2026 revenue of $214 million, up 10% from a year earlier, as the digital automotive marketplace said it continued to gain share despite a weaker dealer wholesale market. Adjusted EBITDA reached a record $21 million, exceeding the high end of the company’s guidance range, while non-GAAP net income was $10 million. Chief Executive Officer George Chamoun said the company’s results reflected execution in a “challenging market environment,” citing dealer wholesale volumes that contracted about 6% year over year during the quarter. ACV sold 211,000 vehicles in the period and said it expanded its dealer partner network to a new record. → MarketBeat Week in Review – 08/03 - 08/07 “We delivered record revenue with adjusted EBITDA exceeding the high end of guidance,” Chamoun said, pointing to field-capacity investments, growing use of its no-reserve offering, and performance from transportation, financing and dealer software products. ACV said auction and assurance revenue, which represented 55% of total revenue, rose 6% year over year to reflect approximately flat unit growth. Auction and assurance revenue per unit, or ARPU, increased 6% to $554. → Quantum Earnings Week: Winners and Losers Are Finally Emerging The company said a gap between seller expectations and buyer pricing contributed to lower conversion rates in June and July. Tim Fox, who was named ACV’s new chief financial officer during the call, said conversion-rate compression reduced unit growth by roughly 600 basis points. He added that the company had forecast listings accurately and reported record seller and buyer activity, but saw conversion rates decline by roughly 300 to 350 basis points during the quarter. Chamoun attributed the issue to declining used-car values, which he said left some sellers seeking prices above what buyers were willing to pay. Management described the effect as temporary and said it expects the market to become more supportive in the second half. Fox noted that third-party data showed dealer wholesale volume fell 6% in June and 8% in July. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War ACV is increasing field capacity, including territory managers, vehicle condition inspectors and sales executives focused on opening new dealer rooftops. Chamoun said the company expects to have at least 15% to 20% more salespeople in the field by year-end, alongside additional inspectors. Fox said five emerging regions where ACV made substantial go-to-market investments generated mid-teens unit growth in the second quarter, including one region that grew in the 30% range. The company expects the hiring investments to contribute more significantly in the third and fourth quarters and into 2027. Marketplace services revenue accounted for 41% of total revenue and grew 17% year over year, driven by ACV Transportation and ACV Capital. The transportation business delivered 125,000 transports during the quarter, with revenue increasing 19%. Chamoun said ACV used artificial intelligence to optimize transport pricing and maintain margins even as diesel prices increased. The company said transportation revenue margin and attachment rate remained in line with its midterm target, while off-platform transportation services continued to gain dealer adoption. ACV Capital’s attachment rate reached a record in the high teens, according to management. The company cited an expanded go-to-market strategy, new product offerings and risk-management process improvements as contributors to the financing business’s performance. ACV also said its guaranteed no-reserve auctions were its fastest-growing marketplace channel. The offering guarantees sellers an outcome, while providing buyers no-reserve auctions. No-reserve transactions represented the mid-20% range of units sold during the quarter, and Chamoun said the company sees the mix reaching roughly 30% of total units over the longer term. The higher mix of no-reserve sales increased non-GAAP cost of revenue as a percentage of revenue by about 300 basis points from a year earlier. However, ACV said the sales generate stronger marketplace liquidity and are accretive to adjusted EBITDA. Adjusted EBITDA per unit rose 11% year over year to a record level, with the company’s most profitable region delivering more than $300 per unit. ACV formally launched commercial availability for VIPER, its AI-enabled solution designed to help dealers acquire consumer vehicles through service lanes, assess vehicles and identify service upsell opportunities. Chamoun said ACV was engaged with more than half of the nation’s top 50 dealer groups through significant discussions, orders or expected orders. The company expects to build more than 100 VIPER units in 2026 and said its 2027 goal is at least 500 units, though Chamoun emphasized that next year’s plan has not been finalized and demand could support a higher figure. Dealer groups have ordered varying quantities, including some with seven units and others with 20 units, he said. VIPER’s business model includes a subscription fee and wholesale-volume commitments. Dealers can reduce their subscription cost by committing more wholesale volume to ACV, according to Chamoun. ACV also discussed its commercial wholesale initiative, which targets upstream and downstream vehicle remarketing. The company recently began remarketing vehicles from a top-five fleet consignor and said it was nearing an agreement with a second large-scale consignor. ACV is also integrating with a captive finance off-lease company and adding another top-four rental-car consignor to its marketplace. Management said the commercial software platform is now operational and that commercial volumes are expected to contribute more meaningfully in the second half, particularly the fourth quarter. ACV also plans to open its second Greenfield remarketing center in Chicago within 30 days, following an earlier opening in Houston. ACV reaffirmed its full-year outlook despite macroeconomic uncertainty. The company expects 2026 revenue of $845 million to $855 million, representing growth of 11% to 13%, and adjusted EBITDA of $73 million to $77 million, or approximately 27% growth year over year. Third-quarter revenue guidance: $219 million to $225 million, up 10% to 13% year over year. Third-quarter adjusted EBITDA guidance: $21 million to $24 million, representing a 10% to 11% margin. Expected 2026 non-GAAP operating expense growth, excluding cost of revenue: approximately 6%. Expected 2026 go-to-market investment: approximately $10 million. The company ended the quarter with $242 million in cash and cash equivalents and $205 million in debt. Its cash balance included $175 million of marketplace float and reflected a $50 million accelerated share repurchase program announced in the prior quarter. ACV said it expects positive operating cash flow in the second half. Chamoun also announced that Chief Financial Officer Bill Zerella is departing, with Fox, formerly ACV’s vice president of investor relations, succeeding him as CFO. Chamoun credited Zerella with helping guide ACV through its initial public offering and scale the business, while saying Fox’s experience with the company’s strategy, operations and financial planning positioned him to lead the next phase. ACV Auctions operates a digital marketplace designed to streamline the wholesale used-vehicle auction process for independent dealerships and larger automotive groups. The platform enables dealers to participate in live, online auctions, submit real-time bids, and access guaranteed-sale programs that reduce the risk of inventory moving. By replicating the dynamics of in-lane bidding in a virtual environment, ACV Auctions connects sellers and buyers across a broad geographic footprint without the need for physical auction attendance. In addition to its core marketplace, ACV Auctions offers a suite of software tools and data-driven services aimed at improving transparency and decision-making in the remarketing process. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ACV Auctions Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Delivered Record Revenue with Adjusted EBITDA Exceeding Guidance Reaffirms 2026 Guidance Second quarter revenue of $214 million Second quarter GAAP net income (loss) of ($8) million Second quarter non-GAAP net income of $10 million Second quarter Adjusted EBITDA of $21 million Reaffirms 2026 revenue guidance of $845 million to $855 million and Adjusted EBITDA of $73 million to $77 million; GAAP net income (loss) of ($49) million to ($44) million BUFFALO, N.Y., August 10, 2026--(BUSINESS WIRE)--ACV (NYSE: ACVA), a leading digital automotive marketplace and data services partner for dealers and commercial clients, today reported results for its second quarter ended June 30, 2026. "ACV delivered solid financial results in Q2-26, reporting another record revenue quarter with Adjusted EBITDA above the high-end of guidance. Results were driven by market share gains in dealer wholesale and strong adoption of our Marketplace Services," said George Chamoun, CEO of ACV. "Traction for our AI-powered dealer solutions remains strong, highlighted by the continued expansion of VIPER with our dealer partners, which we believe creates a powerful new driver of wallet share expansion and unit growth. We also executed on our commercial wholesale strategy by engaging new commercial accounts and gaining wallet share within existing accounts across major captives, banks, fleet companies, and auto finance providers. We believe that along with delivering market share gains in dealer wholesale, ACV is well positioned to expand our TAM and drive sustainable long-term revenue growth," concluded Chamoun. "ACV's second quarter results again reinforce our commitment to delivering profitable growth while investing in our go-to-market team and new growth initiatives," said Bill Zerella, CFO of ACV. "We delivered these results while facing ongoing headwinds in the dealer wholesale market. And, despite the uncertain macroeconomic backdrop we are reaffirming our 2026 revenue and Adjusted EBITDA guidance," concluded Zerella. Second Quarter 2026 Highlights Revenue of $214 million, an increase of 10% year over year Marketplace and Service Revenue of $189 million, an increase of 8% year over year Marketplace GMV of $2.7 billion, approximately flat year over year Marketplace Units of 211,472, approximately flat year over year GAAP net income (loss) of ($8) million, compared to GAAP net income (loss) of ($7) million in the second quarter of 2025 Non-GAAP net income of $10 million, compared to non-GAAP net income of $12 million in the second quarter of 2025 Adjusted EBITDA of $21 million, compared to Adjusted EBITDA of $19 million in the second quarter of 2025 Third Quarter and Full-Year 2026 Guidance Based on information as of today, ACV is providing the following guidance: Third Quarter of 2026: Full-Year 2026: Our financial guidance includes the following assumptions: The dealer wholesale market is expected to stabilize in the back half of 2026. Conversion rates and wholesale price depreciation expected to follow normal seasonal patterns. Non-GAAP Operating Expense (excluding Cost of Revenue) is expected to increase approximately 6% year-over-year. Third quarter non-GAAP net income guidance excludes approximately $18 million of stock-based compensation expense and approximately $3 million of intangible amortization. Full-year non-GAAP net income guidance excludes approximately $63 million of stock-based compensation expense and $10 million of intangible amortization. ACV’s Second Quarter Results Conference Call ACV will host a conference call and live webcast today, August 10, 2026, at 5:00 p.m. ET to discuss the financial results. To access the live conference call participants are invited to dial 877-704-4453 (international callers please dial 1-201-389-0920) approximately 10 minutes prior to the start of the call. A live webcast and replay of the call will be available on the Company’s investor relations website at https://investors.acvauto.com/. Participants are encouraged to join the webcast unless asking a question. About ACV Auctions ACV is on a mission to transform the automotive industry by building the most trusted and efficient digital marketplace and data solutions for sourcing, selling and managing used vehicles with transparency and comprehensive insights that were once unimaginable. ACV offerings include ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, ClearCar, VIPER, and True360. For more information about ACV, visit www.acvauto.com. Trademark reference: ACV, the ACV logo, ClearCar, ACV Max and VIPER are registered trademarks or trademarks of ACV Auctions, Inc. or its affiliates in the United States and/or other countries. All other trademarks referenced herein are the property of their respective owners. Information About Non-GAAP Financial Measures ACV provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that they assist our investors to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results. Non-GAAP Financial Measures Adjusted EBITDA is a financial measure that is not presented in accordance with GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We define Adjusted EBITDA as net loss, adjusted to exclude: depreciation and amortization; stock-based compensation expense; interest (income) expense; provision for income taxes; and other one-time non-recurring items, when applicable, such as acquisition-related and restructuring expenses. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that (1) it does not properly reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (3) it does not consider the impact of stock-based compensation expense, (4) it does not reflect other non-operating income and expenses, including interest income and expense, (5) it does not consider the impact of any contingent consideration liability valuation adjustments, (6) it does not reflect tax payments that may represent a reduction in cash available to us, and (7) it does not reflect other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss and other results stated in accordance with GAAP. Non-GAAP net income (loss), a financial measure that is not presented in accordance with GAAP, provides investors with additional useful information to measure operating performance and current and future liquidity when taken together with our financial results presented in accordance with GAAP. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our continuing operations. We define non-GAAP net income (loss) as net income (loss), adjusted to exclude: stock-based compensation expense, amortization of acquired intangible assets, and other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. In the calculation of non-GAAP net income (loss), we exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period. We exclude amortization of acquired intangible assets from the calculation of non-GAAP net income (loss). We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the underlying intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition. We exclude contingent consideration liability valuation adjustments associated with the purchase consideration of transactions accounted for as business combinations. We also exclude certain other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses, because we do not consider such amounts to be part of our ongoing operations nor are they comparable to prior period nor predictive of future results. Non-GAAP net income (loss) is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that: (1) it does not consider the impact of stock-based compensation expense; (2) although amortization is a non-cash charge, the underlying assets may need to be replaced and non-GAAP net income (loss) does not reflect these capital expenditures; (3) it does not consider the impact of any contingent consideration liability valuation adjustments; and (4) they do not consider the impact of other one-time charges, such as acquisition-related and restructuring expenses, which could be material to the results of our operations. In addition, our use of non-GAAP net income (loss) may not be comparable to similarly titled measures of other companies because they may not calculate non-GAAP net income (loss) in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider non-GAAP net income (loss) alongside other financial measures, including our net loss, and other results stated in accordance with GAAP. Information About Operating and Financial Metrics We regularly monitor the following operating and financial metrics in order to measure our current performance and estimate our future performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used by other companies. Operating and Financial Metrics Marketplace GMV - Marketplace GMV is primarily driven by the volume and dollar value of Marketplace Unit transactions. We believe that Marketplace GMV acts as an indicator of our success, signaling satisfaction of dealers and buyers, and the health, scale, and growth of our business. We define Marketplace GMV as the total dollar value of vehicles transacted within the applicable period, excluding any auction and ancillary fees. Marketplace Units - Marketplace Units is a key indicator of our potential for growth in Marketplace GMV and revenue. It demonstrates the overall engagement of our customers and our market share of wholesale transactions in the United States. We define Marketplace Units as the number of vehicles transacted within the applicable period. Marketplace Units transacted includes any vehicle that successfully reaches sold status, even if the auction is subsequently unwound, meaning the buyer or seller does not complete the transaction. These instances have been immaterial to date. Marketplace Units excludes vehicles that were inspected by ACV, but not sold. Marketplace Units have generally increased over time as we have expanded our territory coverage, added new dealer partners and increased our share of wholesale transactions from existing customers. Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our financial guidance for the third quarter of 2026 and the full year of 2026. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. The forward-looking statements contained in this presentation are based on ACV’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances that may cause ACV’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. These risks and uncertainties include, but are not limited to: (1) our history of operating losses; (2) our limited operating history; (3) our ability to effectively manage our growth; (4) our ability to grow the number of participants on our marketplace platform; (5) general market, political, economic, and business conditions; (6) our ability to acquire new customers and successfully retain existing customers; (7) our ability to effectively develop and expand our sales and marketing capabilities; (8) our ability to successfully introduce new products and services; (9) breaches in our security measures, unauthorized access to our marketplace platform, our data, or our customers’ or other users’ personal data; (10) risk of interruptions or performance problems associated with our products and platform capabilities; (11) our ability to adapt and respond to rapidly changing technology or customer needs; (12) our ability to compete effectively with existing competitors and new market entrants; (13) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the United States and other jurisdictions where we elect to do business; (14) the impact that economic conditions could have on our or our customers’ businesses, financial condition and results of operations; and (15) the impact of such economic conditions in the wholesale dealer market included in our guidance for the third quarter of 2026 and full year 2026, and the related impact on the performance of our marketplace and our operating expenses, stock-based compensation expense and intangible amortization. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission ("SEC"), including in the section entitled "Risk Factors" in our Form 10-K for the year ended December 31, 2025, filed with the SEC on February 23, 2026. Additional information will be made available in other filings and reports that we may file from time to time with the SEC. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. The following table presents a reconciliation of non-GAAP net income to net loss, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented (in thousands): The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented (in thousands): The following table presents a reconciliation of non-GAAP net income (loss) to GAAP net loss, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented (in millions): View source version on businesswire.com: https://www.businesswire.com/news/home/20260810243859/en/ Contacts Investor: Tim [email protected] Media: Maura [email protected]

ACV Auctions Inc. (ACVA) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.00%. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.05, delivering a surprise of +66.67%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. ACV Auctions, which belongs to the Zacks Auction and Valuation Services industry, posted revenues of $213.94 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $193.7 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ACV Auctions shares have lost about 7% since the beginning of the year versus the S&P 500's gain of 13.3%. While ACV Auctions has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ACV Auctions was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $223.2 million in revenues for the coming quarter and $0.18 on $848.38 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Auction and Valuation Services is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Copart, Inc. (CPRT), another stock in the same industry, has yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of -4.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Copart, Inc.'s revenues are expected to be $1.14 billion, up 1.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ACV Auctions Inc. (ACVA) : Free Stock Analysis Report Copart, Inc. (CPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ACV Auctions delivered a positive first quarter, with management attributing the momentum to market share gains and strong adoption of its value-added services, despite a challenging used car wholesale environment. CEO George Chamoun highlighted that expanded field capacity and wider penetration of no reserve auction offerings were key factors behind the company’s growth. Additionally, the company’s transport and financing arms saw robust performance, while early results from new AI-driven products supported overall execution. Even as severe weather weighed on dealer volumes in some regions, management credited ongoing investments in technology and operational improvements for driving resilience. Is now the time to buy ACVA? Find out in our full research report (it’s free). Revenue: $204.2 million vs analyst estimates of $201.9 million (11.8% year-on-year growth, 1.1% beat) Adjusted EPS: $0.04 vs analyst estimates of $0.03 (in line) Adjusted EBITDA: $17.1 million vs analyst estimates of $14.52 million (8.4% margin, 17.8% beat) The company reconfirmed its revenue guidance for the full year of $850 million at the midpoint EBITDA guidance for the full year is $75 million at the midpoint, above analyst estimates of $74.33 million Operating Margin: -4.5%, up from -7.9% in the same quarter last year Market Capitalization: $1.02 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Bob Labick (CJS Securities) asked about progress in hiring territory managers and inspectors. CEO George Chamoun detailed successful recruitment of experienced talent and noted increased operational efficiency, while CFO William Zerella highlighted ongoing benefits to cost structure. Rajat Gupta (JPMorgan) questioned why share gains did not accelerate further despite strong conversion rates in March. Chamoun explained that severe weather in key Northeastern markets limited some gains, but growth was stronger in unaffected regions like Texas and California. Andrew Boone (Citizens) inquired about the VIPER rollout and future scaling expectations. Chamoun said hardware and software are performing well, with 150 units planned for this year and broader scaling scheduled for next year after integration with dealer systems is complete. Naved Khan (B. Riley Securities) asked about embedded unit growth in guidance and the potential impact of off-lease vehicle supply. Chamoun stressed conservative planning due to macro uncertainty, while Zerella noted modest annual price increases and an expectation for share gains to offset market declines. John Healy (Northcoast Research) probed on commercial consignor traction and timing. Chamoun described active contracts and pilots with rental and fleet companies, with early regional deployments underway and plans to expand as results are demonstrated. In the coming quarters, our analyst team will be monitoring (1) the pace and success of VIPER’s rollout and integration into dealer service operations, (2) the conversion of commercial pilot programs into sustained revenue streams, and (3) evidence of further market share gains despite ongoing industry headwinds. Progress in leveraging AI for operational efficiency and positive feedback loops from dealer adoption will also be critical indicators of execution. ACV Auctions currently trades at $5.80, up from $5.22 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

Achieved 12% revenue growth despite a mid-single-digit decline in the broader dealer wholesale market, driven by accelerated market share gains. Expanded field capacity and increased dealer visit frequency to record levels, mitigating regional volume headwinds caused by severe weather. Leveraged machine learning and inspection data to scale the 'no reserve' auction channel, which delivers 100% conversion rates and improves marketplace liquidity. Drove 18% growth in ACV Transport by utilizing AI to optimize pricing and maintain margins despite rising diesel fuel costs. Advanced the commercial wholesale strategy by engaging over a dozen major accounts across banks, fleet companies, and auto finance providers. Gained significant development velocity by adopting AI tools across product and engineering teams, pulling forward strategic roadmap priorities. Reaffirmed 2026 revenue guidance of $845 million to $855 million, assuming go-to-market investments drive higher growth in the second half of the year. Expects 2026 adjusted EBITDA to grow approximately 28% year-over-year, supported by a 100 basis point margin expansion. Plans to deploy approximately 150 VIPER units by year-end 2026, focusing on hardware-software integration before scaling production in 2027. Anticipates continued OpEx leverage, with 2026 operating expense growth slowing to 8% compared to 12% in the prior year. Assumes the dealer wholesale market will remain challenged, declining in the mid-single digits for the full year. Authorized a new share repurchase program of up to $100 million, including an immediate $50 million accelerated share repurchase (ASR). Reported a 300 basis point increase in cost of revenue due to a higher mix of 'no reserve' sales, which are accretive to EBITDA despite higher direct costs. Maintained a strong liquidity position with $341 million in cash and marketable securities against $200 million in debt. Transitioned to using internal inspectors for arbitration and hardware installation, reducing reliance on third-party vendors and improving customer satisfaction. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted that while total market volume is down, they achieved record dealer visits by expanding their footprint into new rooftops. The strategy involves using AI-driven tools like ClearCar and VIPER to become an indispensable partner for vehicle sourcing, rather than just an auction competitor. The VIPER early access program is seeing high demand, with a backlog of dealers requesting units; management is limiting initial deployments to ensure support quality. Integration with backend service drive platforms like Tekion is underway to allow VIPER data to flow seamlessly into the backend systems of dealerships. ACV is currently working with two of the four largest national rental car companies for upstream digital remarketing. Management expects a major auto finance repo customer to go live within 30 to 60 days, proving the model for downstream physical locations. While 'no reserve' sales have higher costs, they drive 100% conversion and higher ARPU, making them highly accretive to adjusted EBITDA per unit. Management highlighted that adjusted EBITDA per unit increased 20% year-over-year in Q1 due to these mix shifts and operational leverage. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.