ACV Auctions Plunges 11.31% on Revised Guidance, Earnings Miss

On August 12, 2025, ACV Auctions' stock experienced a significant drop of 11.31% in pre-market trading, reflecting investor concerns and market sentiment.

ACV Auctions has revised its sales guidance for the fiscal year 2025, citing weakness in retail demand despite a surge in Q2 sales and narrower losses. This adjustment has raised concerns among investors about the company's future performance.

The company reported a 21% increase in revenue for the second quarter of 2025, reaching $194 million. However, this growth was accompanied by strategic advancements and macroeconomic headwinds, which have impacted the overall market sentiment.

Despite the revenue growth, ACV Auctions' Q2 earnings missed analyst estimates, reporting a revenue of $193.7 million compared to the expected $196.1 million. This shortfall, along with the company's GAAP loss per share, has contributed to the stock's decline.

Goldman Sachs has lowered its price target for ACV Auctions, reflecting the current market conditions and the company's performance. This adjustment, along with Citi's reduction of the price target to $17 from $21, indicates a cautious outlook from analysts.