ACV Auctions 2025 Q2 Earnings Narrowed Losses, 20.6% Revenue Growth

ACV Auctions (ACVA) reported its fiscal 2025 Q2 earnings on August 11, 2025, showing a 20.6% year-over-year increase in revenue. While the company continued to post losses, it reduced its net loss by 57.2% compared to the prior year. ACV also revised its 2025 revenue guidance downward amid macroeconomic challenges.

ACV Auctions posted total revenue of $193.70 million in the second quarter of 2025, a 20.6% increase compared to $160.62 million in the same period in 2024. Marketplace and service revenue accounted for the majority of this growth at $176 million, while the customer assurance segment added $17.71 million. The company demonstrated strong execution across its business lines despite ongoing market challenges.

The company narrowed its net loss to $-7.30 million in Q2 2025, a 57.2% reduction from the $-17.06 million net loss in Q2 2024. On a per-share basis, losses were cut to $0.04 from $0.10, representing a 60% improvement. Despite the reduction, the company has now reported losses for the 6th consecutive year in this quarter, highlighting persistent financial pressures.

ACV Auctions’ stock has experienced a downtrend in the period following the earnings report. Over the latest trading day, the stock price fell 2.41%, dropped 3.26% during the most recent full week, and declined sharply by 19.19% month-to-date. A post-earnings investment strategy that involved buying the stock and holding for 30 days performed poorly, with a CAGR of -19.42% and a -14.81% excess return. The strategy underperformed the benchmark return of 8.42% and exhibited a maximum drawdown of 47.42%, with a Sharpe ratio of -0.41 indicating high volatility and risk.

CEO George G. Chamoun highlighted ACV Auctions’ strong Q2 performance, noting revenue and adjusted EBITDA within guidance despite challenging market conditions. He emphasized three growth drivers: continued dealer wholesale market share gains, record results in ACV Transport and ACV Capital, and innovation through AI-powered product development. Chamoun underscored ACV’s commitment to margin expansion while investing for long-term growth, noting confidence in leveraging AI to enhance competitiveness and expand total addressable market.

The company updated its 2025 revenue guidance to $765 million–$775 million, reflecting a 20%–22% year-over-year growth rate. This guidance reflects a trimmed midpoint compared to previous estimates, citing macroeconomic headwinds. Adjusted EBITDA guidance remains at $68 million–$72 million, representing 150% year-over-year growth at the midpoint. For Q3 2025, the company expects revenue of $198 million–$203 million, with adjusted EBITDA in the range of $18 million–$20 million. ACV anticipates flat to slightly declining wholesale volumes for the rest of 2025 but expects normal seasonal patterns in conversion rates and price appreciation.

Additional News
The Nigeria Federal Government has launched a recruitment process for five new permanent secretaries, including three for newly established ministries. Meanwhile, Rivers State residents have filed a lawsuit against the state’s sole administrator and the federal president over plans to hold local government elections. On a different note, Nigerian rapper Odumodublvck has pledged support for the Redeemed Christian Church of God, stating he would contribute ₦1 billion if able. In global news, Cristiano Ronaldo and Georgina Rodríguez are set to wed after years of relationship speculation.