ACV Auctions 2025 Q3 Earnings Misses Targets with Widened Net Loss of 52.6%

ACV Auctions (ACVA) reported fiscal 2025 Q3 results on Nov 5, 2025, with revenue growth outpacing expectations but earnings undershooting forecasts. The company’s stock fell 8.94% post-announcement, reflecting investor concerns over profitability despite market share gains. Management provided cautious guidance for Q4, citing macroeconomic headwinds and elevated costs.

Revenue

ACV Auctions’ total revenue surged 16.5% year-over-year to $199.56 million in Q3 2025, driven by robust performance in its Marketplace and service segment, which accounted for $176.51 million of the total. Customer assurance revenue contributed an additional $23.05 million, reflecting the company’s diversified revenue streams. This growth outperformed the Zacks Consensus Estimate, though revenue guidance for Q4 was tempered by weaker market conditions.

Earnings/Net Income

The company’s financial performance deteriorated sharply, with a net loss widening to $-24.46 million in Q3 2025, a 52.6% increase from $-16.03 million in the prior-year period. Earnings per share (EPS) fell to -$0.14, a 40.0% wider loss compared to -$0.10 in Q3 2024. The EPS miss of 333.33% against the $0.06 forecast underscored operational inefficiencies and cost pressures.

Price Action

ACV Auctions’ stock price declined 8.12% on the day of the earnings report, extending its losses to 8.63% for the week and 15.89% month-to-date. The sharp selloff mirrored broader investor skepticism about the company’s ability to sustain profitability amid rising operational costs and a slowing market.

Post-Earnings Price Action Review

The strategy of buying ACV Auctions shares on the date of its earnings announcement and holding for 30 days generated cumulative returns of 28.2% over the past three years, with an average annual return of 9.4%. This historical performance highlights the stock’s potential for capital appreciation during positive earnings momentum.

CEO Commentary

CEO George Chamoun emphasized ACV Auctions’ record Q3 revenue of $200 million, driven by dealer wholesale expansion and AI-driven initiatives like ACV Guarantee. Despite macroeconomic challenges, he expressed confidence in long-term value creation through “profitable growth,” with adjusted EBITDA expected to grow over 100% in 2025.

Guidance

ACV Auctions updated its 2025 revenue guidance to $756–760 million (19% YoY growth) and adjusted EBITDA of $56–58 million (100% YoY growth). Q4 revenue is projected at $180–184 million (13–15% YoY growth), with adjusted EBITDA of $5–7 million, reflecting elevated arbitration costs and a flattening dealer wholesale market.

Additional News

Recent developments include BofA Securities downgrading ACV Auctions to Underperform, citing concerns over growth costs and competitive pressures. The company also launched its first greenfield remarketing center in Houston, signaling strategic expansion. Meanwhile, Zacks Investment Research maintained a bullish outlook, assigning a Zacks Rank #2 (Buy) based on favorable estimate revisions.