ACV Auctions Q2 2025: Unpacking Key Contradictions on Dealer Retention, Pricing, and Market Outlook

Dealer retention and conversion rates, impact of pricing engine on liquidity, market outlook and market share growth expectations, investment and earnings growth balance, and market conditions and conversion rates are the key contradictions discussed in ACV Auctions' latest 2025Q2 earnings call.



Revenue and Earnings Performance:
- ACV reported revenue of $194 million for Q2 2025, which grew 21% year-over-year.
- Adjusted EBITDA margin improved by 520 basis points year-over-year, reaching $19 million in Q2.
- The growth was driven by record revenue in ACV Transport and ACV Capital, along with strong adoption of value-added dealer solutions.

Dealer Wholesale and Market Share:
- ACV's dealer wholesale business showed solid execution, contributing to a 13% increase in vehicle sales to 210,000 vehicles.
- Market share gains were achieved by expanding the dealer partner network and delivering a differentiated marketplace experience.
- The company maintained market share growth of mid-teens, aligning with its midterm target model.

AI and Pricing Solutions:
- ACV's AI-driven pricing platform accounted for over 15% of units sold in Q2, with a 100% conversion rate for its guaranteed sales channel.
- The precision in pricing was enhanced by integrating inspection data and market dynamics, driving market share gains and maintaining attractive unit economics.
- The company is expanding its competitive edge with AI-driven products like Virtual Lift 2.0 and Project Viper.

Capital Structure and Investments:
- ACV ended Q2 with $305 million in cash and cash equivalents, reflecting strong operating cash flow and margin expansion.
- The company plans to invest approximately 11% more in OPEX to support its remarketing center strategy and commercial platform development.
- Despite increased investments, ACV maintained its commitment to significant margin expansion while continuing to invest in long-term growth objectives.