Update shared on15 Aug 2025
Analysts have tempered their near-term outlook on ACV Auctions due to softer Q2 results, a slower share gain trajectory, and sector headwinds, but remain confident in longer-term growth potential driven by technology leadership and market share gains; the consensus price target remains unchanged at $19.73.
Analyst Commentary
- Bullish analysts note that ACV Auctions continues to gain industry share and demonstrate technology leadership, underpinning long-term growth potential despite short-term challenges.
- The company’s recent Q2 earnings miss, June’s softer wholesale market, and lower-than-expected conversion rates have heightened near-term uncertainty and resulted in lower revenue and EBITDA forecasts for 2025.
- Slower share gain trajectory, tougher year-over-year comparisons in Q3 and Q4, and expectations for a flatter growth trajectory have tempered near-term growth assumptions.
- Elevated valuation relative to ACV's current unit growth and broader sector concerns—including a weakening auto retail environment and potential multiple compression—are prompting more conservative price targets from bearish analysts.
- Bullish analysts remain confident in ACV’s ability to sustain or resume 20%+ growth and expand margins in 2026, viewing new technology initiatives and market share gains as key upside drivers.
What's in the News
- Issued Q3 2025 guidance: revenue of $198 million to $203 million (up 16% to 18% YoY), GAAP net loss of ($13) million to ($11) million.
- Issued FY2025 guidance: revenue of $765 million to $775 million (up 20% to 22% YoY), GAAP net loss of ($51) million to ($47) million.
- Approved an amendment and restatement of the company’s Certificate of Incorporation at recent AGM.
Valuation Changes
Summary of Valuation Changes for ACV Auctions
- The Consensus Analyst Price Target remained effectively unchanged, at $19.73.
- The Net Profit Margin for ACV Auctions remained effectively unchanged, at 7.91%.
- The Consensus Revenue Growth forecasts for ACV Auctions remained effectively unchanged, at 20.6% per annum.
Disclaimer
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