ACV Auctions Q2 Earnings Call Highlights

ACV Auctions reported revenue of $214 million, up 10% year over year, while adjusted EBITDA reached a record $21 million and exceeded the high end of guidance despite a 6% decline in dealer wholesale volumes. Lower used-car values widened the gap between seller expectations and buyer pricing, reducing conversion rates and limiting unit growth. ACV is expanding its field sales and inspection capacity, particularly in emerging regions, to support future growth. Transportation, financing and no-reserve auctions boosted results, while the company commercially launched its AI-powered VIPER product and expanded commercial remarketing efforts. ACV reaffirmed 2026 revenue guidance of $845 million to $855 million and adjusted EBITDA guidance of $73 million to $77 million.

ACV Auctions NYSE: ACVA reported second-quarter 2026 revenue of $214 million, up 10% from a year earlier, as the digital automotive marketplace said it continued to gain share despite a weaker dealer wholesale market. Adjusted EBITDA reached a record $21 million, exceeding the high end of the company’s guidance range, while non-GAAP net income was $10 million. Chief Executive Officer George Chamoun said the company’s results reflected execution in a “challenging market environment,” citing dealer wholesale volumes that contracted about 6% year over year during the quarter. ACV sold 211,000 vehicles in the period and said it expanded its dealer partner network to a new record.

“We delivered record revenue with adjusted EBITDA exceeding the high end of guidance,” Chamoun said, pointing to field-capacity investments, growing use of its no-reserve offering, and performance from transportation, financing and dealer software products. Marketplace growth amid conversion pressure ACV said auction and assurance revenue, which represented 55% of total revenue, rose 6% year over year to reflect approximately flat unit growth. Auction and assurance revenue per unit, or ARPU, increased 6% to $554. The company said a gap between seller expectations and buyer pricing contributed to lower conversion rates in June and July. Tim Fox, who was named ACV’s new chief financial officer during the call, said conversion-rate compression reduced unit growth by roughly 600 basis points. He added that the company had forecast listings accurately and reported record seller and buyer activity, but saw conversion rates decline by roughly 300 to 350 basis points during the quarter. Chamoun attributed the issue to declining used-car values, which he said left some sellers seeking prices above what buyers were willing to pay. Management described the effect as temporary and said it expects the market to become more supportive in the second half. Fox noted that third-party data showed dealer wholesale volume fell 6% in June and 8% in July. ACV is increasing field capacity, including territory managers, vehicle condition inspectors and sales executives focused on opening new dealer rooftops. Chamoun said the company expects to have at least 15% to 20% more salespeople in the field by year-end, alongside additional inspectors. Fox said five emerging regions where ACV made substantial go-to-market investments generated mid-teens unit growth in the second quarter, including one region that grew in the 30% range. The company expects the hiring investments to contribute more significantly in the third and fourth quarters and into 2027. Transportation, capital and no-reserve offerings support revenue Marketplace services revenue accounted for 41% of total revenue and grew 17% year over year, driven by ACV Transportation and AC...