ACV Auctions NYSE: ACVA reported first-quarter 2026 results that management said reflected strong execution amid a challenging dealer wholesale market, which was impacted by severe weather during the period. The company posted record revenue and exceeded the high end of its adjusted EBITDA guidance while continuing to invest in market share gains, ancillary services, and new product initiatives.
Q1 results: record revenue and EBITDA above guidance
Revenue for the quarter was $204 million, up 12% year-over-year and at the high end of guidance, according to Chief Financial Officer Bill Zerella. Adjusted EBITDA was $17 million, up 23% year-over-year and above the high end of the company’s outlook. Non-GAAP net income was $7 million, also at the high end of guidance.
Chief Executive Officer George Chamoun said the dealer wholesale market saw a “mid-single digit decline” in volumes due to severe weather, but ACV still sold 213,000 vehicles in the quarter and said its market share gains “accelerated throughout the quarter.”
Marketplace performance: auction, services, and product mix
Zerella broke down revenue into three segments:
- Auction and assurance revenue represented 57% of total revenue and rose 9% year-over-year. ACV’s auction and assurance ARPU was $542, up 6% year-over-year and 3% sequentially.
- Marketplace services revenue accounted for 39% of total revenue and increased 19% year-over-year, driven by ACV Transport and ACV Capital.
- SaaS and data services made up 4% of revenue, with “growth declining modestly” year-over-year as high single-digit growth in ACV MAX was offset by modest declines in legacy standalone inspection services.
Chamoun highlighted the company’s “no reserve” offering as a key contributor to growth, describing it as the fastest-growing channel on the marketplace. He said the model removes seller market risk, increases bidder engagement, and delivers a “100% conversion rate.” Zerella said no-reserve sales “more than doubled year-over-year” and contributed to an approximately 300-basis-point year-over-year increase in non-GAAP cost of revenue as a percentage of revenue due to their modestly higher cost profile versus standalone auction sales. However, he said the offering is “accretive to adjusted EBITDA,” and the company reported adjusted EBITDA per unit up 20% year-over-year in Q1.
Transport and Capital growth, plus expanding AI-driven products
In marketplace services, Chamoun said the transport business delivered 18% revenue growth and completed more than 120,000 transports in the quarter. He noted the company is using AI to optimize transport pricing and said that despite a sharp increase in diesel fuel during the quarter, transport revenue margin “remained in line” with its midterm target in the low 20% range. He also said ACV’s off-platform transport service is gaining traction with dealer partners.
ACV Capital revenue grew 30% year-over-year in Q1, with Chamoun pointing to an expanded go-to-market approach and process improvements designed to manage portfolio risk.
Chamoun also discussed product initiatives powered by what the company called ACV AI, including ClearCar and ACV MAX. He said these offerings are helping dealers optimize inventory, automate selling and buying, and source more vehicles from consumers.
A major focus on the call was VIPER, which Chamoun described as a hardware-software-AI system that provides inspection and pricing data in a service-lane workflow and can identify service upsell opportunities. He said the “early access” program is gaining momentum and receiving positive feedback from major dealer groups. Chamoun told analysts ACV has about 18 VIPER units live and “somewhere around 75” dealer requests waiting, while the company plans to roll out about 150 units by year-end 2026. He characterized 2026 as a “prove out” year, with 2027 positioned as the scale year, including additional software integrations with dealership back-end systems.
On AI-driven efficiency, Chamoun said ACV has reduced inspection times materially versus prior levels, citing progress toward inspecting cleaner vehicles in under 10 minutes and the “worst vehicles” in under 15 minutes, compared with roughly 30 minutes on average previously. He added that VIPER could help inspectors spend 10 to 15 minutes per car regardless of condition. Zerella also said ACV signed an enterprise agreement with a large provider of large language models to expand AI use beyond engineering into other operational activities.
Commercial wholesale: early traction with upstream and downstream opportunities
Chamoun reiterated that commercial wholesale is a large adjacent market and said ACV is building a digital, end-to-end experience to support remarketing for commercial consignors. He said the offering is attracting large commercial consignors and that ACV has engaged with “over a dozen accounts” across captives, banks, fleet companies, and auto finance providers.
In Q&A, Chamoun gave additional detail on commercial progress. On the upstream side (pure digital), he said ACV is live with one of the “top four” national rental car companies and expects to go live with a second rental car company “either later this quarter or early Q3.” He also said two larger fleet companies have run small tests with results “as good or better” than physical auctions, and ACV is moving from tests to regional deployments. On the downstream side, he described activity with auto finance repo-type customers, including one expected to go live in the next 30 to 60 days with an initial weekly volume range he described as “20 to 50 cars a week,” with the aim to scale after proving the workflow.
Capital allocation, guidance reaffirmed despite weaker market outlook
ACV ended the first quarter with $341 million in cash and cash equivalents and $200 million of debt, Zerella said, noting the cash balance includes $230 million of marketplace float. The company also announced that its board authorized a share repurchase program of up to $100 million. Zerella said ACV plans to enter into an accelerated share repurchase program for $50 million of common stock. He said management viewed the program as an attractive use of capital given the company’s liquidity and expectations to generate free cash flow in 2026.
For outlook, Zerella said ACV is reaffirming full-year 2026 revenue and adjusted EBITDA guidance despite an updated view that the dealer wholesale market will decline in the mid-single digits this year. The company’s guidance includes:
- Q2 revenue: $213 million to $217 million (10% to 12% growth)
- Q2 adjusted EBITDA: $18 million to $20 million (8% to 9% margin)
- Full-year revenue: $845 million to $855 million (11% to 13% growth)
- Full-year adjusted EBITDA: $73 million to $77 million (about 28% growth)
Zerella said 2026 operating expense growth is expected to be about 8% year-over-year, down from 12% in 2025, including approximately $11 million in additional go-to-market spending. He added that adjusted EBITDA margin is expected to expand by roughly 100 basis points year-over-year, while cost of revenue as a percentage of revenue is expected to be modestly higher than in 2025.
Chamoun said management remains focused on gaining share, expanding its dealer and commercial partner network, and executing on product initiatives, including VIPER and the company’s broader ACV AI roadmap, while aiming for double-digit revenue growth and higher adjusted EBITDA.
About ACV Auctions NYSE: ACVA
ACV Auctions operates a digital marketplace designed to streamline the wholesale used-vehicle auction process for independent dealerships and larger automotive groups. The platform enables dealers to participate in live, online auctions, submit real-time bids, and access guaranteed-sale programs that reduce the risk of inventory moving. By replicating the dynamics of in-lane bidding in a virtual environment, ACV Auctions connects sellers and buyers across a broad geographic footprint without the need for physical auction attendance.
In addition to its core marketplace, ACV Auctions offers a suite of software tools and data-driven services aimed at improving transparency and decision-making in the remarketing process.
Further Reading
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