Revenue growth has decelerated significantly from a 44.0% peak in 2024Q3 to 11.8% in 2026Q1, while operating margins remain negative at -4.5%, indicating a lack of clear operating leverage.
| Sales/Revenue | 781.1M | 759.61M | 637.16M | 481.23M | 421.53M | 358.44M | 208.36M | 106.85M |
| Revenue Growth % | 15.86% | 19.22% | 32.4% | 14.16% | 17.6% | 72.03% | 95% | - |
| Cost of Goods Sold | 284.56M | 288.12M | 248.21M | 244.45M | 236.65M | 204.75M | 113.05M | 82.78M |
| COGS % of Revenue | - | 37.93% | 38.96% | 50.8% | 56.14% | 57.12% | 54.26% | 77.47% |
| Gross Profit | 496.54M | 471.49M | 388.95M | 236.78M | 184.88M | 153.68M | 95.31M | 24.07M |
| Gross Margin % | 63.57% | 62.07% | 61.04% | 49.2% | 43.86% | 42.88% | 45.74% | 22.53% |
| Gross Profit Growth % | - | 21.22% | 64.26% | 28.07% | 20.3% | 61.25% | 295.98% | - |
| Operating Expenses | 554.54M | 533.17M | 473.05M | 326.46M | 291.08M | 230.49M | 135.96M | 103.35M |
| OpEx % of Revenue | - | 70.19% | 74.24% | 67.84% | 69.05% | 64.3% | 65.25% | 96.73% |
| Selling, General & Admin | 232.21M | 234.99M | 217.44M | 165.27M | 143.64M | 121.17M | 64.88M | 62.44M |
| SG&A % of Revenue | - | 30.94% | 34.13% | 34.34% | 34.08% | 33.8% | 31.14% | 58.44% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 298.18M | 255.62M | 161.18M | 147.45M | 109.32M | 71.07M | 40.91M |
| Operating Income | -58M | -61.69M | -84.11M | -89.68M | -106.21M | -76.81M | -40.65M | -79.28M |
| Operating Margin % | -7.42% | -8.12% | -13.2% | -18.63% | -25.2% | -21.43% | -19.51% | -74.2% |
| Operating Income Growth % | - | 26.65% | 6.21% | 15.57% | -38.28% | -88.96% | 48.73% | - |
| EBITDA | -12.89M | -17.96M | -47.3M | -70.39M | -94.83M | -68.05M | -33.4M | -77.38M |
| EBITDA Margin % | -1.65% | -2.36% | -7.42% | -14.63% | -22.5% | -18.99% | -16.03% | -72.42% |
| EBITDA Growth % | 64.65% | 62.02% | 32.81% | 25.77% | -39.35% | -103.76% | 56.84% | - |
| D&A (Non-Cash Add-back) | 45.11M | 43.72M | 36.81M | 19.29M | 11.38M | 8.75M | 7.25M | 1.9M |
| EBIT | -42.64M | -55.18M | -74.77M | -73.17M | -101.13M | -76.68M | -39.9M | -77.19M |
| Net Interest Income | -1.59M | -1.61M | 5.09M | 14.94M | 4.1M | -653K | 115K | 2.09M |
| Interest Income | 7.81M | 8.01M | 9.34M | 16.51M | 5.08M | 129K | 748K | 2.09M |
| Interest Expense | 4.89M | 9.62M | 4.24M | 1.56M | 979K | 782K | 633K | 0 |
| Other Income/Expense | -2.72M | -3.12M | 5.09M | 14.94M | 4.1M | -653K | 115K | 2.09M |
| Pretax Income | -60.71M | -64.8M | -79.01M | -74.73M | -102.11M | -77.46M | -40.53M | -77.19M |
| Pretax Margin % | -7.77% | -8.53% | -12.4% | -15.53% | -24.22% | -21.61% | -19.45% | -72.24% |
| Income Tax | 1.5M | 1.34M | 688K | 526K | 87K | 724K | 489K | 27K |
| Effective Tax Rate % | -2.48% | -2.06% | -0.87% | -0.7% | -0.09% | -0.93% | -1.21% | -0.03% |
| Net Income | -62.22M | -66.14M | -79.7M | -75.26M | -102.19M | -78.18M | -41.02M | -77.22M |
| Net Margin % | -7.97% | -8.71% | -12.51% | -15.64% | -24.24% | -21.81% | -19.69% | -72.27% |
| Net Income Growth % | 15.98% | 17.01% | -5.9% | 26.35% | -30.71% | -90.59% | 46.88% | - |
| Net Income (Continuing) | -62.22M | -66.14M | -79.7M | -75.26M | -102.19M | -78.18M | -41.02M | -77.22M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.36 | -0.39 | -0.48 | -0.47 | -0.65 | -0.50 | -0.27 | -0.50 |
| EPS Growth % | 21.65% | 18.75% | -2.13% | 27.69% | -30% | -85.19% | 46% | - |
| EPS (Basic) | - | -0.39 | -0.48 | -0.47 | -0.65 | -0.50 | -0.27 | -0.50 |
| Diluted Shares Outstanding | 173.36M | 170.58M | 164.85M | 159.95M | 156.99M | 156.08M | 154.15M | 154.15M |
| Basic Shares Outstanding | 173.36M | 170.58M | 164.85M | 159.95M | 156.99M | 156.08M | 154.15M | 154.15M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Operational labor cost intensity
According to recent quarterly filings, ACVA's year-over-year revenue growth has decelerated from a peak of 44.0% in 2024Q3 to 11.8% by 2026Q1, suggesting that the initial rapid market share capture phase is maturing as the company faces a more challenging wholesale automotive environment.
The transition from high-double-digit growth to more moderate levels indicates that the company's digital-first value proposition may be encountering saturation within its existing dealer network. Investors should monitor whether this deceleration reflects broader industry volume contraction or increased competitive pressure from legacy incumbents pivoting to digital platforms.
As reported in financial statements, ACVA's gross margin has exhibited significant volatility, fluctuating between a low of 48.8% in 2023Q4 and a high of 76.8% in 2025Q4, which highlights the inherent sensitivity of the company's inspection-heavy cost structure to operational throughput and service mix.
The wide variance in gross margins suggests that the company has not yet achieved the structural efficiency required to decouple its variable inspection costs from revenue generation. This inconsistency implies that profitability remains highly dependent on maintaining high vehicle listing density per inspector visit to offset logistics and labor expenses.
Based on reported figures, ACVA continues to struggle with operating leverage, as operating income remains negative despite consistent revenue growth, with the 2026Q1 operating margin of -4.5% still failing to demonstrate a clear path toward sustained profitability through economies of scale in SG&A.
The persistent operating losses suggest that the company's overhead and field-based operational model require significant ongoing investment that scales linearly with volume. Without a meaningful reduction in the ratio of SG&A to gross profit, the company may continue to face challenges in achieving positive operating cash flow.
Analysis of recent SEC filings reveals that stock-based compensation remains a material component of the company's expense profile, with quarterly figures reaching as high as $20.0 million in 2024Q4, which significantly masks the underlying cash-based operating performance and complicates the assessment of true profitability.
The reliance on equity-based incentives suggests that management is prioritizing talent retention and growth over immediate GAAP earnings, which may be dilutive to shareholders. Analysts should adjust for these non-cash charges to better understand the company's progress toward operational breakeven and long-term cash generation capabilities.
While the company emphasizes its digital moat, skeptics may point to the 2026Q1 data showing that even with revenue growth, the company remains unable to consistently generate positive net income, suggesting that the labor-intensive inspection model may be fundamentally less scalable than traditional software-based marketplaces.
The reliance on physical inspections creates a cost floor that may prevent the company from achieving the high-margin profile typical of pure-play digital platforms. If competitive pricing pressure forces a reduction in take-rates, the company's ability to cover its fixed and variable operating costs could be severely compromised.
Quick answers to the most common questions about buying ACVA stock.
For fiscal year 2025, ACV Auctions Inc. (ACVA) reported total revenue of $759.6M. This represents a 610.9% increase compared to $106.8M in 2019.
ACV Auctions Inc. (ACVA) reported a net loss of $66.1M for the fiscal year ending 2025.
ACV Auctions Inc. (ACVA) reported an operating income of $-61.7M, resulting in an operating profit margin of -8.1%. This margin reflects the operational efficiency of the business before interest and taxes.
ACV Auctions Inc. (ACVA) generated $471.5M in gross profit for the year, representing a gross profit margin of 62.1%. This demonstrates the company's core pricing power and production efficiency.