ACV Auctions Inc. reported fourth‑quarter 2025 results that exceeded the upper end of management’s guidance for revenue and adjusted EBITDA, while the company missed earnings‑per‑share estimates. Revenue reached $184 million, up 15% year‑over‑year from $160 million in Q4 2024, and fell just below the consensus estimate of $182.1 million. Adjusted EBITDA climbed to $8 million, a 36% increase from $6 million in the prior quarter and above the high‑end of the $6‑$8 million guidance range. The company’s diluted earnings per share were –$0.11, missing the consensus estimate of –$0.01 and the company’s own guidance of –$0.05 to –$0.10.
Full‑year 2025 figures also reflected strong growth. Total revenue totaled $760 million, up 19% from $637 million in 2024, while full‑year adjusted EBITDA rose to $59 million, more than double the $28 million reported in 2024. These results demonstrate the company’s ability to scale its marketplace and services platform, but the persistent GAAP net loss and EPS miss highlight ongoing profitability challenges.
Management attributed the revenue and margin gains to continued market‑share expansion and the accelerated adoption of its AI‑driven pricing, scheduling, and recommendation tools. CEO George Chamoun said the company was “very pleased with our fourth‑quarter results, with revenue at the high‑end of guidance and Adjusted EBITDA above the high‑end of guidance, along with continued margin expansion.” He added that “ACV’s leading market position resulted in additional share gains and strong revenue growth in the quarter.” The EPS miss was largely driven by higher arbitration costs, a one‑time charge that weighed on profitability.
Looking ahead, ACV provided guidance for the first quarter of 2026 that signals a modest slowdown in revenue growth. Revenue is expected to be $200 million to $204 million, and adjusted EBITDA $14 million to $16 million, representing a 9%‑12% growth rate versus the 15% Q4 growth. Full‑year 2026 guidance projects revenue of $845 million to $855 million and adjusted EBITDA of $73 million to $77 million, indicating continued margin expansion but a slight deceleration in top‑line momentum.
Investors reacted negatively to the earnings miss, focusing on the EPS shortfall despite the revenue and EBITDA beats. The company remains confident in its long‑term trajectory, citing its AI investments and expanding commercial wholesale strategy as key drivers of future growth.
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