ACV Auctions Inc. (ACVA) Q1 2025 Earnings Summary

Executive Summary

• ACV delivered Q1 2025 revenue of $182.7M (+25% YoY) at the midpoint of guidance, and Adjusted EBITDA of $13.9M, exceeding the high-end of guidance; non-GAAP net income was $7.5M and GAAP net loss was $(14.8)M .
• Results beat S&P Global consensus: revenue $182.7M vs $182.1M estimate*, and Primary EPS $0.0445 vs $0.0213 estimate*; Q4 2024 and Q3 2024 also posted revenue and EPS beats*.
• Management reiterated full-year 2025 revenue ($765–$785M) and Adjusted EBITDA ($65–$75M) guidance; they modestly improved FY non-GAAP net income ($33–$43M) and GAAP net loss to $(60)–$(50)M vs $(62)–$(52)M prior (raised) .
• Key catalysts: upside on Adjusted EBITDA vs guidance, consistent beats vs Street on revenue/EPS*, rising ARPU ($513) and continued market share gains despite soft February, plus new Q2 guidance ($193–$198M revenue) sustaining 20–23% YoY growth .

What Went Well and What Went Wrong

What Went Well

• Adjusted EBITDA exceeded the high end of guidance, with margin expanding ~500 bps YoY; non-GAAP net income exceeded guidance with ~300 bps margin expansion .
• Strong execution across marketplace services: ACV Transportation set quarterly revenue and deliveries records; revenue margin expanded 460 bps YoY and tracked to low-20s midterm targets .
• AI-enabled product momentum: ACV MAX bookings reached a 5-quarter high; ClearCar launched at 200+ rooftops; Project Viper pilot interest surged, with dealers queued for units .

What Went Wrong

• Macro cross-currents and a “very soft” February muted conditions; dealer wholesale volumes remain below historical levels due to used inventory shortages .
• Despite ARPU uplift from March buy-fee increases, management expects GMV per unit to dip seasonally in 2H, tempering ARPU progression .
• GAAP profitability remains negative (Q1 GAAP net loss $(14.8)M), reflecting ongoing investments (commercial platform, remarketing centers) and stock-based compensation .

Financial Results

Segment breakdown

KPIs

Narrative cross-checks

• Q1 revenue grew 25% YoY; marketplace & service revenue +28% YoY; units +19% YoY; GMV +13% YoY .
• Organic revenue growth ~20% YoY; upside driven by OpEx discipline .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We delivered record revenue with strong margin expansion, resulting in adjusted EBITDA exceeding the high end of guidance.” — George Chamoun, CEO .
• “Adjusted EBITDA of $14 million exceeded the high end of guidance… The upside was driven primarily by continued OpEx discipline.” — Bill Zerella, CFO .
• “Transportation… set records for both quarterly revenue and transports delivered… Revenue margin expanded 460 basis points year-over-year.” — George Chamoun .
• “We are slated to power our first greenfield remarketing center in the second half of 2025.” — George Chamoun .

Q&A Highlights

• Pricing/fees: March buy-fee increase saw “very little pushback”; tariffs/macro not pressuring pricing .
• ACV Capital risk/attach: Revenue +33% YoY with ~50% lower bad debt; attach rate “well into double digits,” targeting 25% .
• ARPU dynamics: Q1 auction & assurance ARPU $513; expect seasonal GMV per unit dip in 2H .
• Project Viper: Exceptional dealer demand; beta with “few dozen dealers” over summer, aiming to exit beta before Q4 .
• Competition: ACV positions as a neutral, long-term dealer partner vs retailer-competitors’ wholesale offerings .

Estimates Context

Results vs S&P Global consensus

Values retrieved from S&P Global.*

Implications:

• Q1, Q4, and Q3 each delivered revenue and EPS beats vs consensus, suggesting upward pressure on out-quarter EPS and ARPU assumptions. With Q2 revenue guided to $193–$198M (+20–23% YoY) and reiterated FY guide, Street models likely bias upward for FY EBITDA and non-GAAP EPS .
• Management’s emphasis on OpEx discipline and services margin expansion supports estimate revisions on EBITDA trajectory .

Key Takeaways for Investors

• Consistent execution: Three consecutive quarters of revenue/EPS beats versus S&P Global consensus* and Q1 EBITDA above guidance reinforce improving operating leverage .
• Pricing power and mix: ARPU increased to $513 with low pushback; services margins are expanding, buoyed by AI-optimized Transport and disciplined Capital risk management .
• Guidance confidence: FY 2025 revenue/EBITDA reaffirmed; non-GAAP EPS and GAAP loss ranges improved; Q2 guide implies sustained 20–23% YoY growth .
• Structural advantages: AI-enabled pricing, inspection data moats, and bundled data services deepen dealer relationships and drive share gains despite macro volatility .
• Commercial platform catalysts: First greenfield remarketing center slated for 2H 2025—execution milestones could expand TAM and support midterm targets .
• Watch seasonality: Management anticipates GMV per unit to dip in 2H; incorporate into ARPU and margin forecasting .
• Trading lens: Near-term catalyst path includes Q2 print on revenue/EBITDA and updates on Project Viper pilots; sustained margin expansion and reiterated FY guide are positive indicators .

Citations: All company results, guidance, and management commentary are sourced from ACV’s Q1 2025 8-K and earnings call, plus prior-quarter filings and calls . Values marked with an asterisk are retrieved from S&P Global.*