ACV Auctions Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- ACV reported record revenue of $214 million in Q2 2026, representing 10% year-over-year growth despite a 6% decline in dealer wholesale market volumes.
- Adjusted EBITDA was $21 million, exceeding the high end of guidance, with adjusted EBITDA per unit increasing 11% year over year.
- Non-GAAP net income was $10 million, at the high end of guidance.
- Auction and assurance revenue grew 6% year over year, marketplace services revenue grew 17%, and SaaS and data services revenue grew 3%.
- Non-GAAP cost of revenue as a percentage of revenue increased by approximately 300 basis points due to a higher mix of no reserve sales, which have modestly higher costs but drive strong conversion rates and adjusted EBITDA.
- Non-GAAP operating expenses excluding cost of revenue decreased approximately 300 basis points year over year, reflecting operating leverage and AI-driven efficiencies.
- ACV sold 211,000 vehicles in the quarter and expanded its dealer partner network to a new record.
- The transport segment had 19% revenue growth with 125,000 transports delivered, maintaining margin and attach rate targets despite rising diesel costs.
- ACV capital achieved record attach rates in the high teens, supported by new products and risk management enhancements.
- The company launched Viper commercially, engaging with half of the top 50 dealer groups, with strong early feedback from the Beta program.
- The commercial wholesale segment made significant progress, securing large consignors including a top five fleet consignor and integrating with major captive finance and rental car companies.
- ACV ended Q2 with $242 million in cash and $205 million in debt, including $175 million of marketplace float and a $50 million accelerated share repurchase program.
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Transcript
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Please note this conference is being recorded. I will now turn the conference over to Tim Fox, Vice President of Investor Relations. Thank you, Tim. You may begin.
Good afternoon. Thank you for joining ACV's conference call to discuss our second quarter 2026 financial results. With me on the call today are George Chamoun, Chief Executive Officer, and Bill Zerella, Chief Financial Officer. Before we get started, please note that today's comments include forward-looking statements, including statements regarding future financial guidance. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to differ materially from those expressed or implied by such statements. A discussion of the risks and uncertainties related to our business can be found in our SEC filings and in today's press release, both of which can be found on our investor relations website. During this call, we will discuss both GAAP and non-GAAP financial measures.
A reconciliation of GAAP to non-GAAP financial measures is provided in today's earnings materials, which can also be found on our investor relations website. With that, let me turn the call over to George.
Thanks, Tim. Good afternoon, everyone, and thank you for joining us. We are very pleased with our second quarter performance and execution while facing a challenging market environment. We delivered record revenue with adjusted EBITDA exceeding the high end of guidance. In addition to solid financial results, we made significant progress on our three key objectives. First, we continue to gain market share and expand our dealer partner network to a new record. The combination of increasing our field capacity and penetration of our no-reserve offering contributed to our growth. Second, we had another strong quarter of performance in ACV Transportation and ACV Capital, along with growing adoption of our value-added dealer solutions. Third, we are gaining traction with our emerging growth initiatives, including very strong demand for VIPER and momentum in the commercial wholesale segment.
While macro headwinds caused conversion rates to compress below expectations in June and July, we believe conditions will begin to stabilize and remain committed to delivering double-digit revenue growth and increased adjusted EBITDA while investing in our exciting growth objectives. We are confident that executing on this profitable growth strategy will create significant long-term shareholder value. With that, let's turn to a recap of our results on slide 4. We delivered another record revenue quarter with growth of 10%, despite continuing headwinds in the dealer wholesale market, with volumes contracting approximately 6% year-over-year. We continued to gain market share, selling 211,000 vehicles in the quarter. Next, on slide 5, we focus on the pillars of our strategy to maximize long-term shareholder value by delivering innovation that is driving growth and scale. I will begin with growth. On slide 7, I will highlight our growth initiatives in dealer wholesale.
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