ACV Auctions Inc.

Revenue was $214 million in Q2 2026, up 10% year over year. Adjusted EBITDA was $21 million, exceeding the high end of guidance, and non-GAAP net income was $10 million, at the high end of guidance. Auction and assurance revenue was 55% of total revenue and grew 6% year over year; marketplace services were 41% of revenue and grew 17%; SaaS and Data Services were 4% of revenue and grew 3%. Non-GAAP cost of revenue as a percentage of revenue increased about 300 basis points year over year, while non-GAAP operating expense excluding cost of revenue fell about 300 basis points year over year. For Q3 2026, ACV guided to revenue of $219 million to $225 million and adjusted EBITDA of $21 million to $24 million, with a 10% to 11% margin. Full-year 2026 guidance was reaffirmed at revenue of $845 million to $855 million and adjusted EBITDA of $73 million to $77 million, with OpEx growth expected to be about 6% and cost of revenue as a percentage of revenue expected to be modestly higher than 2025.

George Chamoun framed the quarter as strong execution in a difficult market, emphasizing record revenue, market share gains, and record adjusted EBITDA per unit. His main strategic message was that ACV is widening its platform beyond core wholesale through field expansion, no-reserve auctions, transport, capital, AI products, ViPR, and commercial wholesale. He sounded confident that these investments would drive stronger unit growth in the back half of the year and into 2027, even if current macro conditions remain choppy.

Bill Zerella focused on profitability, operating leverage, and capital structure. He cited $214 million of revenue, $21 million of adjusted EBITDA, $10 million of non-GAAP net income, $242 million of cash and cash equivalents, and $205 million of debt; he also noted the cash balance included $175 million of marketplace float and reflected the $50 million accelerated share repurchase. He said Q2 adjusted EBITDA margin beat guidance, cost of revenue rose about 300 basis points because of the mix shift to no-reserve, and non-GAAP OpEx excluding cost of revenue declined about 300 basis points. He also reiterated that 2026 OpEx growth should be about 6%, with adjusted EBITDA margin expected to rise about 100 basis points year over year, and said ACV expects positive operating cash flow in the back half of the year.

Analysts pressed on why EBITDA guidance was held while revenue guidance was reaffirmed and OpEx was lowered, and management said revenue margin is compressing but is being offset by OpEx efficiencies and disciplined cost control. Several questions focused on the conversion-rate weakness and whether market stabilization means improvement from current levels; ACV said the seller-buyer price dislocation is temporary, that listings were in line with forecasts, and that July dealer wholesale was down 8% per third-party data. Analysts also asked about capital allocation, and management said it still sees the stock as undervalued while continuing to invest; Tim added that incremental EBITDA margins were basically flat this year because of roughly $10 million of field investment, but should become more material in 2027. Questions on ViPR brought out the most detail: ACV said more than 50% of the top 50 dealer groups are in active discussions or have ordered, it is building over 100 units this year, and next year the goal is over 500 units, with some internal expectations as high as 1,000, though it is still early.