Title

Earning Preview: ACV Auctions Inc. this quarter’s revenue is expected to increase by 16.07%, and institutional views are bullish

Abstract

ACV Auctions Inc. will announce quarterly results on February 23, 2026 Post Market; projections point to revenue of 181.96 million and EPS of -0.11 improving 24.12% year over year, with attention on Marketplace and Services throughput and operating efficiency heading into the close of the reporting period.

Market Forecast

Current quarter projections indicate total revenue of 181.96 million, an increase of 16.07% year over year, with EBIT expected at -20.79 million, improving 16.83% year over year, and EPS estimated at -0.11, improving 24.12% year over year. Forecast detail for gross profit margin and net profit margin has not been disclosed; the revenue and EPS trajectory nonetheless suggests a modest YoY improvement in core profitability metrics even as earnings remain negative. Marketplace and Services is expected to remain the operational anchor, having accounted for 176.51 million in the prior quarter, and should benefit from stabilized run-rate volumes and mix, with management focus on fee discipline and cost structure supporting sequential normalization in activity. The most promising revenue contributor outside the core marketplace remains financial income on customer deposits, which delivered 23.05 million last quarter; though year-over-year segment growth was not disclosed, elevated balance levels and the yield profile can incrementally support overall revenue stability.

Last Quarter Review

ACV Auctions Inc.’s previous quarter delivered revenue of 199.56 million, a gross profit margin of 30.11%, a GAAP net loss attributable to the parent company of 24.47 million translating to a net profit margin of -12.26%, and adjusted EPS of -0.03, an improvement of 70% year over year. Quarter-on-quarter growth of net profit was -235.23%, indicating the net loss widened versus the prior quarter as operating expense levels offset topline progress while EBIT registered at -23.72 million. Marketplace and Services contributed 176.51 million, representing 88.45% of total revenue, while Customer deposits added 23.05 million (11.55% of total); segment-level year-over-year growth was not disclosed in the last report.

Current Quarter Outlook

Marketplace and Services

Marketplace and Services remains the core engine of ACV Auctions Inc.’s revenue base, evidencing 176.51 million in the prior quarter and comprising 88.45% of total revenue. The current quarter’s forecasted total revenue of 181.96 million, despite a sequential moderation from 199.56 million, embeds a 16.07% year-over-year increase and implies that the marketplace run-rate is intact on an annual comparison even as seasonal dynamics may temper quarter-over-quarter prints. The key variables in this segment are consignment volumes, sell-through rates, and fee structures, which collectively drive the marketplace’s contribution; management’s continued emphasis on inspection capacity, service quality, and closing efficiency tends to support conversion and take-rates, which influence realized revenue per transaction.

Gross margin performance, while not explicitly forecast, will be shaped by the mix of value-added services within the Marketplace and Services umbrella and logistics cost control, areas where incremental operational discipline can translate to better unit economics. Last quarter’s 30.11% gross profit margin offers a baseline from which any resource optimization or service mix shift can move profitability. The expected improvement in EPS year over year by 24.12%, even from a negative base, implies that the marketplace’s fixed-cost absorption and operational leverage are improving on an annual basis, provided volumes and fee rates hold. Successful execution around service delivery, bid density, and platform engagement should support throughput efficiency aligned with the revenue estimate, though the company’s negative EPS and EBIT guidance also signals continued investment and cost absorption, keeping attention on near-term margin trade-offs.

In this quarter, investors will weigh indications around transaction activity and service attachment rates—transportation, condition reports, and other marketplace services—as well as commentary about pricing discipline and expense mix. Any evidence of sustained buyer and seller engagement, faster cycle times, and consistent fee realization would be supportive of the forecast trajectory, while deviations in volumes or pricing behavior could challenge the top-line estimate. Within Marketplace and Services, a balanced expansion of ancillary services is an avenue for improved revenue density per transaction, a key contributor to offsetting opex growth and narrowing the earnings deficit.

Customer Deposits and Financial Float

Customer deposits contributed 23.05 million in revenue last quarter, accounting for 11.55% of the total. This line item tends to be sensitive to the magnitude of marketplace transaction balances and the prevailing yield environment on the funds held. While explicit year-over-year growth for this segment was not provided, the revenue contribution underscores that financial float can offer a stabilizing effect to overall revenue, especially in periods when marketplace volumes oscillate.

The character of this revenue tends to present a supportive impact on consolidated gross profitability because it carries limited direct costs relative to service-delivery activities. In the current quarter, if marketplace balances remain healthy, customer deposits-related earnings can help underpin the EPS estimate’s year-over-year improvement trajectory, even as consolidated EBIT remains negative at an estimated -20.79 million. A stable or rising float would enhance the predictability of a portion of ACV Auctions Inc.’s revenue base, bolstering resilience against short-term variability in marketplace throughput.

That said, the mix effect from customer deposits is likely modest compared with the Marketplace and Services driver, and investors will treat signals around balance trends and yield realization as incremental, not primary. The quarter’s outcome for this segment is therefore more likely to influence fine-tuning of models than to reshape headline expectations, unless there are outsized swings in balances. For valuation and earnings path analysis, sustained contributions from the float can modestly narrow losses and improve cash generation optics, complementing operational improvements elsewhere.

Key Stock Price Drivers This Quarter

The first key driver is whether ACV Auctions Inc. delivers revenue in line with the 181.96 million estimate, as small variances can recalibrate sentiment given the company’s earnings profile. A precise read on Marketplace and Services activity—transaction counts, realized fee rates, service attachment, and conversion metrics—will directly inform how revenue tracks to guidance and consensus, and whether the year-over-year growth rate of 16.07% is met or exceeded. Any commentary on seasonal effects and run-rate exiting the quarter will be scrutinized to infer the trajectory into the subsequent period.

The second driver is the earnings path: EPS estimated at -0.11 with a year-over-year improvement of 24.12% and EBIT at -20.79 million improving by 16.83% year over year. The magnitude of operating expense (sales and marketing, product development, and G&A) and management’s narrative on cost control and prioritization will influence how investors interpret the pace of loss reduction. Delivering a tighter loss than implied, or signaling continued progress on unit economics, would be supportive for the stock; conversely, an expansion of losses versus expectations would likely weigh on sentiment.

The third driver centers on profitability building blocks—gross margin resilience around last quarter’s 30.11% baseline, net margin directionality relative to the prior period’s -12.26%, and the mix contribution from customer deposits revenue. Investors will parse any details on cost efficiencies in inspection, logistics, and service delivery, and how these translate into consolidated margins. Additional focus will be placed on the balance of growth investments against near-term profitability, with explicit guardrails or milestones serving as signposts for margin trajectory. Clear guidance commentary regarding the forward quarter will also frame expectations, especially around marketplace volumes and operating leverage.

Analyst Opinions

The ratio of bullish to bearish views collected during the period is 100% bullish and 0% bearish; only the bullish side is presented. B. Riley has indicated that ACV Auctions Inc.’s reset of expectations from the third quarter leaves room for outperformance in 2026, implying that the current setup could be one where conservative assumptions partially de-risk near-term delivery. The perspective places emphasis on execution against revised run-rate expectations and suggests there is potential for positive variance if transaction activity and cost dynamics track favorably.

J.P. Morgan maintained a Buy rating on ACV Auctions Inc. with a price target of $18.00, reflecting constructive views on the company’s growth and earnings normalization path. The stance points to confidence that the marketplace’s throughput, service mix, and operating discipline can support year-over-year revenue expansion and gradual loss reduction even as earnings remain negative in the near term. Together, these views frame a majority belief that the company is positioned to show incremental improvement, with analysts expecting performance aligned with or modestly better than current projections.

From an analytical standpoint, the bullish consensus hinges on three pillars evident in the estimates and last quarter’s structure. First, the marketplace revenue base appears resilient year over year, with last quarter’s 199.56 million and the current quarter estimate of 181.96 million reflecting a seasonal step-down but not a deterioration in the annual growth profile. Second, the earnings path—EPS improving 24.12% year over year despite a negative estimate—signals progress on operating leverage and cost optimization measures. Third, the contribution from customer deposits provides incremental revenue support, enhancing the stability of consolidated revenue while the core marketplace continues to drive scale. Analysts will track whether these elements coalesce into a clean beat or a bracketed in-line print, with the prevailing majority predicting stable-to-better execution under the reset framework noted by B. Riley.

Market participants are likely to interpret any positive variance in revenue or EPS against the estimates as evidence of improving fundamentals, reinforcing J.P. Morgan’s constructive stance. Commentary will be especially important; details on Marketplace and Services throughput, fee behavior, and cost structures could either validate or challenge the bullish narrative. For now, the balance of views favors incremental improvements and a path toward narrower losses, consistent with the 16.07% year-over-year revenue increase and the year-over-year EPS improvement embedded in the forecasts.