Recent News
Nov 6–7, 2025: JP Morgan maintained coverage of ACV Auctions with an Overweight recommendation and a materially higher one-year price forecast. Nov 17, 2025: Several outlets reported a downward revision to the consensus one‑year price target for ACV during mid-November.
Technical Analysis
ADX and Directional Indicators: ADX at 19.18 signals no established directional trend; DI+ at 23.15 decreasing indicates waning upside pressure, while DI- at 16.38 decreasing indicates declining downside pressure—a combination that favors choppy, range-bound action and increases the importance of valuation support for near-term price stability.
MACD: MACD sits at 0.10 above its signal line at 0.07, constituting a short-term bullish cross; however, the MACD’s peak-and-reversal pattern signals waning momentum that could limit follow-through from the cross and cap upward moves unless momentum re-accelerates.
MRO: MRO at -9.27 indicates the market price sits below the model target and implies potential corrective upside toward that target; the MRO’s peak-and-reversal pattern suggests prior momentum has softened and any convergence toward target may proceed unevenly.
RSI and Short-Term Strength: RSI at 46.95 and rising places the stock in neutral territory with building short-term strength, consistent with a market that may attempt limited rallies but lacks strong conviction toward a breakout.
Price Positioning and Volatility: Last close at $8.02 sits slightly below the 20-day average ($8.05) and above the 50-day average ($7.78), while the 200-day average ($12.26) remains well above current levels—indicating near-term consolidation within a longer-term discount. Price traded inside the Bollinger band range (lower ~ $7.64, upper ~ $8.46). Volume runs below recent averages, suggesting moves may lack immediate conviction.
Fundamental Analysis
Revenue and Growth: Reported revenue totaled $199,561,000. Quarter-over-quarter revenue change registered at -49.80%, and year-over-year revenue change registered at -54.63%, reflecting sizable sequential and annual contractions in top-line growth. These QoQ and YoY changes contrast with gross-margin stability and require clarity on the revenue composition driving the figures.
Profitability and Margins: Gross margin stands at 53.42%, while operating margin registers -11.885% and EBIT margin at -10.773%. The EBIT margin of -10.77% sits well below the industry peer mean of 30.47% and the industry peer median of 27.66%, but within the industry peer range from -116.65% to 112.72%. Margin dynamics show QoQ and YoY improvements in operating and EBIT margins, which support the valuation case despite current losses.
Earnings and Cash Flow: GAAP EPS came in at $0.07 versus an estimate of $0.06, producing an EPS surprise of approximately 16.7%. Net income remained negative at -$24,465,000, while operating cash flow was positive at $10,253,000 and free cash flow negative at -$1,253,000. Cash and short-term investments totaled $316,019,000, providing liquidity coverage against short-term obligations.
Balance Sheet and Leverage: Total debt sits at $220,000,000 with debt-to-assets of 18.86% and debt-to-equity of 50.64%. Debt-to-assets falls below the industry peer mean of 25.00%, indicating comparatively moderate leverage versus the peer mean. Current ratio at 1.62 and a cash ratio near 0.67 supply working-capital flexibility, aided by a very negative cash-conversion cycle of about -336.9 days that reflects advance cash collection dynamics in the business model versus payables timing.
Operational Efficiency and Returns: Asset turnover runs at 0.173, slightly above the industry peer mean of 0.1357, while return on equity and return on assets remain negative at -5.63% and -2.12% respectively, though both show QoQ improvements. Those return trends align with a company progressing toward operating leverage but not yet generating consistent GAAP profitability.
Valuation Summary: The current valuation as determined by WMDST classifies the stock as under-valued. Market multiples show P/E around 150.94, P/S at 9.12, and EV/Revenue and enterprise metrics that reflect both growth expectations and the need for sustained margin expansion to justify high multiples. Liquidity, margin improvements, and an EPS beat support the valuation view, while top-line contractions and negative net income represent the primary execution risks.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 258.4 M |
| Operating Cash Flow | $ 10.3 M | |
| Capital Expenditures | $ -11.51 M | |
| Change In Working Capital | $ -13.69 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 7.0 M | |
| End Period Cash Flow | $ 265.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 199.6 M | |
| Forward Revenue | $ -21.69 M | |
| COSTS | ||
| Cost Of Revenue | $ 93.0 M | |
| Depreciation | $ 11.0 M | |
| Depreciation and Amortization | $ 11.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 223.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 106.6 M | |
| EBITDA | $ -10.52 M | |
| EBIT | $ -21.50 M | |
| Operating Income | $ -23.72 M | |
| Interest Income | $ 2.2 M | |
| Interest Expense | $ 2.5 M | |
| Net Interest Income | $ -265.00 K | |
| Income Before Tax | $ -23.98 M | |
| Tax Provision | $ 483.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -24.46 M | |
| Net Income From Continuing Operations | $ -24.46 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.06 | |
| EPS Actual | $ 0.07 | |
| EPS Difference | $ 0.01 | |
| EPS Surprise | 16.667 % | |
| Forward EPS | $ 0.06 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.2 B | |
| Intangible Assets | $ 346.6 M | |
| Net Tangible Assets | $ 87.9 M | |
| Total Current Assets | $ 762.5 M | |
| Cash and Short-Term Investments | $ 316.0 M | |
| Cash | $ 265.3 M | |
| Net Receivables | $ 218.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 45.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 439.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 471.7 M | |
| Net Debt | — | |
| Total Debt | $ 220.0 M | |
| Total Liabilities | $ 732.0 M | |
| EQUITY | ||
| Total Equity | $ 434.4 M | |
| Retained Earnings | $ -548.89 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.52 | |
| Shares Outstanding | 172.171 M | |
| Revenue Per-Share | $ 1.16 | |
| VALUATION | Market Capitalization | $ 1.8 B |
| Enterprise Value | $ 1.7 B | |
| Enterprise Multiple | -163.759 | |
| Enterprise Multiple QoQ | -142.301 % | |
| Enterprise Multiple YoY | -70.222 % | |
| Enterprise Multiple IPRWA | high: 567.948 mean: 131.748 median: 99.822 ACVA: -163.759 low: -372.771 |
|
| EV/R | 8.634 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.685 | |
| Asset To Liability | 1.593 | |
| Debt To Capital | 0.336 | |
| Debt To Assets | 0.189 | |
| Debt To Assets QoQ | 15.112 % | |
| Debt To Assets YoY | 69.635 % | |
| Debt To Assets IPRWA | high: 1.164 mean: 0.25 median: 0.226 ACVA: 0.189 low: 0.001 |
|
| Debt To Equity | 0.506 | |
| Debt To Equity QoQ | 21.854 % | |
| Debt To Equity YoY | 100.885 % | |
| Debt To Equity IPRWA | high: 2.861 mean: 0.682 ACVA: 0.506 median: 0.358 low: -1.761 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.187 | |
| Price To Book QoQ | -21.259 % | |
| Price To Book YoY | -38.349 % | |
| Price To Book IPRWA | high: 28.013 median: 13.624 mean: 13.295 ACVA: 4.187 low: -14.858 |
|
| Price To Earnings (P/E) | 150.937 | |
| Price To Earnings QoQ | -139.204 % | |
| Price To Earnings YoY | -181.375 % | |
| Price To Earnings IPRWA | high: 535.496 mean: 160.054 ACVA: 150.937 median: 137.94 low: -356.558 |
|
| PE/G Ratio | -0.549 | |
| Price To Sales (P/S) | 9.115 | |
| Price To Sales QoQ | -26.011 % | |
| Price To Sales YoY | -49.595 % | |
| Price To Sales IPRWA | high: 106.044 mean: 45.86 median: 42.816 ACVA: 9.115 low: 0.776 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -378.947 | |
| Forward PE/G | 1.378 | |
| Forward P/S | 159.419 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 107.9 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.173 | |
| Asset Turnover Ratio QoQ | 2.389 % | |
| Asset Turnover Ratio YoY | 3.36 % | |
| Asset Turnover Ratio IPRWA | high: 0.496 ACVA: 0.173 mean: 0.136 median: 0.133 low: -0.008 |
|
| Receivables Turnover | 0.931 | |
| Receivables Turnover Ratio QoQ | 8.958 % | |
| Receivables Turnover Ratio YoY | 11.986 % | |
| Receivables Turnover Ratio IPRWA | high: 9.197 mean: 2.179 median: 1.716 ACVA: 0.931 low: -0.167 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 98.042 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -336.891 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | 56.138 % | |
| Cash Conversion Cycle Days IPRWA | high: 226.004 median: 2.205 mean: 0.068 low: -211.414 ACVA: -336.891 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.686 | |
| CapEx To Revenue | -0.058 | |
| CapEx To Depreciation | -1.048 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 654.5 M | |
| Net Invested Capital | $ 654.5 M | |
| Invested Capital | $ 654.5 M | |
| Net Tangible Assets | $ 87.9 M | |
| Net Working Capital | $ 290.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.67 | |
| Current Ratio | 1.617 | |
| Current Ratio QoQ | 1.352 % | |
| Current Ratio YoY | 6.781 % | |
| Current Ratio IPRWA | high: 8.127 mean: 1.837 ACVA: 1.617 median: 1.122 low: 0.118 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -20.909 | |
| Cost Of Debt | 0.965 % | |
| Interest Coverage Ratio | -8.658 | |
| Interest Coverage Ratio QoQ | 292.49 % | |
| Interest Coverage Ratio YoY | -38.199 % | |
| Interest Coverage Ratio IPRWA | high: 154.375 mean: 19.048 median: 14.185 ACVA: -8.658 low: -142.62 |
|
| Operating Cash Flow Ratio | -0.03 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 434.933 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.479 % | |
| Revenue Growth | 3.024 % | |
| Revenue Growth QoQ | -49.801 % | |
| Revenue Growth YoY | -54.629 % | |
| Revenue Growth IPRWA | high: 36.703 % median: 5.427 % mean: 5.131 % ACVA: 3.024 % low: -26.206 % |
|
| Earnings Growth | -275.0 % | |
| Earnings Growth QoQ | 37.5 % | |
| Earnings Growth YoY | -283.333 % | |
| Earnings Growth IPRWA | high: 245.455 % median: 5.542 % mean: 1.15 % low: -250.0 % ACVA: -275.0 % |
|
| MARGINS | ||
| Gross Margin | 53.419 % | |
| Gross Margin QoQ | 0.975 % | |
| Gross Margin YoY | 1.592 % | |
| Gross Margin IPRWA | high: 94.978 % median: 77.892 % mean: 73.589 % ACVA: 53.419 % low: -4.162 % |
|
| EBIT Margin | -10.773 % | |
| EBIT Margin QoQ | 313.869 % | |
| EBIT Margin YoY | 22.323 % | |
| EBIT Margin IPRWA | high: 112.717 % mean: 30.473 % median: 27.658 % ACVA: -10.773 % low: -116.648 % |
|
| Return On Sales (ROS) | -11.885 % | |
| Return On Sales QoQ | 220.005 % | |
| Return On Sales YoY | 34.949 % | |
| Return On Sales IPRWA | high: 76.795 % mean: 29.284 % median: 27.215 % ACVA: -11.885 % low: -118.067 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.25 M | |
| Free Cash Flow Yield | -0.069 % | |
| Free Cash Flow Yield QoQ | -200.0 % | |
| Free Cash Flow Yield YoY | -116.995 % | |
| Free Cash Flow Yield IPRWA | high: 10.909 % mean: 0.488 % median: 0.407 % ACVA: -0.069 % low: -13.762 % |
|
| Free Cash Growth | -175.71 % | |
| Free Cash Growth QoQ | 81.008 % | |
| Free Cash Growth YoY | -52.781 % | |
| Free Cash Growth IPRWA | high: 368.524 % median: -5.783 % mean: -7.032 % ACVA: -175.71 % low: -380.898 % |
|
| Free Cash To Net Income | 0.051 | |
| Cash Flow Margin | -7.112 % | |
| Cash Flow To Earnings | 0.58 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -2.123 % | |
| Return On Assets QoQ | 233.281 % | |
| Return On Assets YoY | 35.482 % | |
| Return On Assets IPRWA | high: 16.255 % mean: 3.355 % median: 2.243 % ACVA: -2.123 % low: -19.283 % |
|
| Return On Capital Employed (ROCE) | -3.094 % | |
| Return On Equity (ROE) | -0.056 | |
| Return On Equity QoQ | 246.31 % | |
| Return On Equity YoY | 60.29 % | |
| Return On Equity IPRWA | high: 0.299 mean: 0.056 median: 0.045 ACVA: -0.056 low: -0.363 |
|
| DuPont ROE | -5.54 % | |
| Return On Invested Capital (ROIC) | -2.595 % | |
| Return On Invested Capital QoQ | 228.481 % | |
| Return On Invested Capital YoY | -129.965 % | |
| Return On Invested Capital IPRWA | high: 18.012 % mean: 5.467 % median: 4.023 % ACVA: -2.595 % low: -12.344 % |
|