ACV Auctions stock declined 15.0% following mixed fourth quarter and full-year 2025 results. The company reported revenue at the high-end of guidance and Adjusted EBITDA above the high-end of guidance with continued margin expansion. However, ACV beat on sales but missed on earnings, reporting smaller but still large losses for both the quarter and the year. Goldman Sachs cut its price target on revised estimates, and Citigroup downgraded the stock to a Neutral rating. Needham & Company LLC reiterated a Buy rating and maintained a $9 price target for the stock.
Read full analysisACV Auctions stock declined 15.0% following mixed fourth quarter and full-year 2025 results. The company reported revenue at the high-end of guidance and Adjusted EBITDA above the high-end of guidance with continued margin expansion. However, ACV beat on sales but missed on earnings, reporting smaller but still large losses for both the quarter and the year. Goldman Sachs cut its price target on revised estimates, and Citigroup downgraded the stock to a Neutral rating. Needham & Company LLC reiterated a Buy rating and maintained a $9 price target for the stock.
ACV Auctions operates a digital marketplace for wholesale vehicle auctions, connecting dealers and commercial sellers through an online platform that competes with traditional physical auto auctions. The company is investing in AI-driven products like ACV Guarantee, ClearCar, and its VIPER inspection technology, but remains unprofitable on a GAAP basis. A Q4 GAAP earnings miss — combined with a Citigroup downgrade to Neutral and a Goldman Sachs price target cut — has intensified a selloff that has now erased roughly 70% of the stock's value since late January.