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ACV Auctions

ACVA
29
Auto - Dealerships · Consumer Cyclical
Price
$7.43
-0.24 (-3.13%)
Market Cap
$1.30B
Winston Score
29
Winston is worried
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Weak
Stability
Mixed
Valuation
Data not available

Share count rising — dilution

+9.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 156.1M (2021) → 170.6M (2025)

Winston Score History

The full picture

ACV Auctions runs an online marketplace where car dealerships buy and sell used vehicles from each other. Instead of driving cars to a physical auction lot, dealers can list and bid on vehicles digitally through ACV's platform. The company also offers data and inspection services to help dealers understand a car's condition before buying it.

ACV makes money by charging fees on each vehicle sold through its marketplace, plus fees for ancillary services like vehicle inspections, transportation, and financing. It operates primarily in the United States and has grown to process hundreds of thousands of vehicles annually. Its competitive edge comes from its network effect — the more dealers that use the platform, the more useful it becomes for everyone. However, the company is not yet profitable, and its main challenge is reaching the scale needed to turn its negative operating margins into consistent earnings while competing against established players like OPENLANE.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-25.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

6.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~16 months

$242M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Growth context

ACV Auctions is growing revenue at 10% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
49.9%
Healthy — 49.9% gross margin
Profit after running costs
Operating Margin
-2.8%
Losing money on operations — -2.8%
Return on the money invested
ROCE
-9.6%
Weak — -9.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+13.3%
Fast-growing sales (+13.3% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
0.7%
Thin free cash flow (0.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.53
Conservative — low debt load (0.53)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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