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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)

x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025
OR

o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________
Commission File Number: 001-40256
ACV Auctions Inc.
(Exact Name of Registrant as Specified in its Charter)

Delaware | 47-2415221
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)
640 Ellicott Street, #321 Buffalo, New York | 14203
(Address of principal executive offices) | (Zip Code)

Registrant’s telephone number, including area code: 800 553-4070
_________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:

Title of each class |  | Trading Symbol(s) |  | Name of each exchange on which registered
Common stock, par value $0.001 per share |  | ACVA |  | New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer | x |  | Accelerated filer | o
Non-accelerated filer | o |  | Smaller reporting company | o
Emerging growth company | o |  |  |

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
As of October 31, 2025, there were 172,171,225 shares of the registrant's common stock with a par value of $0.001, outstanding.

Table of Contents

|  | Page
PART I. | FINANCIAL INFORMATION |
Item 1. | Financial Statements (Unaudited) |
| Condensed Consolidated Statements of Operations | 3
| Condensed Consolidated Statements of Comprehensive Loss | 4
| Condensed Consolidated Balance Sheets | 5
| Condensed Consolidated Statements of Changes in Stockholders’ Equity | 6
| Condensed Consolidated Statements of Cash Flows | 8
| Notes to Unaudited Condensed Consolidated Financial Statements | 9
| Note 1 - Nature of Business and Summary of Significant Accounting Policies | 9
| Note 2 - Financial Instruments | 10
| Note 3 - Fair Value Measurement | 11
| Note 4 - Accounts Receivable & Allowance for Doubtful Receivables | 12
| Note 5 - Guarantees, Commitments and Contingencies | 13
| Note 6 - Borrowing | 14
| Note 7 - Revenue | 15
| Note 8 - Stock-based Compensation | 15
| Note 9 - Income Taxes | 16
| Note 10 - Net Income (Loss) Per Share | 17
| Note 11 - Acquisitions | 17
| Note 12 - Segment Information | 18
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 40
Item 4. | Controls and Procedures | 41
PART II. | OTHER INFORMATION | 42
Item 1. | Legal Proceedings | 42
Item 1A. | Risk Factors | 42
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 42
Item 3. | Defaults Upon Senior Securities | 42
Item 4. | Mine Safety Disclosures | 42
Item 5. | Other Information | 42
Item 6. | Exhibits | 44
Signatures | 45

Table of Contents
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:
•our expectations regarding our revenue, operating expenses and other operating results, including our key metrics and our ability to meet previously announced earnings guidance;
•our ability to effectively manage our growth and expand our business;
•our ability to grow the number of participants on our marketplace platform;
•our ability to acquire new customers and successfully retain existing customers and capture a greater share of wholesale transactions from our existing customers;
•our ability to increase usage of our marketplace platform and generate revenue from our value-added services;
•anticipated trends, growth rates, and challenges in our business and in the markets in which we operate;
•our ability to achieve or sustain our profitability;
•future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;
•the costs and success of our marketing efforts, and our ability to promote our brand;
•the effects of macroeconomic and geopolitical conditions on our business, including the impact of changes in trade policies;
•our reliance on key personnel and our ability to identify, recruit and retain skilled personnel, especially as we establish new offerings;
•our ability to compete effectively with existing competitors and new market entrants;
•our ability to obtain, maintain, protect and enforce our intellectual property rights and any costs associated therewith;
•our ability to predict, prepare and respond to new kinds of technology innovations, market developments and changing customer needs;
•our ability to expand internationally;
•our ability to identify, complete, and integrate acquisitions that complement and expand our reach and marketplace platform;
•our decision to not declare or pay dividends for the foreseeable future;
•our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the United States and other jurisdictions where we elect to do business;
•the growth rates of the markets in which we compete;
•our expectations with respect to the performance our floorplan loan business, including as a result of general economic conditions and risks associated with the creditworthiness of our customers, fraud and the value of the used vehicles securing such floor plan loans, among others; and
•the ultimate outcome of the ongoing bankruptcy proceedings with respect to our former customer, Tricolor Holdings, LLC, and certain of its affiliates, as well as our expectations regarding any potential recovery and the associated effect on our financial position.
1

Table of Contents
You should not rely on forward-looking statements as predictions of future events. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described under the header “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained herein. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made, and we undertake no obligation to update them to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.
Unless the context otherwise indicates, references in this report to the terms “ACV Auctions,” “ACV,” “the Company,” “we,” “our” and “us” refer to ACV Auctions Inc. and its subsidiaries.
We may announce material business and financial information to our investors using our investor relations website (www.investors.acvauto.com). We therefore encourage investors and others interested in ACV to review the information that we make available on our website, in addition to following our filings with the Securities and Exchange Commission (the "SEC"), webcasts, press releases and conference calls.
2

Table of Contents
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
ACV AUCTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Revenue: |  |  |  |  |  |  |
Marketplace and service revenue | $ | 176,510 |  |  | $ | 155,908 |  |  | $ | 518,442 |  |  | $ | 429,848 |
Customer assurance revenue | 23,051 |  |  | 15,421 |  |  | 57,519 |  |  | 47,794 |
Total revenue | 199,561 |  |  | 171,329 |  |  | 575,961 |  |  | 477,642 |
Operating expenses: |  |  |  |  |  |  |
Marketplace and service cost of revenue (excluding depreciation & amortization) | 70,859 |  |  | 67,064 |  |  | 214,580 |  |  | 187,010 |
Customer assurance cost of revenue (excluding depreciation & amortization) | 22,098 |  |  | 14,176 |  |  | 52,984 |  |  | 41,548 |
Operations and technology | 46,526 |  |  | 42,539 |  |  | 136,517 |  |  | 120,302 |
Selling, general, and administrative | 72,826 |  |  | 54,973 |  |  | 184,816 |  |  | 160,738 |
Depreciation and amortization | 10,969 |  |  | 9,716 |  |  | 32,407 |  |  | 26,351 |
Total operating expenses | 223,278 |  |  | 188,468 |  |  | 621,304 |  |  | 535,949 |
Loss from operations | (23,717) |  |  | (17,139) |  |  | (45,343) |  |  | (58,307) |
Other income (expense): |  |  |  |  |  |  |
Interest income | 2,218 |  |  | 2,050 |  |  | 6,259 |  |  | 7,410 |
Interest expense | (2,483) |  |  | (1,077) |  |  | (6,679) |  |  | (2,218) |
Total other income (expense) | (265) |  |  | 973 |  |  | (420) |  |  | 5,192 |
Loss before income taxes | (23,982) |  |  | (16,166) |  |  | (45,763) |  |  | (53,115) |
Provision for (benefit from) income taxes | 483 |  |  | (137) |  |  | 817 |  |  | 448 |
Net loss | $ | (24,465) |  |  | $ | (16,029) |  |  | $ | (46,580) |  |  | $ | (53,563) |
Weighted-average shares - basic and diluted | 171,348 |  | 165,723 |  | 170,067 |  | 164,337
Net loss per share - basic and diluted | $ | (0.14) |  |  | $ | (0.10) |  |  | $ | (0.27) |  |  | $ | (0.33) |

The accompanying notes are an integral part of these condensed consolidated financial statements.
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ACV AUCTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
(in thousands)

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net loss | $ | (24,465) |  |  | $ | (16,029) |  |  | $ | (46,580) |  |  | $ | (53,563) |
Other comprehensive income (loss): |  |  |  |  |  |  |
Net unrealized gains on available-for-sale securities | 68 |  |  | 326 |  |  | 195 |  |  | 682 |
Foreign currency translation (loss) gain | (335) |  |  | 1,121 |  |  | 3,929 |  |  | 678 |
Comprehensive loss | $ | (24,732) |  |  | $ | (14,582) |  |  | $ | (42,456) |  |  | $ | (52,203) |

The accompanying notes are an integral part of these condensed consolidated financial statements.
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ACV AUCTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except per share data)

| September 30, 2025 |  | December 31, 2024
Assets |  |  |
Current Assets: |  |  |
Cash and cash equivalents | $ | 265,343 |  |  | $ | 224,065 |
Marketable securities | 50,676 |  |  | 46,036 |
Trade receivables (net of allowance of $4,236 and $6,372) | 218,949 |  |  | 168,770 |
Finance receivables (net of allowance of $28,963 and $4,191) | 198,727 |  |  | 139,045 |
Other current assets | 28,813 |  |  | 15,281 |
Total current assets | 762,508 |  |  | 593,197 |
Property and equipment (net of accumulated depreciation of $6,109 and $5,227) | 11,739 |  |  | 7,625 |
Goodwill | 183,748 |  |  | 180,478 |
Acquired intangible assets (net of amortization of $37,610 and $28,972) | 83,625 |  |  | 90,816 |
Capitalized software (net of amortization of $60,115 and $38,499) | 79,185 |  |  | 68,571 |
Other assets | 45,691 |  |  | 43,462 |
Total assets | $ | 1,166,496 |  |  | $ | 984,149 |
Liabilities and Stockholders' Equity |  |  |
Current Liabilities: |  |  |
Accounts payable | $ | 439,010 |  |  | $ | 345,605 |
Accrued payroll | 11,174 |  |  | 16,725 |
Accrued other liabilities | 21,504 |  |  | 18,836 |
Total current liabilities | 471,688 |  |  | 381,166 |
Long-term debt | 220,000 |  |  | 123,000 |
Other long-term liabilities | 40,358 |  |  | 39,979 |
Total liabilities | 732,046 |  |  | 544,145 |
Commitments and Contingencies (Note 5) |  |  |
Stockholders' Equity: |  |  |
Preferred Stock; $0.001 par value; 20,000 shares authorized; 0 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | — |  |  | — |
Common Stock; $0.001 par value; 2,000,000 shares authorized; 172,171 and 168,029 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 172 |  |  | 168 |
Common Stock - Class B; $0.001 par value; 0 and 160,000 shares authorized at September 30, 2025 and December 31, 2024, respectively; 0 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | — |  |  | — |
Additional paid-in capital | 981,789 |  |  | 944,891 |
Accumulated deficit | (548,895) |  |  | (502,315) |
Accumulated other comprehensive income (loss) | 1,384 |  |  | (2,740) |
Total stockholders' equity | 434,450 |  |  | 440,004 |
Total liabilities and stockholders' equity | $ | 1,166,496 |  |  | $ | 984,149 |

The accompanying notes are an integral part of these condensed consolidated financial statements.
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ACV AUCTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
(in thousands)

| Three months ended September 30, 2025
| Common Stock (1) |  |  |  |  |  |  |  | Accumulated Other Comprehensive Income (Loss) |  |
| Shares |  | Par Value |  |  |  |  |  | Additional Paid-In Capital |  | Accumulated Deficit |  |  | Total Stockholders' Equity
Balance as of June 30, 2025 | 171,559 |  |  | $ | 172 |  |  |  |  |  |  | $ | 971,390 |  |  | $ | (524,430) |  |  | $ | 1,651 |  |  | $ | 448,783 |
Net loss | — |  |  | — |  |  |  |  |  |  | — |  |  | (24,465) |  |  | — |  |  | (24,465) |
Other comprehensive income (loss) | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | (267) |  |  | (267) |
Stock-based compensation | — |  |  | — |  |  |  |  |  |  | 16,024 |  |  | — |  |  | — |  |  | 16,024 |
Exercise of common stock options | 99 |  |  | — |  |  |  |  |  |  | 229 |  |  | — |  |  | — |  |  | 229 |
Vested restricted stock units | 513 |  |  | — |  |  |  |  |  |  | (5,854) |  |  | — |  |  | — |  |  | (5,854) |
Issuance of shares for employee stock purchase plan | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Balance as of September 30, 2025 | 172,171 |  |  | $ | 172 |  |  |  |  |  |  | $ | 981,789 |  |  | $ | (548,895) |  |  | $ | 1,384 |  |  | $ | 434,450 |

| Nine months ended September 30, 2025
| Common Stock (1) |  |  |  |  |  |  |  | Accumulated Other Comprehensive Income (Loss) |  |
| Shares |  | Par Value |  |  |  |  |  | Additional Paid-In Capital |  | Accumulated Deficit |  |  | Total Stockholders' Equity
Balance as of December 31, 2024 | 168,029 |  | $ | 168 |  |  |  |  |  |  | $ | 944,891 |  |  | $ | (502,315) |  |  | $ | (2,740) |  |  | $ | 440,004 |
Net loss | — |  | — |  |  |  |  |  |  | — |  |  | (46,580) |  |  | — |  |  | (46,580) |
Other comprehensive income (loss) | — |  | — |  |  |  |  |  |  | — |  |  | — |  |  | 4,124 |  |  | 4,124 |
Stock-based compensation | — |  | — |  |  |  |  |  |  | 57,098 |  |  | — |  |  | — |  |  | 57,098 |
Exercise of common stock options | 2,003 |  | 2 |  |  |  |  |  |  | 758 |  |  | — |  |  | — |  |  | 760 |
Vested restricted stock units | 1,961 |  | 2 |  |  |  |  |  |  | (23,492) |  |  | — |  |  | — |  |  | (23,490) |
Issuance of shares for employee stock purchase plan | 178 |  | — |  |  |  |  |  |  | 2,534 |  |  | — |  |  | — |  |  | 2,534 |
Balance as of September 30, 2025 | 172,171 |  | $ | 172 |  |  |  |  |  |  | $ | 981,789 |  |  | $ | (548,895) |  |  | $ | 1,384 |  |  | $ | 434,450 |

(1) - Following the approval by the Company's shareholders of certain amendments to the Company's Certificate of Incorporation at the 2025 Annual Shareholder Meeting, the Company filed with the State of Delaware the Eleventh Amended and Restated Certificate of Incorporation of ACV Auctions Inc. The changes include, among other things, the removal of all references to Class B Common Stock and the reclassification of Class A Common Stock to Common Stock.
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| Three months ended September 30, 2024
| Common Stock Class A |  | Common Stock Class B |  |  |  |  |  | Accumulated Other Comprehensive Loss |  |
| Shares |  | Par Value |  | Shares |  | Par Value |  | Additional Paid-In Capital |  | Accumulated Deficit |  |  | Total Stockholders' Equity
Balance as of June 30, 2024 | 151,659 |  |  | $ | 152 |  |  | 14,370 |  |  | $ | 14 |  |  | $ | 919,216 |  |  | $ | (460,149) |  |  | $ | (1,616) |  |  | $ | 457,617 |
Conversion of Class B common stock to Class A common stock | 5,107 |  |  | 5 |  |  | (5,107) |  |  | (5) |  |  | — |  |  | — |  |  | — |  |  | — |
Net loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16,029) |  |  | — |  |  | (16,029) |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,447 |  |  | 1,447 |
Stock-based compensation | — |  |  | — |  |  | — |  |  | — |  |  | 17,772 |  |  | — |  |  | — |  |  | 17,772 |
Exercise of common stock options | 515 |  |  | 1 |  |  |  |  | — |  |  | 1,830 |  |  | — |  |  | — |  |  | 1,831 |
Vested restricted stock units | 439 |  |  | — |  |  | 62 |  |  | — |  |  | (6,426) |  |  | — |  |  | — |  |  | (6,426) |
Balance as of September 30, 2024 | 157,721 |  |  | $ | 158 |  |  | 9,325 |  |  | $ | 9 |  |  | $ | 932,392 |  |  | $ | (476,178) |  |  | $ | (169) |  |  | $ | 456,212 |

| Nine months ended September 30, 2024
| Common Stock Class A |  | Common Stock Class B |  |  |  |  |  | Accumulated Other Comprehensive Loss |  |
| Shares |  | Par Value |  | Shares |  | Par Value |  | Additional Paid-In Capital |  | Accumulated Deficit |  |  | Total Stockholders' Equity
Balance as of December 31, 2023 | 138,637 |  | $ | 139 |  |  | 23,205 |  | $ | 23 |  |  | $ | 880,510 |  |  | $ | (422,615) |  |  | $ | (1,529) |  |  | $ | 456,528 |
Conversion of Class B common stock to Class A common stock | 14,710 |  | 15 |  |  | (14,710) |  | (15) |  |  | — |  |  | — |  |  | — |  |  | — |
Net loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (53,563) |  |  | — |  |  | (53,563) |
Other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,360 |  |  | 1,360 |
Stock-based compensation | — |  |  | — |  |  | — |  |  | — |  |  | 52,117 |  |  | — |  |  | — |  |  | 52,117 |
Exercise of common stock options | 1,441 |  | 2 |  |  | 631 |  | 1 |  |  | 8,641 |  |  | — |  |  | — |  |  | 8,644 |
Vested restricted stock units | 1,377 |  | 1 |  |  | 199 |  | — |  |  | (19,429) |  |  | — |  |  | — |  |  | (19,428) |
Issuance of shares for acquisitions | 1,413 |  | 1 |  |  | — |  |  | — |  |  | 8,555 |  |  | — |  |  | — |  |  | 8,556 |
Issuance of shares for employee stock purchase plan | 142 |  | — |  |  | — |  |  | — |  |  | 1,998 |  |  | — |  |  | — |  |  | 1,998 |
Balance as of September 30, 2024 | 157,721 |  | $ | 158 |  |  | 9,325 |  | $ | 9 |  |  | $ | 932,392 |  |  | $ | (476,178) |  |  | $ | (169) |  |  | $ | 456,212 |

The accompanying notes are an integral part of these condensed consolidated financial statements.
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ACV AUCTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

| Nine months ended September 30,
| 2025 |  | 2024
Cash Flows from Operating Activities |  |  |
Net loss | $ | (46,580) |  |  | $ | (53,563) |
Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
Depreciation and amortization | 32,426 |  |  | 26,451 |
Stock-based compensation expense, net of amounts capitalized | 43,331 |  |  | 48,055 |
Provision for bad debt | 29,332 |  |  | 8,161 |
Other non-cash, net | 2,169 |  |  | 369 |
Changes in operating assets and liabilities, net of effects from purchases of businesses: |  |  |
Trade receivables | (51,638) |  |  | (16,803) |
Other operating assets | (15,226) |  |  | (2,168) |
Accounts payable | 91,843 |  |  | 55,684 |
Other operating liabilities | 4,935 |  |  | 2,430 |
Net cash provided by operating activities | 90,592 |  |  | 68,616 |
Cash Flows from Investing Activities |  |  |
Net increase in finance receivables | (87,094) |  |  | (12,536) |
Purchases of property and equipment | (6,807) |  |  | (3,834) |
Proceeds from sale of real estate | — |  |  | 14,083 |
Capitalization of software costs | (26,836) |  |  | (22,438) |
Purchases of marketable securities | (28,921) |  |  | (21,607) |
Maturities and redemptions of marketable securities | 24,888 |  |  | 85,164 |
Sales of marketable securities | — |  |  | 130,090 |
Acquisition of businesses (net of cash acquired) | — |  |  | (156,608) |
Net cash (used in) provided by investing activities | (124,770) |  |  | 12,314 |
Cash Flows from Financing Activities |  |  |
Proceeds from long term debt | 353,500 |  |  | 455,000 |
Payments towards long term debt | (256,500) |  |  | (455,000) |
Payment of debt issuance costs | (1,490) |  |  | (1,966) |
Proceeds from exercise of stock options | 760 |  |  | 8,644 |
Payment of RSU tax withholdings in exchange for common shares surrendered by RSU holders | (23,490) |  |  | (19,537) |
Proceeds from employee stock purchase plan | 2,534 |  |  | 1,998 |
Other financing activities | (99) |  |  | (66) |
Net cash provided by (used in) financing activities | 75,215 |  |  | (10,927) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 241 |  |  | (50) |
Net increase in cash, cash equivalents, and restricted cash | 41,278 |  |  | 69,953 |
Cash, cash equivalents, and restricted cash, beginning of period | 224,065 |  |  | 182,571 |
Cash, cash equivalents, and restricted cash, end of period | $ | 265,343 |  |  | $ | 252,524 |
Supplemental disclosure of cash flow information |  |  |
Non-cash investing and financing activities: |  |  |
Stock-based compensation included in capitalized software development costs | $ | 5,674 |  |  | $ | 3,869 |
Purchase of property and equipment and internal use software in accounts payable | $ | 1,072 |  |  | $ | 886 |

The accompanying notes are an integral part of these condensed consolidated financial statements
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ACV AUCTIONS INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Nature of Business and Summary of Significant Accounting Policies
Nature of Business – ACV Auctions Inc. (the "Company" or "ACV") operates in one industry segment, providing a wholesale auction marketplace (the “Marketplace” or “Marketplace Platform”) to facilitate business-to-business used vehicle sales between a selling dealership (“Seller”) and a buying dealership (“Buyer”). The Marketplace encompasses the digital marketplaces, remarketing centers, data services, and data and technology.
Customers using the Marketplace are licensed automotive dealerships or other commercial automotive enterprises. At the election of the customer purchasing a vehicle, the Company can arrange third-party transportation services for the delivery of the purchased vehicle through its wholly owned subsidiary, ACV Transportation LLC. The Company can also provide the customer financing for the purchased vehicle through its wholly owned subsidiary, ACV Capital LLC (“ACV Capital”). ACV also provides data services that offer insights into the condition and value of used vehicles for transactions both on and off the Company's Marketplace, which help dealerships, their end customers, and commercial partners make more informed decisions to transact with confidence and efficiency. Customers using data services are licensed automotive dealerships or other commercial automotive enterprises. Services are primarily provided in the United States and certain data services are also provided internationally. Services are supported by the Company’s operations which are primarily in North America and India.
Basis of Consolidation – The condensed consolidated financial statements include the accounts of ACV Auctions Inc. and all of its controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Basis of Preparation – The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). The Company has condensed or omitted certain information and notes normally included in complete annual financial statements prepared in accordance with GAAP. These financial statements have been prepared on the same basis as the Company's annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's financial information. The unaudited interim condensed consolidated financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 19, 2025 (the "Annual Report"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).
Seasonality – The volume of vehicles sold through auctions held on ACV's Marketplace Platform generally fluctuates from quarter to quarter. This seasonality is caused by several factors, including holidays, weather, the seasonality of the retail market for used vehicles and the timing of federal tax returns, which affects the demand side of the vehicle auction industry. As a result, revenue and operating expenses related to volume will fluctuate accordingly on a quarterly basis. In the fourth quarter, we typically experience lower used vehicle auction volume as well as additional costs associated with the holidays. Seasonally depressed used vehicle auction volume typically continues during the winter months through the beginning of the first quarter. Typical seasonality trends may not be observed in periods where other external factors more significantly impact the industry.
Recent Accounting Pronouncements – The following table provides a description of accounting standards that are not yet adopted that could have an impact to the consolidated financial statements upon adoption.
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Accounting Standard Update | Description | Required date of adoption | Effect on consolidated financial statements
Accounting Standards Not Yet Adopted
Improvements to Income Tax Disclosures (ASU 2023-09) | The guidance enhances the transparency and decision usefulness of income tax disclosures. | December 31, 2025 | The Company will adopt the standard prospectively as of December 31, 2025. ASU 2023-09 requires additional tax related disclosures and is not expected to have a material impact on the Company's consolidated financial statements.
Reporting Comprehensive Income—Expense Disaggregation Disclosures (ASU 2024-03) | This guidance enhances the disaggregated disclosure of income statement expenses. | December 31, 2027 | The Company is currently evaluating the impact this guidance may have on the consolidated financial statements.
Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06) | This update modernizes the guidance to reflect the software development approaches currently used. | December 31, 2028 | The Company is currently evaluating the impact this guidance may have on the consolidated financial statements.
Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05) | This update provides a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of an asset when developing reasonable and supportable forecasts as part of estimating expected credit losses | December 31, 2026 | The Company is currently evaluating the impact this guidance may have on the consolidated financial statements and whether the Company will adopt this practical expedient.

2. Financial Instruments
The following is a summary of available-for-sale marketable securities, as of September 30, 2025 and December 31, 2024, respectively (in thousands):

| September 30, 2025
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Marketable securities: |  |  |  |  |  |  |
Corporate securities (1) | $ | 47,459 |  |  | $ | 130 |  |  | $ | (3) |  |  | $ | 47,586 |
U.S. agency securities | 3,090 |  |  | — |  |  | — |  |  | 3,090 |
Total Marketable securities | $ | 50,549 |  |  | $ | 130 |  |  | $ | (3) |  |  | $ | 50,676 |
(1)Comprised primarily of corporate bonds |  |  |  |  |  |

| December 31, 2024
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Marketable securities: |  |  |  |  |  |  |
Corporate securities (1) | $ | 43,008 |  |  | $ | 9 |  |  | $ | (74) |  |  | $ | 42,943 |
U.S. agency securities | 3,097 |  |  | — |  |  | (4) |  |  | 3,093 |
Total Marketable securities | $ | 46,105 |  |  | $ | 9 |  |  | $ | (78) |  |  | $ | 46,036 |
(1)Comprised primarily of corporate bonds |  |  |  |

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As of September 30, 2025, the fair values of available-for-sale marketable securities, by remaining contractual maturity, were as follows (in thousands):

Due within one year | $ | 33,903 |
Due in one to five years | 16,773 |
Total | $ | 50,676 |

The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio.
The Company does not believe that any unrealized losses are attributable to credit-related factors based on its evaluation of available evidence. To determine whether a decline in value is related to credit loss, the Company evaluates, among other factors: the extent to which the fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency and any adverse conditions specifically related to an issuer of a security or its industry. The Company does not intend to sell the instruments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. Unrealized gains and losses on marketable securities are presented net of tax.
3. Fair Value Measurement
Fair value accounting is applied for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity, associated with the inputs to the valuation of these assets or liabilities are as follows:
Level 1: Observable inputs such as quoted prices in active markets for identical assets and liabilities.
Level 2: Inputs other than the quoted prices in active markets that are observable either directly or indirectly.
Level 3: Unobservable inputs in which there is little or no market data which require the Company to develop its own assumptions.
The Company’s financial instruments primarily consist of cash and cash equivalents, debt securities, trade and finance accounts receivable and accounts payable. The carrying values of cash and cash equivalents, trade and finance accounts receivable, and accounts payable approximate fair value due to the short-term nature of those instruments. The carrying value of the revolver and warehouse facility were determined to approximate fair value due to their duration and variable interest rates that approximate prevailing interest rates as of each reporting period.
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The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):

| September 30, 2025
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 30,964 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,964 |
Marketable Securities: |  |  |  |  |  |  |
Corporate securities | — |  |  | 47,586 |  |  | — |  |  | 47,586 |
U.S. agency securities | — |  |  | 3,090 |  |  | — |  |  | 3,090 |
Total financial assets | $ | 30,964 |  |  | $ | 50,676 |  |  | $ | — |  |  | $ | 81,640 |

| December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 69,475 |  |  | $ | — |  |  | $ | — |  |  | $ | 69,475 |
Marketable Securities: |  |  |  |  |  |  |
Corporate securities | — |  |  | 42,943 |  |  | — |  |  | 42,943 |
U.S. agency securities | — |  |  | 3,093 |  |  | — |  |  | 3,093 |
Total financial assets | $ | 69,475 |  |  | $ | 46,036 |  |  | $ | — |  |  | $ | 115,511 |

The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate bonds, and U.S. agency securities within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded.
4. Accounts Receivable & Allowance for Doubtful Receivables
The Company maintains an allowance for doubtful receivables that, in management’s judgment, reflects losses inherent in the portfolio. A provision for doubtful receivables is recorded to adjust the level of the allowance as deemed necessary by management.
Changes in the allowance for doubtful trade receivables for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance | $ | 4,368 |  |  | $ | 5,507 |  |  | $ | 6,372 |  |  | $ | 2,868 |
Provision for bad debt | 896 |  |  | 2,271 |  |  | 1,701 |  |  | 5,048 |
Net write-offs |  |  |  |  |  |  |
Write-offs | (1,100) |  |  | (1,082) |  |  | (4,105) |  |  | (2,197) |
Recoveries | 72 |  |  | 309 |  |  | 268 |  |  | 1,286 |
Net write-offs | (1,028) |  |  | (773) |  |  | (3,837) |  |  | (911) |
Ending balance | $ | 4,236 |  |  | $ | 7,005 |  |  | $ | 4,236 |  |  | $ | 7,005 |

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Changes in the allowance for doubtful finance receivables for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance | $ | 5,097 |  |  | $ | 3,192 |  |  | $ | 4,191 |  |  | $ | 3,428 |
Provision for bad debt | 25,325 |  |  | 835 |  |  | 27,631 |  |  | 3,113 |
Net write-offs |  |  |  |  |  |  |
Write-offs | (1,459) |  |  | (528) |  |  | (3,227) |  |  | (3,338) |
Recoveries | — |  |  | 58 |  |  | 368 |  |  | 354 |
Net write-offs | (1,459) |  |  | (470) |  |  | (2,859) |  |  | (2,984) |
Ending balance | $ | 28,963 |  |  | $ | 3,557 |  |  | $ | 28,963 |  |  | $ | 3,557 |

On September 10, 2025, Tricolor Holdings, LLC, and certain of its affiliates (collectively, "Tricolor") filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code with the United States Bankruptcy court for the Northern District of Texas. Floorplan loans to Tricolor accounted for approximately $18.7 million of the Company's finance receivables as of September 30, 2025. There are allegations against Tricolor of significant fraud that are being investigated by Federal authorities.
In regards to the collectability of our finance receivables, in the quarter ended September 30, 2025, the Company recorded a provision for credit losses of $18.7 million on finance receivables due from Tricolor. The loss was recorded in selling, general, and administrative expenses within the Condensed Consolidated Statement of Operations.
In addition to the provision recorded related to the previously described Tricolor bankruptcy, the Company recorded an increase in the allowance for doubtful finance receivables at September 30, 2025 primarily due to reserves on specific borrowers exhibiting signs of stress and to a lesser degree, due to deterioration in collection experience on the Company's broader finance receivable portfolio.
5. Guarantees, Commitments and Contingencies
The Company provides certain guarantees to Sellers in the Marketplace in the ordinary course of business, which are accounted for under ASC 460 - Guarantees as a general guarantee.
Vehicle Condition Guarantees – Sellers must attach a vehicle condition report in the Marketplace for every auction; this vehicle condition report is used by Buyers to inform bid decisions. The Company offers guarantees to Sellers in qualifying situations where the Company performed a vehicle inspection and prepared the vehicle condition report. Sellers pay an additional fee in exchange for this guarantee. Such guarantees provide Sellers protection from paying remedies to Buyers related to a Buyer’s claim that the vehicle condition report did not accurately portray the condition of the vehicle purchased on the Marketplace. These guarantee agreements provide the Company with the right to retain proceeds from the subsequent liquidation of vehicles covered under the guarantees. The guarantees are typically provided for 10 days after the successful sale of the vehicle on the Marketplace. The fair value of vehicle condition guarantees issued is estimated based on historical results and other qualitative factors. Vehicle condition guarantee revenue is recognized on the earlier of the guarantee expiration date or the guarantee settlement date. The maximum potential payment is the sale price of the vehicle. The total sale price of vehicles for which there was an outstanding guarantee was approximately $269.8 million and approximately $161.7 million at September 30, 2025 and December 31, 2024, respectively. The carrying amount of the liability presented in Accrued other liabilities on the Condensed Consolidated Balance Sheets was $2.5 million and $1.4 million at September 30, 2025 and December 31, 2024, respectively.
Other Price Guarantees – The Company provides Sellers with a price guarantee for vehicles to be sold on the Marketplace from time to time. If a vehicle sells below the guaranteed price, the Company is responsible for paying the Seller the difference between the guaranteed price and the final sale price. The term of the guarantee is typically less than one week. No material unsettled price guarantees existed at September 30, 2025 and December 31, 2024.
Litigation – The Company and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and matters in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company's liabilities and contingencies in connection with
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such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its condensed consolidated financial statements. To the extent pending or threatened litigation could result in exposure in excess of the recorded liability, the amount of such excess is not currently estimable.
ACV was a member of a class action lawsuit which sought damages from one of the Company's data services vendors. During September 2025, ACV was awarded a total of $7.9 million from the settlement of this class action lawsuit. Of this total settlement, $7.6 million is included as a reduction in marketplace and service cost of revenue in the Condensed Consolidated Statements of Operations for both the three and nine months ended September 30, 2025. Based on the payment terms provided in the settlement, $6.4 million is included in other current assets and $1.5 million is included in other assets in the Condensed Consolidated Balance Sheet at September 30, 2025.
6. Borrowings
2021 Revolver
On August 24, 2021, ACV entered into a revolving credit facility (the “2021 Revolver”). The 2021 Revolver was established to provide general financing to the Company and is secured by substantially all of the Company’s assets except for certain finance receivables. As of September 30, 2025, the maximum borrowing capacity under the 2021 Revolver is $250.0 million and includes a sub facility that provides for the issuance of letters of credit up to $20.0 million outstanding at any time. Through June 26, 2025, the interest rate on the 2021 Revolver was, at the Company’s option, either (a) the Secured Overnight Financing Rate (“SOFR”) (or a replacement rate established in accordance with the terms of the credit agreement for the 2021 Revolver) subject to a 0.00% SOFR floor, plus a margin of 2.75% per annum plus an additional credit spread adjustment of 0.11% for daily and one-month terms, 0.26% for three-month terms and 0.43% for six-month terms or (b) the Alternate Base Rate plus a margin of 1.75% per annum. The Alternate Base Rate was defined as the highest of (a) the Wall Street Journal prime rate, (b) the NYFRB rate plus 0.5% and (c) 1.00% plus the adjusted SOFR rate for a one-month interest period.
On June 26, 2025, the Company entered into Amendment No. 4 (the “ Fourth Amendment”) to the 2021 Revolver which modifies the credit agreement (i) to increase the committed amount of the Company’s revolving credit facility thereunder from $160 million to $250 million, (ii) to extend the maturity date thereof from August 24, 2026 to June 26, 2030, (iii) to modify the Company’s minimum total revenue financial covenant to take into account such maturity date extension, (iv) to include a new maximum total net leverage ratio that will be effective as of the earlier of five business days after the Company’s election and July 30, 2027, as more particularly described in the Revolving Credit Agreement, as amended (the “Covenant Conversion Date”), after which the Company’s minimum liquidity and minimum total revenue financial covenants will no longer be applicable, (v) to provide for more favorable pricing of the loans on and after the Covenant Conversion Date, and (vi) to amend certain other items in connection with the foregoing. Borrowings under the 2021 Revolver will continue to bear interest, at the Company’s option, at either the Term SOFR Rate, subject to a 0.00% SOFR floor, or the Alternate Base Rate plus a margin equal to the Applicable Rate. Pursuant to the Fourth Amendment, the Applicable Rate is (x) 2.75% prior to the Covenant Conversion Date and 2.500% thereafter for loans accruing interest at the Term SOFR Rate and (y) 1.750% prior to the Covenant Conversion Date and 1.500% thereafter for loans accruing interest at the Alternate Base Rate, in each case, subject to the terms of the Credit Agreement.
From and after the Covenant Conversion Date, the Company will be subject to a maximum total net leverage ratio covenant of (i) 4.0 to 1.0 for any measurement period ending on or prior to the second fiscal quarter following June 30, 2027 and (ii) 3.5 to 1.0 thereafter.
As of September 30, 2025 and December 31, 2024, outstanding borrowings under the 2021 Revolver were $100.0 million and $56.5 million, respectively, and there were outstanding letters of credit issued under the 2021 Revolver in the amount of $3.3 million and $3.3 million, respectively, decreasing the availability under the 2021 Revolver by a corresponding amount. As of September 30, 2025, the interest rate on the outstanding borrowing was 9.00%.
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Warehouse Facility
On June 20, 2024, ACV Funding entered into a revolving credit and security agreement, providing for a revolving warehouse facility (the "Warehouse Facility") with a maximum principal amount of $125.0 million. The Warehouse Facility was established to provide liquidity to fund new originations of auto floorplan loans by ACV Capital. The facility is secured by all assets of ACV Funding, including the auto floorplan loans owned by it. The revolving feature on the facility ends on June 20, 2026. The facility matures twelve months later, unless sooner terminated or extended in accordance with its terms.
Advances under the Warehouse Facility funded by asset-backed commercial paper conduit through the issuance of commercial paper notes will bear interest generally at a rate equivalent to the weighted average annual rate of all commercial paper notes issued by the commercial paper conduit to fund its advances, plus a margin of 3.00%. Advances funded by lenders that are not commercial paper conduits, or by commercial paper conduits funded through means other than the issuance of commercial paper notes, will bear interest generally at a rate equal to (i) Term SOFR for a period of one-month (subject to a 0.00% floor), plus 0.11448% or, in certain circumstances, the Alternate Base Rate, plus (ii) a margin of 3.00%. The Alternate Base Rate is the highest of (a) the prime rate quoted in the Wall Street Journal, (b) the NYFRB rate plus 0.50% and (c)(i) 1.00% plus (ii) the Term SOFR rate for a one-month interest period. The interest rate may be increased under certain circumstances, including upon the occurrence of an early amortization event or event of default under the warehouse documentation. ACV Funding must also pay upfront any unused fees in connection with the facility.
As of September 30, 2025 and December 31, 2024, borrowings under the Warehouse Facility were $120.0 million and $66.5 million, respectively. As of September 30, 2025, the interest rate on the outstanding borrowing was 7.32%.
As of September 30, 2025, the Company was in compliance with all of its financial covenants and non-financial covenants.
7. Revenue
The following table summarizes the primary components of Marketplace and service revenue. The level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors (in thousands):

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Auction marketplace revenue | $ | 87,753 |  |  | $ | 84,894 |  |  | $ | 270,004 |  |  | $ | 227,656 |
Other marketplace revenue | 80,290 |  |  | 62,748 |  |  | 223,363 |  |  | 177,671 |
Data services revenue | 8,467 |  |  | 8,266 |  |  | 25,075 |  |  | 24,521 |
Marketplace and service revenue | $ | 176,510 |  |  | $ | 155,908 |  |  | $ | 518,442 |  |  | $ | 429,848 |

Contract liabilities represent consideration collected prior to satisfying performance obligations. The Company had $6.4 million and $4.5 million of contract liabilities included in Accrued other liabilities on the Condensed Consolidated Balance Sheets at September 30, 2025 and December 31, 2024, respectively. Revenue recognized for the three months ended September 30, 2025 from amounts included in deferred revenue as of June 30, 2025 was $5.8 million. Revenue recognized for the nine months ended September 30, 2025 from amounts included in deferred revenue as of December 31, 2024 was $4.5 million. All of the remaining performance obligations for contracts are expected to be recognized within one year.
8. Stock-Based Compensation
Refer to Note 13 contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for further details regarding the Company's equity plans.
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The following table summarizes the stock option activity for the nine months ended September 30, 2025 (in thousands, except year and per share amounts):

| Number of Options |  | Weighted- Average Exercise Price Per Share |  | Intrinsic Value |  | Weighted- Average Remaining Contractual Term (in years)
Outstanding, December 31, 2024 | 3,882 |  | $ | 1.55 |  |  | $ | 77,824 |  |  | 3.21
Exercised | (2,003) |  | 0.39 |  |  |  |  |
Forfeited | (1) |  | 5.54 |  |  |  |  |
Expired | (10) |  | 6.08 |  |  |  |  |
Outstanding, September 30, 2025 | 1,868 |  | $ | 2.78 |  |  | $ | 13,330 |  |  | 2.85
Exercisable, September 30, 2025 | 1,866 |  | $ | 2.77 |  |  | $ | 13,323 |  |  | 2.85

The following table summarizes the restricted stock unit and performance share unit (collectively "RSU") activity for the nine months ended September 30, 2025 (in thousands, except per share amounts):

| Number of RSUs |  | Weighted- Average Grant-Date Fair Value
Outstanding, December 31, 2024 | 8,078 |  | $ | 16.04 |
Granted | 5,718 |  | $ | 15.52 |
Vested | (3,347) |  | $ | 15.26 |
Forfeited | (495) |  | $ | 16.53 |
Outstanding, September 30, 2025 | 9,954 |  | $ | 15.98 |

As of September 30, 2025, there was approximately $136.0 million of compensation expense related to the unvested portion of common stock options, restricted stock units, and performance share units that will be recorded as compensation expense over a weighted-average period of 2.7 years.
During the second quarter of 2025, the Company's Board of Directors approved long-term incentive awards to certain of the Company's executive officers comprised of performance share units (“PSUs”), which may only be settled in shares of the Company’s Common Stock. The PSUs are subject to both service-based vesting conditions and a requirement that the relative total shareholder return ("rTSR") of the Company's Common Stock, measured against the Russell 2000, achieve at least the 25th percentile, at which point 50% of the award is earned, with a maximum earning potential of 200% if the 75th percentile or above is achieved (the “rTSR Condition”). The rTSR Condition is measured over a two-year performance period ending on December 31, 2026. The rTSR Condition earning potential is capped at 100% if the Company’s stock price is lower at the end of the performance period than at the beginning of such period. If the rTSR Condition is met at the end of the performance period, 50% of the award will vest in the first quarter of 2027, with the remaining 50% of the award vesting in the first quarter of 2028. In each circumstance, vesting is subject to the executive’s continued service with the Company until the time of vesting.
9. Income Taxes
The Company had an effective tax rate of approximately (2)% and 1% for the three months ended September 30, 2025 and 2024, respectively, and (2)% and (1)% for the nine months ended September 30, 2025 and 2024, respectively. The principal differences between the federal statutory rate and the effective tax rate are related to state taxes, foreign taxes and credits, and the non-recognition of tax benefits for certain entities in a loss position for which a full valuation allowance has been recorded.
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10. Net Loss Per Share
The numerators and denominators of the basic and diluted net loss per share computations for the Company's common stock are calculated as follows for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share data):

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  |  |  | 2024 |  | 2025 |  |  |  | 2024
| Common Stock (1) |  |  |  | Class A |  | Class B |  | Common Stock (1) |  |  |  | Class A |  | Class B
Numerator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss attributable to common stockholders | $ | (24,465) |  |  |  |  | $ | (14,734) |  |  | $ | (1,295) |  |  | $ | (46,580) |  |  |  |  | $ | (47,932) |  |  | $ | (5,631) |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted-average number of shares of common stock - basic and diluted | 171,348 |  |  |  | 152,334 |  | 13,389 |  | 170,067 |  |  |  | 147,061 |  | 17,276
Net loss per share attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted | $ | (0.14) |  |  |  |  | $ | (0.10) |  |  | $ | (0.10) |  |  | $ | (0.27) |  |  |  |  | $ | (0.33) |  |  | $ | (0.33) |

(1) During the fourth quarter of 2024, the number of outstanding shares of the Company's Class B common stock declined such that the total number of outstanding shares of Class B common stock represented less than 5% of the aggregate number of outstanding shares of the Company's Class A common stock and Class B common stock. Under the terms of the Company's amended and restated certificate of incorporation, the Company's Class B common stock automatically converted to Class A common stock effective as of December 31, 2024. This resulted in 3,550,142 shares of Class A common stock being issued on December 31, 2024 with the related shares of Class B common stock being cancelled. Following the approval by the Company's shareholders of certain amendments to the Company's Certificate of Incorporation at the 2025 Annual Shareholder Meeting, the Company filed with the State of Delaware the Eleventh Amended and Restated Certificate of Incorporation of ACV Auctions Inc. The changes include, among other things, the removal of all references to Class B Common Stock and the reclassification of Class A Common Stock to Common Stock.
The following table presents the total weighted-average number of potentially dilutive shares that were excluded from the computation of diluted net loss per share attributable to common shareholders because their effect would have been anti-dilutive for the period presented:

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Unvested RSUs and other awards | 1,353 |  | 3,348 |  | 2,379 |  | 3,235
Stock options | 1,499 |  | 4,049 |  | 2,070 |  | 4,497

11. Acquisitions
The Company completed four business acquisitions during the year ended December 31, 2024. These acquisitions were accounted for using the acquisition method and, accordingly, the results of the acquired businesses have been included in the Company's results of operations from the respective acquisition dates. Goodwill acquired in connection with these acquisitions represents expected synergies from the combined operations, is deductible for tax purposes in the United States, and is amortized on a straight-line basis over 15 years.
Indiana Auto Auction
On June 17, 2024, the Company completed its acquisition of all of the ownership interest of Indiana Auto Auction for total cash consideration of $51.5 million, which included $5.0 million of acquired cash and $14.1 million of acquired real estate. The aggregate purchase price was allocated to $16.2 million of goodwill, $13.9 million of intangibles, and $21.4 million of net tangible assets assumed. The Company completed a sale of the real estate to a third
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party on August 6, 2024. Indiana Auto Auction offers wholesale and commercial car auction and reconditioning services and enabled the Company to expand its range of offerings to dealers and commercial partners.
March 13, 2024 Acquisition
On March 13, 2024, the Company completed its acquisition of all of the ownership interests of a business for total cash consideration of $19.0 million. The aggregate purchase price was allocated to $14.1 million of goodwill, $5.7 million of intangible assets, and $0.8 million of net tangible liabilities assumed. The business acquired offers wholesale car auction services and enabled the Company to expand its range of offerings to dealers and commercial partners.
166 Auto Auction
On March 8, 2024, the Company completed its acquisition of all of the ownership interests of 166 Auto Auction for a total cash consideration of $27.4 million. The aggregate purchase price was allocated to $7.4 million of goodwill, $16.3 million of intangible assets, and $3.6 million of net tangible assets assumed. 166 Auto Auction offers wholesale car auction services and enabled the Company to expand its range of offerings to dealers and commercial partners.
Alliance Auto Auctions
On January 30, 2024, the Company completed its acquisition of all of the ownership interests of Alliance Auto Auctions for total cash consideration of $66.9 million and 639,976 common shares of the Company's Class A common stock. The fair value of the consideration shares of $8.6 million was determined based upon the closing market price of the Company's Class A common shares on January 30, 2024.
The aggregate purchase price for the Alliance Auto Auctions acquisition was allocated to the assets and liabilities assumed as follows (in thousands):

Assets Acquired |  |
Cash and cash equivalents |  | $ | 2,467 |
Trade receivables |  | 14,926 |
Finance receivables |  | — |
Other current assets |  | 768 |
Property & equipment |  | 892 |
Goodwill |  | 40,412 |
Intangible assets |  | 32,700 |
Other assets |  | 8,305 |
Total assets acquired |  | $ | 100,470 |
Liabilities Assumed |  |
Accounts payable |  | $ | 15,040 |
Accrued payroll |  | 400 |
Accrued other liabilities |  | 2,132 |
Deferred revenue |  | 64 |
Other long-term liabilities |  | 7,383 |
Total liabilities assumed |  | 25,019 |
Net assets acquired |  | $ | 75,451 |

Alliance Auto Auctions offers wholesale car auction services and enabled the Company to expand its range of offerings to dealers and commercial partners.
12. Segment Information
The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”) and is responsible for reviewing financial information presented on a segment basis for purposes of making operating decisions and assessing financial performance. The CEO reviews the financial information presented on a consolidated basis for purposes of
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allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates in a single reporting segment (the “ACV segment”).
The ACV segment provides the Marketplace to facilitate business-to-business used vehicle sales between a seller and a buyer. Customers using the Marketplace are licensed automotive dealerships or other commercial automotive enterprises. At the election of the customer purchasing a vehicle, the Company can arrange third-party transportation services for the delivery of the purchased vehicle through its wholly owned subsidiary, ACV Transportation LLC. The Company can also provide the customer with financing for the purchased vehicle through its wholly owned subsidiary, ACV Capital LLC. ACV also provides data services that offer insights into the condition and value of used vehicles for transactions both on and off the Company's Marketplace. The ACV segment provides a wholesale auction marketplace to dealers and derives its revenues primarily from North America. The CODM assesses performance for the ACV segment and decides how to allocate resources based on net income (loss) that also is reported on the consolidated statement of operations as consolidated net income (loss). The CODM uses net income (loss) in budget versus actual analysis to measure performance and as a key input to make resource investment and management compensation decisions.
The following is the information used by the CODM in assessing segment performance:

|  | Three Months ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue |  | $ | 199,561 |  |  | $ | 171,329 |  |  | $ | 575,961 |  |  | $ | 477,642 |
Less: |  |  |  |  |  |  |  |
Marketplace and service cost of revenue (excluding depreciation & amortization) |  | 70,859 |  |  | 67,064 |  |  | 214,580 |  |  | 187,010 |
Customer assurance cost of revenue (excluding depreciation & amortization) |  | 22,098 |  |  | 14,176 |  |  | 52,984 |  |  | 41,548 |
Marketplace operations |  | 31,640 |  |  | 28,094 |  |  | 91,405 |  |  | 78,163 |
Technology and development |  | 14,886 |  |  | 14,445 |  |  | 45,112 |  |  | 42,139 |
Sales and marketing |  | 24,614 |  |  | 24,209 |  |  | 78,583 |  |  | 71,553 |
General and administrative |  | 48,212 |  |  | 30,764 |  |  | 106,233 |  |  | 89,185 |
Depreciation and amortization |  | 10,969 |  |  | 9,716 |  |  | 32,407 |  |  | 26,351 |
Total operating expenses |  | 223,278 |  |  | 188,468 |  |  | 621,304 |  |  | 535,949 |
Loss from operations |  | (23,717) |  |  | (17,139) |  |  | (45,343) |  |  | (58,307) |
Interest income |  | 2,218 |  |  | 2,050 |  |  | 6,259 |  |  | 7,410 |
Interest expense |  | (2,483) |  |  | (1,077) |  |  | (6,679) |  |  | (2,218) |
Provision for (benefit from) income taxes |  | 483 |  |  | (137) |  |  | 817 |  |  | 448 |
Segment net loss |  | $ | (24,465) |  |  | $ | (16,029) |  |  | $ | (46,580) |  |  | $ | (53,563) |

For the three and nine months ended September 30, 2025 and 2024, revenue outside of the United States, based on the billing address of the customer, was not material. As of September 30, 2025 and December 31, 2024, long-lived assets located outside of the United States were not material.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" relating to our financial condition and results of operations for the year ended December 31, 2024 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission, or SEC, on February 19, 2025, or the Annual Report. Some of the information contained in this discussion and analysis, including information with respect to our financial condition or results of operations, business strategy and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Form 10-Q. You should review the “Risk Factors” section of our Annual Report for a discussion of important factors that could cause our actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
Our mission is to build and enable the most trusted and efficient Marketplace Platform for buying and selling used vehicles with transparency and comprehensive data that was previously unimaginable.
We provide a highly efficient and vibrant Marketplace Platform ("Marketplace Platform" or "Marketplace") for wholesale vehicle transactions and data services that offer transparent and accurate vehicle information to our customers. Our Marketplace Platform leverages data insights and technology to power our digital marketplace and data services, enabling our dealers and commercial partners to buy, sell, and value vehicles with confidence and efficiency. We strive to solve the challenges that the used automotive industry has faced for generations and provide powerful technology-enabled capabilities to our dealers and commercial partners who fulfill a critical role in the automotive ecosystem. We help dealers source and manage inventory and accurately price their vehicles as well as process payments, transfer titles, manage arbitrations, and finance and transport vehicles. Our Marketplace Platform encompasses:
•Digital Marketplace. Connects buyers and sellers of wholesale vehicles in an intuitive and efficient manner. Our core digital marketplace offerings are auctions in varying formats, which facilitate real time transactions of wholesale vehicles, and are accessible across multiple platforms including mobile apps, desktop, and directly through API integration. We also offer transportation, financing and assurance services to facilitate the entire transaction journey.
•Remarketing Centers. Provides an additional channel to provide dealers and commercial partners with auction services. At remarketing centers, vehicles may be auctioned onsite and/or launched into the digital marketplace. Additional services are offered at remarketing centers that are important to servicing commercial partners.
•Data Services. Offers insights into the condition and value of used vehicles for transactions both on and off our Marketplace and helps dealers, their end consumers, and commercial partners make more informed decisions and transact with confidence and efficiency. We enable dealers to manage their inventory and set pricing more effectively while turning vehicles faster and maximizing profit by leveraging predictive analytics informed by artificial intelligence, machine learning and market data.
•Data and Technology. Underpins everything we do, and powers our vehicle inspections, comprehensive vehicle intelligence reports, digital marketplace, inventory management software, and operations automation.
We have historically generated the majority of our revenue from our digital marketplace where we earn auction and ancillary fees from both buyers and sellers in each case only upon a successful auction. Buyer auction fees are variable based on the price of the vehicle, while seller auction fees include a fixed auction fee and an optional fee for the elective condition report associated with the vehicle. We also earn ancillary fees through additional value-added services to buyers and sellers in connection with the auction.
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Our customers include participants on our Marketplace Platform and purchasers of our data services. Certain dealers and commercial partners purchase data services in connection with vehicle assessments, software subscriptions, and transactions that do not occur on our Marketplace. Our dealer customers include a majority of the top 100 used vehicle dealers in the United States.
Key Operating and Financial Metrics
We regularly monitor a number of operating and financial metrics in order to measure our current performance and estimate our future performance. Our business metrics may be calculated in a manner different than similar business metrics used by other companies.

| Three Months ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Marketplace Units | 218,065 |  | 198,354 |  | 636,519 |  | 559,511
Marketplace GMV | $ | 2.7 | billion |  | $ | 2.5 | billion |  | $ | 8.1 | billion |  | $ | 7.2 | billion
Adjusted EBITDA | $ | 18.7 | million |  | $ | 11.2 | million |  | $ | 51.1 | million |  | $ | 22.5 | million

Marketplace Units
Marketplace Units is a key indicator of our potential for growth in Marketplace GMV and revenue. It demonstrates the overall engagement of our customers and our market share of wholesale transactions in the United States. We define Marketplace Units as the number of vehicles transacted within the applicable period. Marketplace Units transacted includes any vehicle that successfully reaches sold status, even if the auction is subsequently unwound, meaning the buyer or seller does not complete the transaction. These instances were immaterial in the periods presented. Marketplace Units exclude vehicles that were inspected by ACV, but not sold. Marketplace Units have generally increased as we have expanded our territory coverage, added new Marketplace Buyers and Marketplace Sellers and increased our share of wholesale transactions from existing customers. Because we only earn auction and ancillary fees in the case of a successful auction, Marketplace Units will remain a critical driver of our revenue growth.
Marketplace GMV
Marketplace GMV is primarily driven by the volume and dollar value of Marketplace Units transactions. We believe that Marketplace GMV acts as an indicator of our success, signaling satisfaction of dealers and buyers, and the health, scale, and growth of our business. We define Marketplace GMV as the total dollar value of vehicles transacted within the applicable period, excluding any auction and ancillary fees. Because our definition of Marketplace Units does not include vehicles inspected but not sold, and because the value of the vehicle sold is not recognized as revenue, Marketplace GMV does not represent revenue earned by us. We expect that Marketplace GMV will continue to grow as Marketplace Units grow, though at a varying rate within a given applicable period, as Marketplace GMV is also impacted by the value of each vehicle transacted. In periods of declining used vehicle values, Marketplace GMV may decline even while Marketplace Units increase.
Marketplace Buyers
We define Marketplace Buyers as dealers or commercial partners with a unique customer ID that have transacted at least once in the last 12 months as a buyer on our Marketplace Platform. Marketplace Buyers include independent and franchise dealers buying on our marketplace.
Marketplace Sellers
We define Marketplace Sellers as dealers or commercial partners with a unique customer ID that have transacted at least once in the last 12 months as a seller on our Marketplace Platform. Marketplace Sellers include independent and franchise dealers selling on our marketplace, as well as commercial partners, consisting of commercial leasing companies, rental car companies, bank or other finance companies, who use our marketplace to sell their inventory.
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We monitor the growth in both Marketplace Buyers and Marketplace Sellers as they each promote a more vibrant and healthy marketplace. We believe that our growth in Marketplace Sellers and Marketplace Buyers over time has been driven by the value proposition of our offerings, and our sales and marketing success, including our ability to attract new dealers and commercial partners to our Marketplace Platform. Based on our current position in the market, we believe that we have significant opportunity to continue to increase the number of Marketplace Buyers and Marketplace Sellers.
Adjusted EBITDA
Adjusted EBITDA is a performance measure that we use to assess our operating performance and the operating leverage in our business. We define Adjusted EBITDA as net income (loss), adjusted to exclude: depreciation and amortization, stock-based compensation expense, interest (income) expense, provision for income taxes, and other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. We monitor Adjusted EBITDA as a non-GAAP financial measure to supplement the financial information we present in accordance with generally accepted accounting principles, or GAAP, to provide investors with additional information regarding our financial results. For further explanation of the uses and limitations of this measure and a reconciliation of our Adjusted EBITDA to the most directly comparable GAAP measure, net income (loss), please see “—Non-GAAP Financial Measures.”
We expect Adjusted EBITDA to fluctuate in the near term as we continue to invest in our business and improve over the long term as we achieve greater scale in our business and efficiencies in our operating expenses.
Factors Affecting Our Performance
We believe that the growth and future success of our business depend on many factors. While each of these factors presents significant opportunities for our business, they also pose important challenges that we must successfully address in order to sustain our growth, improve our results of operations, and increase profitability.
Increasing Marketplace Units
Increasing Marketplace Units is a key driver of our revenue growth. The transparency, efficiency and vibrancy of our marketplace is critical to our ability to grow our share of wholesale transactions from existing customers and attract new buyers and sellers to our Marketplace Platform. Failure to increase the number of Marketplace Units would adversely affect our revenue growth, operating results, and the overall health of our marketplace.
Grow Our Share of Wholesale Transactions from Existing Customers
Our success depends in part on our ability to grow our share of wholesale transactions from existing customers, increasing their engagement and spend on our Marketplace Platform. We remain in the early stages of penetrating our Marketplace Buyers’ and Sellers’ total number of wholesale transactions. As we continue to invest in eliminating key risks of uncertainty related to the auction process through our trusted and efficient Marketplace Platform, we expect that we will capture an increasing share of transactions from our existing buyers and sellers. Our ability to increase share from existing customers will depend on a number of factors, including our customers’ satisfaction with our Marketplace Platform, competition, pricing and overall changes in our customers’ engagement levels.
Add New Marketplace Buyers and Marketplace Sellers
We believe we have a significant opportunity to add new marketplace participants. As we expand our presence within our existing territories, we are able to drive increased liquidity and greater vehicle selection, which in turn improves our ability to attract new Marketplace Buyers and Marketplace Sellers. Additionally, we intend to add more commercial consignors to our Marketplace Platform and capture a greater share of vehicles in the wholesale market that are sold to dealers by commercial consignors through auctions and private sales.
Our ability to attract new Marketplace Buyers and Marketplace Sellers will depend on a number of factors including: the ability of our sales team to onboard dealers and commercial consignors onto our Marketplace Platform and ensure their satisfaction, the ability of our territory managers to build awareness of our brand, the ability of our vehicle condition inspectors, or VCIs, to cultivate relationships with our customers in their respective territories, and the effectiveness of our marketing efforts.
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Grow Awareness for Our Offerings and Brand
Wholesale vehicle online penetration is in the early stages, lagging the consumer automotive market, and we expect more dealers and commercial partners to source and manage their inventory online. As the digitization of the wholesale automotive market accelerates, we believe that our digital marketplace is well positioned to capture a disproportionate share of that growth. We use targeted sales and marketing efforts to educate potential Marketplace Buyers and Marketplace Sellers as to the benefits of our offerings and drive adoption of our Marketplace Platform. Our ability to grow awareness of our offerings and brand depend on a number of factors, including:
•Secure Trusted Supply. The more trusted supply on our marketplace, the more buyers we can attract to our Marketplace Platform.
•Deepen Relationships with Dealers and Commercial Partners. We have a team of VCIs that regularly interacts with our customers, providing high-quality inspection services and developing strong customer relationships.
•Drive Customer Loyalty. Our loyal customers and referrals serve as a highly effective customer acquisition tool, and help drive our growth in a given territory.
•Grow Brand Awareness. We invest in promoting our brand via targeted marketing spend to increase customer awareness in the territories in which we operate.
Our future success is dependent on our ability to successfully grow our market presence and market and sell products to both new and existing customers.
Grow Value-Added and Data Services
We continue to drive customer adoption of our existing value-added and data services and introduce new and complementary products. Our ability to drive higher attachment rates of existing value-added services, such as ACV Transportation, ACV Capital, and ACV MAX will help grow our revenue. We continue to drive customer adoption of our data services such as our inventory management system, which enables dealers to accurately price wholesale and retail inventory while maximizing profit by leveraging predictive analytics informed by artificial intelligence. These data services enable our customers to make more informed inventory management decisions both on and off our digital marketplace. In addition, we will continue to focus on developing new products and services that enhance our Marketplace Platform in areas including new data-powered products. Our ability to drive customer adoption of these products and services is dependent on the pricing of our products, the offerings of our competitors and the effectiveness of our marketing efforts.
Investment in Growth
We are actively investing in our business. In order to support our future growth and expanded product offerings, we expect this investment to continue. We anticipate that our operating expenses will increase as we continue to build our sales and marketing efforts, expand our employee base and invest in our technology development. The investments we make in our Marketplace Platform are designed to grow our revenue opportunity and to improve our operating results in the long term, but these investments could also delay our ability to achieve or sustain profitability in the near term. Our success is dependent on making value-generative investments that support our future growth.
Used Car Demand
Our success depends in part on sufficient demand for used vehicles. Our growth over the last several years has coincided with a rising consumer demand for used vehicles. Since early 2020 demand for cars has outpaced supply. During this period, we have seen new car supply have a significant impact on the supply of wholesale vehicles available within our marketplace. More recently, new vehicle supply has begun to increase, although still below 2019 levels. However, this increase in new vehicle supply has been coupled with higher interest rates which has made both new and used vehicles more expensive for retail consumers utilizing financing. Used car demand will be in part dependent on the economic health of the retail consumer and their ability to afford a vehicle purchase, which may be impacted by macroeconomic and geopolitical conditions, including the impact of changes in trade policies.
Used vehicle sales are also seasonal. Sales typically peak late in the first quarter and early in the second quarter, with the lowest relative level of industry vehicle sales occurring in the fourth quarter. Due to our growth since launch, our sales patterns to date have not been entirely reflective of the general seasonality of the used vehicle market, but we expect
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this to normalize as our business matures. Seasonality also impacts used vehicle pricing, with used vehicles depreciating at a faster rate in the last two quarters of each year and a slower rate in the first two quarters of each year. We may experience seasonal and other fluctuations in our quarterly results of operations, which may not fully reflect the underlying performance of our business. See the section titled “Seasonality” for additional information on the impacts of seasonality on our business.
Recent Developments
Tricolor Bankruptcy
On September 10, 2025, Tricolor Holdings, LLC, and certain of its affiliates (collectively, "Tricolor"),filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code with the United States Bankruptcy court for the Northern District of Texas. Several factors differentiated Tricolor from other dealership customers that have finance receivables with ACV Capital. Tricolor's significant focus on the offering of credit to consumers, the scope and complexity of Tricolor's operations including multiple large credit facilities with major U.S. banks, and the emergence of allegations of significant fraud being investigated by Federal authorities are among the differentiating factors. Due to these factors, we do not believe that the Tricolor bankruptcy losses are indicative of our ongoing operating performance. Tricolor accounted for approximately $18.7 million of our finance receivables as of September 30, 2025. The bankruptcy will not have a material negative impact on our future revenues. We are participating as a creditor in the bankruptcy proceedings, seeking to maximize the recovery of our outstanding finance receivables. However, the ultimate outcome of these collection efforts is uncertain at this time. We have recorded a loss of $18.7 million related to this event in the "selling, general, and administrative expenses" line item of the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2025.
Settlement of Class Action Lawsuit Against Data Services Vendors
On September 16, 2025, the Company entered into a class action settlement agreement with a data services vendor, pursuant to which the Company will receive $7.9 million in settlement payments. Of this total settlement, $7.6 million is included as a reduction in marketplace and service cost of revenue in the Condensed Consolidated Statements of Operations for both the three and nine months ended September 30, 2025. Based on the payment terms provided in the settlement, $6.4 million is included in other current assets and $1.5 million is included in other assets in the Condensed Consolidated Balance Sheet at September 30, 2025.
Components of Results of Operations
Revenue
Marketplace and Service Revenue
We have historically generated the majority of our revenue from our digital marketplace where we earn auction and ancillary fees from both buyers and sellers, in each case only upon a successful auction. Our marketplace and service revenue consists principally of revenue earned from facilitating auctions and arranging for the transportation of vehicles purchased in such auctions.
We act as an agent when facilitating a vehicle auction through the marketplace. Auction and related fees charged to the buyer and seller are reported as revenue on a net basis, excluding the price of the auctioned vehicle in the transaction.
We act as a principal when arranging for the transportation of vehicles purchased on the marketplace and leverage our network of third-party transportation carriers to secure the arrangement. Transportation fees charged to the buyer are reported on a gross basis.
We also generate data services revenue through our True360 reports and ACV MAX inventory management software subscriptions and offer short-term inventory financing to eligible customers purchasing vehicles through the marketplace.
Customer Assurance Revenue
We also generate revenue by providing our Go Green assurance to sellers on the condition of certain vehicles sold on the marketplace, which is considered a guarantee under GAAP. This assurance option is only available for Go Green
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sellers on qualifying vehicles for which we have prepared the vehicle condition report. Customer assurance revenue also includes revenue from other price guarantee products offered to sellers. Customer assurance revenue is measured based upon the fair value of the guarantees that we provide. We expect the fair value per vehicle assured to decrease over time as we continue to improve the quality of our inspection product, which in turn reduces the costs of satisfying such assurance.
Operating Expenses
Marketplace and Service Cost of Revenue
Marketplace and service cost of revenue consists of third-party transportation carrier costs, titles shipping costs, customer support, website hosting costs, inspection costs related to data services and various other costs. These costs include salaries, benefits, bonuses and related stock-based compensation expenses, which we refer to as personnel expenses. We expect our marketplace and service cost of revenue to continue to increase in absolute dollars as we continue to scale our business and introduce new product and service offerings.
Customer Assurance Cost of Revenue
Customer assurance cost of revenue consists of the costs related to satisfying claims against the vehicle condition guarantees, and other price guarantees.
Operations and Technology
Operations and technology expense consists of costs for wholesale auction inspections, personnel costs related to payments and titles processing, transportation processing, product and engineering and other general operations and technology expenses. These costs include personnel-related expenses and other allocated facility and office costs. We expect that our operations and technology expense will increase in absolute dollars as our business grows, particularly as we incur additional costs related to continued investments in our marketplace, transportation capabilities and other technologies.
Selling, General and Administrative
Selling, general and administrative expense consists of costs resulting from sales, accounting, finance, legal, marketing, human resources, executive, and other administrative activities. These costs include personnel-related expenses, legal and other professional services expenses and other allocated facility and office costs. Also included in selling, general and administrative expense is advertising and marketing costs to promote our services. We expect that our selling, general and administrative expense will increase in absolute dollars as our business grows. However, we expect that our selling, general and administrative expense will decrease as a percentage of our revenue as our revenue grows over the longer term.
Depreciation and Amortization
Depreciation and amortization expense consists of depreciation of fixed assets, and amortization of acquired intangible assets and internal-use software.
Other Income (Expense)
Other income (expense) consists primarily of interest expense on our borrowings and interest earned on our marketable securities and cash and cash equivalents.
Provision for Income Taxes
Provision for income taxes consists of U.S. federal, state and foreign income taxes.
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Results of Operations
The following table sets forth our Condensed Consolidated Statements of Operations data expressed as a percentage of total revenue for the periods presented:

| Three months ended September 30,
| 2025 |  | 2024
| Amount |  | % of Revenue |  | Amount |  | % of Revenue
| (in thousands)
Revenue: |  |  |  |  |  |  |
Marketplace and service revenue | $ | 176,510 |  |  | 88 | % |  | $ | 155,908 |  |  | 91 | %
Customer assurance revenue | 23,051 |  |  | 12 | % |  | 15,421 |  |  | 9 | %
Total revenue | 199,561 |  |  | 100 | % |  | 171,329 |  |  | 100 | %
Operating expenses: |  |  |  |  |  |  |
Marketplace and service cost of revenue (excluding depreciation & amortization) (1) | 70,859 |  |  | 36 | % |  | 67,064 |  |  | 39 | %
Customer assurance cost of revenue (excluding depreciation & amortization) | 22,098 |  |  | 11 | % |  | 14,176 |  |  | 8 | %
Operations and technology (1)(6) | 46,526 |  |  | 23 | % |  | 42,539 |  |  | 25 | %
Selling, general, and administrative (1) (3) (5) (6) (7) | 72,826 |  |  | 36 | % |  | 54,973 |  |  | 32 | %
Depreciation and amortization (2) (4) | 10,969 |  |  | 5 | % |  | 9,716 |  |  | 6 | %
Total operating expenses | 223,278 |  |  |  |  | 188,468 |  |  |
Loss from operations | (23,717) |  |  |  |  | (17,139) |  |  |
Other Income (expense): |  |  |  |  |  |  |
Interest income | 2,218 |  |  |  |  | 2,050 |  |  |
Interest expense | (2,483) |  |  |  |  | (1,077) |  |  |
Total other (expense) income | (265) |  |  |  |  | 973 |  |  |
Loss before income taxes | (23,982) |  |  |  |  | (16,166) |  |  |
Provision for (benefit from) income taxes | 483 |  |  |  |  | (137) |  |  |
Net loss | $ | (24,465) |  |  |  |  | $ | (16,029) |  |  |

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| Nine months ended September 30,
| 2025 |  | 2024
| Amount |  | % of Revenue |  | Amount |  | % of Revenue
| (in thousands)
Revenue: |  |  |  |  |  |  |
Marketplace and service revenue | $ | 518,442 |  |  | 90 | % |  | $ | 429,848 |  |  | 90 | %
Customer assurance revenue | 57,519 |  |  | 10 | % |  | 47,794 |  |  | 10 | %
Total revenue | 575,961 |  |  | 100 | % |  | 477,642 |  |  | 100 | %
Operating expenses: |  |  |  |  |  |  |
Marketplace and service cost of revenue (excluding depreciation & amortization) (1) | 214,580 |  |  | 37 | % |  | 187,010 |  |  | 39 | %
Customer assurance cost of revenue (excluding depreciation & amortization) | 52,984 |  |  | 9 | % |  | 41,548 |  |  | 9 | %
Operations and technology (1) (6) | 136,517 |  |  | 24 | % |  | 120,302 |  |  | 25 | %
Selling, general, and administrative (1) (3) (5) (6) (7) | 184,816 |  |  | 32 | % |  | 160,738 |  |  | 34 | %
Depreciation and amortization (2) (4) | 32,407 |  |  | 6 | % |  | 26,351 |  |  | 6 | %
Total operating expenses | 621,304 |  |  |  |  | 535,949 |  |  |
Loss from operations | (45,343) |  |  |  |  | (58,307) |  |  |
Other Income (expense): |  |  |  |  |  |  |
Interest income | 6,259 |  |  |  |  | 7,410 |  |  |
Interest expense | (6,679) |  |  |  |  | (2,218) |  |  |
Total other (expense) income | (420) |  |  |  |  | 5,192 |  |  |
Loss before income taxes | (45,763) |  |  |  |  | (53,115) |  |  |
Provision for income taxes | 817 |  |  |  |  | 448 |  |  |
Net loss | $ | (46,580) |  |  |  |  | $ | (53,563) |  |  |

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(1) Includes stock-based compensation expense as follows: | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
Marketplace and service cost of revenue (excluding depreciation & amortization) | $ | 223 |  |  | $ | 294 |  |  | $ | 809 |  |  | $ | 753 |
Operations and technology | 3,181 |  |  | 4,517 |  |  | 11,532 |  |  | 11,767 |
Selling, general, and administrative | 7,899 |  |  | 13,449 |  |  | 30,990 |  |  | 35,535 |
Stock-based compensation expense | $ | 11,303 |  |  | $ | 18,260 |  |  | $ | 43,331 |  |  | $ | 48,055 |
(2) Includes acquired intangible asset amortization as follows: | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
Depreciation and amortization | $ | 2,595 |  |  | $ | 3,390 |  |  | $ | 7,959 |  |  | $ | 8,616 |
(3) Includes litigation-related costs as follows: | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
Selling, general, and administrative | $ | — |  |  | $ | — |  |  | $ | 1,100 |  |  | $ | 1,553 |
(4) Includes amortization of capitalized stock based compensation as follows: | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
Depreciation and amortization | $ | 1,626 |  |  | $ | 1,247 |  |  | $ | 4,593 |  |  | $ | 3,155 |
(5) Includes acquisition-related costs as follows: | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
Selling, general, and administrative | $ | — |  |  | $ | 214 |  |  | $ | 403 |  |  | $ | 3,520 |
(6) Includes other adjustments as follows: | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
Operations and technology | $ | 66 |  |  | $ | 46 |  |  | $ | 66 |  |  | $ | 46 |
Selling, general, and administrative | 1,343 |  |  | 501 |  |  | 1,343 |  |  | 737 |
Other adjustments | $ | 1,409 |  |  | $ | 547 |  |  | $ | 1,409 |  |  | $ | 783 |
(7) Includes Tricolor bankruptcy losses as follows: | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands) |  | (in thousands)
Selling, general, and administrative | $ | 18,711 |  |  | $ | — |  |  | $ | 18,711 |  |  | $ | — |

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Comparison of the three months ended September 30, 2025 and 2024
Revenue
Marketplace and Service Revenue

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Marketplace and service revenue | $ | 176,510 |  |  | $ | 155,908 |  |  | $ | 20,602 |  |  | 13 | %

The increase was primarily driven by an increase in other marketplace revenue which is earned from providing transportation and financing services. Auction marketplace revenue from our Marketplace Buyers and Marketplace Sellers increased as well. For the three months ended September 30, 2025 compared to the three months ended September 30, 2024, auction marketplace revenue increased to $87.8 million from $84.9 million and other marketplace revenue increased to $80.3 million from $62.7 million. Revenue increases in the current quarter were primarily volume-driven and also impacted by higher buyer fee rates for the three months ended September 30, 2025 compared to the prior year period. The volume of Marketplace Units sold on the Marketplace Platform increased to 218,065 for the three months ended September 30, 2025 from 198,354 for the comparable prior year period which is an indicator of increased overall customer engagement. The increase in other marketplace revenue was primarily related to an increase in the revenue earned from the transportation of vehicles due to an increase in the number of units transported. The wholesale automotive industry continues to transition to digital transactions, with an increasing amount of customers transacting digitally versus at physical auction houses. This industry transition, and our position as a leader in the area of digital wholesale automotive auctions, continues to drive more business to our Marketplace Platform. The average total revenue per Marketplace Unit increased for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the aforementioned higher buyer rates and customers adding more optional ancillary services to the auction such as transportation services and financing services which resulted in increase to both auction marketplace and other marketplace revenue.
Customer Assurance Revenue

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Customer assurance revenue | $ | 23,051 |  |  | $ | 15,421 |  |  | $ | 7,630 |  |  | 49 | %

The increase was mainly driven by an increase in Go Green assurance revenue, driven by increases in the estimated fair value of the Go Green offering per unit and an increase in units that elected the Go Green offering. For the three months ended September 30, 2025 compared to the three months ended September 30, 2024, Go Green assurance revenue increased to $19.4 million from $13.5 million. Other customer assurance revenue increased to $3.7 million for the three months ended September 30, 2025 from $1.9 million for the three months ended September 30, 2024 due to an increase in units sold through our price guarantee sales.
Operating Expenses
Marketplace and Service Cost of Revenue

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Marketplace and service cost of revenue (excluding depreciation & amortization) | $ | 70,859 |  |  | $ | 67,064 |  |  | $ | 3,795 |  |  | 6 | %
Percentage of revenue | 36 | % |  | 39 | % |  |  |  |

The increase primarily consisted of higher costs related to generating other marketplace revenue, partially offset by a decrease in data services cost of revenue. For the three months ended September 30, 2025 compared to the three months
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ended September 30, 2024, total cost attributed to generating auction marketplace revenue increased to $17.6 million from $15.8 million. The increase in auction marketplace cost of revenue is due to increased units sold through our marketplace. Other marketplace cost of revenues increased to $56.3 million for the three months ended September 30, 2025, compared to $46.2 million for the three months ended September 30, 2024, primarily due to an increase in the units transported. These increases were partially offset by a $7.6 million legal settlement benefit recognized in the three months ended September 30, 2025, which reduced data services cost of revenue by a corresponding amount. For the three months ended September 30, 2025 data services cost of revenue was a benefit of $2.9 million, compared to an expense of $5.1 million in the comparable prior year period. Marketplace and service costs of revenues as a percentage of revenue decreased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the impact of the legal settlement.
Customer Assurance Cost of Revenue

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Customer assurance cost of revenue (excluding depreciation & amortization) | $ | 22,098 |  |  | $ | 14,176 |  |  | $ | 7,922 |  |  | 56 | %
Percentage of revenue | 11 | % |  | 8 | % |  |  |  |

The increase primarily consisted of costs attributable to our Go Green assurance offerings driven by an increase in the number of arbitration claims due to increased volume of completed auctions where the customer elected the Go Green offering, and an increase in arbitration cost per unit sold. For the three months ended September 30, 2025 compared to the three months ended September 30, 2024, Go Green assurance cost of revenue increased to $18.1 million from $12.9 million. Other assurance cost of revenue also increased to $4.0 million for the three months ended September 30, 2025, compared to $1.3 million for the three months ended September 30, 2024 due to an increase in the current quarter in units sold through our price guarantee sales compared to the prior period . Customer assurance cost of revenue as a percentage of revenue increased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the aforementioned increases in arbitration claim volume and arbitration costs per unit sold.
Operations and Technology Expenses

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Operations and technology | $ | 46,526 |  |  | $ | 42,539 |  |  | $ | 3,987 |  |  | 9 | %
Percentage of revenue | 23 | % |  | 25 | % |  |  |  |

The increase was primarily due to higher personnel-related costs. For the three months ended September 30, 2025 compared to the three months ended September 30, 2024, personnel-related costs increased to $38.0 million from $36.3 million as a result of investment in our internal product and technology capabilities to enable future growth initiatives. Software and technology costs increased to $5.7 million from $4.2 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as a result of continued investment in our technology and infrastructure amid ongoing business growth. Other expenses increased to $2.9 million from $2.0 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Operations and technology expense as a percentage of revenue decreased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as we continued our efforts to effectively manage costs while growing revenue.
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Selling, General, and Administrative Expenses

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Selling, general, and administrative | $ | 72,826 |  |  | $ | 54,973 |  |  | $ | 17,853 |  |  | 32 | %
Percentage of revenue | 36 | % |  | 32 | % |  |  |  |

The increase was primarily due to higher non-personnel related costs. Non-personnel expenses in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 increased to $32.6 million from $9.0 million primarily due to the $18.7 million Tricolor bankruptcy reserve described in the Recent Developments section above. Increased bad debt provision charges on our finance receivable portfolio unrelated to Tricolor during the three months ended September 30, 2025 drove the remainder of the increase compared to the three months ended September 30, 2024. For the three months ended September 30, 2025 compared to the three months ended September 30, 2024, personnel-related costs decreased to $40.2 million from $46.0 million, primarily as a result of efforts to efficiently manage spending on both internal and contracted headcount. Selling, general, and administrative expenses increased as a percentage of revenue during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the Tricolor bankruptcy reserve described above. Absent this charge related to Tricolor, selling, general and administrative expenses decreased as a percentage of revenue during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as we continued our efforts to effectively manage costs while growing revenue.
Depreciation and Amortization

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Depreciation and amortization | $ | 10,969 |  |  | $ | 9,716 |  |  | $ | 1,253 |  |  | 13 | %
Percentage of revenue | 5 | % |  | 6 | % |  |  |  |

The increase was primarily due to an increase of $1.8 million in amortization of internal-use software costs due to the placing of internal-use software projects into service and the subsequent recognition of amortization expense. Depreciation and amortization as a percentage of revenue decreased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as we continue to grow revenue at a faster pace than depreciation and amortization expense increases.
Interest Income

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Interest income | $ | 2,218 |  |  | $ | 2,050 |  |  | $ | 168 |  |  | 8 | %

Interest income is generated by our cash and cash equivalents as well as our marketable securities portfolio. Interest income increased during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Interest Expense

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Interest expense | $ | (2,483) |  |  | $ | (1,077) |  |  | $ | (1,406) |  |  | 131 | %

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The increase was primarily driven by the interest and fees related to the Warehouse facility. The increase in interest expense on the Warehouse facility during the three months ended September 30, 2025 was due to a higher average balance of Warehouse facility borrowings as we did not draw on our Warehouse facility until late in the third quarter of 2024.
Provision for Income Taxes

| Three months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Provision for (benefit from) income taxes | $ | 483 |  |  | $ | (137) |  |  | $ | 620 |  |  | (453) | %

Our effective tax rate was approximately (2)% and 1% for the three months ended September 30, 2025 and 2024, respectively. The principal differences between the federal statutory rate and the effective tax rate are related to state taxes, foreign taxes and credits and the non-recognition of tax benefits for certain entities in a loss position for which a full valuation allowance has been recorded.
Comparison of the nine months ended September 30, 2025 and 2024
Revenue
Marketplace and Service Revenue

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Marketplace and service revenue | $ | 518,442 |  |  | $ | 429,848 |  |  | $ | 88,594 |  |  | 21 | %

The increase was primarily driven by an increase in auction marketplace revenue from our Marketplace Buyers and Marketplace Sellers, as well as increases in revenue earned from transportation and financing services. For the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, auction marketplace revenue increased to $270.0 million from $227.7 million and other marketplace revenue increased to $223.4 million from $177.7 million. Revenue increases were primarily volume-driven and also impacted by higher buyer fee rates for the nine months ended September 30, 2025 compared to the prior year period. The volume of Marketplace Units sold on the Marketplace Platform increased to 636,519 for the nine months ended September 30, 2025 from 559,511 for the comparable prior year period which is an indicator of increased overall customer engagement. The increase in other marketplace revenue was primarily related to an increase in the revenue earned from the transportation of vehicles due to an increase in the number of units transported. The wholesale automotive industry continues to transition to digital transactions, with an increasing amount of customers transacting digitally versus at physical auction houses. This industry transition, and our position as a leader in the area of digital wholesale automotive auctions, continues to drive more business to our Marketplace Platform. The average total revenue per Marketplace Unit increased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the aforementioned higher buyer fee rates and customers adding more optional ancillary services to the auction such as transportation services and financing services which resulted in increase to both auction marketplace and other marketplace revenue. To a lesser extent, acquisitions completed in 2024 drove increases in revenue in 2025 compared to 2024.
Customer Assurance Revenue

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Customer assurance revenue | $ | 57,519 |  |  | $ | 47,794 |  |  | $ | 9,725 |  |  | 20 | %

The increase was primarily driven by an increase in Go Green assurance revenue, driven by increases in the estimated fair value of the Go Green offering per unit and an increase in units that elected the Go Green offering. For the
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nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, Go Green assurance revenue increased to $50.4 million from $42.4 million. Other assurance revenue increased to $7.1 million for the nine months ended September 30, 2025 from $5.4 million for the nine months ended September 30, 2024 due to an increase in units sold through our price guarantee sales.
Operating Expenses
Marketplace and Service Cost of Revenue

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Marketplace and service cost of revenue (excluding depreciation & amortization) | $ | 214,580 |  |  | $ | 187,010 |  |  | $ | 27,570 |  |  | 15 | %
Percentage of revenue | 37 | % |  | 39 | % |  |  |  |

The increase primarily consisted of higher costs related to generating auction marketplace and other marketplace revenue, partially offset by a decrease in data services cost of revenue. For the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, total cost attributed to generating auction marketplace revenue increased to $50.7 million from $39.6 million. The increase in auction marketplace cost of revenue is due to increased units sold through our marketplace and other costs of revenue associated with our prior year acquisitions. Other marketplace cost of revenues increased to $156.2 million for the nine months ended September 30, 2025, compared to $131.8 million for the nine months ended September 30, 2024, primarily due to an increase in the units transported. This was partially offset by a $7.6 million legal settlement benefit recognized in the nine months ended September 30, 2025, which reduced data services cost of revenue by a corresponding amount. For the nine months ended September 30, 2025 Data services cost of revenue was $7.6 million compared to $15.5 million for the nine months ended September 30, 2024. Marketplace and services cost of revenues as a percentage of revenue decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the benefit from the legal settlement.
Customer Assurance Cost of Revenue

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Customer assurance cost of revenue (excluding depreciation & amortization) | $ | 52,984 |  |  | $ | 41,548 |  |  | $ | 11,436 |  |  | 28 | %
Percentage of revenue | 9 | % |  | 9 | % |  |  |  |

The increase primarily consisted of costs attributable to our Go Green assurance offerings and was driven by an increase in the number of arbitration claims due to increased volume of completed auctions where the customer elected the Go Green offering, and an increase in the arbitration cost per unit sold. For the nine months ended September 30, 2025, Go Green assurance cost of revenue increased to $45.5 million from $37.8 million in the nine months ended September 30, 2024. For the nine months ended September 30, 2025, other assurance cost of revenue increased to $7.5 million from $3.7 million in the nine months ended September 30, 2024 due to an increase in the number of units sold through our price guarantee sales. Customer assurance cost of revenues as a percentage of revenue remained flat during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
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Operations and Technology Expenses

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Operations and technology | $ | 136,517 |  |  | $ | 120,302 |  |  | $ | 16,215 |  |  | 13 | %
Percentage of revenue | 24 | % |  | 25 | % |  |  |  |

The increase is primarily due to higher personnel-related costs. For the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, personnel-related costs increased to $113.3 million from $102.3 million as a result of headcount increases from our prior year acquisitions and investment in our internal product & technology capabilities to enable future growth initiatives. Software and technology expenses increased to $15.9 million from $12.1 million as a result of continued investment in our technology and infrastructure amid ongoing business growth. Other expenses increased to $7.4 million from $5.9 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Operations and technology expense as a percentage of revenue decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 as we continued our efforts to effectively manage costs while growing our revenue.
Selling, General, and Administrative Expenses

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Selling, general, and administrative | $ | 184,816 |  |  | $ | 160,738 |  |  | $ | 24,078 |  |  | 15 | %
Percentage of revenue | 32 | % |  | 34 | % |  |  |  |

The increase primarily consisted of higher non-personnel-related other costs. Non-personnel expenses increased to $52.3 million in the nine months ended September 30, 2025 from $29.6 million in the nine months ended September 30, 2024 primarily due to the $18.7 million Tricolor bankruptcy reserve described in the Recent Developments section above. Increased bad debt provision charges on our finance receivable portfolio unrelated to Tricolor during nine months ended September 30, 2025 drove the remainder of the increase compared to the nine months ended September 30, 2024. For the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, personnel-related costs increased to $132.5 million from $131.3 million, primarily as a result of headcount increases from our prior year acquisitions. Selling, general, and administrative expenses as a percentage of revenue decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 as we continued our efforts to effectively manage costs while growing revenue.
Depreciation and Amortization

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Depreciation and amortization | $ | 32,407 |  |  | $ | 26,351 |  |  | $ | 6,056 |  |  | 23 | %
Percentage of revenue | 6 | % |  | 6 | % |  |  |  |

The increase was primarily due to an increase of $6.2 million in amortization of internal-use software costs due to the placing of internal-use software projects into service and the subsequent recognition of amortization expense. Depreciation and amortization as a percentage of revenue remained flat during the nine months ended September 30, 2025 and nine months ended September 30, 2024.
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Interest Income

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Interest income | $ | 6,259 |  |  | $ | 7,410 |  |  | $ | (1,151) |  |  | (16) | %

The decrease was primarily driven by a lower average balance in our marketable securities portfolio as we used the proceeds from sales and maturities of marketable securities to support acquisition activity in the prior year. In addition, a lower average interest rate during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 contributed to the decrease.
Interest Expense

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Interest expense | $ | (6,679) |  |  | $ | (2,218) |  |  | $ | (4,461) |  |  | 201 | %

The increase was primarily driven by the interest and fees related to the Warehouse facility which was entered into on June 20, 2024. The increase in interest expense on the Warehouse facility during the nine months ended September 30, 2025 was due to a higher average balance on the Warehouse facility borrowing as we did not draw on our Warehouse facility until late in the third quarter of 2024.
Provision for Income Taxes

| Nine months ended September 30, |  | $ Change |  | % Change
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |  |  |
Provision for income taxes | $ | 817 |  |  | $ | 448 |  |  | $ | 369 |  |  | 82 | %

Our effective tax rate was approximately (2%) and (1%) for the nine months ended September 30, 2025 and 2024, respectively. The principal differences between the federal statutory rate and the effective tax rate are related to state taxes, foreign taxes and credits and the non-recognition of tax benefits for certain entities in a loss position for which a full valuation allowance has been recorded.
Non-GAAP Financial Measures
Adjusted EBITDA
We report our financial results in accordance with GAAP. However, management believes that Adjusted EBITDA, a non-GAAP financial measure, provides investors with additional useful information in evaluating our performance.
Adjusted EBITDA is a financial measure that is not presented in accordance with GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business and evaluating our operating performance, as well as for internal planning and forecasting purposes.
Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of these limitations include that: (i) it does not properly reflect capital commitments to be paid in the future; (ii)
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although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (iii) it does not consider the impact of stock-based compensation expense; (iv) it does not reflect other non-operating income and expenses, including interest income and expense; (v) it does not consider the impact of any contingent consideration liability valuation adjustments; (vi) it does not reflect tax payments that may represent a reduction in cash available to us; (vii) it does not include the amortization of acquired intangible assets but it does include the revenue that these acquired intangible assets contribute to the enterprise; and (viii) it does not reflect other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss and other results stated in accordance with GAAP.
The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net income (loss) | $ | (24,465) |  |  | $ | (16,029) |  |  | $ | (46,580) |  |  | $ | (53,563) |
Depreciation and amortization | 10,976 |  |  | 9,769 |  |  | 32,426 |  |  | 26,451 |
Stock-based compensation | 11,303 |  |  | 18,260 |  |  | 43,331 |  |  | 48,055 |
Interest expense (income), net | 265 |  |  | (973) |  |  | 420 |  |  | (5,192) |
Provision for income taxes | 483 |  |  | (137) |  |  | 817 |  |  | 448 |
Acquisition-related costs | — |  |  | 214 |  |  | 403 |  |  | 3,520 |
Litigation-related costs (1) | — |  |  | — |  |  | 1,100 |  |  | 1,553 |
Tricolor bankruptcy losses (2) | 18,711 |  |  | — |  |  | 18,711 |  |  | — |
Other | 1,378 |  |  | 66 |  |  | 508 |  |  | 1,246 |
Adjusted EBITDA | $ | 18,651 |  |  | $ | 11,170 |  |  | $ | 51,136 |  |  | $ | 22,518 |
(1) Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our ongoing operating performance
(2) Operating expenses are related to the bankruptcy of an ACV Capital customer which we do not consider to be representative of our ongoing operating performance

Non-GAAP Net income (loss)
We report our financial results in accordance with GAAP. However, management believes that Non-GAAP Net income (loss), a financial measure that is not presented in accordance with GAAP, provides investors with additional useful information to measure operating performance and current and future liquidity when taken together with our financial results presented in accordance with GAAP. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our continuing operations.
We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period. We exclude amortization of acquired intangible assets from the calculation of Non-GAAP Net income (loss). We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the underlying intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition.
We exclude contingent consideration liability valuation adjustments associated with the purchase consideration of transactions accounted for as business combinations. We also exclude certain other one-time, non-recurring items, when applicable, such as acquisition-related and restructuring expenses, because we do not consider such amounts to be part of our ongoing operations nor are they comparable to prior periods nor predictive of future results.
Non-GAAP Net income (loss) is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in
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accordance with GAAP. Some of these limitations include that: (i) it does not consider the impact of stock-based compensation expense; (ii) although amortization is a non-cash charge, the underlying assets may need to be replaced and Non-GAAP Net income (loss) does not reflect these capital expenditures; (iii) it does not consider the impact of any contingent consideration liability valuation adjustments; (iv) it does not include the amortization of acquired intangible assets but it does include the revenue that these acquired intangible assets contribute to the enterprise; and (v) it does not consider the impact of other one-time charges, such as acquisition-related and restructuring expenses, which could be material to the results of our operations. In addition, our use of Non-GAAP Net income (loss) may not be comparable to similarly titled measures of other companies because they may not calculate Non-GAAP Net income (loss) in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Non-GAAP Net income (loss) alongside other financial measures, including our net loss and other results stated in accordance with GAAP.
The following table presents a reconciliation of Non-GAAP Net income (loss) to net loss, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:

| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net income (loss) | $ | (24,465) |  |  | $ | (16,029) |  |  | $ | (46,580) |  |  | $ | (53,563) |
Stock-based compensation | 11,303 |  |  | 18,260 |  |  | 43,331 |  |  | 48,055 |
Amortization of acquired intangible assets | 2,595 |  |  | 3,390 |  |  | 7,959 |  |  | 8,616 |
Amortization of capitalized stock based compensation | 1,626 |  |  | 1,247 |  |  | 4,593 |  |  | 3,155 |
Acquisition-related costs | — |  |  | 214 |  |  | 403 |  |  | 3,520 |
Litigation-related costs (1) | — |  |  | — |  |  | 1,100 |  |  | 1,553 |
Other | 1,409 |  |  | 547 |  |  | 1,409 |  |  | 783 |
Tricolor bankruptcy losses (2) | 18,711 |  |  | — |  |  | 18,711 |  |  | — |
Non-GAAP Net income (loss) | $ | 11,179 |  |  | $ | 7,629 |  |  | $ | 30,926 |  |  | $ | 12,119 |
(1) Litigation-related costs are related to an anti-competition case which we do not consider to be representative of our ongoing operating performance
(2) Operating expenses are related to the bankruptcy of an ACV Capital customer which we do not consider to be representative of our ongoing operating performance

Liquidity and Capital Resources
We have financed operations since our inception primarily through our marketplace revenue, proceeds from sales of equity securities, and debt facilities.
As of September 30, 2025, our principal sources of liquidity were cash and cash equivalents totaling $265.3 million, and investments in marketable securities totaling $50.7 million. We believe that our existing cash and cash equivalents, marketable securities, and cash flow from operations will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months and for the long-term. Our future capital requirements over the long-term will depend on many factors, including volume of sales with existing customers, expansion of sales and marketing activities to acquire new customers, timing and extent of spending to support development efforts and introduction of new and enhanced services. We may, in the future, enter into arrangements to acquire or invest in complementary businesses, products, and technologies. We may be required to seek additional equity or debt financing. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, results of operations and financial condition.
As of September 30, 2025, our principal commitments primarily consist of long-term debt and leases for facilities. We have $4.5 million of lease obligations due within a year, and an additional $37.2 million of lease obligations due at various dates through 2039.
In order to compete successfully and sustain operations at current levels over the next 12 months, we will be required to devote a significant amount of operating cash flow to our human capital in the form of salaries and wages.
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Additionally, we enter into purchase commitments for goods and services made in the ordinary course of business. These purchase commitments include goods and services received and recorded as liabilities as of September 30, 2025 as well as goods and services which have not yet been delivered or performed and have, therefore, not been reflected in our unaudited Condensed Consolidated Balance Sheets and unaudited Condensed Consolidated Statements of Operations. These commitments typically become due after the delivery and completion of such goods or services.
We settle transactions among buyers and sellers using the marketplace and, as a result, the value of the vehicles passes through our balance sheet. Because our receivables typically have been, on average, settled faster than our payables, our cash position at each balance sheet date has been bolstered by marketplace float. Changes in working capital vary from quarter-to-quarter as a result of Marketplace GMV and the timing of collections and disbursements of funds related to auctions completed near period end.
Our Debt Arrangements
2021 Revolver
On August 24, 2021, ACV entered into a revolving credit facility (the “2021 Revolver”). The Revolver was established to provide general financing to us and is secured by substantially all of our assets except for certain finance receivables. As of September 30, 2025, the maximum borrowing capacity under the Revolver is $250.0 million and includes a sub facility that provides for the issuance of letters of credit up to $20.0 million outstanding at any time. Through June 26, 2025, the interest rate on the Revolver was, at our option, either (a) the Secured Overnight Financing Rate (“SOFR”) (or a replacement rate established in accordance with the terms of the credit agreement for the 2021 Revolver) subject to a 0.00% SOFR floor, plus a margin of 2.75% per annum plus an additional credit spread adjustment of 0.11% for daily and one-month terms, 0.26% for three-month terms and 0.43% for six-month terms or (b) the Alternate Base Rate plus a margin of 1.75% per annum. The Alternate Base Rate was defined as the highest of (a) the Wall Street Journal prime rate, (b) the NYFRB rate plus 0.5% and (c) 1.00% plus the adjusted SOFR rate for a one-month interest period.
On June 26, 2025, we entered into Amendment No. 4 (the “ Fourth Amendment”) to the 2021 Revolver which modifies the credit agreement (i) to increase the committed amount of our revolving credit facility thereunder from $160 million to $250 million, (ii) to extend the maturity date thereof from August 24, 2026 to June 26, 2030, (iii) to modify our minimum total revenue financial covenant to take into account such maturity date extension, (iv) to include a new maximum total net leverage ratio that will be effective as of the earlier of five business days after our election and July 30, 2027, as more particularly described in the Revolving Credit Agreement, as amended (the “Covenant Conversion Date”), after which our minimum liquidity and minimum total revenue financial covenants will no longer be applicable, (v) to provide for more favorable pricing of the loans on and after the Covenant Conversion Date, and (vi) to amend certain other items in connection with the foregoing. Borrowings under the 2021 Revolver will continue to bear interest, at our option, at either the Term SOFR Rate, subject to a 0.00% floor, or the Alternate Base Rate plus a margin equal to the Applicable Rate. Pursuant to the Fourth Amendment, the Applicable Rate is (x) 2.75% prior to the Covenant Conversion Date and 2.500% thereafter for loans accruing interest at the Term SOFR Rate and (y) 1.750% prior to the Covenant Conversion Date and 1.500% thereafter for loans accruing interest at the Alternate Base Rate, in each case, subject to the terms of the Credit Agreement.
From and after the Covenant Conversion Date, we will be subject to a maximum total net leverage ratio covenant of (i) 4.0 to 1.0 for any measurement period ending on or prior to the second fiscal quarter following June 30, 2027 and (ii) 3.5 to 1.0 thereafter.
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As of September 30, 2025, $100.0 million was drawn under the 2021 Revolver with an interest rate of 9.00%, and there were outstanding letters of credit issued under the 2021 Revolver in the amount of $3.3 million.
Warehouse Facility
On June 20, 2024, we entered into a revolving credit and security agreement with CitiBank, NA, providing for a revolving warehouse facility (the "Warehouse Facility") with a maximum principal amount of $125.0 million. The revolving feature on the facility ends on June 20, 2026 and the facility matures twelve months later, unless sooner terminated or extended in accordance with its terms. The Warehouse Facility was established to provide liquidity to fund new originations of auto floorplan loans by ACV Capital. The facility is secured by all assets of ACV Funding, including the auto floorplan loans owned by it.
Advances under the Warehouse Facility funded by asset-backed commercial paper conduit through the issuance of commercial paper notes will bear interest generally at a rate equivalent to the weighted average annual rate of all commercial paper notes issued by the commercial paper conduit to fund its advances, plus a margin of 3.00%. Advances funded by lenders that are not commercial paper conduits, or by commercial paper conduits funded through means other than the issuance of commercial paper notes, will bear interest generally at a rate equal to (i) Term SOFR for a period of one-month (subject to a 0.00% floor), plus 0.11448% or, in certain circumstances, the Alternate Base Rate, plus (ii) a margin of 3.00%. The Alternate Base Rate is the highest of (a) the prime rate quoted in the Wall Street Journal, (b) the NYFRB rate plus 0.50% and (c)(i) 1.00% plus (ii) the Term SOFR rate for a one-month interest period. The interest rate may be increased under certain circumstances, including upon the occurrence of an early amortization event or event of default under the warehouse documentation. ACV Funding must also pay upfront any unused fees in connection with the facility. As of September 30, 2025 borrowings under the Warehouse Facility were $120.0 million with an interest rate of 7.32%.
We were in compliance with all such applicable covenants as of September 30, 2025, and believe we are in compliance as of the date of this Quarterly Report on Form 10-Q.
Cash Flows from Operating, Investing, and Financing Activities
The following table shows a summary of our cash flows for the periods presented:

| Nine months ended September 30,
| 2025 |  | 2024
Net cash provided by operating activities | $ | 90,592 |  |  | $ | 68,616 |
Net cash (used in) provided by investing activities | (124,770) |  |  | 12,314 |
Net cash provided by (used in) financing activities | 75,215 |  |  | (10,927) |
Effect of exchange rate changes | 241 |  |  | (50) |
Net increase in cash, cash equivalents, and restricted cash | $ | 41,278 |  |  | $ | 69,953 |

Operating Activities
Our largest source of operating cash is cash collection from fees earned on our marketplace. Our primary uses of cash from operating activities are for personnel expenses, sales and marketing expenses and overhead expenses.
In the nine months ended September 30, 2025 and 2024, net cash provided by operating activities was $90.6 million and $68.6 million, respectively. Net cash provided by operating activities during the nine months ended September 30, 2025 and 2024 consisted primarily of an increase in accounts payable to sellers partially offset by an increase in accounts receivable from buyers. The increase in cash provided by operating activities during the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024 is primarily due to a higher volume of transactions and the timing of collections and disbursements of funds related to auctions completed near period end.
Investing Activities
In the nine months ended September 30, 2025, net cash (used in) provided by investing activities was $(124.8) million and $12.3 million during the nine months ended September 30, 2024. Net cash used in investing activities during the nine months ended September 30, 2025 was primarily related to the increase in finance receivables and capitalized software development. Net cash provided by investing activities during the nine months ended September 30, 2024 was
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primarily related to the sales/maturities of a portion of our marketable securities portfolio to support our business acquisition transactions, partially offset by cash paid for business acquisitions and capitalized software development.
The increase in net cash used in investing activities during the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024 was primarily driven by an increase in our finance receivables portfolio and a decrease in the sales/maturities of marketable securities, partially offset by a decrease in acquisition activity.
Financing Activities
In the nine months ended September 30, 2025 and 2024, net cash provided by (used in) financing activities was $75.2 million and $(10.9) million, respectively. Net cash provided by financing activities during the nine months ended September 30, 2025 relates to proceeds, net of repayments, from long term debt, partially offset by payments of RSU tax withholding in exchange for common shares surrendered by RSU holders. Net cash used in financing activities during the nine months ended September 30, 2024 primarily related to payments of RSU tax withholding in exchange for common shares surrendered by RSU holders which was partially offset by proceeds from the exercise of stock options.
The increase in net cash provided by financing activities during the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024 was primarily the result of increased net borrowings of long-term debt during the period.
Seasonality
The volume of vehicles sold through our auctions generally fluctuates from quarter to quarter. This seasonality is caused by several factors, including holidays, weather, the seasonality of the retail market for used vehicles and the timing of federal tax returns, which affects the demand side of the auction industry. As a result, revenue and operating expenses related to volume will fluctuate accordingly on a quarterly basis. In the fourth quarter, we typically experience lower used vehicle auction volume as well as additional costs associated with the holidays. Seasonally depressed used vehicle auction volume typically continues during the winter months through the first quarter. Typical seasonality trends may not be observed in periods where other external factors more significantly impact the industry.
Critical Accounting Estimates
Our financial statements are prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe are reasonable under the circumstances, however, our actual results could differ from these estimates.
There have been no material changes to our critical accounting estimates as compared to those disclosed in the Annual Report.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are exposed to market risk in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in interest rates.
Interest Rate Risk
We had cash and cash equivalents of $265.3 million and marketable securities of $50.7 million as of September 30, 2025, which consisted of interest-bearing investments with maturities of three months or less and investment grade securities, respectively. Interest-earning instruments carry a degree of interest rate risk as increases in rates will negatively affect the fair value of our marketable securities. We do not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to manage our interest rate risk exposure. We had borrowings from banks of $220.0 million as of September 30, 2025. The interest rate paid on these borrowings is variable, indexed to SOFR. Therefore, increases in interest rates will increase the interest expense on these borrowings. A hypothetical 100 basis point change in interest rates would not result in a material impact on our condensed consolidated financial statements.
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Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We maintain “disclosure controls and procedures,” as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
The Company's management, with the participation of the Company's Chief Executive Officer and the Company's Chief Financial Officer, evaluated the effectiveness of the Company's disclosure controls and procedures as of September 30, 2025. Based on the evaluation of the Company's disclosure controls and procedures as of September 30, 2025, the Company's Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
The Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, believes that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives and are effective at the reasonable assurance level. However, management does not expect that the Company's disclosure controls and procedures or the Company's internal control over financial reporting will prevent or detect all errors and fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
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PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently subject to any pending or threatened litigation that we believe, if determined adversely to us, would individually, or taken together, reasonably be expected to have a material adverse effect on our business or financial results. The material set forth in Note 5 (pertaining to information regarding legal contingencies) of the Notes of the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.
Item 1A. Risk Factors.
There have been no material changes to the risk factors previously disclosed in the Annual Report. Refer to the Annual Report for a complete discussion of our potential risks and uncertainties related to our business and on investment in our Common Stock. The risks and uncertainties described in our Annual Report are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business. If any risks not specified in our Annual Report materialize, our business, financial condition and results of operations could be materially and adversely affected. See also “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q for additional information.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
(a)Recent Sales of Unregistered Equity Securities
Not applicable.
(b)Use of Proceeds
Not applicable.
(c)Issuer Purchases of Equity Securities
Not applicable.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
Our Section 16 officers (as defined in Rule 16a-1 under the Exchange Act) may from time to time enter into plans for the purchase or sale of ACV stock that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
During the quarter ended September 30, 2025, the following Section 16 officers adopted, modified, or terminated “Rule 10b5-1 trading arrangements” (as defined in Item 408 under Regulation S-K of the Exchange Act):
•On September 15, 2025, George Chamoun, ACV's Chief Executive Officer, terminated a trading plan. The Plan was originally entered into on June 13, 2025 and contemplated the sale of up to 600,000 shares between September 16, 2025 and March 13, 2026, excluding specified "No Sale" periods. Prior to its termination, the Plan was scheduled to terminate on March 13, 2026. No shares were sold under the Plan prior to termination.
•On September 15, 2025, George Chamoun, ACV's Chief Executive Officer, adopted a stock purchase plan. Mr. Chamoun's purchase plan provides for the purchase of up to $625,000 worth of shares. The first purchase will
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not occur until December 15, 2025 at the earliest. Mr. Chamoun's purchase plan is scheduled to terminate on June 15, 2026.
The Rule 10b5-1 trading arrangements described above were terminated, adopted, and pre-cleared in accordance with ACV’s Insider Trading Policy and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in future Section 16 filings with the SEC. Other than disclosed above, no other officer adopted, modified or terminated a Rule 10b5-1 trading arrangement or “non-Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K) during the three months ended June 30, 2025.
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Item 6. Exhibits.

Exhibit Number |  | Description |  | Form |  | File No. |  | Exhibit |  | Filing Date |  | Filed Herewith
3.1 |  | Amended and Restated Certificate of Incorporation of the Registrant, as currently in effect. |  |  |  |  |  | 3.1 |  | August 11, 2025 |  |
3.2 |  | Amended and Restated Bylaws of the Registrant, as currently in effect. |  | 8-K |  | 001-40256 |  | 3.1 |  | July 29, 2024 |  |
31.1 |  | Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |  |  |  |  |  |  |  |  |  | X
31.2 |  | Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |  |  |  |  |  |  |  |  |  | X
32.1* |  | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |  |  |  |  |  |  |  |  |  | X
32.2* |  | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |  |  |  |  |  |  |  |  |  | X
101.INS |  | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |  |  |  |  |  |  |  |  |  |
101.SCH |  | Inline XBRL Taxonomy Extension Schema Document |  |  |  |  |  |  |  |  |  |
101.CAL |  | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |  |  |  |  |  |  |
101.DEF |  | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |  |  |  |  |  |  |
101.LAB |  | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  |  |  |  |  |  |  |
101.PRE |  | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |  |  |  |  |  |  |
104 |  | Cover Page Interactive Data File (embedded within the Inline XBRL document) |  |  |  |  |  |  |  |  |  |

*This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

| ACV Auctions Inc.
Date: Nov 5, 2025 | By: | /s/ George Chamoun
|  | George Chamoun
|  | Chief Executive Officer and Director
Date: Nov 5, 2025 | By: | /s/ William Zerella
|  | William Zerella
|  | Chief Financial Officer

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