ACV Auctions Inc.

Greetings. Welcome to the ACV Q2 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Tim Fox, Vice President of Investor Relations. Thank you, Tim. You may begin.

Good afternoon and thank you for joining ACB's conference call to discuss our second quarter 2026 financial results. With me on the call today are George Chamoun, Chief Executive Officer, and Bill Zerella, Chief Financial Officer. Before we get started, please note that today's comments include forward-looking statements, including statements regarding future financial guidance. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to differ materially from those expressed or implied by such statements. The discussion of the risks and uncertainties related to our business can be found in our SEC filings and in today's press release, both of which can be found on our investor relations website. During this call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today's earnings materials, which can also be found on our investor relations website. With that, let me turn the call over to George.

Thanks Tim. Good afternoon everyone and thank you for joining us. We are very pleased with our second quarter performance and execution while facing a challenging market environment. We delivered record revenue with adjusted EBITDA exceeding the high end of guidance. In addition to solid financial results, we made significant progress on our three key objectives. First, We continue to gain market share and expand our dealer partner network to a new record. The combination of increasing our field capacity and penetration of our no reserve offering contributed to our growth. Second, we had another strong quarter of performance in ACV Transport and ACV Capital, along with growing adoption of our value added dealer solutions. And third, We are gaining traction with our emerging growth initiatives, including very strong demand for VIPER and momentum in the commercial wholesale segment. While macro headwinds caused conversion rates to compress below expectations in June and July, we believe conditions will begin to stabilize and remain committed to delivering double-digit revenue growth and increased adjusted EBITDA while investing in our exciting growth objectives. We're confident that executing on this profitable growth strategy will create significant long-term shareholder value. With that, let's turn to a recap of our results on slide four. We delivered another record revenue quarter with growth of 10%. Despite continuing headwinds in the dealer wholesale market, with volumes contracting approximately 6% year over year. And we continue to gain market share selling 211,000 vehicles in the quarter. Next on slide five, we focus on the pillars of our strategy to maximize long-term shareholder value by delivering innovation that is driving growth and scale. I will begin with growth. On slide seven, I will highlight our growth initiatives in dealer wholesale. As we discussed last quarter, we are investing in additional field capacity to broaden our regional growth performance, which resulted in a record number of dealer visits, inspections and dealer transacting on our marketplace. We expect that these investments, along with improving conversion rates, will yield accelerated unit growth in the coming quarters. We also continue to leverage machine learning, combining inspection data and market data to provide real-time pricing. Our platform powers ACV guarantees to sellers and delivers no reserve auctions to buyers. This offering remains the fastest growing channel on our marketplace that benefits sellers, buyers, and ACV. We're removing seller market risk, accelerating bidder engagement, and increasing buyer satisfaction while delivering 100% conversion rate. We're confident our guaranteed offering will continue to be a key driver of market share gains. Turning to slide eight, let's review our marketplace service offerings. The transport team had strong execution in Q2 with 19% revenue growth and 125,000 transports delivered. By leveraging AI to optimize transport pricing, we continue to drive strong growth and operating efficiency. And despite the increase in diesel fuel during the quarter, the team executed incredibly well, delivering a transport revenue margin and attach rate that remained in line with our midterm target. Lastly, our off-platform transport service continues to gain traction from our dealer partners, creating additional growth opportunities. ACV Capital also delivers strong performance, with attached rates reaching a new record in the high teens. Our expanded go-to-market strategy, new product offerings, and process enhancements to manage portfolio risk resulted in another strong quarter for the ACV Capital team. On slide nine, we highlight how we're further differentiating ACV and creating additional growth opportunities with our suite of AI-driven products. Clearcar and ACV Max are adding tremendous value to our dealer partners and also contributing to our wholesale market share gains. By enabling our dealer partners to optimize inventory and automate vehicle selling and buying, We strengthened their ability to source more vehicles from consumers. As a result, our top 100 Clearcar customers doubled the volume of quarterly wholesale transactions on ACV after launching Clearcar. While Clearcar has proven to be a highly effective sourcing tool for our dealer partners, while increasing wholesale volumes on ACV, We are confident that VIPER delivers even more value through a powerful suite of ACV-enabled solutions. We have received very positive feedback during our successful early access beta program and are pleased that today marks the official launch of commercial availability for VIPER. We are already engaged with half of the top 50 dealer groups in the country. And our pipeline continues to grow. Through VIPER, our industry-leading inspection data and vehicle pricing capabilities enables dealers to unlock consumer vehicle acquisition at scale in the service lane and seamlessly identify service upsell opportunities. We are also on track to integrate with the leading dealer software vendors to create a truly seamless experience in dealership service lines. We remain on track to grow Vypr's footprint in coming quarters, offering a Vypr bundle with wholesale to create a powerful new lever to drive unit growth and expand our network. In addition, We have also started to leverage VIPER for vehicle inspections at our remarketing centers. While it's still early, we are confident that this solution will be an additional lever to drive improved unit economics. Lastly, as we highlighted in recent quarters, the internal adoption of AI tools across ACV has enabled us to gain meaningful velocity and efficiency. As such, we have even more confidence in delivering our differentiated product roadmap to support our growth objectives. Next on slide 10, I'll wrap up the growth section with our commercial wholesale strategy. A large adjacent market with both upstream and downstream opportunities. Our team has made significant progress on our software platform and we believe this new digital model and end-to-end experience will transform commercial vehicle remarketing. Our differentiated offering is attracting large commercial consignors. We recently began remarketing vehicles from a top five fleet consigner. and are in the final stages of securing a second large-scale consignor. We're also integrating with a large captive finance off-lease company and adding another top four rental car consignor to our marketplace. The commercial segment provides another exciting growth lever for ACV and we are confident that we can accelerate wholesale volumes in the coming quarters. With that, I'll hand over to Bill to take you through our financial results and how we're driving growth at SCAF.