ACV Auctions (ACVA) as of March 31, 2026 shows a modest positive liquidation recovery posture at the liquid asset level, consistent with MFFAIS-reported LLV/OLV of approximately $49.5M, but a materially negative cash liquidation value of approximately -$219M. The balance sheet carries $341.0M in cash (100% recoverable), $268.9M in gross accounts receivable ($5.4M allowance; net $263.5M, haircut to ~$250M at 95%), and $190.4M in net finance receivables (short-term dealer flooring loans via ACV Capital, net of $22.3M allowance). Finance receivables are the most structurally complex asset: they are funded by the $115M Warehouse Facility (Citibank, SOFR-based, drawn at 6.53%), creating a matched-funding structure, but in a liquidation the loans would be collected or sold at a discount while the facility would be due at face. The $85M 2021 Revolver (JPMorgan, drawn at 8.50%) represents additional senior recourse debt. Combined drawn debt is $200M at face value in the liability stack. Total liabilities are $804.5M, dominated by $526.6M in accounts payable to sellers — this is the marketplace float liability (vehicle sale proceeds owed to sellers), which is structurally offset by the $268.9M AR from buyers, but the asymmetry between the two leaves a net ~$258M liability exposure before any haircut on the AR. Operating lease obligations total approximately $46M ($5.4M current, $40.6M non-current through 2039) and remain at face value in liquidation. Goodwill of $183.1M and capitalized software of $84.8M (net) are assigned zero recovery under the liquidation lens; finite-lived acquired intangibles carry $42.6M of accumulated amortization but the gross/net split is not separately tagged in XBRL — referenced in MD&A as $2.6M quarterly amortization. PP&E net is $13.7M (50-70% haircut yields $7-10M). The $1.0B APIC and accumulated deficit of -$579.3M result in book equity of $430.9M, which significantly overstates liquidation recovery once intangibles are zeroed. Relative to the year-end 2025 10-K (prior filing), the key change is the drawing of $85M on the Revolver (gross debt increased from approximately $115M Warehouse-only to $200M total), partially offset by a $69.5M increase in cash from strong Q1 operating cash flow of $76.5M. The $100M share repurchase authorization announced May 5, 2026 (subsequent event) has not yet reduced cash on the balance sheet. Contract liabilities of $7.7M (up from $5.6M at year-end) are de minimis. Bad debt expense increased in the quarter per MD&A, reflected in allowance growth; finance receivable write-offs of $9.5M in Q1 2026 are notable relative to the $22.3M total allowance. Full valuation allowance on deferred tax assets remains in place. No pension obligations. No material off-balance-sheet guarantees beyond the Go Green/price guarantee program, which generates an on-balance-sheet liability of $2.6M (GuaranteeObligationsCurrentCarryingValue).
▼ Community Notes