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1. Company Snapshot

1.a. Company Description

Liquidity Services, Inc.provides e-commerce marketplaces, self-directed auction listing tools, and value-added services.It operates through four segments: Retail Supply Chain Group, Capital Assets Group, GovDeals, and Machinio.


The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination.It also provides marketplace for corporations located in the North America, Europe, Australia, Asia, and Africa to sell manufacturing surplus, salvage capital assets, and scrap material, as well as offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services.In addition, the company operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors.


It offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment.Liquidity Services, Inc.was incorporated in 1999 and is headquartered in Bethesda, Maryland.

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1.b. Last Insights on LQDT

Liquidity Services' recent performance faces challenges from expanding competition and evolving market conditions. The company's announcement of its fourth-quarter fiscal year 2025 earnings conference call on October 20, 2025, may indicate pressure on its financials. Additionally, Machinio's expansion to support service providers on October 22, 2025, could intensify competition. Furthermore, the company's focus on online marketplaces, such as GovDeals, which expanded to Southern California on October 28, 2025, may not be yielding desired results.

1.c. Company Highlights

2. Liquidity Services' Q4 FY2025 Earnings: A Strong Close to a Record Year

Liquidity Services reported a robust Q4 FY2025, with GMV growing 12% year-over-year, adjusted EBITDA increasing 28%, and adjusted EPS rising 16%. For the full fiscal year 2025, the company achieved a record GMV of over $1.5 billion, with revenue growing 31% to $476.7 million. The company's GAAP net income was $28.1 million, resulting in earnings per share of $0.87, while non-GAAP adjusted EPS was $1.28. Notably, the company's adjusted EPS for Q4 was $0.37, beating estimates of $0.29.

Publication Date: Dec -20

📋 Highlights
  • Q4 Results:: GMV grew 12% YoY to $X, adjusted EBITDA rose 28% to $X, and adjusted EPS increased 16% to $X.
  • FY2025 GMV Record:: Surpassed $1.5 billion GMV, with adjusted EBITDA rising 25% to $61 million and operating cash flow at $66.8 million.
  • Revenue Growth:: FY2025 revenue hit $476.7 million, reflecting 31% YoY growth, driven by retail segment purchase volumes.
  • Cash Flow & Liquidity:: Q4 generated $38 million in operating cash flow, $16.1 million in share repurchases, and ended with $185.8 million in cash.
  • 2026 Guidance:: GMV expected to range $370–$405 million; non-GAAP adjusted EBITDA projected at $13.5–$16.5 million, up $10–$13.5 million from FY2025.

Operational Highlights

The company's strong performance was driven by the successful execution of its RISE strategy, with a focus on low-touch consignment services and software solutions. As William Angrick noted, the integration of a new payment solution has improved the buyer experience and operational efficiency. The company is also exploring the use of AI-assisted technologies to drive efficiencies and reduce costs.

Guidance and Outlook

Liquidity Services expects to continue its growth momentum in FY2026, with guidance calling for double-digit year-over-year growth in profitability metrics. The company expects GMV to range from $370 million to $405 million, and non-GAAP adjusted EBITDA to range from $13.5 million to $16.5 million. Analysts, however, estimate a revenue decline of 29.5% for the next year, which may be a concern.

Valuation and Metrics

At current levels, the stock trades at a P/E Ratio of 34.72, EV/EBITDA of 17.92, and a Free Cash Flow Yield of 6.04%. These metrics suggest that the market is pricing in a certain level of growth, and any slowdown may lead to a re-rating of the stock. With a ROIC of 11.42% and ROE of 14.09%, the company is generating strong returns on its invested capital.

Business Opportunities and Initiatives

The company is exploring various business opportunities, including the implementation of a seller asset management tool set (SAM) in the US market, which is expected to contribute to EBITDA growth. The company is also testing a single fulfillment activity in Columbus, with potential for national expansion. Additionally, the company is diversifying its GovDeals business to service lessors and service providers adjacent to the government sector.

3. NewsRoom

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Hussman Strategic Advisors Inc. Has $2.30 Million Stock Position in Liquidity Services, Inc. $LQDT

Jan -28

Source: defenseworld.net

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Liquidity Services: Waiting For One More Dip

Jan -12

Source: seekingalpha.com

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Liquidity Services Announces First Quarter Fiscal Year 2026 Earnings Conference Call

Jan -06

Source: globenewswire.com

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Assenagon Asset Management S.A. Has $7.46 Million Stock Holdings in Liquidity Services, Inc. $LQDT

Dec -22

Source: defenseworld.net

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Scioto County Career Technical Center Conducts First-Ever Online GovDeals Real Estate Sale

Dec -09

Source: globenewswire.com

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This Little-Known eBay Competitor Is Starting To Heat Up: Momentum Score Spikes

Dec -02

Source: feeds.benzinga.com

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Palm Beach County Hosts Online Auction for 2 TigerShark UAS Drones on GovDeals

Nov -25

Source: globenewswire.com

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Why Liquidity Services Stock Crushed it on Thursday

Nov -20

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.69%)

6. Segments

Retail Supply Chain Group

Expected Growth: 3.5%

The 3.5% growth of Retail Supply Chain Group from Liquidity Services, Inc. is driven by increasing adoption of e-commerce, rising demand for reverse logistics, and growing need for efficient inventory management. Additionally, the group's focus on sustainability and circular economy practices, as well as its ability to provide data-driven insights to retailers, contribute to its growth momentum.

GovDeals

Expected Growth: 3.8%

GovDeals' 3.8% growth driven by increasing adoption of e-commerce platforms in the public sector, rising demand for surplus asset disposition, and strategic partnerships with government agencies. Additionally, Liquidity Services' investment in digital marketing and technology enhancements has improved the user experience, attracting more buyers and sellers to the platform.

Capital Assets Group

Expected Growth: 4.2%

Capital Assets Group's 4.2% growth is driven by increasing demand for surplus asset management services, expansion into new markets, and strategic partnerships. Additionally, the group's focus on e-commerce and digital platforms has improved operational efficiency, leading to higher margins and revenue growth.

Machinio

Expected Growth: 4.5%

Machinio's 4.5% growth is driven by increasing adoption of e-commerce platforms, rising demand for used machinery and equipment, expansion into new markets, and strategic partnerships. Additionally, the company's focus on providing a user-friendly platform, competitive pricing, and efficient logistics contribute to its growth.

Corporate and Other, Including Eliminations Adjustments

Expected Growth: 3.2%

The 3.2% growth in Corporate and Other, Including Eliminations Adjustments from Liquidity Services, Inc. is driven by increased operational efficiency, cost savings initiatives, and strategic investments in technology. Additionally, the company's focus on diversification and expansion into new markets has contributed to the growth.

7. Detailed Products

GovDeals

A leading online auction marketplace for government surplus and seized assets

Liquidation.com

A leading online auction marketplace for surplus and salvage assets

Network International

A leading provider of reverse logistics and supply chain solutions

Go-Dove

A leading provider of surplus asset management and disposition services

IronDirect

A leading provider of used heavy equipment and trucks

Secondipity

A leading provider of refurbished and used consumer electronics

8. Liquidity Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Liquidity Services, Inc. is medium because while there are some substitutes available, they are not very attractive to customers due to factors such as quality and convenience.

Bargaining Power Of Customers

The bargaining power of customers for Liquidity Services, Inc. is low because the company operates in a niche market and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Liquidity Services, Inc. is medium because while the company relies on a few key suppliers, it also has some bargaining power due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants for Liquidity Services, Inc. is low because the company has a strong brand presence and operates in a market with high barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Liquidity Services, Inc. is high because the company operates in a competitive market with several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.20%
Debt Cost 3.95%
Equity Weight 93.80%
Equity Cost 10.85%
WACC 10.42%
Leverage 6.61%

11. Quality Control: Liquidity Services, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.1/10

Value: 7.7

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A-Score: 4.4/10

Value: 3.1

Growth: 6.9

Quality: 7.0

Yield: 0.0

Momentum: 4.5

Volatility: 5.0

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A-Score: 3.4/10

Value: 5.7

Growth: 6.0

Quality: 6.2

Yield: 0.0

Momentum: 1.0

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A-Score: 2.5/10

Value: 7.6

Growth: 3.4

Quality: 2.0

Yield: 0.0

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Volatility: 0.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.64$

Current Price

32.64$

Potential

-0.00%

Expected Cash-Flows