Download PDF

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.

Show Full description

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 Delivers Record GMV and Strong Profitability

Liquidity Services reported a record Gross Merchandise Value (GMV) of $413 million, a 9% increase year-over-year, with revenue rising 28% to $119.9 million. The company's GAAP earnings per share (EPS) came in at $0.23, a 21% increase, while non-GAAP adjusted EPS was $0.34, beating estimates of $0.31. Non-GAAP adjusted EBITDA reached $17 million, a 16% increase over the prior year, driven by the company's focus on profitable growth through a diversified approach, as noted by Jorge Celaya, "Our financial results underscore our focus on profitable growth through a diversified approach."

Publication Date: Aug -23

📋 Highlights
  • Record GMV & Revenue Growth:: Generated $413 million GMV (+9%) and $119.9 million revenue (+28%) in Q3 FY2025.
  • Strong Cash Flow & Balance Sheet:: Produced $19 million operating cash flow and held $167 million cash with a debt-free balance sheet.
  • Segment Performance:: GovDeals achieved $252 million GMV, while RSCG and Capital Assets Group delivered double-digit profit growth.
  • Consignment Model Dominance:: Over 80% of GMV now under consignment pricing, driving higher margins and resource reallocation.
  • Expansion & New Markets:: Doubled GMV in heavy equipment vertical and plans to license direct-to-consumer auction platforms for scalable revenue streams.

Segment Performance

The GovDeals segment delivered a record GMV of $252 million, driven by new account wins and expansions in key areas. The Capital Assets Group posted solid results with double-digit organic growth in GMV and direct profit, while the RSCG segment expanded relationships with sellers, driving double-digit year-over-year growth in direct profit.

Business Model Evolution

The company is expanding its business model to include a direct-to-consumer auction platform, which will allow individual businesses to license their software and operate in different parts of the country. This move is expected to generate a fee stream from licensed businesses and is part of the company's strategy to shift from purchase models to higher-margin consignment models.

Valuation and Growth Prospects

With a P/E Ratio of 31.8 and an EV/EBITDA ratio of 15.98, the market appears to be pricing in significant growth expectations. The company's guidance for the fourth quarter of fiscal year 2025 includes GMV in the range of $355 million to $390 million, and non-GAAP adjusted EBITDA ranging from $13 million to $16 million. Analysts estimate revenue growth at 4.8% for next year, which may be conservative given the company's recent performance and new business developments.

Return Metrics and Cash Flow

The company generated $19 million of operating cash flow and has a debt-free balance sheet with $167 million in cash. The Return on Invested Capital (ROIC) stands at 10.21%, while the Return on Equity (ROE) is 13.72%. The Free Cash Flow Yield is 4.96%, indicating a reasonable valuation. The Net Debt to EBITDA ratio is -3.19, highlighting the company's strong cash position.

3. NewsRoom

Card image cap

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

Dec -02

Source: feeds.benzinga.com

Card image cap

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

Nov -25

Source: globenewswire.com

Card image cap

Why Liquidity Services Stock Crushed it on Thursday

Nov -20

Source: fool.com

Card image cap

Liquidity Services, Inc. (LQDT) Q4 2025 Earnings Call Transcript

Nov -20

Source: seekingalpha.com

Card image cap

Liquidity Services Announces Fourth Quarter Fiscal Year 2025 Financial Results

Nov -20

Source: globenewswire.com

Card image cap

Sierra Auction and GovDeals Expand to Southern California with New Montclair Location

Oct -28

Source: globenewswire.com

Card image cap

Machinio Expands Platform to Support Service Providers

Oct -22

Source: globenewswire.com

Card image cap

Liquidity Services Announces Fourth Quarter Fiscal Year 2025 Earnings Conference Call

Oct -20

Source: globenewswire.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

Stock-Card
Tandy Leather Factory

A-Score: 5.1/10

Value: 9.3

Growth: 3.8

Quality: 6.8

Yield: 5.0

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Liquidity Services

A-Score: 4.9/10

Value: 3.8

Growth: 6.1

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Honest

A-Score: 4.0/10

Value: 4.7

Growth: 6.0

Quality: 6.4

Yield: 0.0

Momentum: 4.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
1stdibs

A-Score: 3.9/10

Value: 8.4

Growth: 4.7

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Big 5 Sporting Goods

A-Score: 3.7/10

Value: 9.8

Growth: 0.6

Quality: 3.6

Yield: 5.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
A.K.A. Brands

A-Score: 2.3/10

Value: 7.2

Growth: 3.4

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.89$

Current Price

29.89$

Potential

-0.00%

Expected Cash-Flows