BETHESDA, Md., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Liquidity Services, Inc. (NASDAQ: LQDT) today announced with deep sadness the passing of George H. Ellis, who served as a distinguished member of its Board of Directors since May 2010. Mr. Ellis was a vital contributor to the company’s governance, serving on the Audit and Corporate Governance and Nominating Committees until his retirement in February 2026. "George was a dedicated steward of our company’s mission, a trusted advisor, friend and mentor to our l ...

Core Viewpoint - Liquidity Services, Inc. (NASDAQ:LQDT) specializes in managing surplus assets for businesses and government agencies, distinguishing itself in the online auction and liquidation industry [1] Stock Performance - LQDT's stock has shown resilience despite a minor dip of approximately 0.50% over the past month, indicating potential for recovery and growth [1] - In the last 10 days, LQDT experienced a more noticeable decline of about 3.70%, which may present a buying opportunity for long-term investors [2][5] Growth Potential - LQDT has a significant growth potential of 38.67%, suggesting the stock is currently undervalued and has room for appreciation [3][5] - Analysts have set a target price of $44 for LQDT, indicating strong upside potential from current trading levels [3] Financial Health - The company has a robust Piotroski Score of 8, reflecting its financial strength based on profitability, leverage, liquidity, and operating efficiency [4][5] - A Piotroski Score of 8 suggests that LQDT is financially sound and well-positioned for future growth, making it an attractive option for long-term investors [4]

Core Insights - Monroe County sheriff's office is conducting an online auction for a 2001 Sikorsky 276C Helicopter in partnership with GovDeals, following the success of a previous auction [1][2] - The initial online surplus sale in September 2025 resulted in the sale of a similar aircraft for $250,000, significantly surpassing expectations [2] - The online auction process allows for a broader buyer base, increasing competition and revenue for the sheriff's office, which will be reinvested to better serve the community [3] Auction Details - Interested bidders must submit a $2,500 refundable bid deposit, which will be applied to the final auction price for the winning buyer [3] - Serious buyers are encouraged to inspect the aircraft before bidding, and must create a free bidder account on GovDeals to participate [4] About GovDeals - GovDeals is a leading online marketplace for surplus government and educational assets, facilitating the sale of various items including heavy equipment and real estate [5] - The platform has completed over $15 billion in sales, providing sellers with more control and lower fees compared to traditional auction methods [5] - GovDeals is powered by Liquidity Services, a global provider of e-commerce marketplaces and software solutions [5]

Core Insights - Liquidity Services demonstrated strong momentum in Q1 of fiscal 2026, with significant growth in gross merchandise volume (GMV) and profitability, despite flat consolidated GAAP revenue due to a higher mix of consignment sales [3][6][17] Financial Performance - The company ended the quarter with $181.4 million in cash and no debt, alongside $26 million available under its credit facility [1][6] - Q1 GMV reached $398 million, with direct profit at $57 million, while GAAP revenue was flat at $121.2 million, reflecting a 1% decline year over year [2][6] - GAAP net income increased by 29%, resulting in a GAAP EPS of $0.23 and non-GAAP EPS of $0.39, with adjusted EBITDA reported at $18.1 million [6] Segment Performance - GovDeals experienced a 7% year-over-year GMV growth, attributed to the acquisition of over 500 new agency clients, with revenue increasing by 9% and direct profit rising by 13% [5][7] - The Retail segment posted a 3% GMV growth, but revenue declined by 6% year over year; however, direct profit increased by 16% to a record $21.5 million [8] - Capital Assets Group saw a 10% decline in GMV, but revenue increased by 17% and direct profit rose by 7%, supported by heavy equipment transactions [9] - Machinio and Software Solutions reported a 27% revenue growth, driven by subscription expansion and integration of auction software [10] Technology and Operational Efficiency - Management emphasized the role of technology in driving growth, including AI and automation initiatives aimed at improving buyer conversion and operational efficiency [11][12] - Automation efforts are focused on asset listing processes to enhance accuracy and reduce labor requirements [12] - Inbound lead handling has been automated to improve conversion rates among prospects, contributing to new client acquisition [13] Future Outlook - The company anticipates double-digit Adjusted EBITDA growth in Q2, with GMV guidance set between $375 million and $450 million and adjusted EBITDA expected to be between $14 million and $17 million [4][22] - A one-time cost of approximately $300,000 to $400,000 is flagged for streamlining retail operations [18] - Q2 guidance includes expectations for slightly lower margins in retail purchase flows and a seasonal increase in logistics costs [19]

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Buyer and Transaction Growth - As of December 31, 2025, Liquidity Services had 6.2 million registered buyers, an increase of approximately 9% from 5.7 million in the previous year[115]. - As of December 31, 2025, the total registered buyers increased to 6.2 million from 5.7 million in 2024, representing an 8.8% growth[127]. - Total auction participants for the three months ended December 31, 2025, were 983,000, up from 960,000 in 2024, indicating a 2.4% increase[129]. - Completed transactions rose to 264,000 in the three months ended December 31, 2025, compared to 253,000 in 2024, marking an increase of 4.3%[130]. Revenue and Financial Performance - Total revenue for the three months ended December 31, 2025, was $121.2 million, a slight decrease of $1.1 million or 0.9% from $122.3 million in 2024[141]. - Purchase revenues constituted 63.8% of total revenues for the three months ended December 31, 2025, down from 67.7% in the same period of 2024[120]. - Other fee revenues accounted for 6.5% of total revenues for the three months ended December 31, 2025, compared to 5.4% in the previous year[123]. - For the three months ended December 31, 2025, the net income was $7.489 million, compared to $5.810 million for the same period in 2024, representing a 29% increase[157]. - Non-GAAP Adjusted EBITDA for the three months ended December 31, 2025, was $18.078 million, up from $13.109 million in 2024, reflecting a 38% growth[157]. Segment Performance - The GovDeals segment reported a GMV of $226.9 million, up 7.0% from $212.1 million, with total revenue increasing by 8.5% to $22.3 million[143]. - The RSCG segment experienced a GMV increase of 3.4% to $113.5 million, despite a revenue decrease of 6.5% to $82.0 million[144]. - The CAG segment's revenue increased by 16.6% to $11.5 million, while GMV decreased by 10.3% to $57.6 million[145]. Expenses and Investments - Technology and operations expenses rose by $0.9 million or 5.1%, primarily due to increased transaction volumes and the acquisition of Auction Software[149]. - Sales and marketing expenses increased by $2.2 million or 15.2%, driven by market share expansion initiatives[150]. - Capital expenditures for the three months ended December 31, 2025, were $2.3 million, an increase from $1.8 million in 2024, driven by enhancements to platforms and marketplaces[163]. Cash and Liquidity - The company had $169.8 million in cash and cash equivalents and $11.6 million in short-term investments as of December 31, 2025, sufficient to meet anticipated cash needs for at least one year[159]. - The company maintains a $25.0 million revolving credit facility, which was increased to $35.0 million as of May 7, 2025, with no outstanding borrowings as of December 31, 2025[166][167]. - The company intends to reinvest earnings of foreign subsidiaries, holding $27.6 million in cash and cash equivalents outside the U.S. as of December 31, 2025[161]. Market Conditions and Challenges - The company is experiencing challenges due to inflation and heightened interest rates, which have affected buyer qualification and transaction timelines[111]. - The increase in volume of returned merchandise and government regulations for sustainability solutions are identified as positive industry trends for long-term growth[114]. - The company continues to monitor geopolitical conflicts and their potential impacts on business, although revenues directly associated with affected regions were not material[113]. - Volatile market conditions, including rising interest rates and geopolitical conflicts, may lead to significant changes in exchange rates affecting reported results[185]. Share Repurchase and Debt - The company repurchased 55,246 shares for $1.5 million during the three months ended December 31, 2025, with $15.0 million remaining authorization for share repurchases through December 31, 2027[176]. - The company has no debt as of December 31, 2025, but future draws on the Line of Credit would incur interest based on the Daily Simple Secured Overnight Financing Rate (SOFR) plus a margin of 1.25% to 1.75%[183]. Foreign Exchange and Interest Rate Impact - A hypothetical 100 basis point decline in interest rates would impact pre-tax earnings by less than $1.0 million on an annualized basis as of December 31, 2025[182]. - A hypothetical 10% decrease in foreign exchange rates would reduce total expected revenues by approximately 1%[185]. - The company operates in multiple currencies, with primary foreign exchange exposures including British Pounds, Canadian Dollars, Chinese Yuan, Euros, and Hong Kong Dollars[185].

Financial Data and Key Metrics Changes - In Q1 fiscal year 2026, GAAP revenue was flat, while consolidated gross merchandise volume (GMV) increased to $398 million and direct profit rose to $57 million [4][11] - GAAP net income increased by 29%, non-GAAP adjusted EBITDA grew by 38% year-over-year to $18.1 million, and adjusted EPS rose by 39% year-over-year to $0.39 per share [4][13] - The company ended the quarter with $181.4 million in cash and no financial debt, providing strategic flexibility for growth investments [5][14] Business Line Data and Key Metrics Changes - The GovDeals segment achieved 7% GMV growth, with a 13% increase in direct profit due to market share expansion and improved rates [5][15] - The SEG segment saw 3% GMV growth and a 16% increase in direct profit, driven by strong buyer participation [6][15] - Direct-to-consumer GMV increased by 40% year-over-year, reflecting growing consumer demand [6] - The CAG segment experienced a 10% decline in GMV but a 17% increase in revenue and a 7% increase in direct profit [15] Market Data and Key Metrics Changes - The company serves 6.2 million registered buyers, a 9% year-over-year increase, with 983,000 auction participants and 264,000 completed transactions in the quarter [9] - Heavy Equipment category logged 27% year-over-year organic GMV growth and 88% growth in the number of transactions [7] Company Strategy and Development Direction - The company is focused on profitable technology-enabled growth, leveraging AI, data analytics, and automation to improve efficiency and customer experience [4][8] - The strategy includes expanding the auction software business and enhancing the marketplace for buyers and sellers [8][10] - The company aims to scale its auction software business to 1,000 customers with annual recurring revenue of $10,000 or more [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience, supported by trends in Circular Commerce, sustainability, and digitization [9] - The outlook for Q2 includes expectations for double-digit adjusted EBITDA growth and continued strength in GovDeals and retail segments [16][19] - Management anticipates GMV to range from $375 million to $450 million in Q2, with GAAP net income expected between $6.5 million and $9.5 million [19][20] Other Important Information - The company conducted $1.5 million in share repurchases during the quarter, with $15 million remaining on the authorization for additional repurchases [14] - The fiscal second quarter guidance reflects a product mix within retail that is expected to be at a slightly lower margin than the previous quarter [17] Q&A Session Summary Question: What are the bigger drivers of tech-enabled growth? - Management highlighted improvements in buyer conversion rates through automation and machine-driven systems, enhancing productivity and accuracy in asset listings [24] Question: How significant is the impact of new clients in CAG and GovDeals? - Management noted a structural improvement in buyer and seller acquisition, with expectations for significant asset sales with Fortune 1,000 clients [26][27] Question: Has the sales force been increased to drive new client acquisition? - Management indicated that most growth is driven by automation, but targeted resources have been added to support sales outreach [31][33] Question: What competitive advantages does the company have in heavy equipment sales? - Management cited lower commission rates, flexibility for sellers, and strong buyer recovery rates as key differentiators [36] Question: What is the status of the Retail Rush product? - Management confirmed that Retail Rush is live and ramping up, with improved recovery rates for assets sold through this channel [38]

Financial Data and Key Metrics Changes - In Q1 fiscal year 2026, GAAP revenue was flat, while consolidated gross merchandise volume (GMV) increased to $398 million and direct profit rose to $57 million [4][11] - GAAP net income increased by 29%, with non-GAAP Adjusted EBITDA growing by 38% year-over-year to $18.1 million, and adjusted EPS growing by 39% year-over-year to $0.39 per share [4][11] - The company ended the quarter with $181.4 million in cash and no financial debt, providing strategic flexibility for growth investments [5][14] Business Line Data and Key Metrics Changes - The GovDeals segment achieved 7% GMV growth, with direct profit increasing by 13% due to seller acquisition and market share expansion [5][15] - The RSCG segment saw 3% GMV growth, but revenue declined by 6%, while direct profit increased by 16% [15] - The CAG segment experienced a 10% decline in GMV, but revenue grew by 17% and direct profit increased by 7% [15] Market Data and Key Metrics Changes - The heavy equipment category within the CAG segment logged 27% year-over-year organic GMV growth and 88% growth in the number of transactions [6] - The company serves 6.2 million registered buyers, a 9% year-over-year increase, with 983,000 auction participants and 264,000 completed transactions in the quarter [9] Company Strategy and Development Direction - The company is focused on profitable technology-enabled growth, leveraging AI, data analytics, and automation to improve efficiency and customer experience [8][10] - The strategy includes expanding the auction software business and enhancing the marketplace for buyers and sellers [8][10] - The company aims to scale its auction software business to 1,000 customers with annual recurring revenue of $10,000 or more [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience, supported by long-term trends in Circular Commerce and sustainability [9] - For Q2, the company anticipates double-digit Adjusted EBITDA growth year-over-year, driven by strong demand in GovDeals and retail segments [9][19] - Management highlighted the importance of operational efficiencies and a favorable product mix for future profitability [17][19] Other Important Information - The company conducted $1.5 million in share repurchases during Q1, with $15 million remaining on its authorization for additional repurchases [14] - Management's guidance for Q2 includes expected GMV ranging from $375 million to $450 million and GAAP net income between $6.5 million and $9.5 million [19][20] Q&A Session Summary Question: What are the bigger drivers of tech-enabled growth? - Management highlighted improvements in buyer conversion rates through automation and machine-driven systems, enhancing productivity and accuracy in asset listings [22][23] Question: How significant is the impact of new clients in CAG and GovDeals? - Management noted a structural improvement in buyer and seller acquisition, with expectations for significant asset sales with Fortune 1,000 clients [25][26] Question: Is the sales force being increased to drive new client acquisition? - Management indicated that most growth is driven by automation, but targeted resources have been added to support sales outreach [30][32] Question: What competitive advantages does the company have in heavy equipment sales? - Management cited lower commission rates, reduced transportation costs, and a strong buyer base as key differentiators [36] Question: What is the status of the Retail Rush product? - Management confirmed that Retail Rush is live and ramping up, with positive recovery rates compared to wholesale channels [38]

Financial Data and Key Metrics Changes - In Q1 2026, GAAP revenue was flat at $121.2 million, reflecting a 1% decrease year-over-year, while consolidated gross merchandise volume (GMV) increased by 3% to $398 million [4][12] - GAAP net income rose by 29%, with non-GAAP adjusted EBITDA growing by 38% year-over-year to $18.1 million, and adjusted EPS increased by 39% to $0.39 per share [4][12] - The company ended the quarter with $181.4 million in cash and no financial debt, providing strategic flexibility for growth investments [5][14] Business Line Data and Key Metrics Changes - The GovDeals segment achieved 7% GMV growth, with a 9% increase in revenue and a 13% rise in direct profit, driven by market share expansion and improved rates [14][15] - The SEG segment saw 3% GMV growth and a 16% increase in direct profit, despite a decline in purchase model programs [6][15] - The CAG segment experienced a 10% decline in GMV but a 17% increase in revenue and a 7% rise in direct profit, supported by increased activity in industrial spot purchases [7][15] Market Data and Key Metrics Changes - The company reported a 40% year-over-year increase in direct-to-consumer GMV, indicating strong consumer demand [6] - The marketplace now serves 6.2 million registered buyers, a 9% increase year-over-year, with 983,000 auction participants and 264,000 completed transactions in the quarter [10] Company Strategy and Development Direction - The company is focused on profitable technology-enabled growth, leveraging AI, data analytics, and automation to improve efficiency and customer experience [4][9] - The strategy includes expanding the GovDeals and retail segments, with a commitment to disciplined investment in technology and operational excellence [10][11] - The company aims to scale its auction software business and enhance its marketplace capabilities, targeting significant asset sales with Fortune 1,000 clients [26][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, supported by long-term trends in Circular Commerce and sustainability [10] - The outlook for Q2 2026 anticipates double-digit adjusted EBITDA growth, driven by a healthy business development pipeline and strong buyer demand [10][19] - Management highlighted the importance of operational efficiencies and a favorable product mix for maintaining profitability [17][18] Other Important Information - The company conducted $1.5 million in share repurchases during the quarter, with $15 million remaining on its authorization for additional repurchases [14] - Guidance for Q2 2026 includes expected GMV ranging from $375 million to $450 million and GAAP net income between $6.5 million and $9.5 million [19][20] Q&A Session Summary Question: What are the bigger drivers of tech-enabled growth? - Management highlighted improvements in buyer conversion rates through automation and machine-driven systems, enhancing productivity and accuracy in asset listings [23] Question: How significant is the impact of new clients in the GovDeals and CAG segments? - Management noted a structural improvement in buyer and seller acquisition, with significant wins in the public sector indicating durability of growth [25][34] Question: Is the sales force being increased to drive new client acquisition? - Management stated that the majority of growth is driven by automation, but targeted resources have been added to support sales outreach [31][34] Question: What competitive advantages does the company have in the heavy equipment market? - Management cited lower commission rates, flexibility for sellers, and a strong buyer base as key differentiators [36] Question: What is the status of the Retail Rush product? - Management confirmed that Retail Rush is ramping up and showing improved recovery rates compared to traditional channels [40]

Investor Presentation First Quarter Fiscal Year 2026 © Liquidity Services, Inc. All Rights Reserved. 1 Forward-Looking Information This document contains forward-looking statements. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, ...