Financial Data and Key Metrics Changes - The company reported a consolidated GMV growth of 15% to $367.4 million for Q2 FY2025, with revenue increasing by 27% to $116.4 million compared to the same quarter last year [15][16] - GAAP earnings per share rose by 22% to $0.22, while non-GAAP adjusted earnings per share increased by 15% to $0.31 [16] - Non-GAAP adjusted EBITDA was reported at $12.2 million, slightly above the previous year [16] Business Segment Data and Key Metrics Changes - The Retail segment experienced a 29% increase in GMV and a 46% rise in revenue, driven by increased volumes from client purchase model programs [17] - The Capital Assets Group (CAG) segment saw a 14% increase in GMV, but revenue decreased by 22% due to large international spot purchase transactions in the previous year [18] - The GovDeals segment's GMV grew by 9%, with revenue up by 5% and direct profit increasing by 3% [18] - The combined revenue from Machinio and Software Solutions increased by 22%, with direct profit up by 19% [18] Market Data and Key Metrics Changes - The GovDeals segment expanded its target addressable market to an estimated $5.4 billion, attracting new higher volume clients [8] - The CAG segment completed transactions across multiple countries, including the US, UK, India, Poland, Sweden, and China, indicating a broadening market presence [9] Company Strategy and Development Direction - The company aims to reach a midterm goal of $2 billion in annual GMV, with a current annualized run rate of $1.67 billion [6] - The focus is on expanding market presence and service offerings while maintaining a 20% EBITDA margin [7] - The company is investing in platform improvements and new features, including AI-assisted tools and multilingual capabilities, to enhance service offerings [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic climate is pressuring many players in the retail liquidation industry, potentially leading to increased insolvencies [11] - Despite economic uncertainties, the company remains optimistic about growth opportunities, particularly in the CAG segment [19] - The outlook for Q3 FY2025 reflects solid year-over-year growth, with expectations for GMV to range from $395 million to $430 million [22] Other Important Information - The company ended Q2 FY2025 with $149 million in cash and cash equivalents, maintaining a debt-free balance sheet [16][17] - The company generated $21.6 million in cash from operations during the quarter and used $6.3 million for the acquisition of Auction Software [17] Q&A Session Summary Question: Impact of weather on GovDeals segment - Management explained that severe weather events affected the listing process for rolling stock, leading to interruptions in access to physical assets [27] Question: Gross profit on purchase transactions - Management clarified that a mix of industrial deals and retail supply chain programs, along with increased logistics costs, impacted gross profit margins [29][30] Question: Tariffs and used marketplace advantages - Management confirmed that increased tariffs on new items typically drive demand towards the used equipment market, benefiting their business [36] Question: Opportunities with federal agencies - Management expressed confidence in their solutions for federal agencies, noting the complexity of the interagency process [37] Question: New features from auction software and Machinio - Management detailed the integration of AI tools and improved listing processes to enhance marketplace efficiency and buyer engagement [39][40]

Financial Data and Key Metrics Changes - The company reported a 15% increase in consolidated GMV to $367.4 million for Q2 2025, with revenue growing 27% to $116.4 million compared to the same quarter last year [15][16] - GAAP earnings per share increased by 22% to $0.22, while non-GAAP adjusted earnings per share rose 15% to $0.31 [16] - Operating cash flow for Q2 was over $21 million, and the company ended the quarter with $149 million in cash, cash equivalents, and short-term investments [7][17] Business Segment Data and Key Metrics Changes - The Retail segment saw a 29% increase in GMV and a 46% increase in revenue, driven by increased volumes from client purchase model programs [17] - The Capital Assets Group (CAG) segment's GMV increased by 14%, but revenue decreased by 22% due to last year's large international spot purchase transactions [18] - The GovDeals segment experienced a 9% increase in GMV and a 5% increase in revenue, with a 3% increase in segment direct profit [18] Market Data and Key Metrics Changes - The GovDeals segment expanded its target addressable market to an estimated $5.4 billion, attracting new higher volume clients [8] - The CAG segment completed transactions across multiple countries, including the US, UK, India, Poland, Sweden, and China, indicating a broadening market presence [10] - The company noted a significant year-over-year increase in buyer participation, with a 9570% increase in auction participants in heavy equipment and industrial verticals [11] Company Strategy and Development Direction - The company aims to reach a midterm goal of $2 billion in annual GMV, with a current annualized run rate of $1.67 billion [6] - The focus is on expanding market presence and service offerings while maintaining a 20% EBITDA margin as a percentage of direct profit or net revenue [7] - The company is investing in software solutions and platform improvements, including AI-assisted tools and enhanced listing capabilities [13][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged emerging economic uncertainties but expressed confidence in the company's ability to navigate these challenges [6][12] - The outlook for Q3 2025 reflects solid year-over-year growth, with expectations for GMV to range from $395 million to $430 million [21] - The company anticipates continued growth in the CAG segment, particularly in heavy equipment and industrial categories, despite potential delays in vehicle volumes [19][20] Other Important Information - The company has a debt-free balance sheet and has improved its line of credit capacity [17] - The retail liquidation industry is facing pressures that could lead to increased insolvency among service providers, which may impact retailers [12] Q&A Session Summary Question: Impact of weather on GovDeals segment - Management explained that severe weather events affected the listing process for rolling stock, leading to interruptions in access to physical assets [26][27] Question: Gross profit on purchase transactions - Management clarified that a mix of industrial deals and retail supply chain programs, along with increased logistics costs, impacted gross profit margins [28][29] Question: Effect of tariffs on used equipment market - Management noted that increased tariffs on new items typically drive demand towards the used equipment market, benefiting the company [36] Question: Opportunities with federal agencies - Management expressed confidence in their solutions for federal agencies, although the process is complex and slow-moving [37] Question: Integration of auction software and Machinio - Management discussed the potential of AI tools to enhance listing processes and improve buyer-seller matching, which could increase conversion rates [38][40]

[Q2 FY2025 Financial & Operational Highlights](index=1&type=section&id=Q2%20FY2025%20Financial%20%26%20Operational%20Highlights) [Overall Performance](index=1&type=section&id=Overall%20Performance) Liquidity Services achieved strong Q2 FY2025 growth with GMV up 15% to $367.4 million and revenue up 27% to $116.4 million, driven by market expansion and operating leverage Q2 FY2025 Key Financial Metrics (YoY) | Metric | Q2 FY2025 | Q2 FY2024 | % Change | | :--- | :--- | :--- | :--- | | GMV | $367.4M | $319.4M | +15% | | Revenue | $116.4M | $91.5M | +27% | | GAAP Net Income | $7.1M | $5.7M | +24% | | GAAP Diluted EPS | $0.22 | $0.18 | +22% | | Non-GAAP Adjusted EBITDA | $12.2M | $12.1M | +1% | | Non-GAAP Adjusted EPS | $0.31 | $0.27 | +15% | - The company reported a strong financial position with cash balances of **$149.0 million** and zero financial debt[6](index=6&type=chunk) - Growth was attributed to market share expansion, enhanced service offerings, and realized operating leverage, with net income also benefiting from a lower effective tax rate due to increased tax-deductible stock compensation activity[1](index=1&type=chunk)[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) All segments contributed to Q2 FY2025 GMV growth, with RSCG leading at 29%, CAG at 14%, and GovDeals at 9%, while Machinio & Software Solutions revenue grew 22% - **RSCG:** GMV increased **29%** from expansion with existing and new retail client programs, and revenue grew **46%** due to a higher volume from client purchase models[7](index=7&type=chunk) - **CAG:** GMV increased **14%**, led by the heavy equipment category, though revenue decreased **22%** as the prior-year quarter included large international spot purchase transactions[7](index=7&type=chunk) - **GovDeals:** GMV increased **9%**, driven by new seller acquisition and strong real estate results, partially offset by weather-related delays[7](index=7&type=chunk) - **Machinio & Software Solutions:** Combined revenue increased **22%** from increased subscriptions and the acquisition of Auction Software[7](index=7&type=chunk) Segment Financial Results (Three Months Ended March 31, 2025) | Segment | GMV ($ thousands) | Total Revenue ($ thousands) | Segment Direct Profit ($ thousands) | | :--- | :--- | :--- | :--- | | GovDeals | $203,329 | $19,236 | $17,712 | | RSCG | $102,843 | $82,692 | $16,569 | | CAG | $61,181 | $9,592 | $8,652 | | Machinio & Software Solutions | N/A | $4,872 | $4,513 | [Operational Metrics](index=5&type=section&id=Operational%20Metrics) Registered buyers grew 9% to **5.8 million** in Q2 FY2025, while auction participants and completed transactions decreased 14% due to consumer auction location sunsetting Q2 Operational Metrics (YoY) | Metric | Q2-FY25 | Q2-FY24 | % Change | | :--- | :--- | :--- | :--- | | Registered Buyers | ~5.8 million | ~5.3 million | +9% | | Auction Participants | ~982,000 | ~1,139,000 | -14% | | Completed Transactions | ~258,000 | ~300,000 | -14% | - The decrease in auction participants and completed transactions reflects the sunset of selected consumer auction locations[12](index=12&type=chunk) [Q3 FY2025 Business Outlook](index=6&type=section&id=Q3%20FY2025%20Business%20Outlook) [Financial Guidance](index=6&type=section&id=Financial%20Guidance) Liquidity Services projects Q3 FY2025 GMV between **$395 million** and **$430 million**, with GAAP Net Income of **$6.0 million** to **$9.0 million**, and Non-GAAP Adjusted Diluted EPS of **$0.27** to **$0.36** Q3-FY25 Guidance | Metric | Guidance Range ($ in millions, except per share data) | | :--- | :--- | | GMV | $395 to $430 | | GAAP Net Income | $6.0 to $9.0 | | Non-GAAP Adjusted EBITDA | $14.5 to $17.5 | | GAAP Diluted EPS | $0.18 to $0.28 | | Non-GAAP Adjusted Diluted EPS | $0.27 to $0.36 | [Key Assumptions and Risks](index=6&type=section&id=Key%20Assumptions%20and%20Risks) Q3 outlook assumes client expansion and service growth, driven by RSCG purchase programs and CAG heavy equipment, with risks from transaction mix, inventory variability, project timing, and economic conditions - The company anticipates sequential growth in top-line results for the second half of the fiscal year compared to the first half, consistent with prior year trends[15](index=15&type=chunk) - Potential factors impacting future results include: - Fluctuations in the mix of purchase and consignment transactions[17](index=17&type=chunk) - Variability in inventory product mix handled by the RSCG segment[17](index=17&type=chunk) - Variability in project size and timing within the CAG segment[17](index=17&type=chunk) - Changes in economic, political, or international trading conditions[17](index=17&type=chunk) - The FY25 annual effective tax rate (ETR) is expected to range from approximately **25%** to **31%**[21](index=21&type=chunk) [Financial Statements](index=15&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=16&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues for the three months ended March 31, 2025, increased to **$116.4 million**, driving income from operations to **$6.8 million** and net income to **$7.1 million**, or **$0.22** per diluted share Condensed Statements of Operations (Three Months Ended March 31) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total revenue | $116,375 | $91,453 | | Income from operations | $6,803 | $6,595 | | Net income | $7,051 | $5,709 | | Diluted income per common share | $0.22 | $0.18 | [Consolidated Balance Sheets](index=15&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Liquidity Services reported total assets of **$358.8 million**, cash and cash equivalents of **$138.5 million**, total liabilities of **$162.5 million**, and total stockholders' equity of **$196.3 million** Key Balance Sheet Items | Account | March 31, 2025 ($ in thousands) | September 30, 2024 ($ in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $138,486 | $153,226 | | Total current assets | $204,886 | $199,235 | | Total assets | $358,795 | $346,888 | | Total current liabilities | $152,073 | $155,153 | | Total liabilities | $162,470 | $164,328 | | Total stockholders' equity | $196,325 | $182,560 | [Consolidated Statements of Cash Flows](index=17&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities for the six months ended March 31, 2025, was **$9.5 million**, with **$18.6 million** used in investing and **$4.8 million** in financing, resulting in a **$14.7 million** net decrease in cash Condensed Statements of Cash Flows (Six Months Ended March 31) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,504 | $25,973 | | Net cash used in investing activities | ($18,560) | ($17,591) | | Net cash used in financing activities | ($4,777) | ($10,342) | | Net decrease in cash and cash equivalents | ($14,740) | ($1,647) | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) [Reconciliation to Non-GAAP Adjusted EBITDA](index=9&type=section&id=Reconciliation%20to%20Non-GAAP%20Adjusted%20EBITDA) Q2 FY2025 GAAP Net Income of **$7.1 million** reconciled to Non-GAAP Adjusted EBITDA of **$12.2 million**, nearly flat year-over-year, with key adjustments for depreciation, amortization, and stock compensation Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Three Months Ended March 31) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $7,051 | $5,709 | | Adjustments (Taxes, D&A, etc.) | $2,272 | $3,911 | | Non-GAAP EBITDA | $9,323 | $9,620 | | Stock compensation & other adjustments | $2,849 | $2,468 | | **Non-GAAP Adjusted EBITDA** | **$12,172** | **$12,088** | [Reconciliation to Non-GAAP Adjusted Net Income](index=10&type=section&id=Reconciliation%20to%20Non-GAAP%20Adjusted%20Net%20Income) Non-GAAP Adjusted Net Income for Q2 FY2025 increased to **$10.0 million**, resulting in Non-GAAP Adjusted Diluted EPS of **$0.31**, primarily adjusted for stock compensation and intangible asset amortization Reconciliation of Net Income to Non-GAAP Adjusted Net Income (Three Months Ended March 31) | ($ in thousands, except per share data) | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $7,051 | $5,709 | | Adjustments (Stock comp, amortization, etc.) | $3,664 | $3,552 | | Income tax impact on adjustments | ($696) | ($842) | | **Non-GAAP Adjusted net income** | **$10,019** | **$8,419** | | **Non-GAAP Adjusted diluted EPS** | **$0.31** | **$0.27** |

Core Insights - Liquidity Services reported significant financial growth in Q2 FY25, with GMV reaching $367.4 million, a 15% increase from $319.4 million in Q2 FY24, and revenue of $116.4 million, up 27% from $91.5 million in the same quarter last year [3][4][6] - The company successfully expanded its market presence and service offerings, attracting new clients and optimizing its operations despite economic uncertainties [1][2] Financial Performance - GMV for Q2 FY25 was $367.4 million, reflecting a 15% year-over-year increase [3] - Revenue for the same period was $116.4 million, marking a 27% increase compared to the previous year [4] - GAAP Net Income was $7.1 million, up 24% from $5.7 million in Q2 FY24, with GAAP Diluted EPS of $0.22, a 22% increase [6][11] - Non-GAAP Adjusted Net Income for Q2 FY25 was $10.0 million, or $0.31 per share, compared to $8.4 million, or $0.27 per share in Q2 FY24 [11][22] Segment Performance - GMV in the RSCG segment increased by 29%, driven by existing and new retail client programs [7] - GMV in the CAG segment grew by 14%, primarily from the heavy equipment category [7] - The GovDeals segment saw a 9% increase in GMV, attributed to new seller acquisition and service expansion [7] - Revenue in the RSCG segment surged by 46%, while the CAG segment's revenue decreased by 22% due to prior year large international transactions [7] Market Trends and Outlook - The company anticipates continued growth in the third quarter of FY25, with GMV expected to range between $395 million and $430 million [12][14] - The GovDeals segment is expected to enter a seasonally high quarter, contributing to overall revenue growth [13] - The company is well-positioned to capitalize on emerging opportunities despite global economic uncertainties [2][12] Operational Metrics - Registered buyers increased by 9% year-over-year to approximately 5.8 million [15] - Auction participants decreased by 14% to approximately 982,000, reflecting the closure of certain consumer auction locations [15] - Completed transactions also saw a 14% decline, totaling approximately 258,000 [15] Cash Position - The company reported cash balances of $149.0 million with zero financial debt, indicating a strong liquidity position [6]

BETHESDA, Md., April 03, 2025 (GLOBE NEWSWIRE) -- Liquidity Services (NASDAQ:LQDT), a leading global commerce company powering the circular economy, today announced that it expects to report its second quarter fiscal year 2025 results prior to market open on Thursday, May 8, 2025. Bill Angrick, Chairman and CEO, and Jorge Celaya, EVP and CFO, will then host a conference call to review the results at 10:30 AM Eastern Time. To participate in the conference call, please register here to receive the dial-in num ...

Company Performance - Liquidity Services, Inc. (NASDAQ: LQDT) has experienced a significant share price increase of 71.70% over the year, despite a recent price slump in the past month [1] Future Outlook - The expectation is for the share price to continue rising, indicating positive growth prospects for the company [1]

BETHESDA, Md., March 13, 2025 (GLOBE NEWSWIRE) -- Liquidity Services (NASDAQ:LQDT), a leading global commerce company powering the circular economy, has announced it will conduct a second sale in China on behalf of a leading global energy enterprise. In partnership with Aaron Industrial Solutions (AIS), a global auctioneer, liquidator, and asset manager, this sale, which contains 2x MAN Diesel & Turbo SE DK080/250R Industrial Steam Turbines and 1x Unused Steam Turbine Rotor & Accessories, builds upon the in ...

BETHESDA, Md., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Liquidity Services, (NASDAQ:LQDT) which operates the world's largest B2B e-commerce marketplace platform for surplus asset sales, today announced a strategic partnership with Biocom California, the state's premier life science association representing over 1,800 members. As the newest addition to the Core by Biocom California savings portfolio, Liquidity Services will provide member companies with unique opportunities to recapture critical capital and secure ...

All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date of this document and are expressly qualified in their entirety by the cautionary statements included in this document. Except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances occurring after the date of this document or to reflect the occurrence of unanticipated events. To supplement our consolidated fin ...

Financial Data and Key Metrics Changes - The company reported a record quarterly GMV of $386.1 million, up 26% from $305.9 million in the same quarter last year [18] - Revenue increased to $122.3 million, up 72% from $71.3 million last year, with revenue growth outpacing GMV growth [19] - GAAP net income was $5.8 million, up 205%, and non-GAAP adjusted EBITDA was $13.1 million, up 81% year over year [20] Business Line Data and Key Metrics Changes - The retail segment's GMV increased by 65%, with revenue doubling at 101% growth, and direct profit up 31% [21] - The Capital Assets Group (CAG) segment saw GMV growth of 31%, revenue growth of 26%, and direct profit growth of 27% [21] - The GovDeals segment's GMV was up 11%, revenue up 29%, and direct profit up 25% [22] - Machinio's revenue and direct profit each increased by 10% [22] Market Data and Key Metrics Changes - The company experienced a 13% year-over-year increase in auction participants, indicating strong demand for value-priced goods [9] - The GovDeals segment added notable new sellers, including government entities from various regions, contributing to GMV growth [11] Company Strategy and Development Direction - The company aims to achieve $2 billion in annual GMV by focusing on increasing sales volume, expanding buyer base, and executing acquisitions [15] - The acquisition of Auction Software and Simple Auction Site is expected to enhance software development capabilities and market reach [14] Management's Comments on Operating Environment and Future Outlook - Management noted that persistent inflation has driven buyers to platforms offering value-priced goods, contributing to market share expansion [32] - The company anticipates continued solid growth in the second quarter of fiscal year 2025, with GMV expected to range from $360 million to $390 million [25] Other Important Information - The company ended the quarter with $139.1 million in cash and equivalents, zero debt, and $17.5 million in available borrowing capacity [20] - The guidance for GAAP net income for the second quarter is expected to be between $5.5 million and $8 million [26] Q&A Session Summary Question: How much of the growth is due to expanding market share versus better market conditions? - Management indicated that market share growth is due to increased access to goods and categories, with persistent inflation driving demand for value-priced goods [32] Question: What impact do tariffs have on the business? - Management suggested that the scarcity of products in various categories could have a neutral to positive effect on the business [35] Question: Can you elaborate on the Simple Auction acquisition? - The acquisition is seen as a way to enhance the ecosystem by providing tools for resellers and expanding into new categories [36][39] Question: Is there an increased flow of vehicles coming through GovDeals? - Vehicle flow has normalized, contributing to results, but the primary growth driver has been in non-vehicle categories [48] Question: How much of the GMV increase came from new accounts? - Growth in GMV was attributed to both new sellers and existing relationships, with a focus on expanding the circular economy in retail [52] Question: What is the revenue model for the auction software business? - The model includes both SaaS revenue and a percentage of GMV from transactions facilitated through the platform [54] Question: How will the auction platform be leveraged across business segments? - The platform is expected to serve various segments, including retail and Machinio, by providing auction capabilities to resellers [58][60]