Liquidity Services(LQDT) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter GMV for fiscal year 2025 was $404.5 million, a 12% increase from $361.0 million in the same quarter of fiscal year 2024[4] - Revenue for the fourth quarter of fiscal year 2025 was $118.1 million, a 10% increase from $106.9 million in the fourth quarter of fiscal year 2024[5] - GAAP net income for the fourth quarter was $7.8 million, up 23%, with GAAP diluted EPS of $0.24, up 20%[6] - Non-GAAP adjusted EBITDA for the fourth quarter was $18.5 million, a 28% increase from the previous year[6] - Total GMV for fiscal year 2025 reached $1.57 billion, a 15% increase, with revenue of $476.7 million, up 31%[6] - For Q4 FY25, net income was $7.822 million, an increase from $6.375 million in Q4 FY24, representing a growth of 22.7%[30] - Non-GAAP Adjusted EBITDA for the twelve months ended September 30, 2025, was $60.816 million, up from $48.500 million in the previous year, reflecting a growth of 25.4%[30] - Non-GAAP Adjusted Net Income for the twelve months ended September 30, 2025, was $41.467 million, compared to $32.551 million in FY24, indicating a growth of 27.3%[30] - Non-GAAP Adjusted diluted earnings per share for FY25 was $1.28, up from $1.03 in FY24, representing a growth of 24.3%[30] - Total revenue for the twelve months ended September 30, 2025, was $476.7 million, a 31.2% increase from $363.3 million in 2024[47] - Net income for the twelve months ended September 30, 2025, was $28.1 million, compared to $20.0 million in 2024, reflecting a 40.5% year-over-year growth[49] - Basic income per common share increased to $0.91 for the twelve months ended September 30, 2025, up from $0.66 in 2024[47] Shareholder Returns - The company authorized a $15.0 million increase to its share repurchase program, following the previous $10.0 million authorization[9] - The company had $1.5 million in remaining authorization to repurchase shares as of September 30, 2025, with an additional $15.0 million authorized on November 17, 2025[25] Buyer and Market Activity - The number of registered buyers increased to approximately 6.0 million, a 10% rise from 5.5 million in the previous year[15] - The CAG segment's revenue increased by 20%, consistent with its GMV growth[12] - The GovDeals segment's revenue grew by 17%, outpacing GMV growth due to higher commission rates[12] - Liquidity Services completed over $15 billion in transactions, serving more than five million qualified buyers and 15,000 corporate and government sellers worldwide[42] Future Guidance - The company expects Q1 fiscal year 2026 guidance to reflect GMV between $370 million and $405 million, with GAAP net income projected between $5.0 million and $8.0 million[18] - The FY26 annual effective tax rate (ETR) is expected to range from approximately 28% to 34%[25] - The diluted weighted average number of shares outstanding is expected to be approximately 32.5 to 33.0 million[25] Assets and Liabilities - Total current assets rose to $224.8 million as of September 30, 2025, compared to $199.2 million in 2024, marking a 12.9% increase[45] - Total liabilities decreased slightly to $171.9 million in 2025 from $164.3 million in 2024[45] - Cash and cash equivalents at the end of the year increased to $174.6 million from $153.2 million in 2024, a rise of 13.9%[49] Tax and Cash Flow - Cash paid for income taxes is expected to increase in FY26 as the remaining US federal net operating loss carryforward position became fully utilized during FY25[25] - Operating cash flow for the year ended September 30, 2025, was $66.8 million, slightly down from $70.2 million in 2024[49] Strategic Focus - The company is focused on enhancing its technology and operations to support growth in mobile commerce and sustainability efforts[42] - The company uses GMV (Gross Merchandise Value) as a measure of the volume of goods sold, which reflects marketplace activity[38] - The company does not provide quantitative reconciliation for non-GAAP measures in its guidance due to variability in financial results[37]