Financial Data and Key Metrics Changes - In Q4, the company achieved a GMV of $404.5 million, up 12% year-over-year, and revenue of $118.1 million, up 10% year-over-year, resulting in a revenue to GMV ratio of 29% for the quarter [17] - For the full fiscal year 2025, the company reported a record GMV of $1.57 billion, surpassing the $1.5 billion milestone for the first time, and revenues of nearly $477 million, up 31% year-over-year [6][16] - Adjusted EBITDA for fiscal 2025 was $60.8 million, up 25% year-over-year, marking the highest EBITDA in 11 years [6][14] Business Line Data and Key Metrics Changes - The GovDeals segment achieved a GMV of $903 million, up 8% year-over-year, driven by growth in new and active sellers [7] - The CAG segment's GMV grew 18% year-over-year, with revenue up 20% and direct profit up 16% [19] - The retail segment's GMV increased by 8%, with revenue up 6%, reflecting growth in consignment programs [19] Market Data and Key Metrics Changes - The company surpassed 6 million registered buyers for the first time, with 4.1 million auction participants [7] - The retail segment experienced lower purchase volumes in Q4 compared to the previous quarter, but GMV was sequentially up [17] Company Strategy and Development Direction - The company is focused on expanding its capabilities in the circular economy, integrating new payment solutions to enhance buyer experience and operational efficiency [4][10] - The strategy emphasizes low-touch consignment services and software solutions with recurring revenue characteristics [6] - The company aims for midterm goals of $2 billion in annual GMV and $100 million in annual adjusted EBITDA [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable long-term growth in the fragmented circular economy market [12] - The outlook for Q1 of fiscal 2026 includes double-digit year-over-year growth in profitability metrics, despite expected lower inventory purchases in the retail segment [20][21] Other Important Information - The company ended the fiscal year with $186 million in cash and zero debt, providing flexibility for strategic plans [12] - The company has a strong focus on technology integration, including AI-assisted technologies to improve operational efficiencies [26][27] Q&A Session Summary Question: Can you elaborate on the new payment solution and its impact on adjusted EBITDA margin? - Management highlighted the operating leverage from increased volume through fixed costs and the integration of AI technologies to enhance service quality and reduce costs [26][27] Question: What is the goal with GovDeals and the concept of government-adjacent markets? - The company aims to service public sector agencies and adjacent sellers, expanding its marketplace to include lessors and service providers [37][38] Question: Why is the company focusing on consignment versus purchase models in retail? - Management noted that consignment allows sellers to retain more of the proceeds, and there is a growing comfort with this model among clients [39][40]

Summary of Liquidity Services (LQDT) FY Conference Call - August 26, 2025 Company Overview - Liquidity Services is a leading e-commerce platform focused on the circular economy, helping organizations manage and monetize assets globally [3][4] - The company has established relationships with Fortune 500 and Fortune 1,000 companies, serving over 15,000 government entities and nearly 6 million registered buyers [4][3] Core Business Insights - Cumulative transaction activity on the platform has reached $15 billion, indicating significant value creation for buyers and sellers [4] - The company differentiates itself by focusing on the reutilization and remarketing of assets, which is a growing trend in supply chain management [3][4] - Liquidity Services operates a proprietary platform designed for the circular economy, integrating software, marketplace capabilities, and asset intelligence [5][6] Market Position and Growth - The circular economy market is valued at over $100 billion, with Liquidity Services positioned to capture significant market share through a two-sided marketplace approach [14] - The company is experiencing a digital shift, replacing outdated methods of managing used equipment with a streamlined transactional platform [14][15] - There is a notable increase in product obsolescence, creating opportunities for the company to facilitate asset transactions [15] Financial Performance - The company has set a GMV target of $2 billion, with a current run rate of approximately $1.6 billion [35] - GAAP revenue is derived from a mix of consignment fees, service fees, and subscription fees, with about 20% of GMV coming from a purchase model [35][36] - Liquidity Services has generated solid double-digit growth in EBITDA while investing in product innovation and customer relationship management [39][40] Segment Performance - The GovDeals segment achieved a record GMV of $252 million in the most recent quarter, highlighting the demand for asset recovery in the public sector [19] - The retail segment is adapting to the shift from in-person shopping to online, with high return rates driving the need for effective liquidation solutions [25][24] - The Capital Asset Group (CAG) segment serves industrial clients, providing a one-stop solution for asset management and sales [27] Strategic Initiatives - The company is leveraging AI and machine learning to enhance asset valuation and improve transaction efficiency [29][39] - Liquidity Services is exploring international growth opportunities, particularly in Central and South America, where e-commerce is rapidly expanding [47][48] - The company is also considering tuck-in acquisitions to enhance its service offerings and market reach [52][54] Sustainability and Transparency - Sustainability is a core component of the company's mission, with efforts to improve clients' carbon footprints and operationalize sustainability objectives [12][39] - Liquidity Services maintains a high level of transparency, with independent audits and public access to transaction data [12][13] Conclusion - Liquidity Services is well-positioned to capitalize on the growing circular economy, with a robust platform, strong financial performance, and strategic growth initiatives aimed at expanding its market presence and enhancing service offerings [3][14][39]