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 record 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%, reflecting growth in recurring sellers in the heavy equipment category [19] - The retail segment's GMV increased by 8%, with revenue up 6%, and direct profit increased by 19%, setting a new quarterly record [19] Market Data and Key Metrics Changes - The company surpassed 6 million registered buyers for the first time and set a new record of 4.1 million auction participants on its platform during fiscal 2025 [7] - The company continues to expand its GovDeals segment and has segmented its North American territories to drive further growth [8] Company Strategy and Development Direction - The company is focused on enhancing its capabilities, including the integration of a new payment solution to improve buyer experience and operational efficiency [4] - The strategy prioritizes low-touch consignment services and software solutions with recurring revenue characteristics, targeting a $100 billion-plus GMV market opportunity [6] - The company aims for midterm goals of $2 billion in annual GMV and $100 million of annual adjusted EBITDA [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to connect buyers and sellers in the circular economy, positioning it well in any economic climate [4] - The company expects double-digit year-over-year growth in profitability metrics for the first quarter of fiscal 2026, despite lower expected inventory purchases in the retail segment [20][21] - Management highlighted the importance of operational discipline and a focus on growth in segment direct profits and adjusted EBITDA [22] 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 generated $59 million of free cash flow during fiscal 2025, reflecting strong operational efficiencies [7] Q&A Session Summary Question: Can you elaborate on the new payment solution and its impact on adjusted EBITDA margin? - Management indicated that the new payment solution integrates third-party technologies to streamline payment processes, contributing to margin improvement through operational leverage and AI-assisted technologies [26][27][31] Question: What is the goal with GovDeals and the concept of government-adjacent markets? - Management explained that GovDeals aims to service public sector agencies and adjacent markets, allowing for a recurring flow of assets and expanding the marketplace [37][38] Question: Why is the company focusing on consignment versus purchase models in retail? - Management noted that the market is shifting towards consignment due to its economic advantages, allowing sellers to retain more of the proceeds, and the company is facilitating this transition through improved transparency and data sharing [39][40]

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]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported 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 [18] - For the full fiscal year 2025, the company achieved 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][14] - Adjusted EBITDA for fiscal 2025 was $60.8 million, up 25% year-over-year, marking the highest EBITDA in 11 years [6][17] Business Line Data and Key Metrics Changes - The GovDeals segment achieved a record GMV of $903 million, up 8% year-over-year, driven by growth in new and active sellers [8] - The CAG segment's GMV grew 35% organically during the year, reflecting strong buyer relationships and recurring sales volumes [9] - The retail segment grew GMV by 30% year-over-year, leveraging new recurring program flows from clients [9] Market Data and Key Metrics Changes - The company surpassed 6 million registered buyers for the first time, with 4.1 million auction participants on its platform [8] - The company reported a strong buyer base and liquidity as competitive advantages, contributing to its growth in various market segments [8] Company Strategy and Development Direction - The company is focused on enhancing its capabilities through technology, including the integration of a new payment solution to improve buyer experience and operational efficiency [4][5] - The strategy prioritizes low-touch consignment services and software solutions with recurring revenue characteristics, targeting a $100 billion-plus GMV market opportunity [6] - The company aims for midterm goals of $2 billion in annual GMV and $100 million of 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 circular economy market, emphasizing the importance of innovation and technology [12][13] - The outlook for Q1 2026 includes expectations for double-digit year-over-year growth in profitability metrics, despite anticipated lower inventory purchases in the retail segment [21][22] Other Important Information - The company ended the quarter with $185.8 million in cash and cash equivalents, maintaining zero debt and a strong cash flow performance [19] - The company has received authorization for an additional $15 million in share repurchases, reflecting confidence in its financial position [19] Q&A Session Summary Question: Can you elaborate on the new payment solution and its impact on adjusted EBITDA margins? - Management highlighted operational leverage and the integration of AI-assisted technologies as key factors improving margins, along with enhanced payment processing capabilities [26][27] Question: What is the goal with GovDeals and the concept of government-adjacent markets? - Management explained that GovDeals aims to service public sector agencies and adjacent markets, providing a platform for lessors and service providers to sell assets [36][38] Question: What is the focus on consignment versus purchase in the retail segment? - Management indicated a shift towards consignment sales, emphasizing the benefits of higher margins and improved recovery rates for sellers [39][40]