Liquidity Services (LQDT) AI Stock Analysis

• Market Cap: $780.61M
• Dividend Yield: N/A
• Average Volume (3M): 278.28K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 0.80
• Revenue Growth: 38.40%
• EPS Growth: 32.42%
• Country: US
• Employees: 781
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Specialty Retail
• EPS (TTM): 0.34
• Shares Outstanding: 31,236,938
• 10 Day Avg. Volume: 385,902
• 30 Day Avg. Volume: 278,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 14.28
• 1Y Price Target: $36.33
• Price Target Upside: 38.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $27.00 ▲(2.97% Upside)

Liquidity Services' strong financial performance and positive earnings call sentiment are significant strengths, contributing to a solid overall score. However, the high P/E ratio and mixed technical indicators suggest caution. The recent board appointment is a strategic positive, but challenges in international markets and soft vehicle prices present potential risks.

Positive Factors

Client Acquisition

New high-volume clients added in Q2/25 by GovDeals included New York City, Buffalo NY, Boston MA, Sacramento CA, Fairfax County VA and Amarillo, TX.

Financial Performance

Consolidated GMV increased 15% to $367 million with a revenue increase of 27% to $116.4 million on a year-over-year basis.

Market Leadership

Liquidity Services, Inc. holds a leadership position in the circular economy with its extensive marketplace offering maximum value to sellers and competitive auction pricing for buyers.

Negative Factors

Expense Challenges

LSI’s Q2/25 results were impacted by expenses related to new programs, contributing to results at the low end of guidance ranges.

Guidance Miss

LSI’s Q2/25 results were at the low end of guidance ranges due to weather-related events, product mix and expenses related to new programs.

Stock Price Decline

The decline in the stock price by over 20% is viewed as a buying opportunity due to expected improvements in the second half of the fiscal year.

Liquidity Services Business Overview & Revenue Model

Company Description

Liquidity Services (LQDT) is a leading provider of auction and liquidation services for surplus assets, primarily serving businesses, government agencies, and institutional clients. The company operates in various sectors, including retail, industrial, and government, offering a range of services such as online auctions, inventory management, and asset recovery. Its core products include platforms for auctioning surplus goods and a suite of services aimed at maximizing asset recovery and minimizing waste.

How the Company Makes Money

Liquidity Services generates revenue through multiple streams, primarily by facilitating online auctions where clients can sell surplus and excess inventory. The company earns fees from sellers based on the final sale price of items auctioned on its platforms. Additionally, it may charge buyers a premium for winning bids. The company also engages in asset recovery and management services, which provide clients with tailored solutions for inventory liquidation and surplus asset disposition. Partnerships with major retailers, government agencies, and manufacturers enhance its supply chain and inventory solutions, contributing significantly to its revenue. Factors such as market demand for used assets and the efficiency of its auction platforms also play a crucial role in its earnings.

Liquidity Services Financial Statement Overview

Summary

Liquidity Services demonstrates solid financial health with strong revenue growth and profitability. The balance sheet is particularly strong, characterized by low leverage and high equity ratios, ensuring financial stability. Cash flow generation is robust, though there is a slight decline in free cash flow growth, which could be a point of concern moving forward.

Income Statement

Liquidity Services has shown strong revenue growth over the years, with a notable revenue increase of 20.92% in the TTM compared to the previous year. The gross profit margin stands at 44.54%, indicating efficient cost management. The net profit margin improved to 5.75%, reflecting overall profitability. However, the EBIT margin and EBITDA margin are moderate at 6.61% and 9.32%, respectively, suggesting room for improvement in operating efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.08, indicating a conservative leverage approach. The return on equity (ROE) is healthy at 12.86%, showing effective utilization of equity. The equity ratio is strong at 54.73%, signifying financial stability and a solid capital structure.

Cash Flow

Operating cash flow to net income ratio is 2.13, indicating strong cash generation relative to earnings. Free cash flow has declined slightly, but the free cash flow to net income ratio remains high at 1.79, displaying efficient cash conversion. The free cash flow growth rate has slowed, highlighting potential challenges in sustaining cash flow momentum.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	465.51M	363.32M	314.46M	280.05M	257.53M	205.94M
Gross Profit	146.33M	185.17M	172.14M	160.64M	149.85M	109.92M
EBITDA	43.02M	35.52M	37.36M	57.98M	34.14M	3.32M
Net Income	26.65M	19.99M	20.98M	40.32M	50.95M	-3.77M
Balance Sheet
Total Assets	372.44M	346.89M	288.97M	288.10M	255.58M	196.63M
Cash, Cash Equivalents and Short-Term Investments	166.96M	155.54M	118.17M	97.94M	106.33M	76.04M
Total Debt	14.16M	14.24M	10.68M	14.23M	14.35M	11.32M
Total Liabilities	163.78M	164.33M	127.44M	133.57M	120.56M	84.82M
Stockholders Equity	208.65M	182.56M	161.53M	154.54M	135.01M	111.81M
Cash Flow
Free Cash Flow	42.15M	61.31M	41.63M	36.71M	59.97M	12.23M
Operating Cash Flow	50.77M	70.22M	47.02M	44.83M	65.42M	16.48M
Investing Cash Flow	-19.35M	-16.11M	-11.43M	-21.08M	-1.00M	28.65M
Financing Cash Flow	-5.41M	-11.17M	-22.07M	-31.94M	-34.66M	-5.70M

Liquidity Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LQDT, the sentiment is Positive. The current price of 26.22 is above the 20-day moving average (MA) of 24.62, above the 50-day MA of 24.24, and below the 200-day MA of 28.35, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 80.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LQDT.

Liquidity Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	74 Outperform	$1.47B	34.39	10.36%	―	10.68%	37.84%
LQDT	73 Outperform	$780.61M	31.65	14.00%	―	38.40%	32.42%
RERE	66 Neutral	$877.12M	62.53	3.45%	―	25.34%	―
ARKO	62 Neutral	$564.84M	64.56	4.01%	2.33%	-13.05%	-68.59%
TDUP	60 Neutral	$1.27B	―	-58.93%	―	-10.39%	14.92%
Sector *	56 Neutral	HK$25.46B	5.05	-2.69%	5.69%	-0.43%	-53.15%
BNED	50 Neutral	$284.01M	―	-36.88%	―	1.38%	63.65%

Liquidity Services Corporate Events

Liquidity Services Appoints New Board Member

Liquidity Services announced the appointment of Paul J. Hennessy to its Board of Directors, effective October 1, 2025. Hennessy, an experienced CEO with a background in technology and marketplace businesses, will serve on the Corporate Governance and Nominating Committee and the Audit Committee. His appointment is expected to bolster Liquidity Services’ market presence and service offerings, aligning with the company’s strategic growth and innovation goals in the circular economy.

The most recent analyst rating on (LQDT) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Liquidity Services stock, see the LQDT Stock Forecast page.