Liquidity Services (LQDT) AI Stock Analysis

• Market Cap: $882.03M
• Dividend Yield: N/A
• Average Volume (3M): 167.76K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.94
• Revenue Growth: 31.20%
• EPS Growth: 38.38%
• Country: US
• Employees: 781
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.39
• Shares Outstanding: 31,013,882
• 10 Day Avg. Volume: 164,134
• 30 Day Avg. Volume: 167,756
• PEG Ratio: 0.80
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 14.39
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 15.00
• 1Y Price Target: $43.00
• Price Target Upside: 51.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.39
• Revenue Forecast (FY): $225.49M

• Rating: 70 Outperform
• Price Target: $31.00 ▲(9.00% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily supported by strong financial quality (low leverage and solid free cash flow) and a constructive earnings outlook with profit-led guidance and operational leverage. Offsetting factors are the sharp TTM revenue decline, a mixed near-term technical picture, and a relatively high P/E with no dividend support.

Positive Factors

Conservative balance sheet and liquidity

A strong cash position and zero financial debt give the company durable financial flexibility: supports investment in technology, working-capital needs for marketplace operations, opportunistic buybacks, and resilience through demand cycles without relying on new borrowing.

Consistent free cash flow generation

Sustained positive operating and free cash flow indicates the business converts earnings into liquidity reliably. This supports reinvesting in platform improvements, funding modest CapEx, and executing capital return programs while reducing reliance on external financing.

Marketplace scale and buyer engagement

A large and growing buyer base enhances liquidity and price discovery, strengthening network effects. Higher buyer depth increases recovery rates on assets, supports repeat transactions, and makes the marketplace harder for competitors to replicate over a multi-quarter horizon.

Negative Factors

Sharp TTM revenue decline

A severe trailing‑twelve‑month revenue decline is a material structural headwind: it can reduce operating leverage, pressure margins, and require sustained execution to rebuild growth. Recovery may take multiple quarters and could constrain strategic reinvestment.

Compression in returns and profitability vs. peak

Declining ROE and compressed profitability versus prior peaks suggest the company is generating lower efficiency from capital. Persistently lower returns could limit internal funding for growth and reduce the margin for error on strategic initiatives over the medium term.

Revenue mix shift toward lower-touch consignment

A structural shift to higher consignment share can reduce revenue per GMV and compress segment margins versus purchase-model programs. If sustained, mix changes may cap top-line growth and make earnings more dependent on volume gains or margin improvements.

Liquidity Services Business Overview & Revenue Model

Company Description

Liquidity Services, Inc. provides e-commerce marketplaces, self-directed auction listing tools, and value-added services. It operates through four segments: Retail Supply Chain Group, Capital Assets Group, GovDeals, and Machinio. The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination. It also provides marketplace for corporations located in the North America, Europe, Australia, Asia, and Africa to sell manufacturing surplus, salvage capital assets, and scrap material, as well as offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services. In addition, the company operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. It offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment. Liquidity Services, Inc. was incorporated in 1999 and is headquartered in Bethesda, Maryland.

How the Company Makes Money

Liquidity Services primarily makes money by earning fees and related service revenue from facilitating the sale and disposition of surplus/returned assets through its online marketplaces and managed service programs. Key revenue streams generally include: (1) marketplace and transaction fees or commissions earned when assets are sold via the company’s auction/marketplace platforms (the company monetizes buyer demand and seller supply by taking a fee tied to completed sales); (2) service revenues from asset disposition programs for enterprise and government sellers, which can include services such as program management, marketing of assets to buyers, listing/auction management, and administrative processing; and (3) fees for value-added services tied to executing sales and moving goods through the disposition process, which may include coordination of logistics, handling, storage, refurbishment/inspection support, or recycling/disposal services where offered as part of a program. A significant factor supporting earnings is the company’s network of seller relationships (including commercial enterprises and government entities) and its established buyer base, which can drive higher recovery values and transaction volumes on its platforms; specific partnership terms, contract structures, or segment-level revenue breakdowns are null.

Liquidity Services Financial Statement Overview

Summary

Strong overall financial quality driven by a conservative balance sheet (very low leverage, rising equity) and consistently positive operating/free cash flow with solid cash conversion. The main offset is near-term pressure: TTM revenue is down sharply (-23.3%) and profitability/margins are below prior peak levels.

Income Statement

Revenue growth has been strong over the last several annual periods (2021–2025 annual), but TTM (Trailing-Twelve-Months) shows a sharp revenue decline (-23.3%), which is a clear near-term headwind. Profitability remains positive with solid gross margin (~44% in the latest periods), but margins have generally compressed versus earlier years (notably lower net margin than 2021–2022). Overall: profitable and historically growing, but the latest TTM slowdown and lower margin profile temper the score.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage (debt-to-equity roughly ~0.07 across recent periods) and rising equity over time. Returns on equity are healthy (roughly low-to-mid teens recently, higher in earlier years), suggesting the company is generating solid profits without heavy debt. Main watch-out: returns have come down meaningfully from peak levels in 2021–2022, indicating efficiency/profitability is not as strong as it was.

Cash Flow

Cash generation is a major strength: operating cash flow and free cash flow are consistently positive, with strong TTM (Trailing-Twelve-Months) free cash flow (~$70M) and a very large free-cash-flow growth figure in the latest TTM data. Cash conversion is solid, with free cash flow running close to net income (generally ~0.82–0.92x across periods). The key weakness is variability in year-to-year free cash flow growth (including a decline in 2025 annual), which suggests some lumpiness in cash generation.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	475.56M	476.67M	363.32M	314.46M	280.05M	257.53M
Gross Profit	213.10M	208.81M	185.17M	172.14M	160.64M	149.85M
EBITDA	48.97M	45.48M	35.52M	37.36M	33.23M	34.14M
Net Income	29.77M	28.09M	19.99M	20.98M	40.32M	50.95M
Balance Sheet
Total Assets	369.14M	375.10M	346.89M	306.02M	306.81M	255.58M
Cash, Cash Equivalents and Short-Term Investments	181.42M	185.82M	155.54M	118.17M	97.94M	106.33M
Total Debt	22.12M	14.12M	14.44M	10.91M	14.55M	14.60M
Total Liabilities	153.88M	171.86M	164.33M	144.49M	152.27M	120.56M
Stockholders Equity	215.26M	203.24M	182.56M	161.53M	154.54M	135.01M
Cash Flow
Free Cash Flow	70.12M	58.96M	61.31M	41.63M	36.71M	59.97M
Operating Cash Flow	78.37M	66.76M	70.22M	47.02M	44.83M	65.42M
Investing Cash Flow	-15.03M	-22.98M	-16.11M	-11.43M	-21.08M	-1.00M
Financing Cash Flow	-22.87M	-21.81M	-11.17M	-22.07M	-31.94M	-34.66M

Liquidity Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LQDT, the sentiment is Negative. The current price of 28.44 is below the 20-day moving average (MA) of 31.39, below the 50-day MA of 31.53, and above the 200-day MA of 27.29, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 9.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LQDT.

Liquidity Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RERE	71 Outperform	$1.24B	21.82	7.50%	―	27.84%	―
LQDT	70 Outperform	$882.03M	31.00	14.46%	―	31.20%	38.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TDUP	53 Neutral	$434.47M	-38.47	-34.47%	―	-4.90%	50.77%
ARKO	49 Neutral	$583.29M	22.62	4.94%	2.59%	-12.61%	-27.22%
NEGG	48 Neutral	$776.05M	-37.87	―	―	―	―
HEPS	44 Neutral	$928.80M	-5.45	-244.37%	―	30.95%	―

Liquidity Services Corporate Events

Liquidity Services Shareholders Approve 2026 Governance and Compensation Matters

On February 26, 2026, Liquidity Services, Inc. held its 2026 Annual Meeting of Stockholders, where investors voted on four corporate governance and compensation proposals. Shareholders elected directors Paul J. Hennessy and Jaime Mateus-Tique to terms ending at the 2029 annual meeting, reinforcing continuity on the board and existing strategic oversight.

Investors also ratified Deloitte & Touche LLP as the company’s independent registered public accounting firm for fiscal 2026, signaling confidence in Liquidity Services’ financial reporting framework. In addition, stockholders approved the advisory vote on named executive officer compensation and backed an amendment to the 2006 Omnibus Long-Term Incentive Plan, supporting the company’s current pay practices and long-term equity incentives for executives.

The most recent analyst rating on (LQDT) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Liquidity Services stock, see the LQDT Stock Forecast page.

Liquidity Services Announces Director Retirement and Board Reduction

Liquidity Services, Inc. announced that long-serving director George H. Ellis, who joined the board in May 2010, notified the company on Feb. 3, 2026, of his decision to retire from the board effective Feb. 4, 2026, as part of a long-term succession plan and not due to any disagreement over operations, policies, or practices. Following his departure, which ends a tenure that included service as Audit Committee chair from 2010 through February 2024, the company will reduce the size of its board from eight to seven directors and shrink both its Audit and Corporate Governance and Nominating committees from four to three independent directors, signaling a streamlined governance structure for stakeholders.

The most recent analyst rating on (LQDT) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Liquidity Services stock, see the LQDT Stock Forecast page.