Liquidity Services (LQDT)
NASDAQ:LQDT
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Liquidity Services
(NASDAQ:LQDT)
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Rating:70Outperform
Price Target:
$31.00
▼(-1.21% Downside)
Action:ReiteratedDate: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
The company’s very low leverage and rising equity underpin durable financial flexibility. Coupled with the quarter-end cash balance and zero financial debt cited on the call, this financing profile supports recurring investment in marketplaces, buy-side liquidity initiatives, and opportunistic capital returns without stressing operations.
Negative Factors
Sharp TTM Revenue Decline
A pronounced trailing‑12‑month revenue drop of roughly 23% signals a meaningful near‑term deterioration in demand or mix that can persist across quarters. Lower top-line undermines scale economics, compresses operating leverage and pressures the ability to sustain recent profitability gains if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
The company’s very low leverage and rising equity underpin durable financial flexibility. Coupled with the quarter-end cash balance and zero financial debt cited on the call, this financing profile supports recurring investment in marketplaces, buy-side liquidity initiatives, and opportunistic capital returns without stressing operations.
Read all positive factors
Liquidity Services (LQDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$978.49M
Dividend YieldN/A
Average Volume (3M)168.36K
Price to Earnings (P/E)31.0
Beta (1Y)0.93
Revenue Growth31.20%
EPS Growth38.38%
CountryUS
Employees781
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.39
Shares Outstanding31,013,882
10 Day Avg. Volume193,951
30 Day Avg. Volume168,359
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)4.17
Price to Sales (P/S)1.78
P/FCF Ratio14.39
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue1.75
Enterprise Value/Gross Profit3.90
Enterprise Value/Ebitda16.96
Forecast
1Y Price Target
$43.00Price Target Upside37.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.39
Revenue Forecast (FY)$225.49M
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 mar...
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 ...
Liquidity Services Key Performance Indicators (KPIs)
Liquidity Services Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful profitability expansion, strong cash position, category-level wins (GovDeals, heavy equipment), material operational improvements from AI/automation, and solid marketplace engagement (6.2M buyers). Offsetting items include a modest decline in consolidated revenue (‑1%) from a consignment mix shift, localized GMV declines in CAG and retail revenue pressure, and modest near-term one-time costs. On balance, the positive profitability, cash/debt-free balance sheet, client wins, and outlook outweigh the operational mix headwinds.Positive Updates
Consolidated GMV and Direct Profit Growth
Consolidated gross merchandise volume (GMV) of $398.0 million (up ~3% year-over-year) and consolidated direct profit of $57 million, indicating scale and improved monetization of marketplace flows.
Negative Updates
Revenue Slightly Declined Due to Mix Shift
Consolidated GAAP revenue was $121.2 million, down ~1% YoY, attributed to an increasing share of lower-touch consignment sales and reduced purchase-model activity in retail.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated GMV and Direct Profit Growth
Consolidated gross merchandise volume (GMV) of $398.0 million (up ~3% year-over-year) and consolidated direct profit of $57 million, indicating scale and improved monetization of marketplace flows.
Read all positive updates
Company Guidance
Management guided fiscal 2026 GMV of $375M–$415M, GAAP net income of $6.5M–$9.5M (GAAP diluted EPS $0.20–$0.29), non‑GAAP adjusted diluted EPS $0.29–$0.38, and non‑GAAP adjusted EBITDA of $14M–$17M (with Q2 expected to deliver double‑digit adjusted EBITDA growth year‑over‑year); they assume a Q2 tax rate in the mid‑to‑high 20s, ~32.5–33.0M fully‑weighted shares, quarterly CapEx of ~ $2M, and free cash‑flow conversion in line with historical/seasonal patterns, and disclosed one‑time Q2 costs of ~$300k–$400k for a retail site streamlining; on mix metrics they expect consignment GMV to remain in the low‑80s percent of total GMV, consolidated revenue as a percent of GMV to be slightly below 30%, and total segment direct profit as a percent of consolidated revenue to be in the mid‑to‑high 40% range (company also entered the year with $181.4M cash, zero debt, $26M available on its credit facility, $1.5M of Q1 share repurchases and $15M remaining repurchase authorization).Liquidity Services Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
83
Very Positive
| 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
Positive
31.38
Price Trends
31.06
Positive
30.30
Positive
27.72
Positive
Market Momentum
-0.04
Negative
57.80
Neutral
87.31
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 31.38 is above the 20-day moving average (MA) of 29.94, above the 50-day MA of 31.06, and above the 200-day MA of 27.72, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 87.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LQDT.
Liquidity Services Risk Analysis
Liquidity Services disclosed 38 risk factors in its most recent earnings report. Liquidity Services reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liquidity Services Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $962.85M | 41.12 | 8.68% | ― | 27.84% | ― | |
70 Outperform | $978.49M | 31.00 | 14.46% | ― | 31.20% | 38.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $444.63M | -38.47 | -34.47% | ― | -4.90% | 50.77% | |
49 Neutral | $620.99M | 22.62 | 6.23% | 2.59% | -12.61% | -27.22% | |
48 Neutral | $685.08M | -37.87 | -12.00% | ― | ― | ― | |
44 Neutral | $851.66M | -5.45 | -244.37% | ― | 30.95% | ― |
* Consumer Cyclical Sector Average
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Liquidity Services Corporate Events
Executive/Board ChangesShareholder Meetings
Liquidity Services Shareholders Approve 2026 Governance and Compensation Matters
Positive
Feb 26, 2026
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 t...
Business Operations and StrategyExecutive/Board Changes
Liquidity Services Announces Director Retirement and Board Reduction
Neutral
Feb 9, 2026
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 successi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.