Liquidity Services (LQDT)
NASDAQ:LQDT
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Liquidity Services
(NASDAQ:LQDT)
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Rating:79Outperform
Price Target:
$41.00
▲(20.59% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial quality (low leverage, robust free cash flow) and a positive earnings outlook with constructive Q3 guidance and broad-based profitability expansion. Technicals also support the view with a clear uptrend. The main offset is valuation (P/E ~31) alongside margin/mix sensitivity that has compressed gross margins versus prior years.
Positive Factors
Conservative Balance Sheet
Liquidity Services maintains a very conservative capital structure with $204M cash and negligible leverage (TTM debt-to-equity ~0.07). This durable balance-sheet strength affords resilience to macro shocks, funds operations organically, and preserves optionality for strategic actions without near-term refinancing risk.
Negative Factors
Material Margin Compression
A pronounced decline in gross margins (from ~58% to ~23% TTM) signals structural mix or pricing shifts that erode the company's historical profitability. Persistent lower take-rates or unfavorable category mix could limit future margin expansion and make earnings more sensitive to GMV fluctuations and competitive pricing dynamics.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Liquidity Services maintains a very conservative capital structure with $204M cash and negligible leverage (TTM debt-to-equity ~0.07). This durable balance-sheet strength affords resilience to macro shocks, funds operations organically, and preserves optionality for strategic actions without near-term refinancing risk.
Read all positive factors
Liquidity Services Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down recognized revenue by business line—auction and marketplace fees, asset recovery and disposition services, managed services, and others—revealing which streams drive top-line growth and their relative profitability. Indicates whether revenue gains come from higher transaction volume, fee expansion, or new services, and highlights concentration risk if one segment dominates the business.
Breaks down recognized revenue by business line—auction and marketplace fees, asset recovery and disposition services, managed services, and others—revealing which streams drive top-line growth and their relative profitability. Indicates whether revenue gains come from higher transaction volume, fee expansion, or new services, and highlights concentration risk if one segment dominates the business.
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The Fly
The FlyLiquidity Services (LQDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend YieldN/A
Average Volume (3M)168.56K
Price to Earnings (P/E)31.3
Beta (1Y)0.91
Revenue Growth9.26%
EPS Growth18.70%
CountryUS
Employees781
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.97
Shares Outstanding31,181,230
10 Day Avg. Volume189,901
30 Day Avg. Volume168,557
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/Revenue1.86
Enterprise Value/Gross Profit4.08
Enterprise Value/Ebitda17.23
Forecast
1Y Price Target
$44.00Price Target Upside29.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.48
Revenue Forecast (FY)$229.56M
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based profitable growth: GMV, revenue, segment direct profit, and adjusted EBITDA all expanded year-over-year, the company maintained a strong cash position with zero debt, and multiple segments (retail, GovDeals, CAG, Machinio) reported meaningful momentum and record metrics. The main negatives were an exogenous weather-related slowdown in GovDeals GMV, the earnings dilution impact from higher performance-based stock compensation and a higher effective tax rate, and ongoing external macro risks. On balance, the operational and financial positives materially outweigh the manageable near-term headwinds, and management provided constructive guidance for continued growth in the next quarter.Positive Updates
Strong Profitability Expansion
Consolidated segment direct profit increased 18% year-over-year and consolidated non-GAAP adjusted EBITDA grew 37% YoY to $16.7 million, with adjusted EBITDA representing 30% of segment direct profits for the quarter.
Negative Updates
Weather-Driven Disruption in GovDeals GMV
Significant winter weather events reduced GovDeals GMV growth in the quarter (GMV up only 5% YoY). Management expects some of the delayed vehicle and heavy-equipment flows to work through in the next quarter, but weather was an exogenous headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability Expansion
Consolidated segment direct profit increased 18% year-over-year and consolidated non-GAAP adjusted EBITDA grew 37% YoY to $16.7 million, with adjusted EBITDA representing 30% of segment direct profits for the quarter.
Read all positive updates
Company Guidance
Liquidity Services guided fiscal Q3 2026 GMV of $425–$465 million, with consignment GMV expected in the low‑ to mid‑80s percent of total GMV and purchase GMV sequentially stable; consolidated revenue as a percent of GMV is expected in the mid‑ to high‑20s and total segment direct profit as a percent of consolidated revenue in the mid‑ to high‑40s. Management forecasts non‑GAAP adjusted EBITDA of $17–$20 million, GAAP net income of $7–$10 million (GAAP diluted EPS $0.21–$0.30) and non‑GAAP adjusted diluted EPS of $0.30–$0.39, assumes roughly 33 million fully diluted weighted average shares, expects an effective tax rate approaching the mid‑30s for the quarter, and anticipates capital expenditures of about $2 million.Liquidity Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
87
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 479.92M | 476.67M | 363.32M | 314.46M | 280.05M | 257.53M |
| Gross Profit | 218.90M | 208.81M | 185.17M | 172.14M | 160.64M | 149.85M |
| EBITDA | 51.86M | 45.48M | 35.52M | 37.36M | 33.23M | 34.14M |
| Net Income | 30.24M | 28.09M | 19.99M | 20.98M | 40.32M | 50.95M |
Balance Sheet | ||||||
| Total Assets | 400.41M | 375.10M | 346.89M | 306.02M | 306.81M | 255.58M |
| Cash, Cash Equivalents and Short-Term Investments | 204.02M | 185.82M | 155.54M | 118.17M | 97.94M | 106.33M |
| Total Debt | 14.54M | 14.12M | 14.44M | 10.91M | 14.55M | 14.60M |
| Total Liabilities | 178.34M | 171.86M | 164.33M | 144.49M | 152.27M | 120.56M |
| Stockholders Equity | 222.07M | 203.24M | 182.56M | 161.53M | 154.54M | 135.01M |
Cash Flow | ||||||
| Free Cash Flow | 77.74M | 58.96M | 61.31M | 41.63M | 36.71M | 59.97M |
| Operating Cash Flow | 86.27M | 66.76M | 70.22M | 47.02M | 44.83M | 65.42M |
| Investing Cash Flow | -6.26M | -22.98M | -16.11M | -11.43M | -21.08M | -1.00M |
| Financing Cash Flow | -23.47M | -21.81M | -11.17M | -22.07M | -31.94M | -34.66M |
Liquidity Services Technical Analysis
Positive
34.00
Price Trends
32.57
Positive
32.09
Positive
29.28
Positive
Market Momentum
0.16
Positive
49.18
Neutral
13.47
Positive
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 34 is below the 20-day moving average (MA) of 34.97, above the 50-day MA of 32.57, and above the 200-day MA of 29.28, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 13.47 is Positive, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.06B | 31.34 | 14.24% | ― | 9.26% | 18.70% | |
63 Neutral | $987.79M | 26.11 | 8.68% | ― | 29.17% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $525.20M | -16.18 | -36.11% | ― | 10.25% | 70.25% | |
51 Neutral | $789.79M | -23.30 | 7.19% | 2.59% | -10.63% | 672.41% | |
44 Neutral | $946.65M | -2.62 | -244.37% | ― | 21.05% | ― | |
41 Neutral | $422.81M | ― | -10.80% | ― | ― | ― |
* 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.