Liquidity Services (LQDT) AI Stock Analysis

• Market Cap: $980.78M
• Dividend Yield: N/A
• Average Volume (3M): 211.08K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.83
• Revenue Growth: 31.20%
• EPS Growth: 38.38%
• Country: US
• Employees: 781
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.37
• Shares Outstanding: 30,639,767
• 10 Day Avg. Volume: 168,079
• 30 Day Avg. Volume: 211,079
• 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: 0.73
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 15.72
• 1Y Price Target: $41.00
• Price Target Upside: 30.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.39
• Revenue Forecast (FY): $422.75M

• Rating: 72 Outperform
• Price Target: $30.00 ▼(-4.79% Downside)

Liquidity Services' strong financial performance and positive earnings call results are the primary drivers of the stock's score. The bullish technical indicators are tempered by overbought signals, and the high P/E ratio suggests valuation concerns. The absence of corporate events and dividend yield are minor considerations.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective execution of business strategies, supporting long-term expansion.

Cash Flow Generation

Strong free cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and potential M&A activities.

Platform Expansion

Enhancing platform capabilities with new features can improve customer engagement and retention, driving sustained growth and competitive advantage.

Negative Factors

Retail Segment Challenges

Sequential revenue decline in the retail segment may indicate demand fluctuations, potentially impacting overall revenue stability and growth.

Lower Inventory Purchases

Reduced inventory purchases could limit sales opportunities, affecting revenue growth and market competitiveness in the near term.

Profitability Variability

Variability in profitability metrics suggests potential operational inefficiencies, which could affect long-term financial performance and investor confidence.

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 generates revenue primarily through transaction fees earned from the sale of surplus assets on its online marketplace. The company charges sellers a commission based on the final sale price of the assets sold, as well as fees for services such as asset valuation, inventory management, and logistics support. Additionally, it may earn revenue from partnerships with government agencies and corporations that require specialized auction services for their surplus assets. Significant factors contributing to its earnings include the volume of assets sold, the diversity of its client base, and the effectiveness of its online platform in attracting buyers and sellers.

Liquidity Services Financial Statement Overview

Summary

Liquidity Services demonstrates solid financial health with consistent revenue growth and strong cash flow generation. The company has a low debt-to-equity ratio and a strong cash position, although profitability metrics show some variability.

Income Statement

Liquidity Services has shown consistent revenue growth over the years, with a notable increase in the most recent year. The gross profit margin has been strong historically, although it was not reported in the latest year. Net profit margin has improved slightly, indicating better cost management. However, the EBIT margin has fluctuated, suggesting some operational challenges.

Balance Sheet

The company's balance sheet reflects a stable financial position with a low debt-to-equity ratio, indicating conservative leverage. Return on equity has decreased over the years, which may point to less efficient use of equity. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis shows a positive trend, with significant growth in free cash flow in the latest year. The operating cash flow to net income ratio indicates strong cash generation relative to earnings. The free cash flow to net income ratio is robust, reflecting efficient cash management.

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

Liquidity Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 31.51 is above the 20-day moving average (MA) of 29.83, above the 50-day MA of 26.09, and above the 200-day MA of 26.71, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 78.77 is Neutral, 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
LQDT	72 Outperform	$980.78M	36.33	14.56%	―	31.20%	38.38%
RERE	71 Outperform	$1.15B	33.35	7.42%	―	27.84%	―
ARKO	69 Neutral	$562.73M	45.09	4.94%	2.38%	-12.61%	-27.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NEGG	60 Neutral	$1.14B	―	―	―	―	―
TDUP	55 Neutral	$963.59M	-24.48	-35.37%	―	-4.90%	50.77%
HEPS	41 Neutral	$774.53M	―	-127.92%	―	30.95%	―

Liquidity Services Corporate Events

Liquidity Services’ Financial Stability at Risk Due to Banking Dependence

Liquidity Services faces significant business risk due to its reliance on a limited number of banking partners for essential financial services. The stability and operational soundness of these banks are crucial, as any instability or failure could disrupt access to funds, delay payment processing, and increase costs. Changes in banking terms, such as reduced credit or increased collateral requirements, could further strain the company’s financial management. Such disruptions could materially and adversely impact Liquidity Services’ operations, financial condition, and overall results.

Liquidity Services Reports Strong Q4 2025 Results

Liquidity Services is a global leader in e-commerce marketplaces and software solutions, specializing in the circular economy by facilitating the sale of surplus assets. The company operates across various sectors, including industrial, retail, and government, providing a platform for buyers and sellers to connect efficiently.

Liquidity Services’ Earnings Call Highlights Robust Growth

Liquidity Services’ recent earnings call painted a picture of robust growth and strategic advancements, despite some hurdles in the retail segment. The company celebrated notable achievements in gross merchandise volume (GMV) and revenue, alongside profitability milestones. However, challenges such as a sequential revenue decline and lower expected inventory purchases in the retail sector were also acknowledged.