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Liquidity Services (LQDT) AI Stock Analysis
Liquidity Services
(NASDAQ:LQDT)
The score is driven primarily by strong financial performance (growth, solid profitability, strong free cash flow, and low leverage) and a notably upbeat earnings call with confident guidance and improving operating metrics. Technicals are supportive with price above key moving averages and healthy momentum. The main offset is valuation: a high P/E (~40) leaves less room for execution missteps, with additional (smaller) near-term risks from timing-driven segment variability and integration execution on the new acquisition.
Liquidity Services Key Performance Indicators (KPIs)
Revenue by SegmentBreaks 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.
RSCG has become the primary growth and profit engine since 2024, materially lifting consolidated margins and driving the company’s EBITDA expansion; GovDeals shows steady multi-year growth but remains weather‑sensitive and can produce quarter-to-quarter GMV volatility; CAG is a smaller but steadily rising stream with a sizable backlog that could unlock outsized revenue upside; Machinio is modest in revenue today but is high‑margin and nearing meaningful ARR. The overall mix shift toward retail and software is boosting profitability, though seasonality and exogenous weather remain the main near‑term risks.
The FlyLiquidity Services (LQDT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.40B
- Dividend Yield
- ―
- Average Volume (3M)
- 234.26K
- Price to Earnings (P/E)
- 42.1
- Beta (1Y)
- 0.91
- Revenue Growth
- 5.18%
- EPS Growth
- 24.25%
- Country
- US
- Employees
- 818
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Specialty Retail
Liquidity Services Business Overview & Revenue Model
Company Description
Liquidity Services, Inc. delivers comprehensive e-commerce solutions, featuring online marketplaces, self-service auction listing tools, and a variety of support services. The company's operations are structured into four distinct segments: Retail Su...
How the Company Makes Money
Liquidity Services primarily makes money by facilitating secondary-market sales of surplus and returned assets through its online marketplaces and asset management programs. Its revenue model commonly includes: (1) marketplace commissions or transact...
Liquidity Services Earnings Call Summary
The call reported broad-based operational momentum: record GMV, double-digit growth in key profitability metrics (GAAP EPS +39% YoY, adjusted EBITDA +30% YoY), strong retail and GovDeals performance, CAG profitability improvement despite timing-driven GMV softness, and material ARR growth at Machinio. Challenges were limited to CAG project timing reducing GMV modestly, a decline in auction participants (likely mix-driven), an expected sequential retail GMV dip in Q4, and a higher projected tax rate. Overall, positives substantially outweigh these contained issues.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the fiscal fourth quarter of 2026, management guided GMV of $415M–$455M, non‑GAAP adjusted EBITDA of $22M–$25M, GAAP net income of $10M–$13M, GAAP diluted EPS of $0.30–$0.39 and non‑GAAP adjusted diluted EPS of $0.41–$0.50 (assuming ~33M fully diluted weighted average shares), with an effective tax rate approaching the low‑to‑mid‑30s and capital expenditures of $2.5M–$3.0M; they also expect consignment GMV to be in the mid‑80s% of total GMV, consolidated revenue as a percent of GMV in the mid‑20s, and total segment direct profit as a percent of consolidated revenue in the mid‑50s, positioning the year to close with continued annual growth and the highest annual adjusted EBITDA in 13 years.
Liquidity Services Financial Statement Overview
Summary
Strong overall fundamentals: meaningful multi-year revenue growth, solid profitability, and robust TTM free cash flow (~$90M) with good conversion (~0.90 FCF to net income). Balance sheet risk is low with very low leverage (debt-to-equity ~0.07) and healthy ROE (~14%). Offsetting factors are clear margin compression versus 2021–2023 and some cash-flow volatility.
Income Statement
78PositiveBalance Sheet
86Very PositiveCash Flow
84Very Positive| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 489.62M | 476.67M | 363.32M | 314.46M | 280.05M | 257.53M |
| Gross Profit | 227.97M | 208.81M | 185.17M | 172.14M | 160.64M | 149.85M |
| EBITDA | 59.51M | 49.85M | 39.38M | 37.36M | 33.23M | 34.55M |
| Net Income | 33.26M | 28.09M | 19.99M | 20.98M | 40.32M | 50.95M |
Balance Sheet | ||||||
| Total Assets | 420.09M | 375.10M | 346.89M | 306.02M | 306.81M | 255.58M |
| Cash, Cash Equivalents and Short-Term Investments | 231.10M | 185.82M | 155.54M | 118.17M | 97.94M | 106.33M |
| Total Debt | 13.60M | 14.12M | 14.44M | 10.91M | 14.55M | 14.60M |
| Total Liabilities | 184.24M | 171.86M | 164.33M | 144.49M | 152.27M | 120.56M |
| Stockholders Equity | 235.85M | 203.24M | 182.56M | 161.53M | 154.54M | 135.01M |
Cash Flow | ||||||
| Free Cash Flow | 89.99M | 58.96M | 61.31M | 41.63M | 36.71M | 59.97M |
| Operating Cash Flow | 98.18M | 66.76M | 70.22M | 47.02M | 44.83M | 65.42M |
| Investing Cash Flow | -8.65M | -22.98M | -16.11M | -11.43M | -21.08M | -1.00M |
| Financing Cash Flow | -25.22M | -21.81M | -11.17M | -22.07M | -31.94M | -34.66M |
Liquidity Services Technical Analysis
Price Trends
Market Momentum
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 44.62 is above the 20-day moving average (MA) of 43.67, above the 50-day MA of 42.91, and above the 200-day MA of 36.97, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 54.07 is Neutral, 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.
Latest Risks Added
0 New RisksLiquidity Services Peers Comparison
Overall Rating
- LQDT79Outperform
EBAY71Outperform
ELA65Neutral
RERE62Neutral
TDUP62Neutral
WINA57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| LQDT | 79Outperform | $1.40B | 42.09 | 15.18% | ― | 5.18% | 24.25% |
| EBAY | 71Outperform | $53.40B | 26.05 | 46.11% | 1.00% | 15.33% | -0.34% |
| ELA | 65Neutral | $290.79M | 13.02 | 31.49% | ― | 47.74% | 162.62% |
| RERE | 62Neutral | $856.08M | 17.83 | 12.22% | 2.56% | 34.75% | 138.72% |
| TDUP | 62Neutral | $273.18M | -11.65 | -37.30% | ― | 15.58% | 64.75% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| WINA | 57Neutral | $1.02B | 24.69 | -94.69% | 4.89% | 8.61% | -0.68% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LQDT | Liquidity Services | 44.62 | 21.02 | 89.07% | |
| EBAY | Ebay Inc | 121.64 | 39.91 | 48.84% | |
| WINA | Winmark | 285.69 | -114.50 | -28.61% | |
| ELA | Envela Corporation | 11.20 | 1.79 | 19.02% | |
| TDUP | Thredup, Inc. | 2.08 | -6.42 | -75.53% | |
| RERE | ATRenew Inc. Sponsored ADR | 3.90 | 0.03 | 0.78% |
Liquidity Services Corporate Events
Liquidity Services Completes Auction Holdings Acquisition Expansion
PositiveOn October 1, 2026, Liquidity Services completed the acquisition of Auction Holdings, the owner of Invaluable, AuctionZip and RFC Auction Systems, for a base purchase price of $80 million in cash funded from existing resources, on a debt-free, cash-f...
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.
Date of analysis: Oct 02, 2026