LQDT

Liquidity Services (LQDT) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this surplus equipment company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Liquidity Services, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.44 per share, which is a change of +18.9% from the year-ago reported number. The Zacks Consensus Estimate for Liquidity Services has increased 17.86% over the last 30 days, as one estimate has gone higher compared to no negative revisions. The company is expected to earn $1.61 per share for the full year, which represents a change of +25.8% from the prior-year number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Liquidity Services. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 16%. The promising estimate revisions have helped Liquidity Services earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Liquidity Services shares have added 13.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Liquidity Services, Inc. (LQDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:30 a.m. ET Vice President and Controller - Michael Patrick Chairman and Chief Executive Officer - William Angrick Executive Vice President and Chief Financial Officer - Jorge A. Celaya Operator: Welcome to the Liquidity Services Third Quarter of Fiscal Year 26 Financial Results Conference Call. My name is Shannon, and I will be your operator for today's call. Please note that this conference call is being recorded. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I will now turn the call over to Michael Patrick, Liquidity Services Vice President and Controller. Michael Patrick: Good morning. On the call today are William Angrick, our Chairman and Chief Executive Officer and Jorge A. Celaya, our Executive Vice President and Chief Financial Officer. They will be available for questions after their prepared remarks. The following discussion and responses to your questions reflect management's views as of today, 08/06/2026, and will include forward looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and in filings with the SEC, including our most recent annual report on Form 10 k. As you listen to today's call, please have our press release in front of you. Which includes our financial results as well as metrics and commentary on the quarter. During this call, management will discuss certain non GAAP financial measures. In our press release and filings with the SEC, each of which is posted on our website, you will find additional disclosures regarding these non-GAAP measures, including the reconciliations of these measures with their most comparable GAAP measures, as available. Management also uses certain supplemental operating data as a measure of certain components of operating performance. Which we also believe is useful for management and investors. This supplemental operating data includes gross merchandise volume and should not be considered a substitute for or superior to GAAP results. At this time, I will turn the presentation over to our chairman and CEO, Bill Angrick. William Angrick: Thanks, Michael. Good morning, and welcome to our earnings call. Our strong Q3 results reflect the continued successful execution of our RISE strategy, which focuses on 4 priorities. Maximizing recovery for sellers, increasing transaction volume, expanding value added services, and leveraging technology to drive operating efficiency. Together, these initiatives are producing stronger financial performance as we confidently march towards our $2 billion annual GMV target. And reinforce our leadership position in the $100 billion circular economy. Our strategy is bringing measurable results. In Q3, GAAP diluted earnings per share of $0.32 was up 39% year over year driven by GMV growth of 10% year over year to $453 million GAAP revenue growth of 8% to $130 million direct profit growth of 17% year-over-year to $3.8 million and adjusted EBITDA growth to $22 million. Our rule of 40 score improved to 51% up from 42% a year ago. While cash and short term investments increased to $231 million. These results represent a 10th consecutive quarter of year over year EBITDA growth. Our retail segment GMV reached a record $122 million increasing 19% year over year. Growth was driven by expanding consignment relationships, and improved recovery rates across major programs. Our managed direct to consumer consignment business nearly doubled from the prior year, and our international clients continued their strong growth trajectory. These programs demonstrate how our flexible service offerings help large retailers recover more value, from surplus inventory while improving speed, transparency, and sustainability. Finally, our retail-rest GMV grew sequentially by 50%, reflecting continued progress attracting demand to our proprietary D2C online auction platform. Our GovDeals segment achieved record GMV of $274 million up 9% year over year, and we set a new quarterly record for unique sellers, marking the 7th consecutive quarter of seller growth. Public sector clients continue to rely on our GovDeals to maximize proceeds from surplus assets. As demonstrated by several notable transactions during the quarter, including a $7.7 million State Department of Transportation heavy equipment sale, a $2.5 million generator auction for a federal client, and a $2.6 million Canadian Our strong record of performance has allowed us to win increasingly lucrative engagements. For example, Miami Dade County is selling their landmark 28 story, approximately 265 thousand-square-foot county courthouse in the heart of Downtown Miami on our GovDeals marketplace. GovDeals also established new records for bidder and seller engagement including the most unique bidders in a single month, and most assets available for sale on a single day our buyer acquisition and engagement initiatives continue to produce strong results. During the quarter, GovDeals buyer registrations increased 23%. New bidders increased 42%. And conversion rates improved 35% even as marketing spend declined. These gains reflect investments in AI enabled marketing, personalization, buyer education, and improved marketplace experiences. These milestones illustrate the growing network effects of our platform and our ability to connect more buyers with more inventory than ever before. Our capital assets group segment continued to demonstrate the strength and resilience of its marketplace platform during Q3, While quarterly results were impacted by the timing of several large projects, CAG delivered another quarter of year over year direct profit growth, expanded its client base, improved pricing, performance, and strengthened its pipeline entering the fourth quarter. Importantly, these large project delays during Q3 reflect timing issues rather than project losses. And if strengthened our outlook for upcoming quarters. During Q3, CAG generated $57.5 million of GMV and $9.6 million of direct profit, while GMV declined 1% year over year primarily due to project timing and lower volumes in EMEA, APAC, and selected North American industrial markets. Direct profit increased 13% year over year as a result of stronger pricing and mix. 1 of the most encouraging indicators during Q3 was our continued improvement in CAG unit economics. CAG's take rate increased 270 basis points from a year ago, reflecting higher margin consignment projects and strong execution across our heavy equipment fleet and industrial verticals. This helped offset the impact of lower transaction volume and enabled direct profit growth despite a roughly-- New CAG account activity remained healthy with 175 new accounts signed during Q3, including a growing mix of recurring and annuity style relationships. CAG secured several notable customer engagements during the quarter that reinforce our leadership position across industrial, energy, biopharma, and manufacturing sectors. Recent wins reflect our competitive advantages, including the largest buyer base, within these industrial verticals, our global execution capabilities, our differentiated sell-in-place offering for heavy equipment fleet owners, and our asset zone redeployment platform. On the buyer side, demand for CAG industrial used equipment, energy assets, and heavy equipment remained robust, particularly in North America. Where bidder participation across auction events continued at elevated levels during Q3. Our Machinio business also delivered strong momentum with 26% year-over-year and vertical serve Let me Ladies and gentlemen, please stand by. Operator: Your conference will resume momentarily. Once again, please stand by. Your conference will resume momentarily. William Angrick: Operator: Once again, please remain on your line. Your conference will resume momentarily. Once again, please remain on your line. Your conference Ladies and gentlemen, please remain on your line. Sir, you may resume your conference. William Angrick: Finally, our Machinio business also delivered strong momentum. With total system ARR increasing 26% year over year and our Machinio marine vertical growing 95% year over year. We continue to modernize our platform ecosystem through auction.io and related software initiatives. During the quarter, we improved user experiences across multiple liquidity services marketplaces and prepared new marketplace capabilities designed to support future growth. Looking ahead, liquidity services is well positioned to continue delivering profitable growth as we reach our $2 billion annual GMV target. Our expanding buyer and seller networks, strong debt free balance sheet, technology investments, and growing portfolio of services, provide multiple avenues for value creation. Most importantly, we remain focused on helping our customers maximize recovery, improve sustainability outcomes, and unlock value from their assets. On behalf of our team, thank you for your continued support and confidence. in Liquidity Services. I will now turn it over to Jorge for more details on our results and near term outlook. Jorge A. Celaya: Good morning. As Bill indicated, our consolidated results for the fiscal third quarter of 2026 included a 10% increase in GMV to $453 million setting a new quarterly record. With consolidated revenue of a $130 million, up 8%., GAAP earnings per share was up 39% to 32¢ per share. Non GAAP adjusted earnings per share was $0.45, Up 32%, and non GAAP adjusted EBITDA was $22 million up 30%. This quarter demonstrates how we have been executing on our strategy with the strength of our diversified marketplace platform and how mix and scale can be leveraged for strong fall-through to profit. Retail and GovDeals each achieved record levels of volume and profitability. In retail, our focus on buyer liquidity and channel optimization drove expanded margins, while GovDeals continued to scale by expanding marketplace adoption and services. These results underscore the strategic advantage of scale, our diversification, platform positioning, and proven service offerings that our customers count on. Which increasingly position Liquidity Services as a 1 stop platform for sellers and buyers to transact across all asset classes. We ended the fiscal third quarter of 2026 with $231 million in cash, cash equivalents and short term investments. We continue to have zero debt and we have approximately $24 million in available borrowing capacity under our credit facility. At the end of this fiscal third quarter, we had $15 million remaining from our authorization to perform additional share repurchases. Turning to our fiscal third quarter segment performance, compared to the same quarter last year. Our RSCG or Retail segment increased GMV by 19% revenue by 8%, and direct profit by 30%. Each setting a new quarterly record. Reflecting an expanded buyer base for low touch purchase flows, as well as an increased mix of consignment flows, all while maintaining operating leverage. Our GovDeals segment increased GMV 9% revenue by 7%, and direct profit by 9%, each setting new quarterly record. Performance was driven by continued expansion of our buyer and seller base and increased adoption of value-added services, with a record high number of unique clients who sold and customers who bought on the platform during the quarter. In our Capital Assets Group or CAG segment, GMV decreased 1%, while revenue increased by 18% and direct profit increased 13% driven by a favorable mix of high take rate projects across multiple regions. Machinery and software solutions combined to increase revenue 4% and direct profit by 3% with a focus on transformational initiatives and expanding service capabilities. Moving on to our fiscal fourth quarter outlook. We expect to complete our full fiscal year 2026 with continued annual growth across all key metrics. Our guidance positions us for the highest annual fiscal year adjusted EBITDA in 13 years. For the fiscal fourth quarter of 26, we expect continued strong profitability led by our retail supply chain group solid performance from GovDeals, and growth in CAG. GovDeals is expected to remain a major contributor to consolidated profitability supported by continued marketplace adoption and seller activity. In retail, expanded channel placement, current backlog, product mix, and higher demand during the fiscal fourth quarter are expected to support continued strong direct profit performance with operating leverage despite anticipating sequentially lower GMV and revenue for retail. Our capital assets group has a strong pipeline of international project-based work and continued momentum in its North American heavy equipment category. On a consolidated basis, consignment GMV for the fiscal fourth quarter is expected in the mid-80s as a percent of total GMV. Consolidated revenue as a percent of GMV is expected to be in the mid-20s. And total segment direct profit as a percent of consolidated revenue is expected to be in the mid-50% range. Resulting in the improved direct profit margins year over year from the expected changes in mix. These ratios can vary based on overall business mix including asset categories in any given period. Management's guidance for the fiscal fourth quarter of 26 is as follows. We expect GMV to range from $415 million to $455 million. We estimate non GAAP adjusted EBITDA to range from $22 million to $25 million GAAP net income is expected in the range of $10 million to $13 million with corresponding GAAP diluted earnings per share ranging from $0.30 to $0.39 per share. Non GAAP adjusted diluted earnings per share is estimated from $0.41 to $0.50 per share. Both GAAP and non GAAP earnings per share are expected to reflect a higher effective tax rate approaching the low to mid-30s for the fiscal fourth quarter Of 2026. The GAAP and non GAAP earnings per share guidance assumes that we have approximately $33 million fully diluted weighted average shares outstanding for the fiscal fourth quarter of 2026. And capital expenditures are expected to be between 2.5 to $3 million for the fiscal fourth quarter of 2026. William Angrick: Thank you, and we will now take your questions. Operator: Thank you. We will now begin the question-and-answer session. If you have a question, please press 11 at this time. If you wish to be removed from the queue, please press 11 again. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. George Frederick Sutton from Craig Hallum is on the line with a question. George Sutton: Thank you. Great results, guys. So a couple metrics I found interesting. Registered buyers up 9%. Transactions up 17%, but your auction participants were down 5%. It sort of sounds like an 80-20 rule play here, but I am just curious looking at that auction participant number particularly, how do you market differently, or how do you put more pressure on that statistic? Going forward? William Angrick: Well, we talk about capturing the full value within client engagements and accounts. So we have moved upstream to capture higher value assignments and asset categories, which on balance has moved our average GMV for lot per lot closed up. it is important to get the number of unique bidders per lot at a healthy level that has been maintained. So if we have fewer lots at higher value, that number of auction participants can tick down but GMV can still grow, and we can have a very efficient business. The mix will vary quarter to quarter, for example, when you are selling heavy equipment fleet for millions of dollars, and maybe fewer low value individual consumer items. That could actually result in mathematically auction participants going down because you have fewer lots sold in a given period, but the GMV can be higher. So we are very dialed in at the asset category level and at the unique lots sold level to make sure we have the right buyers bringing competitive liquidity to each of our seller assignments. And we have benefited, as I called out, despite limiting marketing spend, we are seeing better yield and better recovery rates. And recovery rates, that is the R in RISE. That leads the way to a more efficient business model. George Sutton: Gotcha. In your press release, you mentioned the smart use of machine learning AI, and software. To drive a lot of these improvements. I wondered if you could just point to a couple of the more tangible examples where you are seeing that impact. William Angrick: Well, it is it is pattern recognition, augmented with an algorithm. So we know who is browsing, you know, every moment On our marketplaces and who are the lookalike buyers that should be bidding on lots based on relationships of asset classes if I am looking at a forklift, I probably need to be seeing other material handling equipment if I am looking at over the road vehicles, I want to see all of the commercial heavy equipment items. Marine assets that we have been growing within Machinio system. We have been able to cross pollinate legacy LSI buyers for marine assets with new dealer customers on Machinio. And so it is a combination of more browsing on the sites, good organic traffic, and then higher conversion rates to show browsers the right equipment, and then that evolves into registration, evolves into a bidder. And then eventually that drives recovery rate and higher buyer participation and retention. And so we are pleased that fine tuning this algorithm has at least improved retention, which means we are doing a good job showing buyers something that is relevant to their interests. Most of our buyers are business oriented, so they do not want to waste time. And they want to see things that bring value to their supply chain or their operation. And that is exactly what we do. And there is also importantly a trust factor. You know, being in business as long as we have, you bring credibility, bringing blue chip clients with well maintained, well documented assets to the marketplace, George, all allow us to improve that relationship with buyers. And then you overlay this orchestration of AI-enabled automation. enabled automation. It just means that you are doing things at scale with less cost. George Sutton: Gotcha. Well, the algos are probably picking up that Logan and I have been actively watching the Miami courthouse auction. First, a comment. Make sure you are in front of the Ken Griffin folks. They came in some money recently and may want a place to hang out. But I am curious if you can give us any perspective on that auction specifically. We have seen the appraisal values, but any sense on that auction from your perspective, it could Provide a meaningful bump in Q3. William Angrick: Well, there are a couple elements there. 1, it just shows the level of trust we have earned with our clients, particularly I think 1 of the most discerning client bases, which are government agencies, government agencies entrusting us with the most valuable jewels in the crown type of assets. Like this Gothic design 1.92 thousands office building shows that we have a tremendous amount of performance and reliability. So that is point 1.2. it is also showing that we can move up into very high value assets and execute a well designed go to market strategy getting the right buyers on the platform who are-- we are talking about, you know, we are talking about, you know, 30 million plus value here So there is a wide range of activities that go on to support that. We think that is an institutional quality asset, institutional quality buyers. And certainly, we want to make sure they get you on the mailing list if that is a condo conversion for you and your team to have a second place to come, you know, when it is cold up north. But I think the thing about real estate is it is a very fragmented business. We are very well known and trusted within public sector agencies, federal state, and local. So we think the real estate vertical continues to offer growth opportunities and then we have expanded services. You know, that S in RISE, service expansion, we have expanded services in tax lien, and judicially foreclosed real estate through sheriffs. And other law enforcement channels that also augment this type of program. So we will see the results just like you. You can log in and you know, that auction in Miami will be coming to a head in a few weeks in August. And we are excited. Great. George Sutton: it is only cold 8 to 9 months. Per year in the North, just to be clear. But, good luck with the auction. Thanks, guys. William Angrick: Thank you. Operator: Thank you. We have no further questions at this time. This concludes today's conference. Thank you all for your participation. You may now disconnect. Before you buy stock in Liquidity Services, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Liquidity Services wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Liquidity Services (LQDT) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

In early August 2026, Liquidity Services, Inc. reported third-quarter results showing year-on-year growth in sales to US$81.84 million, revenue to US$129.58 million, and net income to US$10.43 million, alongside higher earnings per share from continuing operations. For the first nine months of fiscal 2026, the company kept sales broadly flat while lifting revenue and net income, and it also issued fiscal fourth-quarter guidance calling for GAAP net income of US$10.0 million to US$13.0 million and GAAP diluted EPS of US$0.30 to US$0.39. We’ll now examine how this combination of higher earnings and earnings guidance shapes Liquidity Services’ investment narrative for investors. AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Liquidity Services, you have to believe in its role as a scaled, tech-enabled marketplace for surplus and returned goods, and in management’s ability to translate that position into durable profitability. The latest Q3 numbers and raised earnings profile for 2026 add weight to that story, suggesting the current margin structure and cost control are working, at least for now. In the short term, this guidance becomes a key catalyst: it sets a higher bar that could keep attention on execution quality and any changes in client volumes or mix. At the same time, the share price has already moved sharply higher this year, while the company still carries a relatively rich earnings multiple and has seen meaningful insider selling. That combination keeps valuation risk very much in focus, even after a solid quarter. However, investors should also consider how insider selling interacts with today’s higher expectations. Liquidity Services' shares have been on the rise but are still potentially undervalued by 44%. Find out what it's worth. The single Simply Wall St Community fair value estimate of about US$74.87 points to a very large perceived upside, but it reflects just one private investor’s view. Set that against Liquidity Services’ strong recent share price gains and reliance on continued earnings delivery, and it becomes clear why many market participants may want to compare multiple valuation angles before forming a view. Explore another fair value estimate on Liquidity Services - why the stock might be worth as much as 78% more than the current price! Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Liquidity Services research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Liquidity Services research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Liquidity Services' overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: Uncover the next big thing with 20 elite penny stocks that balance risk and reward. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LQDT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Liquidity Services, Inc.? Here are five stocks we like better. Liquidity Services delivered record fiscal Q3 results: GMV rose 10% year over year to $453 million, revenue increased 8% to $129.6 million, and adjusted EBITDA grew 30% to $22 million. GAAP diluted EPS climbed 39% to $0.32. Retail and GovDeals drove volume growth, with record GMV of $121.6 million and $274 million, respectively. Buyer registrations, new bidders and conversion rates also improved at GovDeals, supported by AI-enabled marketing and marketplace enhancements. Management issued a solid Q4 outlook of $450 million-$455 million in GMV and $22 million-$25 million in adjusted EBITDA. The company expects fiscal 2026 to deliver annual growth across key metrics and its highest full-year adjusted EBITDA in 13 years. Liquidity Services (NASDAQ:LQDT) reported record gross merchandise volume and continued profit growth in its fiscal third quarter of 2026, as the company cited momentum in its retail and government marketplaces, improved transaction economics and technology-driven buyer engagement. GAAP diluted earnings per share increased 39% from a year earlier to $0.32, while gross merchandise volume, or GMV, rose 10% to a quarterly record of $453 million. Revenue grew 8% to $129.6 million, and adjusted EBITDA increased 30% to $22 million. Non-GAAP adjusted diluted earnings per share rose 32% to $0.45. → 3 Drone Stocks That Should Soar After the Summer Slump Chairman and Chief Executive Officer Bill Angrick said the results reflected continued execution of the company’s RISE strategy, which focuses on maximizing seller recovery, increasing transaction volume, expanding services and using technology to improve operating efficiency. The company recorded its 10th consecutive quarter of year-over-year adjusted EBITDA growth, he said. Liquidity Services ended the quarter with $231.1 million in cash equivalents and short-term investments, no debt and approximately $24 million in available borrowing capacity under its credit facility, according to Executive Vice President and Chief Financial Officer Jorge Celaya. The company also had $50 million remaining under its share repurchase authorization. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company’s Retail Supply Chain Group, or RSCG, produced record quarterly GMV of $121.6 million, up 19% from the prior-year period. Revenue rose 8% and direct profit increased 30%, also reaching quarterly records, Celaya said. Angrick attributed the retail segment’s growth to expanding consignment relationships, stronger recovery rates and increased buyer participation in lower-touch purchase flows. The company’s managed direct-to-consumer consignment business nearly doubled from the prior year, while international client activity remained strong. Retail Rush GMV increased 50% sequentially as the company continued to build demand for its direct-to-consumer online auction platform. → Jersey Mike's Serves Fresh Gains After IPO Stumble GovDeals generated record GMV of $274 million, up 9% year over year. Revenue and direct profit each increased 7% and 9%, respectively, according to Celaya. The segment also recorded its seventh straight quarter of seller growth and a quarterly record for unique sellers. Angrick highlighted several government-related transactions completed during the quarter, including a $7.7 million state department of transportation heavy-equipment sale, a $2.5 million generator auction for a federal customer and a $2.6 million Canadian auction. GovDeals is also managing the sale of Miami-Dade County’s approximately 265,000-square-foot, 28-story county courthouse in downtown Miami. Angrick described the property as an institutional-quality asset with a value of more than $30 million, and said the auction was expected to conclude later in August. Buyer registrations in GovDeals increased 23% during the quarter, new bidders rose 42%, and conversion rates improved 35%, even as marketing spending declined, Angrick said. He credited AI-enabled marketing, personalization, buyer education and marketplace improvements for the gains. The Capital Assets Group, or CAG, reported GMV of $57.5 million, down 1% from a year earlier, as the timing of large projects and lower activity in EMEA, APAC and selected North American industrial markets affected volume. However, revenue increased 18% and direct profit rose 13% because of favorable pricing and a higher-margin project mix. CAG’s take rate increased 270 basis points from the prior-year quarter, supported by higher-margin consignment projects and execution in heavy equipment, fleet and industrial categories. The segment added 175 accounts during the quarter, including a growing mix of recurring and annuity-style client relationships. Angrick said delayed large projects were timing-related rather than lost business and had strengthened the outlook for upcoming quarters. Demand for used industrial equipment, energy assets and heavy equipment remained robust in North America, he added. Machinio system annual recurring revenue increased 26% year over year, while the Machinio marine vertical grew 95%. Liquidity Services said it continued to modernize its marketplace ecosystem through Auction.io and related software initiatives. For the fiscal fourth quarter, Liquidity Services expects GMV of $450 million to $455 million and adjusted EBITDA of $22 million to $25 million. GAAP net income is projected at $10 million to $13 million, or $0.30 to $0.39 per diluted share. Non-GAAP adjusted diluted earnings per share is expected to range from $0.41 to $0.50. The company expects its effective tax rate to approach the low-to-mid-30% range in the fourth quarter and forecasts capital expenditures of $2.5 million to $3 million. Celaya said the outlook assumes continued profitability from retail, solid performance at GovDeals and growth at CAG. Retail GMV and revenue are expected to decline sequentially, but the company expects backlog, product mix, channel expansion and seasonal demand to support direct-profit performance and operating leverage. Management said it expects to finish fiscal 2026 with annual growth across key metrics and anticipates its highest full-year adjusted EBITDA in 13 years. Liquidity Services, Inc is a technology-driven provider of online marketplaces for surplus and remarketed assets. Through its wholly owned platforms—such as Liquidation.com, GovDeals, Machinio and GoIndustry DoveBid—the company connects sellers of industrial equipment, commercial inventory, government surplus and transportation assets with a broad base of registered buyers. Its solutions blend auction formats, fixed-price listings and managed-service offerings to support efficient asset disposition across a wide range of industries. The company's core services include asset valuation, marketing, inspection and logistics coordination. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Liquidity Services Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. GMV: Record $453 million, up 10% year over year. Revenue: $129.6 million, up 8% year over year. GAAP Diluted EPS: $0.32, up 39% year over year. Non-GAAP Adjusted EPS: $0.45, up 32% year over year. Non-GAAP Adjusted EBITDA: $22 million, up 30% year over year. Cash and Short-Term Investments: $231.1 million, with zero debt. Retail Segment GMV: Record $121.6 million, up 19% year over year. GovDeals Segment GMV: Record $274 million, up 9% year over year. Capital Assets Group (CAG) GMV: $57.5 million, down 1% year over year. CAG Direct Profit: $9.6 million, up 13% year over year. Machinery Software ARR: Increased 26% year over year. Warning! GuruFocus has detected 7 Warning Sign with LQDT. Is LQDT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q3 GMV of $453 million, up 10% year-over-year, with GAAP EPS up 39% to $0.32 and adjusted EBITDA up 30% to $22 million. Retail segment achieved record GMV of $121.6 million, up 19% year-over-year, driven by expanding consignment relationships and improved recovery rates. GovDeals segment set a new GMV record of $274 million, up 9% year-over-year, with a seventh consecutive quarter of seller growth and strong buyer engagement metrics. CAG segment improved take rate by 270 basis points year-over-year, leading to a 13% increase in direct profit despite a slight GMV decline. Machinio business showed strong momentum with total system ARR up 26% year-over-year and marine vertical growing 95%. Company achieved a Rule of 40 score of 51%, up from 42% a year ago, and maintains a debt-free balance sheet with $231 million in cash. AI-enabled marketing and personalization initiatives drove a 42% increase in new bidders and a 35% improvement in conversion rates while reducing marketing spend. CAG segment GMV declined 1% year-over-year due to timing of large projects and lower volumes in certain industrial markets. Auction participants decreased 5% year-over-year, which management attributes to a shift toward higher-value, lower-volume lots. Retail segment expects sequentially lower GMV and revenue in Q4, despite continued strong direct profit performance. Consolidated revenue growth of 8% lagged GMV growth of 10%, reflecting a higher mix of consignment flows. Q4 guidance implies a higher effective tax rate in the low-to-mid 30s, which could pressure net income growth. Capital expenditures are expected to increase to $2.5-$3 million in Q4, potentially impacting free cash flow. Q: Can you explain the divergence between strong growth in registered buyers and transactions versus a decline in auction participants, and how you plan to address this metric?A: CEO William Angrick explained that the company has moved upstream to capture higher-value assignments and asset categories, which has increased average GMV per lot closed. While this can mathematically reduce the number of auction participants due to fewer, higher-value lots, the company maintains healthy bidder participation per lot. He emphasized that the mix varies quarter to quarter and that the company is focused on ensuring the right buyers bring competitive liquidity to each seller assignment, which has improved recovery rates and overall business efficiency. Q: Can you provide specific examples of how machine learning, AI, and software are driving tangible improvements in the business?A: CEO William Angrick detailed that the company uses pattern recognition and algorithms to identify lookalike buyers based on browsing behavior and asset class relationships. This personalization improves conversion rates, increases buyer retention, and drives higher recovery rates. He cited examples like cross-pollinating legacy buyers for marine assets with new dealer customers on Machinio, and noted that AI-enabled automation allows the company to operate at scale with lower costs while improving the buyer experience through relevant asset recommendations. Q: Can you give us perspective on the Miami-Dade County courthouse auction, including its potential impact on Q3 results?A: CEO William Angrick highlighted that the auction of the 28-story, 265,000 square foot courthouse demonstrates the trust government agencies place in the company for high-value, "crown jewel" assets. He noted the asset is valued at over $30 million and represents an institutional-quality opportunity. The company is executing a well-designed go-to-market strategy to attract the right buyers, and he emphasized that real estate remains a fragmented but growing vertical for the company, with expanded services in tax lien and judicial foreclosed properties augmenting the program. Q: What drove the record performance in the retail segment, and how sustainable is this growth?A: CEO William Angrick attributed the retail segment's record GMV of $121.6 million, up 19% year-over-year, to expanding consignment relationships and improved recovery rates across major programs. The managed direct-to-consumer consignment business nearly doubled from the prior year, and international clients continued strong growth. He noted that flexible service offerings help large retailers recover more value from surplus inventory while improving speed, transparency, and sustainability, positioning the segment for continued success. Q: How is the GovDeals segment performing, and what are the key drivers of its record results?A: CEO William Angrick reported that GovDeals achieved record GMV of $274 million, up 9% year-over-year, with a new quarterly record for unique sellers, marking the seventh consecutive quarter of seller growth. Buyer registrations increased 23%, new bidders increased 42%, and conversion rates improved 35% even as marketing spend declined. These gains reflect investments in AI-enabled marketing, personalization, and improved marketplace experiences, demonstrating the growing network effects of the platform. Q: Can you elaborate on the CAG segment's performance, particularly the impact of project timing and the improvement in unit economics?A: CFO Jorge Celaya noted that CAG's GMV declined 1% year-over-year due to project timing and lower volumes in certain markets, but direct profit increased 13% due to stronger pricing and mix. CEO William Angrick added that the take rate increased 270 basis points year-over-year, reflecting higher-margin consignment projects and strong execution. The company signed 175 new accounts during the quarter, including a growing mix of recurring and annuity-style relationships, and the pipeline entering Q4 is strong. Q: What is the company's outlook for the fiscal fourth quarter of 2026, and what are the key assumptions?A: CFO Jorge Celaya provided guidance for Q4 2026, expecting GMV to range from $450 million to $455 million, non-GAAP adjusted EBITDA between $22 million and $25 million, and GAAP diluted EPS between $0.30 and $0.39. Non-GAAP adjusted diluted EPS is estimated between $0.41 and $0.50. He noted that retail is expected to see sequentially lower GMV and revenue but continued strong direct profit performance, while GovDeals remains a major contributor and CAG has a strong pipeline of international project-based work. Q: How is the company progressing toward its $2 billion annual GMV target, and what are the key strategic priorities?A: CEO William Angrick reiterated the company's RISE strategy, focusing on maximizing recovery for sellers, increasing transaction volume, expanding value-added services, and leveraging technology for operating efficiency. He noted that Q3 results represent the 10th consecutive quarter of year-over-year EBITDA growth, with a rule of 40 score improving to 51% from 42% a year ago. The company's strong balance sheet, with $231 million in cash and zero debt, positions it well to continue executing on its growth strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the RISE strategy, focusing on recovery maximization, volume growth, value-added services, and technology-led efficiency. The Retail segment achieved record GMV through expanded consignment relationships and nearly doubling the managed direct-to-consumer business. GovDeals reached record GMV and unique seller counts, benefiting from public sector reliance on the platform for high-value surplus assets like heavy equipment and real estate. Capital Assets Group (CAG) saw direct profit growth despite a slight GMV decline, attributed to a favorable mix of high-margin consignment projects and improved pricing. Management highlighted the 'Rule of 40' score improvement to 51%, reflecting a balance of strong growth and profitability across the diversified marketplace. Network effects are accelerating as buyer registrations and bidder conversion rates improved significantly even while marketing spend was reduced. The Machinio business showed strong momentum with a 26% increase in ARR, particularly driven by a 95% growth in the marine vertical. The company is confidently progressing toward a $2 billion annual GMV target, supported by a debt-free balance sheet and technology investments. Q4 guidance anticipates the highest annual adjusted EBITDA in 13 years, led by continued strength in the Retail and GovDeals segments. CAG is expected to grow in the upcoming quarter due to a strong pipeline of international project-based work and North American heavy equipment momentum. Management expects Q4 consignment GMV to be in the mid-80s as a percentage of total GMV, with revenue as a percent of GMV in the mid-20s. Strategic focus remains on expanding the real estate vertical, utilizing the platform's trust with government agencies to handle high-value institutional assets. CAG results were impacted by the timing of several large projects, which management clarified were delays rather than project losses. The company maintains a strong liquidity position with $231 million in cash and zero debt, providing flexibility for share repurchases or strategic investments. A higher effective tax rate approaching the low to mid-30s is expected to impact both GAAP and non-GAAP earnings per share in the fourth quarter. The landmark Miami-Dade County courthouse auction serves as a high-profile proof point for the platform's ability to handle complex, high-value real estate transactions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that moving upstream to higher-value assets results in fewer lots but higher GMV per lot, which can mathematically lower participant counts while increasing efficiency. The focus is on maintaining a healthy number of unique bidders per lot rather than total participant volume. AI is used for pattern recognition and lookalike modeling to show browsers relevant equipment, which has improved buyer retention and conversion rates. Automation allows the company to scale operations and cross-pollinate buyers across different verticals, such as Machinio and legacy marketplaces, with lower costs. The auction demonstrates the high level of trust government agencies place in the platform for 'jewels in the crown' type assets. It signals a strategic move into institutional-quality real estate, a fragmented market where the company sees significant growth opportunities through expanded services.

Share Expansion, Platform Efficiencies and Strong Buyer Participation Drive Profitable Growth BETHESDA, Md., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Liquidity Services (NASDAQ:LQDT; www.liquidityservices.com), the leading global provider of e-commerce marketplaces and software solutions powering the circular economy, today announced its financial results for its fiscal quarter ended June 30, 2026, as compared to the corresponding prior year quarter: Gross Merchandise Volume (GMV) of $453.0 million, up 10%, and Revenue of $129.6 million, up 8% GAAP Net Income of $10.4 million, up 41%, and GAAP Diluted Earnings Per Share (EPS) of $0.32, up 39% Non-GAAP Adjusted EBITDA of $22.0 million, up 30%, and Non-GAAP Adjusted Diluted EPS of $0.45, up 32% Cash balances of $231.1 million1 with zero financial debt “Our third quarter results demonstrate the resounding success of our RISE strategy to drive value for buyers and sellers across the entire Circular Economy as we march closer to our $2 Billion annual GMV target. We are unlocking new efficiencies for our customers and internal operations through the smart use of machine learning, artificial intelligence and software which has translated to higher recovery, sales volume and market share. During Q3, our marketplaces drove continued growth in seller adoption and buyer liquidity resulting in a 17% increase in the number of completed transactions, expanded margins and strong free cash flow. Our expanding multi-channel buyer base across the retail, industrial and public sector verticals supports stronger recovery and scalable, asset light growth. Our strong performance reflects the payoff from our ongoing investment in innovation, service and scale and we are well positioned for continued growth in all economic climates,” said Bill Angrick, CEO of Liquidity Services. Third Quarter Financial Highlights GMV for the fiscal third quarter of 2026 was $453.0 million, setting a new quarterly record and a 10% increase from $413.0 million in the third fiscal quarter of 2025. GMV in our RSCG segment increased 19% and set a new quarterly record, led by growth in consignment programs that leveraged asset-light, sell-in-place marketplace solutions and direct-to-consumer channels, while purchase programs increased modestly. GMV in our GovDeals segment increased 9%, and set a new quarterly record, reflecting continued marketplace adoption, seller acquisition and service expansion. GMV in our CAG segment decreased 1%, reflecting variability in project timing and regional activity levels. Consignment sales represented 83% of consolidated GMV for the third fiscal quarter of 2026. Revenue for the third quarter of 2026 was $129.6 million, an 8% increase from $119.9 million in the third fiscal quarter of 2025. Revenue in our RSCG segment increased 8% and set a new quarterly record, reflecting higher volumes and a favorable product mix. GMV growth outpaced revenue growth from the higher consignment mix, while channel optimization and improved recovery from an expanded buyer base also contributed to a 30% increase in segment direct profit, setting a new quarterly record. Revenue in our GovDeals segment increased 7%, and segment direct profit increased 9%, each setting a new quarterly record. Revenue in our CAG segment increased 18% and segment direct profit increased 13%, due to improved take-rates on multinational projects. Revenue in our Machinio & Software Solutions segments increased 4% and segment direct profit increased 3%, reflecting modest subscription growth and pricing, while Machinio continues to expand its System offering in the marine dealer category and our Software Solutions business invests in expanding its Auction.io platform software-as-a-services business. Our marketplace platform business continued to demonstrate its scalability during the quarter, as growth in asset-light solutions, improved transaction margins, and disciplined execution drove strong operating leverage across the business. GAAP Net Income of $10.4 million, or $0.32 per share, for the fiscal third quarter of 2026, an increase from $7.4 million, or $0.23 per share, for the same quarter last year. The percentage increase in GAAP Net Income exceeded Non-GAAP Adjusted Net Income as the fiscal third quarter of 2025 was impacted by business realignment expenses that did not recur. Non-GAAP Adjusted Net Income for the fiscal third quarter of 2026 was $14.6 million, or $0.45 per share, an increase from $11.1 million, or $0.34 per share, for the same quarter last year. Non-GAAP Adjusted EBITDA for the fiscal third quarter of 2026 was $22.0 million, a $5.0 million increase from $17.0 million in the same quarter last year, reflecting improved transaction margins, favorable business mix, and operating leverage generated through our marketplace platform. 1 Includes $219.8 million of Cash and cash equivalents and $11.3 million of Short-term investments. Third Quarter Segment Financial Results We present operating results for our three reportable segments: GovDeals, RSCG, and CAG. Our separate Machinio and Software Solutions operating segments, which do not individually meet the quantitative thresholds to be reportable segments, are combined and presented together as Machinio & Software Solutions for segment reporting purposes. For further information on our reportable segments, see Note 14, Segment Information, to our quarterly report on Form 10-Q for the period ended June 30, 2026. Segment direct profit is calculated as total revenue less cost of goods sold (excluding depreciation and amortization). Our segment results are as follows (unaudited, dollars in thousands): Third Quarter Operational Metrics Registered Buyers — At the end of Q3-FY26, registered buyers, defined as the aggregate number of persons or entities who have registered on one of our marketplaces, totaled approximately 6.4 million, representing a 9% increase over the approximately 5.9 million registered buyers at the end of Q3-FY25. Auction Participants — Auction participants, defined as registered buyers who have bid in an auction during the period (a registered buyer who bids in more than one auction is counted as an auction participant in each auction in which he or she bids), was approximately 1,046,000 in Q3-FY26, a 5% decrease from approximately 1,098,000 auction participants in Q3-FY25. Completed Transactions — Completed transactions, defined as the number of auctions in a given period, were approximately 334,000 in Q3-FY26, a 17% increase from the approximately 286,000 completed transactions in Q3-FY25. Fourth Quarter Business Outlook For the fiscal fourth quarter of 2026 we expect continued strong profitability, led by our Retail Supply Chain Group (RSCG) and GovDeals. GovDeals is expected to remain a major contributor to consolidated profitability, supported by continued marketplace adoption and seller activity. In Retail, expanded channel placement, current backlog, product mix and higher demand during the fiscal fourth quarter are expected to support continuing strong direct profit performance, with operating leverage, despite anticipating sequentially lower GMV and revenue. Our Capital Assets Group (CAG) has a strong pipeline of international project-based work and continued momentum in its North American heavy equipment category that are expected to result in a strong sequential performance subject to the typical variability in project timing and regional mix, while Machinio and Software Solutions are expected to continue to contribute growth through subscription and software-enabled services. On a consolidated basis, consignment GMV for the fiscal fourth quarter is expected in the mid-eighties as a percentage of total GMV. Consolidated revenue as a percentage of GMV is expected to be in the mid-twenties, and total segment direct profit as a percentage of consolidated revenue is expected to be in the mid-fifty percent range as a result of the expected changes in mix resulting in improved direct profit margin. These ratios can vary based on our overall business mix, including asset categories, in any given period. Our Q4-FY26 guidance is as follows: Our Business Outlook includes forward-looking statements which reflect the following trends and assumptions for Q4-FY26 as compared to the prior year's period, as well as the other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, and our subsequent quarterly reports on Form 10-Q: Potential Impacts to GMV, Revenue, Segment Direct Profits, and ratios calculated using these metrics fluctuations in the mix of purchase and consignment transactions. Generally, when the mix of purchase transactions increases, or when the commercial terms or pricing associated with such transactions change, revenue as a percent of GMV increases, while segment direct profit as a percentage of revenue decreases. When the mix of consignment transactions increases, or when associated economics change, revenue as a percent of GMV decreases, while segment direct profit as a percentage of revenue increases; variability in the inventory product mix handled by our RSCG segment, including changes in asset availability, sourcing, and market pricing, which can cause a change in revenues and/or segment direct profit as a percentage of revenue; real estate transactions in our GovDeals segment can be subject to significant variability due to changes that include postponements or cancellations of scheduled or expected auction events and the value of properties to be included in the auction event; continued variability in project size and timing within our CAG segment, including variability driven by changes in economic and/or geopolitical conditions, which can impact revenues and segment direct profit; continued growth and expansion resulting from the continuing acceleration of broader market adoption of the digital economy, particularly in our GovDeals and RSCG seller accounts and programs, including the execution by RSCG on its business plans for expanded direct-to-consumer sales; changes in economic, political, or international trading conditions could cause variability in our operating results by impacting the priorities or financial stability of our sellers, current or prospective buyers or their end-customers; Potential Impacts to Operating Expenses continued R&D spending to support delivering software solutions and enhancing our omni-channel behavioral marketing, analytics, and buyer/seller payment optimization; spending in business development activities to capture market opportunities, targeting efficient payback periods; variability in the volumes and service locations of products handled by our RSCG segment, which can cause the capacity and related operating expense requirements for inventory logistics and storage to fluctuate; Potential Impacts to GAAP Net Income and Diluted EPS and Non-GAAP Adjusted Net Income and Adjusted Diluted EPS year-over-year, we expect that cash paid for income taxes will increase in FY26 as our US federal net operating loss carryforward became fully utilized during FY25. Our FY26 annual effective tax rate (ETR) is expected to range from approximately 30% to 34%, with the rate for the fiscal fourth quarter of 2026 in the low-to-mid thirties. This range excludes any potential impacts from any legislative changes, and excludes potential impacts that have limited visibility and can be highly variable, such as the discrete effects of stock compensation due to participant stock option exercise activity or changes in our stock price. our diluted weighted average number of shares outstanding is expected to be approximately 33.0 million. As of June 30, 2026, we had $15.0 million in remaining authorization to repurchase shares of our common stock. Reconciliation of GAAP to Non-GAAP Measures Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA. Non-GAAP EBITDA is a supplemental non-GAAP financial measure and is equal to Net Income plus interest and other income, net; provision for income taxes; and depreciation and amortization. Our definition of Non-GAAP Adjusted EBITDA differs from Non-GAAP EBITDA because we further adjust Non-GAAP EBITDA for stock compensation expense, acquisition costs such as transaction expenses, business realignment expenses, litigation settlement expenses that are not expected to recur, and goodwill, long-lived and other non-current asset impairment. A reconciliation of Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA is as follows (dollars in thousands): 1 Interest and other income, net, per the Condensed Consolidated Statements of Operations, excludes the non-service components of net periodic pension cost (benefit).2 Acquisition-related costs are included in Other operating expenses, net on the Condensed Consolidated Statements of Operations. 3 Business realignment expense, included as a component of Other operating expenses, net, on the Condensed Consolidated Statement of Operations, includes the amounts accounted for as exit costs under ASC 420, Exit or Disposal Cost Obligations, and the related impacts of business realignment actions subject to other accounting guidance. Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Basic and Diluted Earnings Per Share. Non-GAAP Adjusted Net Income is a supplemental non-GAAP financial measure and is equal to Net Income plus stock compensation expense, amortization of intangible assets, acquisition related costs such as transaction expenses and changes in earn-out estimates, business realignment expenses, litigation settlement expenses that are not expected to reoccur, goodwill, long-lived and other non-current asset impairments, and the estimated impact of income taxes on these non-GAAP adjustments as well as non-recurring tax adjustments. Non-GAAP Adjusted Basic and Diluted Earnings Per Share are determined using Non-GAAP Adjusted Net Income. For Q3-FY26 and Q3-FY25, the tax rates used to estimate the impact of income taxes on the non-GAAP adjustments was 30.7% and 25.4%, respectively, based upon the GAAP effective tax rates for each year-to-date period. A reconciliation of Net Income to Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Basic and Diluted Earnings Per Share is as follows (dollars in thousands, except per share data): 1 Acquisition-related costs are included in Other operating expenses, net on the Condensed Consolidated Statement of Operations. 2 Business realignment expense, included as a component of Other operating expenses, net, on the Condensed Consolidated Statement of Operations, includes the amounts accounted for as exit costs under ASC 420, Exit or Disposal Cost Obligations, and the related impacts of business realignment actions subject to other accounting guidance. Conference Call Details The Company will host a conference call to discuss these results at 10:30 a.m. Eastern Time today. Investors and other interested parties may access the teleconference by registering here to receive the dial-in number and unique conference pin. A live listen-only webcast of the conference call will be provided on the Company's investor relations website at https://investors.liquidityservices.com. An archive of the webcast will be available on the Company's website until August 6, 2027. The replay will be available starting at 1:30 p.m. Eastern Time on the day of the call. Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP measures of certain components of financial performance. These non-GAAP measures include earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) per Share. These non-GAAP measures are provided to enhance investors’ overall understanding of our current financial performance and prospects for the future. We use EBITDA and Adjusted EBITDA: (a) as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis as they do not reflect the impact of items not directly resulting from our core operations; (b) for planning purposes, including the preparation of our internal annual operating budget; (c) to allocate resources to enhance the financial performance of our business; (d) to evaluate the effectiveness of our operational strategies; and (e) to evaluate our capacity to fund capital expenditures and expand our business. Adjusted Diluted Earnings (Loss) per Share is the result of our Adjusted Net Income (Loss) and diluted shares outstanding. We prepare Non-GAAP Adjusted EBITDA by eliminating from Non-GAAP EBITDA the impact of items that we do not consider indicative of our core operating performance. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. As an analytical tool, Non-GAAP Adjusted EBITDA is subject to all of the limitations applicable to Non-GAAP EBITDA. Our presentation of Non-GAAP Adjusted EBITDA should not be construed as an implication that our future results will be unaffected by unusual or non-recurring items. We believe these non-GAAP measures provide useful information to both management and investors by excluding certain expenses that may not be indicative of our core operating measures. In addition, because we have historically reported certain non-GAAP measures to investors, we believe the inclusion of non-GAAP measures provides consistency in our financial reporting. These measures should be considered in addition to financial information prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A reconciliation of all historical non-GAAP measures included in this press release, to the most directly comparable GAAP measures, may be found in the financial tables included in this press release. We do not quantitatively reconcile our guidance ranges for our non-GAAP measures to their most comparable GAAP measures in the Business Outlook section of this press release. The guidance ranges for our GAAP and non-GAAP financial measures reflect our assessment of potential sources of variability in our financial results and are informed by our evaluation of multiple scenarios, many of which have interactive effects across several financial statement line items. Providing guidance for individual reconciling items between our non-GAAP financial measures and the comparable GAAP measures would imply a degree of precision and certainty in those reconciling items that is not a consistent reflection of our scenario-based process to prepare our guidance ranges. To the extent that a material change affecting the individual reconciling items between the Company’s forward-looking non-GAAP and comparable GAAP financial measures is anticipated, the Company has provided qualitative commentary in the Business Outlook section of this press release for your consideration. However, as the impact of such factors cannot be predicted with a reasonable degree of certainty or precision, a quantitative reconciliation is not available without unreasonable effort. Supplemental Operating Data To supplement our consolidated financial statements presented in accordance with GAAP, we use certain supplemental operating data as a measure of certain components of operating performance. GMV is the total sales value of all transactions for which we earned compensation upon their completion through our marketplaces or other channels during a given period of time. We review GMV because it provides a measure of the volume of goods being sold in our marketplaces and thus the activity of those marketplaces. GMV and our other supplemental operating data, including registered buyers, auction participants and completed transactions, also provide a means to evaluate the effectiveness of investments that we have made and continue to make in the areas of seller and buyer support, value-added services, product development, sales and marketing and operations. Therefore, we believe this supplemental operating data provides useful information to both management and investors. In addition, because we have historically reported certain supplemental operating data to investors, we believe the inclusion of this supplemental operating data provides consistency in our financial reporting. This data should be considered in addition to financial information prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Forward-Looking Statements This document contains forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements include, but are not limited to, statements regarding the Company’s business outlook; expected future results; expected future effective tax rates; and trends and assumptions about future periods. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continues” or the negative of these terms or other comparable terminology. Our business is subject to a number of risks and uncertainties, and our past performance is no guarantee of our performance in future periods. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. There are several risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements in this document. Important factors that could cause our actual results to differ materially from those expressed as forward-looking statements are set forth in our filings with the SEC from time to time, and include, among others: our ability to source sufficient assets from sellers to attract and retain active professional buyers; our need to successfully react to the increasing importance of mobile commerce and the increasing environmental and social impact aspects of e-commerce in an increasingly competitive environment for our business, including not only risks of disintermediation of our e-commerce services by our competitors but also by our buyers and sellers; the performance of our continuing initiatives; disruptions in our vendor contracts with Amazon.com, Inc., under which we acquire a significant portion of our purchased inventory; our ability to timely upgrade and develop our information technology systems, infrastructure and digital marketing and customer service capabilities at reasonable cost and scale while complying with applicable data privacy and security laws and maintaining site stability and performance to allow our operations to grow in both size and scope; our ability to attract, retain and develop the skilled employees that we need to support our business; competitive pressures from different industries affecting our ability to attract and retain buyers and sellers; retail clients investing in their warehouse operations capacity to handle higher volumes of online returns, resulting in retailers sending the Company a reduced volume of returns merchandise or sending us a product mix lower in value due to the removal of high value returns; system interruptions, a lack of control over third parties software, and dependence on third parties for marketing technology, that could affect our websites or our transaction systems and impair the services we provide to our sellers and buyers; our ability to maintain the privacy and security of personal and business information amidst multiplying threat landscapes and in compliance with privacy and data protection regulations globally; the operations of customers, project size and timing of auctions, operating costs, seasonality of our business and general economic conditions; the numerous factors that influence the supply of and demand for used merchandise, equipment and surplus assets, and cause volatility in our stock price; our ability to integrate acquired companies, and execute on anticipated business plans such as the efforts underway with local and state governments to advance legislation that allows for online auctions for foreclosed and tax foreclosed real estate; costs of developing and maintaining our international operations; political, business, economic and other conditions in local, regional and global sectors; the continuing impacts of geopolitical events, including armed conflicts in Ukraine, the conflict between the United States, Israel, and Iran and related geopolitical instability; and impacts from escalating interest rates and inflation on our operations; the supply of, demand for or market values of surplus assets, such as shortages in supply of used vehicles; the numerous government regulations of e-commerce and other services, competition, and restrictive governmental actions, including any failure or perceived failure by us, or third parties with which we do business, to comply with applicable data privacy and security laws, and regulations that are applicable to our auction business; and other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, and our subsequent quarterly reports, all of which is available on the SEC and Company websites. There may be other factors of which we are currently unaware or which we deem immaterial that may cause our actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date of this document and are expressly qualified in their entirety by the cautionary statements included in this document. Except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances occurring after the date of this document or to reflect the occurrence of unanticipated events. About Liquidity Services Liquidity Services (NASDAQ:LQDT) is the leading global provider of e-commerce marketplaces and software solutions powering the circular economy with over $15 billion in completed transactions to more than six million qualified buyers and 15,000 corporate and government sellers worldwide. The company supports its clients' sustainability efforts by helping them extend the life of assets, prevent unnecessary waste and carbon emissions, and reduce the number of products headed to landfills. Contact:Investor [email protected]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Liquidity Services (LQDT), which belongs to the Zacks Auction and Valuation Services industry, could be a great candidate to consider. This surplus equipment company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 21.24%. For the last reported quarter, Liquidity Services came out with earnings of $0.35 per share versus the Zacks Consensus Estimate of $0.3 per share, representing a surprise of 16.67%. For the previous quarter, the company was expected to post earnings of $0.31 per share and it actually produced earnings of $0.39 per share, delivering a surprise of 25.81%. Thanks in part to this history, there has been a favorable change in earnings estimates for Liquidity Services lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Liquidity Services has an Earnings ESP of +1.45% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 6, 2026. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Liquidity Services, Inc. (LQDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research