Liquidity Services Q1 2025 Earnings Report
Key Takeaways
Liquidity Services reported a strong start to FY2025, with a 26% increase in GMV to $386.1 million and a 72% increase in revenue to $122.3 million. GAAP Net Income increased by 205% to $5.8 million, and GAAP Diluted EPS rose by 200% to $0.18. The company's performance was driven by the continuing adoption of its services and momentum across its businesses.
Record Gross Merchandise Volume (GMV) of $386.1 million, up 26%, and Revenue of $122.3 million, up 72%.
GAAP Net Income of $5.8 million, up 205%, and GAAP Diluted Earnings Per Share (EPS) of $0.18, up 200%.
Non-GAAP Adjusted EBITDA of $13.1 million, up 81%, and Non-GAAP Adjusted EPS of $0.28, up 100%.
Cash balances of $139.1 million with zero financial debt.
Liquidity Services
Liquidity Services
Liquidity Services Revenue by Segment
Forward Guidance
Q2-FY25 guidance anticipates continuing the solid start to the fiscal year, with the mid-point of guidance reflecting year-over-year growth in each of our key financial metrics and across our segments.
Positive Outlook
- Expanded purchase programs in our RSCG segment are expected to increase its GMV and revenue, with revenue growing at a higher rate than GMV.
- Higher overall mix of lower-touch product flows improving RSCG's overall results.
- CAG project pipeline continues to be strong, especially in the heavy equipment and energy categories.
- GovDeals and Machinio segments are expected to continue their steady expansion of their client bases and service offerings to grow their revenues year-over-year.
- Consignment GMV is expected to continue to be approximately eighty percent of total GMV.
Challenges Ahead
- CAG prior year comparable period reflected the completion of several international sales events that had been previously delayed last year.
- Consolidated revenues as a percentage of GMV is expected to be in the low thirty percent range.
- The total of our segment direct profits as a percentage of consolidated revenues is expected to be in the low forty percent range.
- These ratios can vary based on our overall business mix, including asset categories in any given period.
- The acquisition of Auction Software is not expected to have a significant impact on our results for the second fiscal quarter of 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income