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Dec 31, 2025
Liquidity Services Q1 2026 Earnings Report
Liquidity Services reported strong first quarter fiscal year 2026 results, driven by market share expansion, multi-channel buyer participation, and operating leverage from technology-based platform momentum.
Key Takeaways
Liquidity Services delivered a strong start to fiscal 2026 with profitability ahead of expectations, fueled by robust buyer and seller participation across its marketplace platform. The Retail segment showed strong performance due to growing multi-channel buyer engagement, while GovDeals and the Capital Assets Group (CAG) benefited from continued market share expansion in heavy equipment. The company also enhanced operating leverage through AI and automation, improving efficiency and customer experience. Cash balances stood at $181.4 million with no financial debt.
Gross Merchandise Volume (GMV) increased by 3% to $398.0 million, while Revenue saw a slight decrease of 1% to $121.2 million.
GAAP Net Income rose by 29% to $7.5 million, with GAAP Diluted EPS increasing by 28% to $0.23.
Non-GAAP Adjusted EBITDA grew by 38% to $18.1 million, and Non-GAAP Adjusted EPS increased by 39% to $0.39.
Cash balances were strong at $181.4 million with zero financial debt, reflecting solid financial health.
Revenue by Segment
Forward Guidance
Liquidity Services anticipates strong performance in Q2-FY26 with double-digit growth in Non-GAAP Adjusted EBITDA, driven by a beneficial product mix, higher consignment GMV, and solid buyer demand. The company expects overall sales mix and segment direct profit margins to remain consistent with Q1-FY26, with some sequential reduction in Retail segment direct profit margins due to product mix changes in purchase transactions.
Positive Outlook
- Double-digit growth in Non-GAAP Adjusted EBITDA compared to the same quarter last year.
- Beneficial mix of product flows and slightly higher proportion of consignment GMV.
- Solid buyer demand and strong fall-through to Non-GAAP Adjusted EBITDA.
- Continued consignment expansion and broader buyer demand in the Retail segment, supporting year-over-year growth in GMV and segment direct profit.
- GovDeals segment expected to extend its growth trajectory through ongoing expansion of its seller base and marketplace services.
Challenges Ahead
- Anticipated product mix change within the Retail segment purchase transactions leading to a slight sequential reduction in Retail segment direct profit margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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