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Liquidity Services Q2 2025 Earnings Report
Liquidity Services reported strong financial results for the second quarter of fiscal year 2025, driven by increased Gross Merchandise Volume and revenue across its segments.
Key Takeaways
Liquidity Services announced a significant increase in Gross Merchandise Volume (GMV) by 15% to $367.4 million and revenue by 27% to $116.4 million for Q2 FY25, compared to the prior year. GAAP Net Income rose 24% to $7.1 million, with diluted EPS at $0.22, while Non-GAAP Adjusted EBITDA increased 1% to $12.2 million and Non-GAAP Adjusted EPS grew 15% to $0.31. The company maintained strong cash balances of $149.0 million with no financial debt.
Gross Merchandise Volume (GMV) increased by 15% to $367.4 million, reflecting strong growth across segments.
Total revenue grew by 27% to $116.4 million, with significant contributions from RSCG and Machinio & Software Solutions.
GAAP Net Income increased by 24% to $7.1 million, and GAAP Diluted EPS rose by 22% to $0.22.
Non-GAAP Adjusted EBITDA increased by 1% to $12.2 million, and Non-GAAP Adjusted EPS grew by 15% to $0.31.
Liquidity Services
Liquidity Services
Liquidity Services Revenue by Segment
Revenue by Segment
GovDeals Revenue
CapyFin.comRSCG Revenue
CapyFin.comCAG Revenue
CapyFin.com Forward Guidance
For Q3-FY25, Liquidity Services anticipates solid year-over-year growth, with GMV projected between $395 million and $430 million, GAAP Net Income between $6.0 million and $9.0 million, and Non-GAAP Adjusted EBITDA between $14.5 million and $17.5 million.
Positive Outlook
- Anticipated year-over-year growth in the CAG segment, led by heavy equipment and industrial categories.
- Expected increase in Retail GMV and revenue for purchase programs in the RSCG segment, with revenue growing at a higher rate than GMV.
- Steady expansion of client bases and service offerings for GovDeals, Machinio, and newly established Software Solutions businesses, driving revenue growth.
- Consignment GMV expected to remain in the low eighties as a percent of total GMV, as GovDeals segment enters its seasonally high quarter.
- Consolidated revenue as a percentage of GMV expected to be approximately thirty percent, and total segment direct profits as a percentage of consolidated revenue expected to be in the low-to-mid forty percent range.
Challenges Ahead
- CAG segment experiencing some delayed cross-border transactions.
- Fluctuations in the mix of purchase and consignment transactions can impact revenue and segment direct profit percentages.
- Variability in the inventory product mix handled by the RSCG segment can cause changes in revenues and/or segment direct profit percentages.
- Real estate transactions in the GovDeals segment can be subject to significant variability due to postponements, cancellations, or changes in property values.
- Changes in economic, political, or international trading conditions could cause variability in operating results by impacting sellers, buyers, or end-customers.