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Jun 30
Liquidity Services Q3 2025 Earnings Report
Liquidity Services reported strong financial results for the third fiscal quarter of 2025, driven by record GMV and double-digit earnings growth.
Key Takeaways
Liquidity Services achieved record Gross Merchandise Volume (GMV) and significant increases in revenue, net income, and EPS for Q3 FY2025. The company's strategic investments in technology and a diversified business model contributed to its strong performance across all segments, despite some economic uncertainties.
Record Gross Merchandise Volume (GMV) reached $413.0 million, marking a 9% increase year-over-year.
Total revenue grew by 28% to $119.9 million, compared to $93.6 million in the prior year's quarter.
GAAP Net Income increased by 24% to $7.4 million, with GAAP Diluted EPS rising 21% to $0.23.
Non-GAAP Adjusted EPS was $0.34, up 13%, and Non-GAAP Adjusted EBITDA increased by 16% to $17.0 million.
Liquidity Services
Liquidity Services
Liquidity Services Revenue by Segment
Revenue by Segment
GovDeals Revenue
CapyFin.comRSCG Revenue
CapyFin.comCAG Revenue
CapyFin.comMachinio & Software Solutions Revenue
CapyFin.com Forward Guidance
Liquidity Services anticipates solid double-digit annual growth across key metrics for fiscal year 2025, with continued growth expected in GovDeals, Machinio, and Software Solutions. However, the RSCG segment is expected to see a sequential decline in GMV and revenue due to lower inventory purchases and price increases, remaining flat year-over-year.
Positive Outlook
- Overall solid double-digit annual growth across key metrics for FY25.
- GovDeals, Machinio, and newly established Software Solutions businesses are expected to continue year-over-year growth.
- CAG segment is expected to grow its top-line year-over-year, led by heavy equipment category.
- Consignment GMV is expected to remain in the low eighties as a percent of total GMV.
- Total segment direct profits as a percentage of consolidated revenue expected to be in the mid-forty percent range.
Challenges Ahead
- RSCG segment's GMV and revenue from purchase programs are expected to decline sequentially from Q3 FY25.
- RSCG direct profit is expected to be slightly down compared to Q4 FY24 due to changes in product mix and pricing.
- Start-up costs for the expansion of RSCG direct-to-consumer online auction and local pick-up initiative in Columbus, Ohio.
- Consolidated revenue as a percentage of GMV is expected to be slightly below thirty percent.
- Potential impacts from economic uncertainties affecting certain industrial categories and regions in the CAG segment.