Liquidity Services (NASDAQ:LQDT) Posts Earnings Results, Beats Expectations By $0.11 EPS

Liquidity Services (NASDAQ:LQDT) released its quarterly earnings data on Thursday. The business services provider reported $0.39 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.11, FiscalAI reports. The business had revenue of $121.22 million for the quarter, compared to analyst estimates of $51.76 million. Liquidity Services had a return on equity of 19.98% and a net margin of 6.26%. Liquidity Services updated its Q2 2026 guidance to 0.290-0.380 EPS.

Here are the key takeaways from Liquidity Services’ conference call:

• Liquidity Services reported strong profitability with non-GAAP adjusted EBITDA up 38% to $18.1M, adjusted EPS up 39% to $0.39, GAAP net income up 29%, and ended the quarter with $181.4M in cash and no debt, giving the company financial flexibility.
• Platform momentum and category wins drove GMV to $398M (up 3%), with GovDeals GMV +7%, heavy equipment organic GMV +27% and DTC GMV +40%, plus record seller additions in GovDeals supporting market-share expansion.
• A deliberate mix shift toward consignment (expected to remain in the low‑80s% of GMV) depressed GAAP revenue (flat year‑over‑year) and lowered revenue‑as‑a‑percent‑of‑GMV, which could weigh on reported top‑line growth despite rising GMV and margins.
• Q2 guidance ranges: GMV $375M–$450M, non‑GAAP adjusted EBITDA $14M–$17M, and adjusted EPS $0.29–$0.38, while management flagged a one‑time $300K–$400K cost to streamline a retail location and noted seasonal margin pressures for retail purchase flows.
• Continued tech investment is a strategic focus—AI, automation, taxonomy improvements, the Retail Rush consumer channel, and Machinio/Software Solutions (revenues +27%) are cited as drivers to improve buyer conversion, lower labor intensity, and scale new SaaS/auction offerings.

Liquidity Services Price Performance

Shares of LQDT stock opened at $32.51 on Friday. Liquidity Services has a 12-month low of $21.67 and a 12-month high of $37.34. The business has a 50 day simple moving average of $31.28 and a 200 day simple moving average of $27.52. The firm has a market capitalization of $1.00 billion, a price-to-earnings ratio of 35.34 and a beta of 1.03.

Analyst Ratings Changes

Several research analysts have commented on LQDT shares. Barrington Research set a $44.00 price objective on Liquidity Services in a research report on Friday. Weiss Ratings reissued a “hold (c)” rating on shares of Liquidity Services in a research report on Thursday, January 22nd. Finally, Zacks Research upgraded Liquidity Services to a “hold” rating in a research note on Wednesday, November 26th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $44.00.

Insider Activity

In related news, Director Katharin S. Dyer sold 8,196 shares of the stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $31.62, for a total value of $259,157.52. Following the completion of the transaction, the director owned 36,395 shares in the company, valued at $1,150,809.90. This represents a 18.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Jorge Celaya sold 2,451 shares of the stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $30.01, for a total transaction of $73,554.51. Following the completion of the transaction, the chief financial officer owned 34,308 shares of the company’s stock, valued at $1,029,583.08. This trade represents a 6.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 25,761 shares of company stock valued at $789,759 in the last ninety days. Corporate insiders own 28.06% of the company’s stock.

Institutional Investors Weigh In On Liquidity Services

A number of institutional investors and hedge funds have recently bought and sold shares of LQDT. Brevan Howard Capital Management LP bought a new stake in shares of Liquidity Services in the 3rd quarter worth approximately $725,000. Brooklyn Investment Group grew its position in Liquidity Services by 8,329.2% in the third quarter. Brooklyn Investment Group now owns 19,640 shares of the business services provider’s stock worth $539,000 after buying an additional 19,407 shares during the last quarter. Franklin Resources Inc. grew its position in Liquidity Services by 3.9% in the third quarter. Franklin Resources Inc. now owns 17,753 shares of the business services provider’s stock worth $487,000 after buying an additional 660 shares during the last quarter. Vident Advisory LLC bought a new position in shares of Liquidity Services in the second quarter valued at $456,000. Finally, Militia Capital Partners LP grew its holdings in shares of Liquidity Services by 60.0% in the 2nd quarter. Militia Capital Partners LP now owns 40,000 shares of the business services provider’s stock worth $944,000 after acquiring an additional 15,000 shares during the last quarter. 71.15% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Liquidity Services

Here are the key news stories impacting Liquidity Services this week:

• Positive Sentiment: Q1 results showed strong profit beat: Non‑GAAP adjusted EBITDA rose ~38% to $18.1M and adjusted EPS was $0.39 (vs. Street ~$0.28), with GMV up 3% and GAAP net income up 29% — evidence of improving operating leverage and margin expansion. Read More.
• Positive Sentiment: Management gave Q2-FY26 guidance above consensus for adjusted EPS ($0.29–$0.38) and expects double‑digit growth in Non‑GAAP adjusted EBITDA, signaling confidence in durable margin improvement. Read More.
• Positive Sentiment: Strong balance sheet: cash + short‑term investments ~ $181M and zero financial debt, plus $15M remaining buyback authorization — supports optionality for capital allocation and investor returns. Read More.
• Positive Sentiment: Analyst sentiment: Barrington Research reaffirmed an “Outperform” with a $40 price target (meaningful upside vs. current levels), which can provide support for the shares. Read More.
• Neutral Sentiment: Detailed commentary and investor materials (earnings slide deck and call transcript) are available — useful for digging into segment-level trends, AI/automation initiatives and the Retail Rush launch that management highlighted. Read More. • Read More.
• Negative Sentiment: Revenue was roughly flat (down ~1% YoY) and the Capital Assets Group (CAG) GMV declined ~10% — mix effects and lower industrial project activity could weigh on near-term top‑line durability. Read More.
• Negative Sentiment: Management flagged seasonal and one‑time operational costs in Q2 (handling retail returns, warehouse streamlining and continued tech/sales investments) that may compress sequential margins despite year‑over‑year improvement. Read More.
• Negative Sentiment: Insider selling activity was noted in summary reporting (multiple recent sales), which some investors interpret as a mild governance/sentiment headwind. Read More.

Liquidity Services Company Profile

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.