Liquidity Services (LQDT) investor relations material

Executive summary

• Q1 FY2026 delivered strong results with net income of $7.5M, up 29% year-over-year, and diluted EPS of $0.23, driven by platform scalability, multi-channel marketplace, and technology-enabled growth.

• GMV reached $398M, up 3% year-over-year, with 6.2M registered buyers, a 9% increase, and robust new client acquisitions in GovDeals and CAG.

• Business model features high-volume recurring revenue, diversified products and services, and multiple synergistic revenue streams.

• Ended Q1 with $181.4M in cash and no debt, supporting ongoing investment in growth and technology.

• Launched Retail Rush consumer auction channel and completed the acquisition of Auction Software, expanding SaaS capabilities.

Financial highlights

• GMV up 3% year-over-year to $398M; revenue down 1% to $121.2M due to retail segment mix shift.

• Non-GAAP Adjusted EBITDA was $18.1M, up 38% year-over-year; net income was $7.5M, up from $5.8M.

• Direct profit grew 13% year-over-year, driven by enhanced services and higher commission rates.

• Cash and cash equivalents stood at $169.8M–$181.4M, with no debt and $26M available under the credit facility.

• Share repurchases totaled $1.5M in Q1, with $15M remaining authorization.

Outlook and guidance

• Q2 FY2026 GMV expected between $375M–$450M; GAAP net income $6.5M–$9.5M; GAAP EPS $0.20–$0.29; non-GAAP adjusted EPS $0.29–$0.38; Adjusted EBITDA $14M–$17M.

• Double-digit Adjusted EBITDA growth anticipated for Q2 year-over-year, with continued consignment expansion and strong buyer demand.

• CapEx to remain around $2M per quarter; free cash flow conversion in line with historical patterns.

• Q2 includes a one-time $300K–$400K cost for streamlining a retail location.

• FY26 annual effective tax rate expected at 28–34%, with higher cash taxes as NOL carryforwards are exhausted.