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 resilience, and technology-enabled growth.

• Gross merchandise volume (GMV) reached $398M, up 3% year-over-year, with 6.2M registered buyers, a 9% increase.

• The company operates a global marketplace for surplus assets, serving over 15,000 clients, including 130+ Fortune 1000 companies, and has completed $15B+ in transactions.

• 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.

Financial highlights

• GMV up 3% year-over-year to $398M; revenue down 1% to $121.2M due to a shift toward consignment sales.

• GAAP net income was $7.5M, up 29%; GAAP EPS was $0.23, up 28%; non-GAAP adjusted EPS was $0.39, up 39%.

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

• Non-GAAP Adjusted EBITDA increased 38% year-over-year to $18.1M.

• Cash and cash equivalents stood at $169.8M as of December 31, 2025, with $26M available under the credit facility.

Outlook and guidance

• Q2 FY2026 GMV expected between $375M-$450M; GAAP net income forecasted at $6.5M-$9.5M.

• Q2 GAAP diluted EPS guidance: $0.20-$0.29; non-GAAP adjusted EPS: $0.29-$0.38.

• Non-GAAP Adjusted EBITDA for Q2 projected at $14M-$17M; double-digit Adjusted EBITDA growth anticipated year-over-year.

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

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