Liquidity Services (LQDT) 15th Annual Midwest IDEAS Investor Conference summary

Business model and platform overview

• Operates a two-sided e-commerce marketplace focused on the circular economy, extending asset life and reducing waste.

• Serves public sector, retail, and industrial clients, with over 5 million business buyers globally.

• Offers both software-based self-service and fully managed services for sellers.

• Trust and transparency are core, with buyer protections and a $1.5 billion GMV run rate.

• Asset-light, recurring consignment model covers 85% of GMV, driving free cash flow and multiyear seller agreements.

Industry drivers and market segments

• Growth in e-commerce and high return rates drive demand for efficient returns management.

• Product obsolescence in industrial and consumer markets creates ongoing supply for the platform.

• Serves three main segments: GovDeals (government), retail supply chain, and Capital Assets Group (industrial manufacturers).

• GovDeals recently expanded into real estate, achieving record $250 million GMV.

• Retail segment benefits from post-pandemic cost reductions and outsourcing by major retailers.

Technology, international reach, and innovation

• Marketplace features nearly 1,000 product categories and supports global, multilingual, multicurrency transactions.

• Machine-driven recommendation engines and automation enhance efficiency and buyer-asset matching.

• Machinio classifieds marketplace offers subscription-based listings, expanding in Asia and Europe.

• Data from Machinio informs auction pricing and buyer demand signals.

• Ongoing investment in machine-driven innovations and automation to scale operations.