Liquidity Services (LQDT) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly GMV of $386.1 million, up 26% year-over-year, and revenue of $122.3 million, up 72% year-over-year, with double-digit growth in all segments and increased auction participation and buyer registrations.

• GAAP net income rose 205% to $5.8 million, with diluted EPS of $0.18 and non-GAAP adjusted EBITDA up 81% to $13.1 million.

• Expanded market share through new sellers, enhanced services, and technology investments, including the acquisition of Auction Software and Simple Auction Site.

• Benefited from macro trends such as e-commerce growth, sustainability, and increased demand for digital asset disposition.

• Completed the acquisition of Sierra Auction Management, expanding GovDeals' service offerings.

Financial highlights

• Revenue reached $122.3 million, up from $71.3 million in Q1 FY24; GMV was $386.1 million, up from $306 million.

• GAAP net income was $5.8 million, up from $1.9 million; non-GAAP adjusted EBITDA was $13.1 million, up from $7.3 million.

• Cash and short-term investments totaled $139.1 million at quarter end, with no debt and $17.5 million in available borrowing capacity.

• Purchase revenues surged 128.6% to $82.8 million; consignment and other fee revenues rose 12.6% to $39.5 million.

• Net cash used in operating activities was $12.1 million, mainly due to increased accounts receivable from expanded purchase programs.

Outlook and guidance

• Q2 FY25 GMV expected between $360 million and $390 million; GAAP net income guidance: $5.5 million to $8 million; adjusted EBITDA: $12 million to $14.5 million; adjusted EPS: $0.27 to $0.35.

• Revenue as a percentage of GMV expected to remain in the low 30s%; segment direct profits as a percentage of revenue in the low 40s%.

• Consignment GMV expected to remain approximately 80% of total GMV.

• Effective tax rate for Q2 expected in the low- to mid-20s%; annual rate in the high 20s% or low 30s%.

• Sequential top-line growth anticipated in the second half of FY25.