Liquidity Services (LQDT) Q2 2025 earnings summary

Executive summary

• Achieved Q2 FY25 revenue of $116.4M, up 27% year-over-year, and GMV of $367.4M, up 15% year-over-year, with net income rising 24% to $7.1M and diluted EPS increasing 22% to $0.22.

• Non-GAAP adjusted EBITDA was $12.2M, nearly flat year-over-year; adjusted EPS up 15% to $0.31.

• Cash balance at $149M with no financial debt, supporting growth initiatives and share repurchases.

• Expanded market presence and service offerings, including the acquisition of Auction Software, despite economic and weather-related challenges.

• Registered buyers increased 9% to 5.8M, with continued focus on maximizing value recovery and ESG commitments.

Financial highlights

• Q2 FY25 revenue: $116.4M (+27% YoY); GMV: $367.4M (+15% YoY); net income: $7.1M (+24% YoY); diluted EPS: $0.22 (+22% YoY).

• Non-GAAP adjusted EBITDA: $12.2M (+1% YoY); adjusted EPS: $0.31 (+15% YoY).

• YTD revenue: $238.7M (+46.6% YoY); YTD net income: $12.9M (+68.8% YoY).

• Cash and equivalents: $149M; no financial debt.

• Operating cash flow for the six months was $9.5M, down from $26.0M in the prior year.

Outlook and guidance

• Q3 FY25 GMV guidance: $395M–$430M; GAAP net income: $6.0M–$9.0M; adjusted EBITDA: $14.5M–$17.5M; GAAP diluted EPS: $0.18–$0.28; adjusted EPS: $0.27–$0.36.

• Expects continued YoY and sequential growth in RSCG and CAG segments; steady expansion in GovDeals, Machinio, and Software Solutions.

• Revenue as a percent of GMV expected to be approximately 30% in Q3; consignment GMV expected to remain in the low 80% range of total GMV.

• Effective tax rate for Q3 expected in mid-to-high twenties; cash taxes to increase as NOLs are fully utilized.

• Liquidity position sufficient to meet anticipated needs for at least one year.