Liquidity Services (LQDT) Q3 2025 earnings summary

Executive summary

• Achieved record gross merchandise volume (GMV) of $413.0M, up 9% year-over-year, and revenue of $119.9M, up 28%, driven by technology-enabled marketplaces, disciplined execution, and strong segment performance.

• GAAP net income rose 24% to $7.4M; diluted EPS up 21% to $0.23; non-GAAP adjusted EBITDA increased 16% to $17.0M.

• Registered buyers grew 9% to 5.9M, with new records in sellers, assets listed, and bidders across key categories.

• Strategic investments in software, platform innovation, and marketing expanded market share and enhanced value for buyers and sellers.

• The company operates a global platform for surplus asset management, serving over 15,000 clients.

Financial highlights

• Q3 GMV grew 9% year-over-year to $413.0M; revenue increased 28% to $119.9M.

• GAAP net income was $7.4M, up from $6.0M; non-GAAP adjusted net income was $11.1M, up from $9.5M.

• Adjusted EBITDA for Q3 was $17.0M, up from $14.7M last year; nine-month Adjusted EBITDA was $42.3M, up from $34.0M.

• Operating cash flow exceeded $19M in Q3; cash and equivalents at $155.6M–$167M with zero debt.

• Nine-month net income for FY25 was $20.3M, up from $13.6M for the same period last year.

Outlook and guidance

• Fiscal Q4 2025 guidance: GMV of $355M–$390M, GAAP net income of $5M–$8M, GAAP EPS $0.15–$0.25, non-GAAP adjusted EPS $0.24–$0.34, and adjusted EBITDA $13M–$16M.

• Expect double-digit annual growth in adjusted EBITDA and key metrics for full year 2025.

• RSCG segment GMV and revenue expected flat year-over-year, with direct profit slightly down sequentially; CAG segment anticipated to grow top-line year-over-year, led by heavy equipment.

• Effective tax rate for FY25 expected at 25%–31%; Q4 tax expense may be higher due to normalization.

• The company expects continued growth in registered buyers and marketplace activity, supported by industry trends favoring online surplus asset sales.