Liquidity Services Q3 2025: Unpacking Contradictions on Tariffs, Strategy, and Growth Drivers

Impact of tariffs on business growth, strategic direction and business model, and growth drivers and strategic focus are the key contradictions discussed in Liquidity Services' latest 2025Q3 earnings call.



Record GMV and Profitability Growth:
- Liquidity Services reported record GMV of $413 million for Q3, up 9% year-on-year.
- The growth was driven by strong adjusted EBITDA and adjusted EPS growth, highlighting the company's resilience despite economic uncertainties like tariff policies and higher interest rates.

Segment Performance and Market Expansion:
- The GovDeals segment delivered a record GMV of $252 million, with a record number of assets sold and live vehicle listings.
- This growth was attributed to expanding with existing and new accounts in key areas, including Florida, Louisiana, Wisconsin, and Oklahoma, along with new payment technology integration.

Consignment Model and Market Share Gains:
- Liquidity Services transacted more than 80% of its total GMV under the consignment pricing model.
- This shift was due to the company's focus on attracting more lower-touch, higher-margin consignment relationships, which bolstered direct profit growth, particularly in the RSCG segment.

Heavy Equipment Category Growth:
- The Capital Assets Group (CAG) segment experienced over doubling of GMV in the heavy equipment category year-over-year.
- This growth was led by client-centric flexible auction events that attracted and retained higher volume recurring sellers, despite macroeconomic headwinds in select industries and markets.