Liquidity Services 2025 Q3 Earnings Net Income Rises 23.5% on Strong Revenue Growth

Liquidity Services (LQDT) reported its fiscal 2025 Q3 earnings on August 7, 2025. The company exceeded expectations with robust revenue and earnings growth, driven by expanding marketplaces and strategic investments. While the stock dipped in the short term, the long-term outlook remains favorable for investors seeking exposure to a resilient and innovation-focused business model.

Liquidity Services delivered a strong earnings performance, surpassing both revenue and profit expectations. The company reported a 28.1% year-over-year increase in total revenue to $119.88 million, outpacing the $93.61 million recorded in the same period in 2024. This growth was supported by rising Gross Merchandise Volume (GMV), which reached $413.0 million in Q3 FY2025, up 9% from the previous year.

Earnings were equally impressive, with EPS climbing 20.0% to $0.24, compared to $0.20 in 2024 Q3. Net income surged by 23.5% to $7.41 million from $6 million a year earlier. On a non-GAAP basis, Adjusted EBITDA rose 16% to $17.0 million, and Adjusted EPS increased by 13% to $0.34. These results highlight the company’s expanding profitability and operational efficiency.

The stock price of Liquidity Services has faced short-term headwinds, falling 4.79% during the latest trading day, 0.88% for the week, and 3.62% month-to-date. However, historical data suggests that buying LQDT shares after a revenue beat on the earnings release date and holding for 30 days has historically yielded positive returns. The company’s consistent performance—beating EPS estimates 100% of the time and revenue estimates 88% of the time over the past two years—underscores its ability to outperform expectations. Strategic investments in software, platform innovation, and sales have strengthened its competitive position and contributed to its financial success. Holding LQDT shares for 30 days post-earnings has historically allowed investors to benefit from price appreciation following strong reports, despite the inherent risks in stock market investing.

The company's resilient and diversified business model, combined with disciplined execution and innovation, has enabled it to maintain consistent growth in a challenging economic environment. The CEO emphasized Liquidity Services' focus on service innovation in the circular economy as a key driver of long-term value. While the company did not provide explicit forward-looking guidance in its latest SEC 8-K filing, management remains confident in its ability to sustain growth through strategic investments and operational discipline.

Additional News
On the same day as LQDT's earnings report, Nigerian media outlet Punch Newspapers highlighted several significant developments in the region. In Akwa Ibom, police arrested a ritualist accused of creating "bulletproof" charms for robbers, recovering a firearm in the process. In a separate incident, the Nigerian Air Force successfully thwarted a terrorist attack in Borno state, underscoring ongoing security challenges in the region. On the sports front, French club Lens announced the signing of World Cup winner Florian Thauvin from Udinese, marking a major move in European football. Additionally, the African Democratic Congress (ADC) experienced internal divisions, with a faction led by Nafiu Bala denouncing David Mark’s appointment as party chair. These developments reflect a mix of security, political, and business news shaping the broader economic landscape in the week following LQDT’s earnings release.