Liquidity Services 2025 Q4 Earnings Beats Expectations with 22.7% Net Income Growth

The company exceeded both revenue and earnings estimates, with management providing optimistic Q1 guidance despite anticipated retail segment challenges.

Liquidity Services (LQDT) reported Q4 2025 earnings that surpassed expectations, with revenue growing 10.4% to $118.09 million and EPS rising 20.7% to $0.21. The company raised Q1 GMV guidance to $370–405 million and maintained strong profitability forecasts.

Revenue

The Retail Supply Chain Group (RSCG) drove the majority of the revenue, contributing $118.09 million in total. GovDeals and Capital Assets Group (CAG) segments also saw growth, though exact figures were not disclosed. The RSCG segment’s performance was bolstered by increased GMV and software solutions adoption.

Earnings/Net Income

Net income surged 22.7% to $7.82 million, with EPS climbing to $0.21. The EPS growth underscores the company’s strong profitability.

Post-Earnings Price Action Review

Following the earnings release, LQDT’s stock gained 1.02% on the day, 10.63% for the week, and 6.59% month-to-date. The upward momentum reflects investor confidence in the company’s strategic initiatives and financial strength.

CEO Commentary

CEO William Angrick highlighted 12% GMV growth and a 28% adjusted EBITDA increase, attributing success to AI-driven tools and the RISE strategy. He emphasized expansion into government-adjacent markets and software innovations.

Guidance

For Q1 2026, the company projects GMV of $370–405 million, GAAP EPS of $0.15–0.25, and non-GAAP adjusted EBITDA of $13.5–16.5 million. Despite lower retail inventory purchases, operational discipline and high-margin consignment growth are expected to drive profitability.

Additional News

Liquidity Services expanded its share repurchase program by $15 million, extending through 2027. Director George H. Ellis sold 7,500 shares in August, signaling potential insider caution. Meanwhile, the company announced plans to leverage AI and software tools in government-adjacent markets, enhancing its diversified platform.