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

Liquidity Services (LQDT) reported fiscal 2025 Q4 earnings on Nov 20, 2025, exceeding expectations with a 10.4% revenue increase and 22.7% net income growth. The company provided Q1 2026 guidance above consensus estimates, signaling strong momentum.

Revenue

The company’s total revenue rose to $118.09 million in Q4 2025, reflecting a 10.4% year-over-year increase. This growth was driven by robust performance across its segments. The Capital Assets Group (CAG) segment led the way with an 18% revenue increase, while the GovDeals segment contributed a 17% rise. The Retail Supply Chain Group (RSCG) and Machinio & Software Solutions segments also saw notable growth, with revenues up 6% and 29%, respectively.

Earnings/Net Income

Liquidity Services’ net income surged 22.7% year-over-year to $7.82 million, with earnings per share (EPS) rising 20.7% to $0.21. This performance underscores the company’s profitability improvements, driven by higher-margin consignment and software solutions. The EPS growth aligns with the company’s strategic focus on operational efficiency and margin expansion.

Post-Earnings Price Action Review

Following the earnings release, Liquidity Services’ stock price edged up 1.02% in the latest trading day, reflecting investor confidence. Over the past week, the stock gained 10.63%, and month-to-date, it climbed 6.59%. The positive price action aligns with the company’s strong financial results and optimistic guidance, indicating a favorable market response to its operational and strategic advancements.

CEO Commentary

William Angrick, CEO, highlighted a 12% GMV growth, 28% adjusted EBITDA increase, and 16% adjusted EPS growth, all exceeding guidance. He attributed the results to the RISE strategy, emphasizing shifts to higher-margin consignment and AI-driven operational leverage. Strategic priorities include expanding GovDeals into government-adjacent markets, scaling Retail’s consignment programs, and deploying AI tools like the SAM platform.

Guidance

For Q1 2026, Liquidity Services projected GMV of $370–405 million, GAAP EPS of $0.15–0.25, adjusted EPS of $0.25–0.35, and adjusted EBITDA of $13.5–16.5 million. The guidance reflects confidence in continued growth, supported by a $186 million cash reserve and a debt-free balance sheet.

Additional News

Recent developments include strategic M&A opportunities in the circular economy, with the company actively evaluating acquisitions to expand its market presence. Additionally, Liquidity Services integrated a new AI-driven payment solution to enhance buyer convenience and margins. Director George Ellis sold $190,000 in shares, raising questions about insider sentiment. These updates highlight the company’s focus on innovation and capital efficiency.