Liquidity Services (NASDAQ:LQDT) Posts Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Liquidity Services (NASDAQ:LQDT) released its earnings results on Thursday. The business services provider reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.11, FiscalAI reports. Liquidity Services had a net margin of 6.43% and a return on equity of 21.06%. The firm had revenue of $121.22 million during the quarter, compared to the consensus estimate of $51.76 million. Liquidity Services updated its Q2 2026 guidance to 0.290-0.380 EPS.

Here are the key takeaways from Liquidity Services’ conference call:

• Liquidity Services reported strong profitability with non-GAAP adjusted EBITDA up 38% to $18.1M, adjusted EPS up 39% to $0.39, GAAP net income up 29%, and ended the quarter with $181.4M in cash and no debt, giving the company financial flexibility.
• Platform momentum and category wins drove GMV to $398M (up 3%), with GovDeals GMV +7%, heavy equipment organic GMV +27% and DTC GMV +40%, plus record seller additions in GovDeals supporting market-share expansion.
• A deliberate mix shift toward consignment (expected to remain in the low‑80s% of GMV) depressed GAAP revenue (flat year‑over‑year) and lowered revenue‑as‑a‑percent‑of‑GMV, which could weigh on reported top‑line growth despite rising GMV and margins.
• Q2 guidance ranges: GMV $375M–$450M, non‑GAAP adjusted EBITDA $14M–$17M, and adjusted EPS $0.29–$0.38, while management flagged a one‑time $300K–$400K cost to streamline a retail location and noted seasonal margin pressures for retail purchase flows.
• Continued tech investment is a strategic focus—AI, automation, taxonomy improvements, the Retail Rush consumer channel, and Machinio/Software Solutions (revenues +27%) are cited as drivers to improve buyer conversion, lower labor intensity, and scale new SaaS/auction offerings.

Liquidity Services Price Performance

Liquidity Services stock traded up $1.48 during midday trading on Thursday, reaching $32.95. 337,115 shares of the company traded hands, compared to its average volume of 141,540. The business has a 50 day moving average of $31.16 and a two-hundred day moving average of $27.43. The firm has a market capitalization of $1.02 billion, a price-to-earnings ratio of 37.87 and a beta of 1.03. Liquidity Services has a 12 month low of $21.67 and a 12 month high of $39.72.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on LQDT shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Liquidity Services in a research report on Thursday, January 22nd. Barrington Research reissued an “outperform” rating and issued a $40.00 target price on shares of Liquidity Services in a research note on Thursday. Finally, Zacks Research upgraded shares of Liquidity Services to a “hold” rating in a report on Wednesday, November 26th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $40.00.

Insider Activity

In related news, CFO Jorge Celaya sold 15,114 shares of the business’s stock in a transaction on Wednesday, November 26th. The shares were sold at an average price of $30.24, for a total value of $457,047.36. Following the sale, the chief financial officer owned 32,816 shares in the company, valued at approximately $992,355.84. The trade was a 31.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Katharin S. Dyer sold 8,196 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $31.62, for a total value of $259,157.52. Following the sale, the director directly owned 36,395 shares in the company, valued at $1,150,809.90. The trade was a 18.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 25,761 shares of company stock worth $789,759 over the last three months. Insiders own 28.06% of the company’s stock.

Institutional Investors Weigh In On Liquidity Services

Large investors have recently made changes to their positions in the stock. Dark Forest Capital Management LP acquired a new stake in Liquidity Services in the third quarter valued at approximately $312,000. Qube Research & Technologies Ltd lifted its holdings in Liquidity Services by 12.9% in the third quarter. Qube Research & Technologies Ltd now owns 319,891 shares of the business services provider’s stock valued at $8,775,000 after acquiring an additional 36,590 shares during the last quarter. Punch & Associates Investment Management Inc. increased its stake in Liquidity Services by 38.9% during the third quarter. Punch & Associates Investment Management Inc. now owns 909,743 shares of the business services provider’s stock worth $24,954,000 after acquiring an additional 254,875 shares during the last quarter. Millennium Management LLC lifted its position in Liquidity Services by 141.9% in the third quarter. Millennium Management LLC now owns 357,707 shares of the business services provider’s stock valued at $9,812,000 after buying an additional 209,807 shares during the last quarter. Finally, Brevan Howard Capital Management LP acquired a new position in Liquidity Services during the 3rd quarter worth about $725,000. 71.15% of the stock is owned by hedge funds and other institutional investors.

Liquidity Services Company Profile

Liquidity Services, Inc is a technology-driven provider of online marketplaces for surplus and remarketed assets. Through its wholly owned platforms—such as Liquidation.com, GovDeals, Machinio and GoIndustry DoveBid—the company connects sellers of industrial equipment, commercial inventory, government surplus and transportation assets with a broad base of registered buyers. Its solutions blend auction formats, fixed-price listings and managed-service offerings to support efficient asset disposition across a wide range of industries.

The company’s core services include asset valuation, marketing, inspection and logistics coordination.