LQDT · Liquidity Services, Inc.

Liquidity Services, Inc. delivered strong Q2 FY2026 results, with GMV rising 6% to $389.9 million, fueled by broad industry coverage, robust buyer demand, and platform operating leverage. RSCG segment GMV grew 10% on consignment programs and direct-to-consumer channel expansion, while GovDeals increased 5% despite winter weather disruptions, and CAG rose 3% with heavy equipment strength. Revenue climbed 4% to $120.7 million, with notable acceleration in GovDeals (11%) from service expansions and higher take rates, and CAG (12%) on transaction mix. Segment direct profits improved significantly, including 29% in RSCG and 12% in GovDeals, reflecting multi-channel optimization and efficiencies. GAAP net income edged up 7% to $7.5 million ($0.23/share), while Non-GAAP Adjusted EBITDA surged 37% to $16.7 million, highlighting leverage from proprietary technology and buyer participation. CEO Bill Angrick emphasized dynamic product flow matching and scalable marketplace investments for long-term value. Operational metrics showed registered buyers at 6.3 million (up 8% YoY) and completed transactions at 280,000 (up 9%). Balance sheet remains pristine with $204.0 million cash and zero debt. Q3 guidance signals continued profitable growth, with GMV $425-465 million, Adjusted EBITDA $17-20 million, and consignment GMV in low-to-mid eighties percent of total, though subject to mix shifts, project timing, and economic conditions. Effective tax rate expected at mid-thirties for Q3 due to lower stock comp benefits.