LQDT · Liquidity Services, Inc.

Liquidity Services, Inc. delivered strong Q2 FY2026 results amid global tariffs, weather disruptions, and geopolitical tensions, growing consolidated GMV 6% to $389.9 million and revenue 4% to $120.7 million. Profitability accelerated significantly with total segment direct profits up 18% and adjusted EBITDA surging 37% to $16.7 million, achieving a 30% margin on direct profits and a 'Rule of 40' score of 48%, up from 42% in FY2025. CEO William P. Angrick highlighted the asset-light model's resilience, robust buyer liquidity serving 6.3 million registered buyers (up 8% YoY), and operating leverage from technology, AI tools, and data analytics optimizing recovery rates. Segment performance was diversified: RSCG drove retail GMV up 10% and direct profit up 29% from high consignment flows post-holidays and D2C Retail Rush doubling sequentially; GovDeals GMV grew 5% despite weather impacts, with direct profit up 12% on record new accounts (up 30% YoY), unique sellers, and bidders; CAG GMV rose 3% with 11% direct profit growth from high-margin consignments in energy, biopharma, and heavy equipment, plus 36% more unique bidders; Machinio revenue grew 8% toward $20 million ARR at over 90% margins via marine expansion. Balance sheet strength includes $204 million cash, zero debt, and $26 million credit availability, supporting capital allocation to growth, acquisitions, and $15 million remaining buybacks. Q3 guidance projects GMV $425-465 million, adjusted EBITDA $17-20 million, with consignment GMV at low-to-mid 80s percent of total and revenue-to-GMV in mid-to-high 20s percent, reflecting seasonal strength in GovDeals and CAG pipeline execution despite retail mix shifts. Management's outlook underscores scalable platform momentum in the $100+ billion circular economy, positioning for sustained profitable growth.