Liquidity Services NASDAQ: LQDT reported record gross merchandise volume and continued profit growth in its fiscal third quarter of 2026, as the company cited momentum in its retail and government marketplaces, improved transaction economics and technology-driven buyer engagement.
GAAP diluted earnings per share increased 39% from a year earlier to $0.32, while gross merchandise volume, or GMV, rose 10% to a quarterly record of $453 million. Revenue grew 8% to $129.6 million, and adjusted EBITDA increased 30% to $22 million. Non-GAAP adjusted diluted earnings per share rose 32% to $0.45.
Chairman and Chief Executive Officer Bill Angrick said the results reflected continued execution of the company’s RISE strategy, which focuses on maximizing seller recovery, increasing transaction volume, expanding services and using technology to improve operating efficiency. The company recorded its 10th consecutive quarter of year-over-year adjusted EBITDA growth, he said.
Liquidity Services ended the quarter with $231.1 million in cash equivalents and short-term investments, no debt and approximately $24 million in available borrowing capacity under its credit facility, according to Executive Vice President and Chief Financial Officer Jorge Celaya. The company also had $50 million remaining under its share repurchase authorization.
Retail and GovDeals Set Volume Records
The company’s Retail Supply Chain Group, or RSCG, produced record quarterly GMV of $121.6 million, up 19% from the prior-year period. Revenue rose 8% and direct profit increased 30%, also reaching quarterly records, Celaya said.
Angrick attributed the retail segment’s growth to expanding consignment relationships, stronger recovery rates and increased buyer participation in lower-touch purchase flows. The company’s managed direct-to-consumer consignment business nearly doubled from the prior year, while international client activity remained strong. Retail Rush GMV increased 50% sequentially as the company continued to build demand for its direct-to-consumer online auction platform.
GovDeals generated record GMV of $274 million, up 9% year over year. Revenue and direct profit each increased 7% and 9%, respectively, according to Celaya. The segment also recorded its seventh straight quarter of seller growth and a quarterly record for unique sellers.
Angrick highlighted several government-related transactions completed during the quarter, including a $7.7 million state department of transportation heavy-equipment sale, a $2.5 million generator auction for a federal customer and a $2.6 million Canadian auction.
GovDeals is also managing the sale of Miami-Dade County’s approximately 265,000-square-foot, 28-story county courthouse in downtown Miami. Angrick described the property as an institutional-quality asset with a value of more than $30 million, and said the auction was expected to conclude later in August.
Buyer registrations in GovDeals increased 23% during the quarter, new bidders rose 42%, and conversion rates improved 35%, even as marketing spending declined, Angrick said. He credited AI-enabled marketing, personalization, buyer education and marketplace improvements for the gains.
Capital Assets Mix Supports Profit Growth
The Capital Assets Group, or CAG, reported GMV of $57.5 million, down 1% from a year earlier, as the timing of large projects and lower activity in EMEA, APAC and selected North American industrial markets affected volume. However, revenue increased 18% and direct profit rose 13% because of favorable pricing and a higher-margin project mix.
CAG’s take rate increased 270 basis points from the prior-year quarter, supported by higher-margin consignment projects and execution in heavy equipment, fleet and industrial categories. The segment added 175 accounts during the quarter, including a growing mix of recurring and annuity-style client relationships.
Angrick said delayed large projects were timing-related rather than lost business and had strengthened the outlook for upcoming quarters. Demand for used industrial equipment, energy assets and heavy equipment remained robust in North America, he added.
Machinio system annual recurring revenue increased 26% year over year, while the Machinio marine vertical grew 95%. Liquidity Services said it continued to modernize its marketplace ecosystem through Auction.io and related software initiatives.
Fourth-Quarter Outlook
For the fiscal fourth quarter, Liquidity Services expects GMV of $450 million to $455 million and adjusted EBITDA of $22 million to $25 million. GAAP net income is projected at $10 million to $13 million, or $0.30 to $0.39 per diluted share. Non-GAAP adjusted diluted earnings per share is expected to range from $0.41 to $0.50.
The company expects its effective tax rate to approach the low-to-mid-30% range in the fourth quarter and forecasts capital expenditures of $2.5 million to $3 million.
Celaya said the outlook assumes continued profitability from retail, solid performance at GovDeals and growth at CAG. Retail GMV and revenue are expected to decline sequentially, but the company expects backlog, product mix, channel expansion and seasonal demand to support direct-profit performance and operating leverage.
Management said it expects to finish fiscal 2026 with annual growth across key metrics and anticipates its highest full-year adjusted EBITDA in 13 years.
About Liquidity Services (NASDAQ:LQDT)
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Liquidity Services, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Liquidity Services wasn't on the list.
While Liquidity Services currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Get This Free Report
