Our marketplace platform and services continue to delight customers fueling double-digit organic revenue and GMV growth year-over-year.
— Bill Angrick
03Detailed Report
LQDT
Company LQDT
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
Liquidity Services delivered a solid second quarter of fiscal year 2024, with double-digit growth in GMV and revenue supported by strong buyer participation and a disciplined investment stance. The company reported GMV of $319.4 million, up 13% year over year, and revenue of $91.5 million, up 12% year over year, accompanied by GAAP EPS of $0.18 and non-GAAP EPS of $0.27. Non-GAAP adjusted EBITDA rose 22% to $12.1 million, underscoring improving operational leverage as the platform scales across its three primary segments: Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio, along with GovDeals. Management highlighted record activity metrics, including 1.1 million auction participants and 300,000 completed transactions, which reflect broadening supply and buyer liquidity. The quarter was further characterized by strategic investments, including the Sierra Auction acquisition (January 2024) and ongoing share repurchases, along with robust cash generation (operating cash flow of $34.8 million) and a net cash position with zero debt and $25 million of available borrowing capacity. Looking forward, management issued guidance for Q3 FY2024 with GMV expected between $350 million and $385 million and non-GAAP EBITDA in the $10.5–$13.5 million range, signaling continued top-line momentum but a deliberate investment stance to support platform enhancements and category expansions. The combination of a diversified revenue mix, a strong balance sheet, and a proactive growth program positions Liquidity Services to benefit from ongoing secular trends in the circular economy, albeit with near-term margin headwinds from technology investments and product-mix normalization in retail liquidation.
Key Performance Indicators
Revenue
Increasing
91.45M
QoQ: 28.22% | YoY: 12.28%
Gross Profit
Increasing
44.04M
48.15% margin
QoQ: -37.87% | YoY: 7.18%
Operating Income
Increasing
6.72M
QoQ: 308.01% | YoY: 28.10%
Net Income
Increasing
5.71M
QoQ: 199.37% | YoY: 34.49%
EPS
Increasing
0.19
QoQ: 204.98% | YoY: 35.71%
Revenue Trend
Margin Analysis
Financial Highlights
Key Q2 FY2024 metrics and interpretive context:
- GMV: $319.4 million, up 13% YoY (vs. $282.7 million in the prior-year quarter). Implication: Demonstrates durable demand across segments and the toll of strategic initiatives on marketplace activity.
- Revenue: $91.5 million, up 12% YoY (vs. $81.5 million in the prior-year quarter). Implication: Revenue growth is tracking GMV expansion and higher take rates from mix shift to higher-value asset categories.
- Gross Profit: $44.036 million; Gross margin 48.15% (vs. prior-year gross margin 48.15% reported in the data; YoY gross profit up 7.18% per metrics). Implication: Stable gross margin with improving operational leverage as volumes scale.
- Operating Income: $6.72 million; Operating margin 7.35%. Implication: Positive operating profitability, with room to expand through higher-margin services and cost efficiencies.
- EBITDA: $9.915 million; EBITDA margin ~10.8%. Non-GAAP EBITDA (reported): $12.1 million, up 22% YoY. Implication: Solid cash-generating core; supports capex, acquisitions, and buybacks while funding growth investments.
- Net Income: $5.709 million; Net margin ~6.24%. Implication: Reflects healthy profitability on a Gaap basis.
- Diluted EPS: GAAP $0.18; Non-GAAP $0.27. Weighted-average shares outstanding: 30.498 million (GAAP) and 31.459 million (diluted).
- Cash flow and liquidity: CFO $34.8 million; Net cash provided by operating activities after Sierra acquisition and buybacks; Acquisition spend $13.3 million for Sierra Auction; Stock repurchases $7.9 million (474k shares); Net change in cash $10.077 million; Cash at period end $108.634 million; No debt and $25 million of available borrowing capacity.
- Balance sheet health indicators: Total assets $303.651 million; Total liabilities $139.726 million; Stockholders’ equity $163.925 million; Current ratio 1.12; Quick ratio 1.004; Cash ratio 0.816; Net debt as reported shows negative leverage (net cash position) of approximately -$97.8 million.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
91.45M
12.28%
28.22%
Gross Profit
44.04M
7.18%
-37.87%
Operating Income
6.72M
28.10%
308.01%
Net Income
5.71M
34.49%
199.37%
EPS
0.19
35.71%
204.98%
Key Financial Ratios
Gross Profit Margin
Good
48.20%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
7.35%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
6.24%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.88%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.48%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.12
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.07
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
24.85x
P/E ratio in line with market averages
Price to Book
Premium
3.46x
Trading at premium to book value, reflects strong intangibles or growth
Management Insights Available for Members
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