Liquidity Services delivered a solid QQ2 2025 performance characterized by continued GMV growth, favorable revenue mix, and improving operating leverage despite near-term macro headwinds. Consolidated GMV rose 15% year over year to $367.4 million, while revenue grew 27% to $116.4 million, reflecting stronger activity in lower-touch purchase programs and market-share gains across segments. The company generated GAAP net income of $7.05 million and non-GAAP adjusted EBITDA of $12.2 million, with GAAP EPS of $0.22 and non-GAAP EPS of $0.31, underscoring healthy profitability even as some purchase-model transactions compressed margin due to third-party rev-share arrangements, inbound logistics costs, and rate steps in certain product categories. Liquidity remained best-in-class: zero debt with approximately $149 million in cash and short-term investments at quarter-end, and a robust operating cash flow of $21.6 million for the quarter, supporting organic growth and potential acquisitions.
Management maintained an upbeat long-term trajectory toward roughly $2 billion of annual GMV on an annualized basis, supported by ongoing market-expansion efforts in GovDeals, CAG, and RSTG, plus continued scaling of Machinio and software solutions. They highlighted that revenue growth has outpaced GMV growth due to market-share gains and a shift toward lower-touch programs, which tend to reduce operating expenses as part of the mix. While near-term tariffs and macroeconomic uncertainty pose risks, management reiterated a disciplined approach to capital allocation, a focus on operating leverage, and a pathway to mid-40% segment direct-profit margins as a percent of revenue. The quarter also featured investments in platform enhancements (AI-assisted listings, multilingual tools, and third-party selling interfaces) intended to broaden global reach and improve buyer-seller match efficiency, which management believes will drive higher GMV conversion, revenue mix benefits, and longer-term profitability.