Liquidity Services Reports 27.3% Revenue Growth to $116.4 Million in Latest Quarter

Liquidity Services, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $116.4 million for the three months ended March 31, 2025, a 27.3% increase from $91.5 million in the same period last year. The company's net income also rose to $7.1 million, up 23.5% from $5.7 million in the prior year. For the six months ending March 31, 2025, total revenue was $238.7 million, reflecting a 46.6% increase compared to $162.8 million for the same period in 2024. The increase in revenue was primarily driven by a 46.6% rise in purchase revenues, which totaled $77.8 million, and a slight increase in consignment and other fee revenues.

The company experienced notable changes in its operational metrics, with gross merchandise volume (GMV) increasing by 15% to $367.4 million for the three months ended March 31, 2025, compared to $319.4 million in the same period last year. The number of registered buyers on its platforms grew to 5.8 million, a 9% increase from 5.3 million a year earlier. This growth in user engagement is attributed to enhanced marketing efforts and the expansion of service offerings, particularly in the GovDeals and Retail Supply Chain Group (RSCG) segments.

Strategically, Liquidity Services made two acquisitions in the past year, including Auction Software, which was acquired for $7.5 million in January 2025, and Sierra Auction Management, Inc., acquired for approximately $13.7 million in January 2024. These acquisitions are expected to enhance the company's capabilities in providing auction services and expand its market reach. The company also reported a preliminary allocation of $2.9 million to acquired intangible assets and $4.8 million in goodwill from the Auction Software acquisition.

Operationally, the company reported a decrease in total costs and expenses, which rose by 29.1% to $109.6 million for the three months ended March 31, 2025, primarily due to increased costs associated with higher purchase transaction volumes. The company maintained a strong balance sheet with cash and cash equivalents of $138.5 million and short-term investments of $10.5 million as of March 31, 2025. Liquidity Services has not drawn on its $25 million credit facility, which was recently amended to extend the maturity date to March 31, 2027, and increase the borrowing capacity to $35 million.

Looking ahead, Liquidity Services anticipates continued growth driven by the expansion of its marketplace platforms and increased buyer engagement. The company remains focused on leveraging its technology to enhance operational efficiency and capitalize on market opportunities, despite potential challenges posed by macroeconomic conditions such as inflation and geopolitical tensions. The management expressed confidence in the company's ability to sustain its growth trajectory and deliver value to shareholders.