Liquidity Services, Inc.

The company reported Q3 fiscal 2026 GMV of $453 million, up 10% year over year, revenue of $130 million, up 8%, GAAP diluted EPS of $0.32, up 39%, adjusted diluted EPS of $0.45, up 32%, and adjusted EBITDA of $22 million, up 30%. Direct profit grew 17% year over year to $3.8 million, and the rule of 40 score improved to 51% from 42% a year ago. By segment, Retail GMV rose 19% to a record $122 million, GovDeals GMV rose 9% to a record $274 million, and CAG generated $57.5 million of GMV with direct profit of $9.6 million, while GMV fell 1% and revenue increased 18%. For Q4, management expects GMV of $415 million to $455 million, adjusted EBITDA of $22 million to $25 million, GAAP EPS of $0.30 to $0.39, adjusted EPS of $0.41 to $0.50, and capex of $2.5 million to $3 million.

Bill Angrick framed the quarter as evidence that the RISE strategy is working across recovery, transaction volume, value-added services, and technology efficiency. He highlighted record performance in Retail and GovDeals, stronger buyer engagement, and improving unit economics, while emphasizing that the company is moving toward its $2 billion annual GMV target. His tone was confident and constructive, with repeated references to network effects, AI-enabled tools, and the company’s debt-free balance sheet.

Jorge Celaya emphasized that the quarter showed leverage from mix and scale, with consolidated GMV up 10% to $453 million, revenue up 8% to $130 million, adjusted EBITDA up 30% to $22 million, and adjusted EPS up 32% to $0.45. He noted $231 million of cash, cash equivalents and short-term investments, zero debt, and roughly $24 million of available borrowing capacity, plus $15 million remaining under the share repurchase authorization. On margins and mix, he said consignment GMV is expected to be in the mid-80s as a percent of total GMV in Q4, revenue as a percent of GMV in the mid-20s, and total segment direct profit as a percent of consolidated revenue in the mid-50% range, implying improved direct profit margins year over year.

Analysts focused on why auction participants were down 5% even as registered buyers and transactions increased, and management said the mix was shifting toward fewer but higher-value lots, including heavy equipment and other large assignments, which can reduce participant counts while still lifting GMV and efficiency. They also asked about the impact of machine learning and AI, and management pointed to better buyer matching, improved browsing-to-bidder conversion, cross-pollination of buyer bases, and lower-cost automation. A question on the Miami courthouse auction prompted management to stress its ability to handle institutional-quality, high-value assets and to expand in public-sector real estate and related services, though no specific financial contribution was given.