# LIQUIDITY SERVICES INC (LQDT) Informational only - not investment advice. CIK: 0001235468 SIC: 7389 Services-Business Services, NEC SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7389 Services-Business Services, NEC](/industry/7389/) Latest 10-K filed: 2025-11-20 SEC page: https://www.sec.gov/edgar/browse/?CIK=1235468 Filing source: https://www.sec.gov/Archives/edgar/data/1235468/000119312525289159/lqdt-20250930.htm ## At a glance FY2025 · period end 2025-09-30 · filed 2025-11-20 · accession 0001193125-25-289159 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001235468.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 476,669,000 USD | 2025 | verified | | Net income | 28,093,000 USD | 2025 | verified | | Assets | 375,101,000 USD | 2025 | verified | | Free cash flow | 58,958,000 USD | 2025 | computed | | Net margin | 5.89% | 2025 | computed | | Operating margin | 7.36% | 2025 | computed | | Revenue YoY | +31.20% | 2025 | computed | | ROE | 13.82% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | LQDT | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 5.9% | 5.8% | 53 | 59 | | Operating margin | 7.4% | 9.2% | 40 | 56 | | Revenue growth | 31.2% | 8.4% | 91 | 58 | | FCF margin | 12.4% | 14.2% | 40 | 58 | | ROE | 13.8% | 8.7% | 61 | 52 | | ROA | 7.5% | 2.9% | 74 | 59 | | Liabilities / equity | 0.85 | 1.52 | 19 | 54 | | Current ratio | 1.39 | 1.34 | 52 | 57 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7389 Services-Business Services, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 476669000 | USD | 2025 | 2025-11-20 | | Net income | 28093000 | USD | 2025 | 2025-11-20 | | Assets | 375101000 | USD | 2025 | 2025-11-20 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001235468.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2012 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 270,015,000 | 224,514,000 | 226,525,000 | 205,940,000 | 257,531,000 | 280,050,000 | 314,462,000 | 363,318,000 | 476,669,000 | | Net income | | | | | | | | | 50,949,000 | 40,324,000 | 20,978,000 | 19,991,000 | 28,093,000 | | Operating income | | | | -34,118,000 | -40,244,000 | -21,728,000 | -19,508,000 | -3,897,000 | 27,168,000 | 47,405,000 | 26,105,000 | 23,404,000 | 35,066,000 | | Gross profit | | | | 162,113,000 | 124,490,000 | 109,712,000 | 113,280,000 | 109,924,000 | 149,853,000 | 160,643,000 | 172,140,000 | 185,166,000 | 208,815,000 | | Diluted EPS | | 0.97 | -3.50 | -1.96 | | | -0.58 | -0.11 | 1.45 | 1.20 | 0.65 | 0.63 | 0.87 | | Operating cash flow | | | | 45,838,000 | -31,653,000 | 619,000 | -6,242,000 | 16,478,000 | 65,417,000 | 44,833,000 | 47,016,000 | 70,221,000 | 66,758,000 | | Capital expenditures | | | | 6,090,000 | 7,805,000 | 4,174,000 | 5,938,000 | 4,186,000 | 5,419,000 | 8,121,000 | 5,386,000 | 8,907,000 | 7,800,000 | | Share buybacks | 29,999,000 | 44,873,000 | | | | 0.00 | 0.00 | 3,983,000 | 31,143,000 | 25,447,000 | 21,198,000 | 9,426,000 | 16,180,000 | | Assets | | | | 260,109,000 | 215,229,000 | 201,832,000 | 187,283,000 | 196,634,000 | 255,576,000 | 288,104,000 | 288,970,000 | 346,888,000 | 375,101,000 | | Liabilities | | | | 97,498,000 | 82,593,000 | 72,178,000 | 71,108,000 | 84,819,000 | 120,561,000 | 133,568,000 | 127,436,000 | 164,328,000 | 171,859,000 | | Stockholders' equity | | | | 162,611,000 | 132,636,000 | 129,654,000 | 116,175,000 | 111,815,000 | 135,015,000 | 154,536,000 | 161,533,000 | 182,560,000 | 203,242,000 | | Free cash flow | | | | 39,748,000 | -39,458,000 | -3,555,000 | -12,180,000 | 12,292,000 | 59,998,000 | 36,712,000 | 41,630,000 | 61,314,000 | 58,958,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2012 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | | | 19.78% | 14.40% | 6.67% | 5.50% | 5.89% | | Operating margin | | | | | -14.90% | -9.68% | -8.61% | -1.89% | 10.55% | 16.93% | 8.30% | 6.44% | 7.36% | | Return on equity | | | | | | | | | 37.74% | 26.09% | 12.99% | 10.95% | 13.82% | | Return on assets | | | | | | | | | 19.93% | 14.00% | 7.26% | 5.76% | 7.49% | | Liabilities / equity | | | | 0.60 | 0.62 | 0.56 | 0.61 | 0.76 | 0.89 | 0.86 | 0.79 | 0.90 | 0.85 | | Current ratio | | | | 2.16 | 1.96 | 1.50 | 1.31 | 1.27 | 1.21 | 1.05 | 1.21 | 1.28 | 1.39 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001235468.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q1 | 2022-12-31 | | | 0.12 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | | 0.13 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | | 0.21 | reported discrete quarter | | 2023-Q4 | 2023-09-30 | 79,957,000 | 6,280,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2023-12-31 | 71,325,000 | 1,907,000 | 0.06 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | 91,453,000 | 5,709,000 | 0.18 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | 93,613,000 | 6,000,000 | 0.19 | reported discrete quarter | | 2024-Q4 | 2024-09-30 | 106,927,000 | 6,375,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2024-12-31 | 122,331,000 | 5,810,000 | 0.18 | reported discrete quarter | | 2025-Q2 | 2024-12-31 | | 5,810,000 | | reported discrete quarter | | 2025-Q2 | 2025-03-31 | 116,375,000 | | 0.22 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | 119,875,000 | 7,410,000 | 0.23 | reported discrete quarter | | 2025-Q4 | 2025-09-30 | 118,088,000 | 7,822,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2025-12-31 | 121,219,000 | 7,489,000 | 0.23 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | 120,732,000 | 7,522,000 | 0.23 | reported discrete quarter | | 2026-Q3 | 2026-06-30 | 129,578,000 | 10,426,000 | 0.32 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from LQDT's latest 10-K: [/company/LQDT/business/](/company/LQDT/business/). ## Risk Factors Verbatim Item 1A Risk Factors from LQDT's latest 10-K: [/company/LQDT/risk-factors/](/company/LQDT/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1235468/000119312526337292/lqdt-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations FORWARD-LOOKING STATEMENTS This document contains forward-looking statements. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks and other factors include but are not limited to the factors set forth in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and Part II Item 1A of this Quarterly Report on Form 10-Q, and subsequent filings with the Securities and Exchange Commission (SEC). You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continues” or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. There may be other factors of which we are currently unaware or deem immaterial that may cause our actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date of this document and are expressly qualified in their entirety by the cautionary statements included in this document. Except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances occurring after the date of this document or to reflect the occurrence of unanticipated events. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes and the information contained elsewhere in this document. Overview About us. Liquidity Services is the leading global provider of e-commerce marketplaces and software solutions powering the circular economy. We create a better future for organizations, individuals, and the planet by using technology to capture and unleash the intrinsic value of surplus. We connect millions of buyers and thousands of sellers through our leading e-commerce auction marketplaces, search engines, asset management and auction software, and related services. Our comprehensive solutions enable the transparent, efficient, sustainable recovery of value from excess items owned by business and government sellers. Our business delivers value to shareholders by unleashing the intrinsic value of surplus through our online marketplace platforms. These platforms ignite and enable a self-reinforcing cycle of value creation where buyers and sellers attract one another in greater numbers. The result of this cycle is a continuous flow of goods that becomes increasingly valuable as more participants join the platforms, thereby creating positive network effects that benefit sellers, buyers, and shareholders. Incorporated in Delaware as Liquidation.com in November 1999, Liquidity Services has over 25 years of industry experience. Reportable Segments The Company has five operating segments and three reportable segments under which we conduct business: GovDeals, Retail Supply Chain Group (RSCG), and Capital Assets Group (CAG). Our separate Machinio and Software Solutions operating segments, which do not individually meet the quantitative thresholds to be reportable segments, are combined and presented together as Machinio & Software Solutions for segment reporting purposes. Further information and operating results of our reportable segments can be found in Note 14 - Segment Information. • GovDeals. The GovDeals reportable segment provides solutions that enable government entities including city, county, state and federal agencies located in the United States and Canada and related commercial businesses to sell surplus property and real estate assets through its GovDeals, Bid4Assets and Sierra marketplaces; see Note 3 - Acquisitions. • RSCG. The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce solutions. This segment uses multiple selling channels across our network of marketplaces and others to optimize the best combination of velocity, volume, and value. This segment primarily conducts its business-to-business sales on its Liquidation.com marketplace and through Direct Sales, and managed direct-to-consumer sales across a network of online sale channels, including Retail Rush, AllSurplus Deals, Secondipity and other online marketplaces. • CAG. The CAG reportable segment enables commercial businesses to sell surplus assets on our AllSurplus and GovDeals marketplace, specializing in asset categories such as heavy equipment, industrial manufacturing, oil and gas, biopharma, fast-moving consumer goods and electronics. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. CAG clients benefit from its global base of buyers and sellers, enabling the sale and redeployment of assets wherever they generate the best value and highest use across the world. 19 Liquidity Services, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements - (Continued) • Machinio & Software Solutions. The Machinio operating segment operates the Machinio marketplace, a global search engine platform for listing equipment for sale in the construction, machine tool, processing, transportation, printing, agriculture, and laboratory/medical sectors, and the Machinio System platform that provides equipment sellers with a suite of software tools including website hosting, email marketing, and inventory management, to support and enable equipment sellers’ online business. The Software Solutions operating segment separately serves as the Company's private-label auction and software-as-a-service (SaaS) arm, offering scalable auction platform services to entrepreneurs and businesses. Macroeconomic Conditions Tariffs and other trade barriers. A number of countries have implemented, or are actively considering, measures affecting cross-border trade. Such actions may impact both our buyers and sellers as well as the availability of assets to list on our marketplaces. Ongoing developments related to the timing, scope and application of tariffs, including changes in tariff rates, the range of affected goods, and the countries subject to such measures, remain fluid and subject to rapid and unpredictable change. Tariffs imposed by the U.S., as well as retaliatory tariffs by other countries on U.S. exports, could adversely affect international commerce and our business. Supply chain challenges and consumer sentiment. The supply of used vehicles available for sale on our marketplaces may be impacted by ongoing tariffs implemented, or actively being considered, by the U.S., as well as the slowing adoption of electric vehicles as a replacement to internal combustion vehicle fleets. Further, used car market price indices continue to experience heightened volatility. In addition, general consumer behavior can be turbulent, and changes in consumer sentiment can cause fluctuation in the mix, volumes, and demand for the products we receive. Change in these conditions or other challenges that may emerge in other key asset categories can impact our financial performance. Effects of inflation and heightened interest rates. Inflation in both the U.S. and internationally has weighed on the global economy, increasing prices for energy, shipping, and labor, among other areas of the macroeconomic environment. These events have caused a rise in borrowing costs as well, partly driven by actions taken by central banks to curb rising inflation, which has impacted buyer qualification and transaction timelines. Currently, the Company is unable to predict the likelihood, magnitude, and timing of inflationary risk to our business, if any. As a marketplace operator, the GMV, revenues and costs of revenues that result from our primarily auction-based sales may be influenced by macroeconomic factors, including but not limited to inflation, the impacts of which may vary across each of our individual asset classes. International armed and geopolitical conflicts. The global financial markets have experienced volatility subsequent to the invasion of Ukraine by Russia in February 2022, a conflict which remains ongoing, as well as the ongoing conflict in and adjacent to Israel and Iran, and instability in Venezuela. Escalating tensions involving Iran have also contributed to volatility in global energy markets, including increases in oil prices, which in turn have placed upward pressure on transportation, logistics, and other operating costs and contributed to broader inflationary effects. Additionally, the Russia-Ukraine conflict resulted in numerous countries, including the United States, imposing significant new sanctions and export controls against Russia, Russian banks, and certain Russian individuals. These sanctions and export controls and international responses to the ongoing conflict in and adjacent to Israel and Iran, have further heightened global supply chain disruptions, increased energy and commodity price volatility, and impacted the international trade and financial markets. For the three and nine months ended June 30, 2026 and 2025, the Company's total revenues directly associated with Russia, Ukraine, Israel, Iran, and Venezuela were not material to our consolidated financial results individually nor collectively. We will continue monitoring these armed and geopolitical conflicts around the world and any potential future impacts on our business. Industry Trends We believe there are several industry trends positively impacting the long-term growth of our business including: • the increase in volume of returned merchandise handled both online and in stores as online and omni-channel retail grow as a percentage of overall retail sales; • the increase in government regulations and the need for corporations to have sustainability solutions with verifiable recycling and remarketing of surplus assets; • the increase in outsourcing surplus disposition and end-of-life assets by corporations and government entities as they focus on reducing costs, improving transparency, compliance and working capital, and increasingly prefer service providers with proven track records, innovative scalable solutions and the ability to make a strategic impact in the reverse supply chain; • an increase in buyer demand for surplus merchandise as consumers aspire to make more environmentally conscious decisions, while also seeking greater value through purchasing less expensive goods, both of which could impact our long-term growth; • the increase in demand from sellers and buyers to transact in an online solution ensuring assets are sold for fair market value; and • in the long-term we expect innovation in the retail supply chain will increase the pace of product obsolescence and, therefore, increase the supply of surplus assets. 20 Liquidity Services, Inc. and Subsidiaries Notes to the Unaudited Condensed Consolidated Financial Statements - (Continued) Our Marketplace Transactions We believe our marketplaces benefit over time from greater scale and adoption by our users creating a continuous flow of goods benefiting our buyers and sellers. As of June 30, 2026 [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1235468/000119312525289159/lqdt-20250930.htm Complete FY 2025 MD&A: /company/LQDT/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2025-11-20 Report date: 2025-09-30 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. The following discussion should be read in conjunction with our consolidated financial statements and related notes contained elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could vary materially from those indicated, implied, or suggested by these forward-looking statements as a result of many factors, including those discussed under "Risk Factors" and elsewhere in this Annual Report on Form 10-K. Overview About us. Liquidity Services is the leading global provider of e-commerce marketplaces and software solutions powering the circular economy. We create a better future for organizations, individuals, and the planet by using technology to capture and unleash the intrinsic value of surplus. We connect millions of buyers and thousands of sellers through our leading e-commerce auction marketplaces, search engines, asset management and auction software, and related services. Our comprehensive solutions enable the transparent, efficient, sustainable recovery of value from excess items owned by business and government sellers. Our business delivers value to shareholders by unleashing the intrinsic value of surplus through our online marketplace platforms. These platforms ignite and enable a self-reinforcing cycle of value creation where buyers and sellers attract one another in greater numbers. The result of this cycle is a continuous flow of goods that becomes increasingly valuable as more participants join the platforms, thereby creating positive network effects that benefit sellers, buyers, and shareholders. During the past three fiscal years, we conducted over 3.1 million online transactions that generated $4.1 billion in gross merchandise volume or GMV. GMV is the total sales value of all transactions for which we earned compensation upon their completion through our marketplaces or other channels during a given period of time. During the year ended September 30, 2025, the number of registered buyers grew from 5.5 million to 6.0 million, or 9%. We believe the continuous flow of goods in our marketplaces attracts a growing buyer base which creates a self-sustaining cycle for our buyers and sellers. We generated GMV of $1.6 billion and revenue of $477.7 million through multiple sources, including transaction fees from sellers and buyers, proceeds from the sale of products we purchased from sellers, and value-added service charges during the year ended September 30, 2025. Over the prior 5 years, our GMV has grown at a compound annual growth rate of 20.4%. Incorporated in Delaware as Liquidation.com in November 1999, Liquidity Services has over 25 years of industry experience. Reportable Segments The Company has five operating segments and three reportable segments under which we conduct business: GovDeals, Retail Supply Chain Group (RSCG), and Capital Assets Group (CAG). Our separate Machinio and Software Solutions operating segments, which do not individually meet the quantitative thresholds to be reportable segments, are combined and presented together as Machinio & Software Solutions for segment reporting purposes. Further information and operating results of our reportable segments can be found in Note 16 - Segment Information. • GovDeals. The GovDeals reportable segment provides solutions that enable government entities including city, county, state and federal agencies located in the United States and Canada and related commercial businesses to sell surplus property and real estate assets through its GovDeals, Bid4Assets and Sierra marketplaces; see Note 3 - Acquisitions. • RSCG. The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce solutions. This segment uses multiple selling channels across our network of marketplaces and others to optimize the best combination of velocity, volume, and value. This segment primarily conducts its business-to-business sales on its Liquidation.com marketplace and through Direct Sales, and direct-to-consumer sales on its AllSurplus Deals and Secondipity marketplaces and other third-party sales channels. 44 • CAG. The CAG reportable segment enables commercial businesses to sell surplus assets on our AllSurplus and GovDeals marketplace, specializing in asset categories such as heavy equipment, industrial manufacturing, oil and gas, biopharma, fast-moving consumer goods and electronics. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. CAG clients benefit from its global base of buyers and sellers, enabling the sale and redeployment of assets wherever they generate the best value and highest use across the world. • Machinio & Software Solutions. The Machinio operating segment operates the Machinio marketplace, a global search engine platform for listing equipment for sale in the construction, machine tool, processing, transportation, printing, agriculture, and laboratory/medical sectors, and the Machinio System platform that provides equipment sellers with a suite of software tools including website hosting, email marketing, and inventory management, to support and enable equipment sellers’ online business. The Software Solutions operating segment separately serves as the Company's private-label auction and software-as-a-service (SaaS) arm, offering scalable auction platform services to entrepreneurs and businesses. Macroeconomic Conditions Tariffs and other trade barriers. A number of countries have implemented, or are actively considering, measures affecting cross-border trade. Such actions may impact both our buyers and sellers as well as the availability of assets to list on our marketplaces. Ongoing developments related to the timing, scope and application of tariffs, including changes in tariff rates, the range of affected goods, and the countries subject to such measures, remain fluid and subject to rapid and unpredictable change. Tariffs imposed by the U.S., as well as retaliatory tariffs by other countries on U.S. exports, could adversely affect international commerce and our business. Supply chain challenges and consumer sentiment. The supply of used vehicles available for sale on our marketplaces may be impacted by ongoing tariffs implemented, or actively being considered, by the U.S., as well as the slowing adoption of electric vehicles as a replacement to internal combustion vehicle fleets. Further, used car market price indices continue to experience heightened volatility. In addition, general consumer behavior can be turbulent, and changes in consumer sentiment can cause fluctuation in the mix, volumes, and demand for the products we receive. Change in these conditions or other challenges that may emerge in other key asset categories can impact our financial performance. Effects of inflation and heightened interest rates. Inflation in both the U.S. and internationally has weighed on the global economy, increasing prices for energy, shipping, and labor, among other areas of the macroeconomic environment. These events have caused a rise in borrowing costs as well, partly driven by actions taken by central banks to curb rising inflation, which has impacted buyer qualification and transaction timelines. Currently, the Company is unable to predict the likelihood, magnitude, and timing of inflationary risk to our business, if any. As a marketplace operator, the GMV, revenues and costs of revenues that result from our primarily auction-based sales may be influenced by macroeconomic factors, including but not limited to inflation, the impacts of which may vary across each of our individual asset classes. International armed and geopolitical conflicts. The global financial markets have experienced volatility subsequent to the invasion of Ukraine by Russia in February 2022, a conflict which remains ongoing, as well as the ongoing conflict in and adjacent to Israel. The Russia-Ukraine conflict specifically resulted in numerous countries, including the United States, imposing significant new sanctions and export controls against Russia, Russian banks, and certain Russian individuals. These sanctions and export controls and international responses to the ongoing conflict in and adjacent to Israel, have further heightened global supply chain disruptions and impacted the international trade markets. For the fiscal years ended September 30, 2025 and 2024, the Company's total revenues directly associated with Russia, Ukraine, and Israel were not material to our consolidated financial results. We will continue monitoring these armed and geopolitical conflicts around the world and any potential future impacts on our business. See Part I, Item 1A, Risk Factors, for an additional discussion of risks related to global economic conditions including those discussed above. Industry Trends We believe there are several industry trends positively impacting the long-term growth of our business including: • the increase in volume of returned merchandise handled both online and in stores as online and omni-channel retail grow as a percentage of overall retail sales; 45 • the increase in government regulations and the need for corporations to have sustainability solutions with verifiable recycling and remarketing of surplus assets; • the increase in outsourcing surplus disposition and end-of-life assets by corporations and government entities as they focus on reducing costs, improving transparency, compliance and working capital, and increasingly prefer service providers with proven track records, innovative scalable solutions and the ability to make a strategic impact in the reverse supply chain; • an increase in buyer demand for surplus merchandise as consumers aspire to make more environmentally conscious decisions, while also seeking greater value through purchasing less expensive goods, both of which could impact our long-term growth; • the increase in demand from sellers and buyers to transact in an online solution ensuring assets are sold for fair market value; and • in the long-term we expect innovation in the retail supply chain will increase the pace of product obsolescence and, therefore, increase the supply of surplus assets. Revenues Substantially all of our revenue is earned through the following transaction models: Purchase model. Under our purchase transaction model, we recognize revenue within the Purchase revenues line-item on the Consolidated Statements of Operations from the resale of inventory that we purchased from sellers. We consider these sellers to be our vendors. We pay our sellers either a fixed amount or a portion of the net or gross proceeds received from our completed sales based on the value we receive from the sale, in some cases, after deducting a required return to us that we have negotiated with the seller. Because we are the principal in purchase transaction model sales, we recognize as revenue the sale price paid by the buyer upon completion of a transaction. The proceeds paid by buyers also include transaction fees, referred to as buyer premiums. Consignment model—fee revenue. Under our consignment transaction model, we enable our sellers to sell goods they own in our marketplaces, and we charge them a commission fee based on the gross or net proceeds received from such sales. The revenue from our consignment transaction model is recognized upon auction close or upon collection of auction proceeds, depending upon the settlement service level selected by the seller. Revenue under the consignment model is recorded within the Consignment and other fee revenues line-item on the Consolidated Statements of Ope [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/LQDT/mda/fy2025/ All MD&A years: /company/LQDT/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/LQDT/mda/fy2024/): filed 2024-12-12; accession 0000950170-24-135700 (https://www.sec.gov/Archives/edgar/data/1235468/000095017024135700/lqdt-20240930.htm) - [FY 2023 MD&A](/company/LQDT/mda/fy2023/): filed 2023-12-07; accession 0000950170-23-068822 (https://www.sec.gov/Archives/edgar/data/1235468/000095017023068822/lqdt-20230930.htm) - [FY 2022 MD&A](/company/LQDT/mda/fy2022/): filed 2022-12-08; accession 0001235468-22-000142 (https://www.sec.gov/Archives/edgar/data/1235468/000123546822000142/lqdt-20220930.htm) - [FY 2021 MD&A](/company/LQDT/mda/fy2021/): filed 2021-12-09; accession 0001235468-21-000173 (https://www.sec.gov/Archives/edgar/data/1235468/000123546821000173/lqdt-20210930.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7389 Services-Business Services, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/LQDT.md · JSON record: /company/LQDT.json · verified financials: /company/LQDT/financials.json / /company/LQDT/financials.csv · machine TOC for the whole site: /llms.txt