Liquidity Services, Inc. (LQDT) AI Stock Analysis

Liquidity Services, Inc. operates e-commerce marketplaces, self-directed auction listing tools, and value-added services worldwide. The business is organized into four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its platforms, including liquidation.com, GovDeals, and AllSurplus, enable corporations and government organizations to sell surplus consumer goods, retail assets, manufacturing surplus, and scrap materials. In addition, Machinio serves as a global search engine platform listing used equipment in agriculture, construction, and transportation. The company also provides surplus management, asset valuation, marketing, returns management, and e-commerce services.

Revenue rose from $257.5M in FY2021 to $280.1M in FY2022, $314.5M in FY2023, $363.3M in FY2024, and $476.7M in FY2025, which marked an annual growth rate of 31.2%. From FY2020 to FY2025, revenue expanded at an 18.3% CAGR. Gross margin contracted over this timeframe, moving from 58.2% in FY2021 to 43.8% in FY2025. Operating margin came in at 7.4% in FY2025 and improved to 10.8% over the trailing twelve months. Annual net income grew from $20.0M in FY2024 to $28.1M in FY2025, with EPS increasing from $1.03 to $1.30. In the latest quarter ended June 30, 2026, revenue increased 8.1% year-over-year while earnings grew 39.1%.

As of June 30, 2026, Liquidity Services held $231.1M in cash and short-term investments against $13.6M in total debt, resulting in net cash of $217.5M. Liquidity remains sound with a current ratio of 1.58 and a debt-to-equity ratio of 0.06 on shareholders' equity of $235.9M. In FY2025, the company generated $66.8M in operating cash flow and $59.0M in free cash flow. Capital deployment included $7.8M in capital expenditures and $16.2M in share buybacks, supporting a 5-year share count reduction of 5.8%.

Liquidity Services trades at a trailing P/E of 43.0x and a forward P/E of 24.6x, compared to the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value of $1.13B reflects an EV/EBITDA of 20.6x versus the peer median of 11.1x, and a price-to-sales multiple of 2.8x compared to the peer median of 0.7x. Over the past year, the stock returned 87.6%, outpacing the S&P 500 return of 16.8%, and delivered a 5-year return of 114.3% versus 83.0% for the index.

Wall Street coverage includes 1 Strong Buy and 1 Buy rating, with no Hold, Sell, or Strong Sell recommendations. The mean price target of $51.00 represents an upside of 16.3% over the last close of $43.86 on October 16, 2026. For the fiscal year ending September 30, 2026, analysts estimate EPS of $1.65, indicating 28.9% earnings growth, followed by $1.84 EPS for the next fiscal year. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is scheduled for November 19, 2026.

This page is an AI-written research summary of Liquidity Services, Inc. (LQDT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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