Liquidity Services has strung together a perfect four-quarter earnings beat streak with excellent cash conversion, but that sits alongside a rich valuation and elevated leverage, a failed momentum and asymmetry gate near a 52-week high, and bearish insider selling.
Thesis pillars
- Perfect Earnings Beat Streak→Stable
- Excellent Cash Conversion→Stable
- Rich Valuation And Leverage→Stable
- +2 more pillars — see the Why tab for full reasoning
Liquidity Services, Inc. (LQDT) Stock Analysis
Range Bound setup
Consumer Cyclical · Internet Retail
Sell if holding. Analyst target reached at $38.03 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (4.8% away).
Liquidity Services operates e-commerce marketplaces (GovDeals, Retail Supply Chain Group, Capital Assets Group, and Machinio & Software Solutions) that let corporations and government agencies liquidate surplus, returned, and excess goods to a global buyer base. The company... Read more
Sell if holding. Analyst target reached at $38.03 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (4.8% away). Chart setup: RSI 51 mid-range, Bollinger mid-band. Score 4.6/10, moderate confidence.
Passes 5/8 gates (no SEC red flags, news events none recent, earnings proximity 30d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
About Liquidity Services, Inc.
About Liquidity Services, Inc.
Liquidity Services generated $477.7 million in revenue and $1.6 billion in gross merchandise volume during fiscal 2025 across four segments - GovDeals, Retail Supply Chain Group, Capital Assets Group, and Machinio & Software Solutions - that let corporate and government sellers liquidate surplus, returned, and excess assets. The company's registered buyer base grew 9.5% to 6.0 million in fiscal 2025, and GMV has compounded at 20.4% annually over the past five years, with transactions spanning 160 unique country pairings.
Liquidity Services earns revenue through two transaction models: a consignment model, in which the company earns commission on sales without taking inventory ownership, and a purchase model, in which it buys surplus inventory - including a significant portion sourced under vendor contracts with Amazon.com in its RSCG segment - and resells it while bearing inventory and credit risk. GovDeals serves U.S. and Canadian government agencies selling surplus property and real estate; RSCG resells corporate returns and overstock through Liquidation.com, AllSurplus Deals, and the new Retail Rush physical bin-store format; and CAG handles industrial, heavy equipment, oil and gas, and biopharma surplus for commercial clients. The Machinio & Software Solutions segment operates an equipment search engine and a private-label SaaS auction platform. Marketing depends heavily on organic search traffic from Google and on public cloud infrastructure providers outside the company's direct control.
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A single vendor relationship carries outsized weight in Liquidity Services' purchase-transaction business: contracts with Amazon.com supplied $10.1 million of the company's inventory balance as of September 30, 2025, and the 10-K states that if Amazon changed the mix, quantity, or terms of inventory it makes available, Liquidity Services likely could not find replacement inventory from other vendors on acceptable terms, or at all. That risk sits alongside a separate, non-inventory dependency: organic search traffic from Google is described as a significant driver of buyer and seller acquisition, meaning an algorithm change at a single search provider could affect marketplace volume independent of Amazon-sourced inventory availability.
See also: Consumer Cyclical · Internet Retail
From Liquidity Services, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierAmazon.com vendor inventory (RSCG segment)10-K Item 1A: 'We have vendor contracts with Amazon.com, Inc. in our RSCG segment under which we acquire a significant portion of our purchased inventory'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $38.03 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (4.8% away). Chart setup: RSI 51 mid-range, Bollinger mid-band. Prior stop was $35.73. Score 4.6/10, moderate confidence.
Take-profit target: $39.13 (+2.9% upside). Prior stop was $35.73. Stop-loss: $35.73.
Analyst target reached - limited upside remaining; Near 52-week high (4.8% away); Weak overall score: 4.6/10.
Liquidity Services, Inc. trades at a P/E of 41.3 (forward 22.6). TrendMatrix value score: 4.0/10. Verdict: Sell.
8 analysts cover LQDT with a consensus score of 4.3/5. Average price target: $44.
What does Liquidity Services, Inc. do?Liquidity Services operates e-commerce marketplaces (GovDeals, Retail Supply Chain Group, Capital Assets Group, and...
Liquidity Services operates e-commerce marketplaces (GovDeals, Retail Supply Chain Group, Capital Assets Group, and Machinio & Software Solutions) that let corporations and government agencies liquidate surplus, returned, and excess goods to a global buyer base. The company earns transaction fees, resale proceeds, and value-added service charges, generating $477.7 million in revenue and $1.6 billion in gross merchandise volume from 6.0 million registered buyers in fiscal 2025. Network effects between its buyer base and thousands of sellers, built over 25 years, differentiate it from fragmented