📊 LQDT Key Takeaways
Is Liquidity Services Inc. (LQDT) a Good Investment?
While Liquidity Services maintains a fortress balance sheet with no debt and $169.8M in cash, the company exhibits critical operational weaknesses: a catastrophic disconnect between explosive revenue growth (+10,795% YoY) and flat net income growth (0% YoY) indicates poor quality earnings, and persistent negative operating cash flow (-$526K) despite positive net income signals the company cannot convert accounting profits into actual cash. The combination of negative FCF, historically poor capital returns (ROE 3.5%, ROA 2.0%), and deteriorating cash conversion is unsustainable.
Liquidity Services is profitable with solid gross margins and a cash-rich, debt-free balance sheet, providing resilience. However, the dramatic revenue increase has not translated into stronger earnings or cash flow, with negative operating and free cash flow raising conversion concerns. Sustained improvement in operating leverage and cash generation is needed before a more constructive stance.
Why Buy Liquidity Services Inc. Stock? LQDT Key Strengths
- Strong balance sheet with $169.8M cash and zero long-term debt providing financial flexibility
- Adequate liquidity ratios (current 1.53x, quick 1.43x) supporting near-term operational needs
- Healthy gross margin of 47% demonstrates underlying business-level profitability potential
- Debt-free balance sheet with substantial cash
- Healthy gross margin (~47%) and positive operating income
- Adequate liquidity (current ratio 1.53x; quick ratio 1.43x)
LQDT Stock Risks: Liquidity Services Inc. Investment Risks
- Negative operating cash flow (-$526K) and negative free cash flow (-$2.8M) indicate company is burning cash despite accounting profitability, unsustainable long-term
- Extreme revenue growth (+10,795% YoY) paired with zero earnings growth (0% YoY) suggests low-margin revenue, one-time transactions, or acquisition integration masking operational challenges
- Severely depressed returns on capital (ROE 3.5%, ROA 2.0%) demonstrate poor capital efficiency and value destruction for shareholders
- Negative operating cash flow and FCF despite profitability
- Low ROE/ROA indicating limited capital efficiency
- Revenue volatility with weak flow-through to net income
Key Metrics to Watch
- Operating cash flow trend - must turn positive to validate fundamental business viability
- Revenue quality and margins of new revenue streams contributing to growth spike
- Return on equity improvement trajectory - current 3.5% is critically low
- Operating cash flow and FCF conversion (OCF/Net income)
- Operating margin trend and working capital intensity
Liquidity Services Inc. (LQDT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Liquidity Services Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LQDT Profit Margin, ROE & Profitability Analysis
LQDT vs Services Sector: How Liquidity Services Inc. Compares
How Liquidity Services Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Liquidity Services Inc. Stock Overvalued? LQDT Valuation Analysis 2026
Based on fundamental analysis, Liquidity Services Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Liquidity Services Inc. Balance Sheet: LQDT Debt, Cash & Liquidity
LQDT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Liquidity Services Inc.'s revenue has grown significantly by 85% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.65 reflects profitable operations.
LQDT Revenue Growth, EPS Growth & YoY Performance
LQDT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $121.2M | $5.8M | $0.18 |
| Q3 2025 | $93.6M | $1.9M | $0.19 |
| Q2 2025 | $91.5M | $1.9M | $0.18 |
| Q1 2025 | $71.3M | $1.9M | $0.06 |
| Q3 2024 | $80.8M | $1.9M | $0.19 |
| Q2 2024 | $81.5M | $1.9M | $0.13 |
| Q1 2024 | $71.3M | $1.9M | $0.06 |
| Q3 2023 | $69.9M | $3.6M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Liquidity Services Inc. Dividends, Buybacks & Capital Allocation
LQDT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Liquidity Services Inc. (CIK: 0001235468)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LQDT
What is the AI rating for LQDT?
Liquidity Services Inc. (LQDT) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LQDT's key strengths?
Claude: Strong balance sheet with $169.8M cash and zero long-term debt providing financial flexibility. Adequate liquidity ratios (current 1.53x, quick 1.43x) supporting near-term operational needs. ChatGPT: Debt-free balance sheet with substantial cash. Healthy gross margin (~47%) and positive operating income.
What are the risks of investing in LQDT?
Claude: Negative operating cash flow (-$526K) and negative free cash flow (-$2.8M) indicate company is burning cash despite accounting profitability, unsustainable long-term. Extreme revenue growth (+10,795% YoY) paired with zero earnings growth (0% YoY) suggests low-margin revenue, one-time transactions, or acquisition integration masking operational challenges. ChatGPT: Negative operating cash flow and FCF despite profitability. Low ROE/ROA indicating limited capital efficiency.
What is LQDT's revenue and growth?
Liquidity Services Inc. reported revenue of $121.2M.
Does LQDT pay dividends?
Liquidity Services Inc. does not currently pay dividends.
Where can I find LQDT SEC filings?
Official SEC filings for Liquidity Services Inc. (CIK: 0001235468) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LQDT's EPS?
Liquidity Services Inc. has a diluted EPS of $0.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LQDT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Liquidity Services Inc. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LQDT stock overvalued or undervalued?
Valuation metrics for LQDT: ROE of 3.5% (sector avg: 16%), net margin of 6.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy LQDT stock in 2026?
Our dual AI analysis gives Liquidity Services Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LQDT's free cash flow?
Liquidity Services Inc.'s operating cash flow is $-526.0K, with capital expenditures of $2.3M. FCF margin is -2.3%.
How does LQDT compare to other Services stocks?
Vs Services sector averages: Net margin 6.2% (avg: 10%), ROE 3.5% (avg: 16%), current ratio 1.53 (avg: 1.5).