Question · Q4 2025
Gary Prespettino from Barrington asked about the drivers behind Liquidity Services' improved adjusted EBITDA margins, specifically inquiring about the new payment solution's impact on transaction costs and whether it involves new financing options. He also questioned the future trajectory of consignment sales as a percentage of GMV and the expansion plans for the Retail Rush consumer auction channel.
Answer
Chairman and CEO Will Angrick explained that margin improvement stems from operating leverage, AI-assisted technologies across various functions (customer service, payments, asset listing via SAM tool), and the scale of their GMV. He clarified that the new payment solution is a software-driven upgrade for processing, not a financing offering. Angrick anticipates consignment sales as a percentage of GMV will increase over time. Regarding Retail Rush, he stated it's a prototype online consumer auction in Columbus for local pickup, with national expansion considered after testing.
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