Question · Q4 2025
Gary Prestipino from Barrington inquired about Liquidity Services' significant margin improvement, specifically seeking details on the new payment solution's impact on transaction costs and other factors contributing to the adjusted EBITDA margin growth. He also asked for clarification on the nature of the payment solutions, the future trend of consignment sales as a percentage of GMV, and the expansion plans for the Retail Rush localized consumer auction channel beyond Columbus.
Answer
Chairman and CEO Will Angrick explained that margin improvement stems from inherent operating leverage and the integration of AI-assisted technologies for cost reduction and efficiency across various operations, including customer service, employee onboarding, and payment processing. He clarified that the new payment solutions are software-driven upgrades integrating third-party technologies, not financing solutions like 'buy now, pay later.' Angrick anticipates consignment sales as a percentage of GMV to tick up over time. Regarding Retail Rush, he stated it's currently a prototype being tested in Columbus for customer pickup, with future national application for internal and third parties being considered after the initial test phase.
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