Gary Prestopino's questions to Liquidity Services Inc (LQDT) leadership • Q3 2025
Question
Gary Prestopino asked about the typical lag time for new client wins in the GovDeals segment to contribute to results, and sought clarification on the new Columbus, Ohio direct-to-consumer initiative, including its target market, product scope, and the business model for future expansion.
Answer
CEO William Angrick stated that the lag time for new clients can range from a few months to 4-5 months, but noted that recent business development wins are already impacting results, particularly in the heavy equipment category. He confirmed the Columbus initiative is the first deployment of their new consumer auction software, designed to sell higher-value returned goods directly to consumers, which is accretive to margins. Angrick elaborated on the expansion strategy, describing it as a 'business in a box' model where LSI will license its software and playbook to resale partners in other geographic markets, creating a new software-based revenue stream.