LIQUIDITY SERVICES INC Fair Value Disclosure
13. Fair Value Measurement
The Company measures and records in the accompanying consolidated financial statements certain assets and liabilities at fair value on a recurring basis. Authoritative guidance issued by the FASB establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company's assumptions (unobservable inputs). The hierarchy consists of three levels:
Level 1 |
|
Quoted market prices in active markets for identical assets or liabilities; |
Level 2 |
|
Inputs other than Level 1 inputs that are either directly or indirectly observable; and |
Level 3 |
|
Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use. |
Cash and cash equivalents. The Company had $79.3 million and $67.2 million of money market funds considered cash equivalents as of September 30, 2025 and 2024, respectively. These assets were measured at fair value as of September 30, 2025, and 2024, and were classified as Level 1 assets within the fair value hierarchy. There were no transfers between levels during the periods presented.
Short-term investments. The Company had $11.2 million and $2.3 million of guaranteed investment certificates considered investments as of September 30, 2025 and 2024, respectively. As these investments have maturity dates of 12 months or less from the balance sheet date, they have been classified as short-term in nature. These assets were measured at fair value as of September 30, 2025, and 2024, and were classified as Level 1 assets within the fair value hierarchy. There were no transfers between levels during the periods presented.
Other Current Assets and Liabilities. The Company had a short-term foreign exchange derivative instrument that had an immaterial fair value as of September 30, 2025, using Level 2 in the fair value hierarchy.
The Company’s financial assets and liabilities not measured at fair value are cash, accounts receivable, accounts payable, and payables to sellers. The Company believes the carrying values of these instruments approximate fair value.
As of September 30, 2025, 2024, and 2023, the Company did not have any material assets or liabilities measured at fair value on a non-recurring basis.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 20, 2025 | Showing above |
| 2024 | Dec 12, 2024 | |
| 2023 | Dec 7, 2023 | |
| 2022 | Dec 8, 2022 | |
| 2021 | Dec 9, 2021 | |
| 2020 | Dec 8, 2020 | |
| 2019 | Dec 10, 2019 | |
| 2018 | Dec 6, 2018 | |
| 2017 | Dec 7, 2017 | |
| 2016 | Nov 21, 2016 | |
| 2015 | Nov 23, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.