LIQUIDITY SERVICES INCLQDT

LIQUIDITY SERVICES INC Segments Disclosure

10-KFiled Nov 20, 20255 min read

16. Segment Information

The Company has five operating segments and three reportable segments under which we conduct business: GovDeals, Retail Supply Chain Group (RSCG), and Capital Assets Group (CAG). Our separate Machinio and Software Solutions operating segments, which do not individually meet the quantitative thresholds to be reportable segments, are combined and presented together as Machinio & Software Solutions for segment reporting purposes.

•
GovDeals. The GovDeals reportable segment provides solutions that enable government entities including city, county, state and federal agencies located in the United States and Canada and related commercial businesses to sell surplus property and real estate assets through its GovDeals, Bid4Assets and Sierra marketplaces; see Note 3 - Acquisitions.
•
RSCG. The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce solutions. This segment uses multiple selling channels across our network of marketplaces and others to optimize the best combination of velocity, volume, and value. This segment primarily conducts its business-to-business sales on its Liquidation.com marketplace and through Direct Sales, and direct-to-consumer sales on its AllSurplus Deals and Secondipity marketplaces and other third-party sales channels.
•
CAG. The CAG reportable segment enables commercial businesses to sell surplus assets on our AllSurplus and GovDeals marketplace, specializing in asset categories such as heavy equipment, industrial manufacturing, oil and gas, biopharma, fast-moving consumer goods and electronics. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. CAG clients benefit from its global base of buyers and sellers, enabling the sale and redeployment of assets wherever they generate the best value and highest use across the world.
•
Machinio & Software Solutions. The Machinio operating segment operates the Machinio marketplace, a global search engine platform for listing equipment for sale in the construction, machine tool, processing, transportation, printing, agriculture, and laboratory/medical sectors, and the Machinio System platform that provides equipment sellers with a suite of software tools including website hosting, email marketing, and inventory management, to support and enable equipment sellers’ online business. The Software Solutions operating segment separately serves as the Company's private-label auction and software-as-a-service (SaaS) arm, offering scalable auction platform services to entrepreneurs and businesses.

Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker (CODM), which is the Company's Chief Executive Officer, with oversight by the Board of Directors. The Company reports reportable segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment direct profit to evaluate the performance of each segment. Segment direct profit is calculated as total revenue less cost of goods sold (excludes depreciation and amortization).

The following table sets forth certain financial information for the Company's reportable segments:

 

 

 

 

Year Ended September 30,

 

(in thousands)

2025

 

 

2024

 

 

 

2023

 

GovDeals:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

 

$

690

 

 

$

191

 

 

 

$

—

 

 

Consignment and other fee revenues

 

 

86,714

 

 

 

76,366

 

 

 

 

62,010

 

 

Total revenue

 

 

87,404

 

 

 

76,557

 

 

 

 

62,010

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

(6,398

)

 

 

(4,830

)

 

 

 

(3,200

)

 

Segment direct profit

 

$

81,006

 

 

$

71,727

 

 

 

$

58,810

 

 

 

 

 

 

 

 

 

 

 

 

RSCG:

 

 

 

 

 

 

 

 

 

 

Purchase revenue

 

$

303,854

 

 

$

201,034

 

 

 

$

161,780

 

 

Consignment and other fee revenues

 

 

26,437

 

 

 

31,969

 

 

 

 

38,438

 

 

Total revenue

 

 

330,291

 

 

 

233,003

 

 

 

 

200,218

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

(255,544

)

 

 

(166,130

)

 

—

 

 

(132,150

)

 

Segment direct profit

 

$

74,747

 

 

$

66,873

 

 

 

$

68,068

 

 

 

 

 

 

 

 

 

 

 

 

CAG:

 

 

 

 

 

 

 

 

 

 

Purchase revenue

 

$

5,994

 

 

$

8,575

 

 

 

$

10,309

 

 

Consignment and other fee revenues

 

 

33,302

 

 

 

29,093

 

 

 

 

28,167

 

 

Total revenue

 

 

39,296

 

 

 

37,668

 

 

 

 

38,476

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

(4,468

)

 

 

(6,400

)

 

 

 

(6,261

)

 

Segment direct profit

 

$

34,828

 

 

$

31,268

 

 

 

$

32,215

 

 

 

 

 

 

 

 

 

 

 

 

Machinio & Software Solutions:

 

 

 

 

 

 

 

 

 

 

Purchase revenue

 

$

—

 

 

$

—

 

 

 

$

—

 

 

Consignment and other fee revenues

 

 

19,746

 

 

 

16,157

 

 

 

 

13,821

 

 

Total revenue

 

 

19,746

 

 

 

16,157

 

 

 

 

13,821

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

(1,444

)

 

 

(793

)

 

 

 

(711

)

 

Segment direct profit

 

$

18,302

 

 

$

15,364

 

 

 

$

13,110

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment direct profit

$

208,884

 

 

$

185,232

 

 

 

$

172,202

 

Corporate expenses, including elimination adjustments

 

 

(69

)

 

 

(66

)

 

 

 

(62

)

Consolidated direct profit

$

208,815

 

 

$

185,166

 

 

 

$

172,140

 

 

 

The following table reconciles segment direct profit used in the reportable segments to the Company's consolidated results:

 



 

Year Ended September 30,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Reconciliation:

 

 

 

 

 

 

 

 

 

Total segment direct profit

 

$

208,815

 

 

$

185,166

 

 

$

172,140

 

Other costs and expenses from operations (1)

 

 

172,689

 

 

 

160,290

 

 

 

145,850

 

Interest and other (income) expense, net

 

 

(3,315

)

 

 

(2,383

)

 

 

(2,726

)

Income before provision for income taxes

 

$

39,441

 

 

$

27,260

 

 

$

29,016

 

 

(1) Other costs and expenses from operations is defined as Total costs and expenses from operations per the Consolidated Statements of Operations, less Cost of goods sold (which is included in the calculation of Segment direct profit).

 

Total segment assets reconciled to consolidated amounts are as follows:

 



 

September 30,

 

(in thousands)

 

2025

 

 

2024

 

Segment Assets:

 

 

 

 

 

 

GovDeals

 

$

381,654

 

 

$

324,145

 

RSCG

 

 

141,046

 

 

 

138,082

 

CAG

 

 

100,643

 

 

 

98,716

 

Machinio & Software Solutions

 

 

54,364

 

 

 

41,871

 

Corporate & Other

 

 

(302,606

)

 

 

(255,926

)

Total Segment Assets:

 

$

375,101

 

 

$

346,888

 

 

Revenue attributed to countries that represent a significant portion of consolidated revenues are as follows:

 



 

Year Ended September 30,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Revenue by geographic area

 

 

 

 

 

 

 

 

 

United States

 

$

433,258

 

 

$

323,303

 

 

$

278,734

 

Rest of the world

 

 

43,411

 

 

 

40,015

 

 

 

35,729

 

Consolidated

 

$

476,669

 

 

$

363,318

 

 

$

314,462

 

 

Total long-lived assets by geographic areas are as follows:

 



 

September 30,

 

(in thousands)

 

2025

 

 

2024

 

Assets by geographic area

 

 

 

 

 

 

United States

 

$

18,039

 

 

$

17,827

 

Rest of the world

 

 

220

 

 

 

134

 

Total Long-lived Assets

 

$

18,259

 

 

$

17,961

 

 

For the fiscal years ended September 30, 2025 and 2024, transactions with a single RSCG external customer represented approximately 13% and 12% of the Company’s consolidated revenues, respectively. No single external customer exceeded 10% of consolidated revenues for the year ended September 30, 2023.

Historical Timeline

Fiscal YearFiled
2025Nov 20, 2025Showing above
2024Dec 12, 2024
2023Dec 7, 2023
2022Dec 8, 2022
2021Dec 9, 2021
2020Dec 8, 2020
2019Dec 10, 2019
2018Dec 6, 2018
2017Dec 7, 2017

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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