TacticScaleWhat Liquidity Services Does & How It Makes Money (LQDT)
Updated October 2026 · reflects Liquidity Services's latest reported financials
Online marketplaces for selling surplus, returned, and used business assets. It earns money from selling surplus and returned assets for government and commercial clients on its marketplaces, plus fees for value-added services like asset management and returns handling.
How Liquidity Services makes money
It earns money from selling surplus and returned assets for government and commercial clients on its marketplaces, plus fees for value-added services like asset management and returns handling. Machinio adds revenue from equipment-listing and software tools (website hosting, email marketing, inventory management) sold to equipment sellers.
What Liquidity Services does
Liquidity Services, Inc. runs e-commerce marketplaces and self-service auction listing tools that let government entities and commercial businesses sell surplus property, real estate, and excess or returned inventory. It reports four segments. GovDeals serves public-sector sellers. The Retail Supply Chain Group (RSCG) handles returned and overstocked consumer goods, including through Liquidation.com. The Capital Assets Group (CAG) focuses on industrial and specialty assets. Machinio is a global search engine for used equipment. The company also sells properties through its Bid4Assets and Sierra marketplaces. Around these marketplaces it offers surplus management, asset valuation, marketing, returns management, and asset recovery services. Machinio also sells software tools to equipment dealers. Products listed on its platforms include consumer electronics, apparel, scientific and aerospace equipment, technology hardware, energy equipment, heavy equipment, and fleet vehicles. Founded in 1999, the company is headquartered in Bethesda, Maryland, and operates in the U.S. and internationally.
Products & services
- GovDeals
- Liquidation.com
- Machinio
- Bid4Assets
- Sierra
- Machinio System
What is Liquidity Services worth?
On an owner-earnings DCF, Liquidity Services's most-likely value is about $48 versus a recent price near $43 (12% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$20) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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