Free cash flow remains volatile, fluctuating between a negative 14.9% margin in 2024Q1 and a positive 35.5% margin in 2024Q2, largely driven by unpredictable working capital swings.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 |
|---|
| Cash from Operations | 86.27M | 66.76M | 70.22M | 47.02M | 44.83M | 65.42M | 16.48M | -6.24M | 619K | -31.65M | 48.39M | 43.49M | 11.86M | 46.74M | 52.15M | 39.89M | 31.93M | 8.63M | 28.99M | 4.47M | 17.66M | 6.14M | 5.59M |
| Operating CF Margin % | - | 14.01% | 19.33% | 14.95% | 16.01% | 25.4% | 8% | -2.76% | 0.28% | -11.72% | 15.29% | 10.95% | 2.39% | 9.24% | 10.97% | 12.18% | 11.7% | 3.65% | 10.98% | 2.25% | 11.95% | 6.87% | 7.37% |
| Operating CF Growth % | 191.41% | -4.93% | 49.36% | 4.87% | -31.47% | 297% | 363.99% | -1108.4% | 101.96% | -165.41% | 11.27% | 266.83% | -74.64% | -10.36% | 30.74% | 24.91% | 269.81% | -70.21% | 547.99% | -74.67% | 187.48% | 9.85% | - |
| Net Income | 30.24M | 28.09M | 19.99M | 20.98M | 40.32M | 50.95M | -3.77M | -19.26M | -11.62M | -39.19M | -59.93M | -104.81M | 30.39M | 41.1M | 48.3M | 20.68M | 12.01M | 5.72M | 11.55M | 11.02M | 7.98M | 4.12M | 5.27M |
| Depreciation & Amortization | 10.55M | 10.41M | 12.12M | 11.26M | 10.32M | 6.97M | 6.29M | 5.09M | 4.6M | 5.8M | 6.5M | 9.23M | 16.59M | 17.37M | 14.17M | 5.69M | 4.94M | 3.93M | 2.9M | 2.12M | 1.55M | 765K | 570K |
| Stock-Based Compensation | 19M | 14.49M | 11.09M | 8.19M | 8.48M | 6.95M | 5.66M | 6.51M | 6.6M | 7.38M | 12.25M | 12.4M | 12.61M | 13.38M | 12.12M | 9.14M | 7.89M | 6.46M | 4.67M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 2.89M | 2.4M | 5.32M | 6.58M | 6.29M | -24.51M | 106K | 136K | -10.95M | -620K | 26.18M | -6.28M | 828K | -6.85M | -1.72M | 66K | -893K | -1.53M | -1.3M | -2.3M | -691K | -701K | 0 |
| Other Non-Cash Items | 29.66M | 1.39M | 988K | 2.4M | -24.39M | 1.87M | 671K | 3.99M | 2.4M | 12.37M | 22.15M | 146.39M | -21.77M | -11.07M | -16.43M | -540K | 227K | 93K | -736K | 2.11M | 944K | 277K | 296K |
| Working Capital Changes | -6.07M | 9.98M | 20.71M | -2.39M | 3.81M | 23.2M | 7.53M | -2.71M | 9.58M | -17.39M | 41.24M | -13.44M | -26.79M | -7.2M | -4.28M | 4.85M | 7.76M | -6.04M | 11.91M | -8.56M | 7.54M | 1.68M | -542K |
| Change in Receivables | 9.03M | 233K | -4.27M | 2.73M | -6.29M | -843K | 1.18M | -2.01M | 6.58M | -1.61M | -4.41M | 14.33M | 2.21M | -7.47M | -1.6M | -1.81M | 547K | 356K | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 5.5M | 5.24M | 163K | -479K | 441K | -7.04M | -64K | 3.95M | 8.12M | -3.51M | -4.78M | 50.98M | -49.49M | -7.47M | -132K | -392K | -3.55M | -801K | 4.62M | -9.99M | -2.77M | -1.07M | -64K |
| Change in Payables | -8.67M | -68K | 8.37M | -3.47M | 14.55M | 26.1M | 12.82M | -7.53M | 5.26M | -1.33M | 232K | -4.53M | -545K | 6.54M | -7.57M | 1.55M | 2.82M | -2.85M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -6.26M | -22.98M | -16.11M | -11.43M | -21.08M | -1M | 28.65M | -15.71M | -37.05M | -7.92M | -6.15M | -9.82M | -7.68M | -20.19M | -78.59M | 19.61M | -10.72M | -24.01M | -17.11M | -22.04M | -14.34M | -3.24M | -2.97M |
| Capital Expenditures | -8.53M | -7.8M | -8.91M | -5.39M | -8.12M | -5.45M | -4.25M | -5.96M | -4.21M | -7.92M | -6.15M | -7.45M | -7.68M | -20.19M | -78.59M | -13.91M | -7.82M | -4.63M | -1.7M | -2.9M | -2.14M | -487K | -420K |
| CapEx % of Revenue | 1.78% | 1.64% | 2.45% | 1.71% | 2.9% | 2.12% | 2.06% | 2.63% | 1.87% | 2.93% | 1.94% | 1.88% | 1.55% | 3.99% | 16.53% | 4.25% | 2.86% | 1.96% | 0.64% | 1.46% | 1.45% | 0.54% | 0.55% |
| Acquisitions | -6.5M | -6.5M | -13.16M | 0 | -11.16M | 105K | 9K | 23K | -16.67M | 0 | 0 | -2.37M | 0 | -14.73M | 0 | 9.09M | 4.1M | 954K | -25.63M | -9.86M | 0 | -3.81M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 6.56M | 190K | 54K | 68K | 21K | 4.34M | 2.89M | 224K | 3.79M | -119K | -62K | -2.51M | -141K | 0 | -71.8M | -9.09M | -4.1M | -954K | 0 | 0 | 0 | -5.69M | 10K |
| Cash from Financing | -23.47M | -21.81M | -11.17M | -22.07M | -31.94M | -34.66M | -5.7M | 546K | 404K | -1.11M | -220K | 68K | -36.92M | -36.06M | 2.44M | 26.7M | -10.62M | -2.7M | 427K | 2.84M | 40.48M | 1.98M | -3.48M |
| Debt Issued (Net) | -108K | -102K | -89K | -101K | -99K | -42K | -34K | 0 | 0 | 0 | 0 | 0 | 0 | -39M | 0 | 0 | -138K | -27K | -51K | -71K | -4.49M | 2.28M | -1.45M |
| Equity Issued (Net) | -16.99M | -15.97M | -9.43M | -21.2M | -25.45M | -30.7M | -3.87M | 0 | 0 | 0 | 0 | 0 | -44.87M | 0 | -30M | -3.54M | -14.47M | -3.87M | 133K | 2.11M | 44.48M | -296K | -1.84M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -20.18M |
| Share Repurchases | -17.88M | -16.18M | -9.43M | -21.2M | -25.45M | -31.14M | -3.98M | -44K | 0 | 0 | 0 | 0 | -44.87M | 0 | -30M | -3.54M | -14.47M | -3.87M | 0 | 0 | 0 | -482K | -1.84M |
| Other Financing | -6.37M | -5.74M | -1.66M | -766K | -6.4M | -3.92M | -1.79M | 546K | 404K | -1.11M | -220K | 68K | 7.95M | 2.94M | 32.44M | 30.24M | 3.98M | 1.2M | 345K | 807K | 489K | 0 | 20M |
| Net Change in Cash | 56.82M | 21.38M | 42.95M | 14.16M | -10.21M | 30.3M | 39.54M | -21.95M | -35.9M | -40.16M | 39.05M | 32.87M | -32.51M | -9.67M | -24.31M | 85.71M | 9.84M | -18.42M | 12M | -14.4M | 43.98M | 4.87M | -851K |
| Free Cash Flow | 77.74M | 58.96M | 61.31M | 41.63M | 36.71M | 59.97M | 12.23M | -12.2M | -3.59M | -39.58M | 42.24M | 36.04M | 4.18M | 26.55M | -26.44M | 25.97M | 24.11M | 4M | 27.29M | 1.58M | 15.52M | 5.66M | 5.17M |
| FCF Margin % | 16.2% | 12.37% | 16.88% | 13.24% | 13.11% | 23.28% | 5.94% | -5.39% | -1.6% | -14.66% | 13.35% | 9.08% | 0.84% | 5.25% | -5.56% | 7.93% | 8.83% | 1.69% | 10.34% | 0.79% | 10.5% | 6.33% | 6.82% |
| FCF Growth % | 71.73% | -3.84% | 47.28% | 13.4% | -38.78% | 390.31% | 200.22% | -239.92% | 90.93% | -193.69% | 17.2% | 763.07% | -84.27% | 200.4% | -201.81% | 7.7% | 502.87% | -85.34% | 1629.47% | -89.84% | 174.42% | 9.36% | - |
| FCF per Share | 2.41 | 1.82 | 1.94 | 1.30 | 1.09 | 1.71 | 0.36 | -0.37 | -0.11 | -1.26 | 1.38 | 1.20 | 0.13 | 0.81 | -0.81 | 0.89 | 0.88 | 0.14 | 0.97 | 0.06 | 0.60 | 0.25 | 0.28 |
| FCF Conversion (FCF/Net Income) | 2.57x | 2.38x | 3.51x | 2.24x | 1.11x | 1.28x | -4.37x | 0.32x | -0.05x | 0.81x | -0.81x | -0.41x | 0.39x | 1.14x | 1.08x | 4.69x | 2.66x | 1.51x | 2.51x | 0.41x | 2.21x | 1.49x | 1.06x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.03M | 117K | 62K | 64K | 44K | 23K | 0 | 0 | 0 | 0 |
| Taxes Paid | -5.15M | 9.2M | 1.71M | 1.59M | 885K | 1.44M | 0 | 1.01M | 916K | 793K | 33.97M | -5.68M | 18.11M | 16.76M | 14.48M | 6.25M | 12.49M | 9.21M | 11.66M | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from a negative 4.65 in 2024Q1 to a positive 6.10 in 2024Q2, indicating that reported earnings are frequently decoupled from actual cash generation.
The extreme variance in the conversion ratio suggests that net income is a poor proxy for the company's underlying cash-generating capacity. Investors should monitor whether this volatility stems from the timing of consignment settlements or aggressive revenue recognition practices that do not align with cash inflows.
Based on recent SEC filings, Liquidity Services' free cash flow trajectory remains inconsistent, with margins fluctuating between a negative 14.9% and a positive 35.5% over the last ten quarters, reflecting the inherent instability of a business model heavily reliant on lumpy, transactional asset liquidations.
The inability to maintain a stable FCF margin suggests that the company's operational costs are not sufficiently flexible to absorb the cyclicality of its marketplace volume. This lack of predictability may complicate long-term valuation models that assume steady-state cash flow growth.
According to quarterly data, working capital changes are the primary determinant of cash flow, with a massive $25.5 million outflow in 2025Q1 followed by a $21.3 million inflow in 2025Q4, demonstrating that the company's cash position is highly sensitive to inventory and settlement timing.
These significant swings in working capital suggest that the company's cash flow is hostage to the timing of large-scale asset liquidations and the subsequent payout to consignors. This dynamic warrants further investigation into whether the company is effectively managing its cash conversion cycle or merely benefiting from temporary timing advantages.
As disclosed in financial statements, stock-based compensation has consistently trended upward, reaching $4.3 million in 2026Q2, which effectively masks the true cash cost of operations and inflates the reported net income relative to the actual cash available for shareholders.
The reliance on equity-based incentives appears to be a structural feature of the company's compensation strategy, which may be diluting shareholders while keeping cash expenses artificially low. Analysts should adjust cash flow metrics to account for these non-cash charges to better understand the company's true operational efficiency.
Quick answers to the most common questions about buying LQDT stock.
Liquidity Services, Inc. (LQDT) generated $66.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Liquidity Services, Inc. (LQDT) generated $59.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Liquidity Services, Inc. (LQDT) spent $7.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Liquidity Services, Inc. (LQDT) spent $16.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.