UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K

 (Mark One)

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended September 30, 2025
 OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from to
 Commission file number 0-51813

 LIQUIDITY SERVICES, INC.
 (Exact name of registrant as specified in its charter)

 Delaware
 (State or other jurisdiction of
 incorporation or organization)

 52-2209244
 (I.R.S. Employer
 Identification No.)

 6931 Arlington Road, Suite 460, Bethesda, MD.
 (Address of principal executive offices)

 20814
 (Zip Code)

 ( 202) 467-6868
 (Registrant's telephone number, including area code)
 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 Common Stock, $0.001 par value

 LQDT

 Nasdaq

 Securities registered pursuant to Section 12(g) of the Act: None
 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No
 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
 Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b).

 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No
 Aggregate market value of the Common Stock held by non-affiliates computed by reference to the Nasdaq closing price on March 31, 2025, the last business day of the most recently completed second fiscal quarter, was $ 733.9 million.
 The number of shares of Common Stock outstanding as of November 17, 2025 was 30,639,767.

 DOCUMENTS INCORPORATED BY REFERENCE
 Portions of the registrant's Proxy Statement relating to its 2026 Annual Meeting of Stockholders, to be filed subsequently, are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this Form 10-K.

 Item

 Description

 Page

 Business

 1A.

 Risk Factors

 1B.

 Unresolved Staff Comments

 1C.

 Cybersecurity

 Properties

 Legal Proceedings

 Mine Safety Disclosures

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 [Reserved]

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 7A.

 Quantitative and Qualitative Disclosures about Market Risk

 Financial Statements and Supplementary Data

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 9A.

 Controls and Procedures

 9B.

 Other Information

 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Directors, Executive Officers and Corporate Governance

 Executive Compensation

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Certain Relationships and Related Transactions, and Director Independence

 Principal Accountant Fees and Services

 Exhibits and Financial Statement Schedules

 Form 10-K Summary

 Signatures

 Unless the context requires otherwise, references in this report to "we," "us," "our", the "Company" and "Liquidity Services" refer to Liquidity Services, Inc. and its subsidiaries.

 Item 1. Business.
 Overview
 Liquidity Services, Inc. (Liquidity Services, the Company) is the leading global provider of e-commerce marketplaces and software solutions powering the circular economy. We create a better future for organizations, individuals, and the planet by using technology to capture and unleash the intrinsic value of surplus. We connect millions of buyers and thousands of sellers through our leading e-commerce auction marketplaces, search engines, asset management and auction software, and related services. Our comprehensive solutions enable the transparent, efficient, sustainable recovery of value from excess items owned by business and government sellers.
 Our business delivers value to shareholders by unleashing the intrinsic value of surplus through our online marketplace platforms. These platforms ignite and enable a self-reinforcing cycle of value creation where buyers and sellers attract one another in greater numbers. The result of this cycle is a continuous flow of goods that becomes increasingly valuable as more participants join the platforms, thereby creating positive network effects that benefit sellers, buyers, and shareholders. During the past three fiscal years, we conducted over 3.1 million online transactions that generated $4.1 billion in gross merchandise volume or GMV. GMV is the total sales value of all transactions for which we earned compensation upon their completion through our marketplaces or other channels during a given period of time.
 During the year ended September 30, 2025, our number of registered buyers grew from 5.5 million to 6.0 million, or 9.5%. We generated GMV of $1.6 billion and revenue of $477.7 million through multiple sources, including transaction fees from sellers and buyers, proceeds from the sale of products we purchased from sellers, and value-added service charges during the year ended September 30, 2025. Over the prior 5 years, our GMV has grown at a compound annual growth rate of 20.4%.
 Incorporated in Delaware as Liquidation.com in November 1999, Liquidity Services has over 25 years of industry experience.
 On January 31, 2025, the Company formed our Software Solutions operating segment through the acquisition of Auction Software, a private-label marketplace and SaaS solutions provider offering scalable auction platform services to entrepreneurs and businesses. See Note 3 - Acquisitions for more information regarding this transaction.
 On January 1, 2024, the Company acquired Sierra Auction Management, Inc. (Sierra), a full-service auction company specializing in the sale of vehicles, equipment and surplus assets for government agencies, commercial businesses, and charities. See Note 3 - Acquisitions for more information regarding this transaction.
 Reportable Segments
 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. Further information and operating results of our reportable segments can be found in Note 16 - Segment Information.
 • 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.

 Industry Overview
 While a forward supply chain has long been in place for the acquisition of assets, an increasing number of manufacturers, retailers, corporations, and government agencies are recognizing the strategic importance of incorporating reverse supply chain solutions into their operations frameworks and overall success strategies.
 According to Allied Market Research, (Logistics Market Size, Share, Competitive Landscape and Trend Analysis Report, by Model: Global Opportunity Analysis and Industry Forecast, 2023 – 2033 (Feb 2025),the global logistics market, which includes reverse logistics, was valued at $10.2 trillion in 2023 and is projected to reach $20.1 trillion by 2033, growing at a compound annual growth rate (CAGR) of 7.3%. Reverse logistics is a key driver of this growth, fueled by the expansion of e-commerce and the increasing complexity of global supply chains.
 The retail industry continues to see increasingly high return rates. As reported by the National Retail Federation, (Making circularity work: How reverse logistics powers the circular economy, Sept. 2025) online return rates hover around 20%, compared to 8–10% for in-store purchases. This surge in returns has prompted retailers to invest heavily in reverse logistics infrastructure to manage the flow of goods while maintaining customer satisfaction. Liquidity Services estimates that over $100 billion in returned merchandise is processed through secondary markets every year, with other returns being restocked, recycled, or sold at a discount.
 Reverse supply chain solutions manage consumer returns, surplus products, and unused assets from commercial and government sources. The supply of surplus and idle assets stems from various factors:
 • Increased emphasis on responsible solutions for dispositioning surplus assets: Commercial and government are taking a more deliberate and strategic approach to managing their end-of-life assets. This includes efforts to efficiently redistribute surplus assets to minimize waste, recover value, and deliver enhanced community and environmental impact.

 • Consumer demand variability and supply chain forecasting challenges: Challenges such as forecasting errors, manufacturer overruns, canceled orders, evolving market demands, macroeconomic adjustments, discontinued product lines, packaging changes, and seasonal shifts contribute to the accumulation of surplus assets. Organizations involved in the manufacture, distribution, sale, or use of finished goods frequently need to manage excess inventory and returned merchandise.

 • E-commerce expansion: According to the Census Bureau of the Department of Commerce (Quarterly Retail E-Commerce Sales, August 2025), e-commerce sales accounted for 16.3% of total sales in the second quarter of 2025, a 5.3% increase over the same quarter the previous year. Projections indicate that by 2027, the global e-commerce market will surpass $7.9 trillion.

 • Product innovation: Continuous innovation in technology such as computer and office equipment, consumer electronics, and personal communication and entertainment devices, result in a continuous cycle of surplus assets. Such innovation also leads to regular upgrades and replacements of manufacturing equipment and tooling, generating additional surplus capital assets.

 • Flexible return policies of major retailers: Flexible return policies among large national and online retailers generate a steady supply of returned merchandise, much of which must be liquidated.

 • Government regulatory compliance: An increasingly stringent regulatory environment necessitates verifiable recycling and remarketing of surplus assets that would otherwise be disposed of as waste.

 • Evolving Budgetary Priorities in Commercial and Government Sectors: Facing pressure to optimize resources, organizations are increasingly viewing surplus assets as a strategic source of liquidity and a lever to redirect capital toward priority initiatives. This trend highlights the need for strategic partners capable of delivering efficient, compliant, and value-maximizing disposition solutions.

 The management and remarketing of surplus assets has traditionally lacked efficiency. While substantial resources are allocated to building systems and channels for distributing finished goods and acquiring operational assets, investment in reverse supply chain processes has generally received less emphasis compared to forward supply chain initiatives. Key contributors to inefficiencies in the reverse supply chain include:
 • Limited centralized, global marketplace for selling bulk products, machinery, and equipment in the reverse supply chain;

 • Limited awareness of effective disposal methods and mechanisms for surplus assets;

 • Inexperience in optimizing reverse supply chain management for improved net returns and gross margins; and

 • Insufficient access to real-time market data concerning surplus assets.

 Traditional methods of surplus asset disposition include ad-hoc sales, negotiated direct sales, utilization of individual brokers or sales agents and live on-site auctions. We believe these solutions are generally highly fragmented, geographically dispersed and poorly integrated with supply chain operations. The manual, negotiated, and geographically dispersed nature of traditional surplus resale methods results in a lack of pricing transparency for offered goods, multiple brokers/parties ultimately involved in the final disposition and a lower number of potential buyers and bids, which we believe typically leads to lower recovery for sellers.
 Professional buyers consist of many different types, including online and offline retailers, convenience and discount stores, value-added resellers such as refurbishers and scrap recyclers, import and export firms, and small businesses. One thing they all have in common is that they seek surplus assets to sustain their operations and meet the demands of end-customers. Traditionally, limited access to a reliable flow of surplus goods and assets has forced these buyers ton rely on their own network of industry contacts and fixed-site auctioneers to locate, evaluate and purchase specific items of interest. These traditional methods are inefficient for buyers due to the lack of:
 • global access to an available continuous supply of desired goods and assets;

 • efficient and inexpensive sourcing processes;

 • a professionally managed central marketplace with transparent, high-quality services;

 • detailed information and product description for the offered goods; and

 • pricing transparency or ability to compare asset prices.

 It is our belief that the use of online marketplace platforms to identify and source goods available for immediate purchase will continue to increase amongst buyers.

 Our Solutions
 Our global solutions include e-commerce marketplaces, self-directed auction listing tools, and value-added services. Our marketplaces and services provide sellers a comprehensive solution to quickly bring surplus assets to market and enhance the financial value realized from the sale of their surplus assets while providing buyers with confidence in the reliable flow of goods they purchase. We provide our sellers access to a worldwide network of liquid marketplaces with over 6 million buyers, and a suite of services including consultative surplus asset management, valuation, sales solutions, logistics capabilities, and self-directed service tools to efficiently manage our sellers' reverse supply chain and maximize total supply chain value. We also seek the optimal methods to maximize our sellers' net recovery using channel strategies and dedicated programs to deliver transparent, sustained value. The global reach of our marketplaces allows for fluid cross-border transactions and the connecting of foreign buyers and sellers alike, as seen during the fiscal year ended September 30, 2025, where we facilitated transactions between 160 unique country pairings.
 Through our relationships with our sellers, we provide our buyers with convenient access to a substantial and continuous flow of surplus assets. Buyers around the world can find products in over 900 categories including transportation, construction, industrial, consumer goods, and consumer electronics, all in lot sizes ranging from full truckloads to pallets, packages, and individual items. Our solution combines leading e-commerce marketplaces with integrated sales, marketing, merchandising, fulfillment, payment collection, customer support, dispute mediation and logistics services. We provide our buyers with a convenient method for sourcing surplus consumer goods and electronics, commercial capital assets, industrial equipment, energy equipment, biopharma assets, and real estate. We continually look for new categories in which we can expand our presence. For any given asset, our buyers have access to a detailed product description, product manifest, digital images, relevant transaction history regarding the seller, and, where appropriate, the shipping weights, product dimensions and estimated shipping costs to the buyer's location. This enables our solutions to become an important source of surplus assets for many of our professional buyers and end-users.
 We believe our marketplaces benefit over time from greater scale and adoption by our constituents creating a continuous flow of goods benefiting our buyers and sellers. As of September 30, 2025, we had 6.0 million registered buyers in our marketplaces. We had access to millions of additional end-users through a range of external consumer marketplaces. Aggregating this level of buyer demand and market data enables us to generate a continuous flow of goods from commercial and government sellers, which in turn attracts an increasing number of buyers. During the year ended September 30, 2025, we grew our registered buyer base by 9.5% or 522,000 registered buyers. Our registered buyer base resulted in 4.1 million auction participants in our online auctions during the year ended September 30, 2025.
 As buyers continue to discover and use our e-commerce marketplaces as an effective method to source assets, we believe our solutions become an increasingly attractive sales channel for commercial and government agency sellers. We believe this self-reinforcing cycle results in greater transaction volume and enhances the value of our marketplaces.
 Competitive Factors
 We have created liquid marketplaces for virtually any type, quantity, or condition of surplus assets. The strengths of our business model include:
 Aggregation of supply and demand for surplus assets
 The strength of our business model rests on our ability to aggregate sellers and buyers through our marketplaces. Sellers benefit from a liquid, transparent market and the active participation of our large base of professional buyers, which enhances sellers' returns in comparison to less efficient models. Buyers benefit from our relationships with high-volume, commercial and government sellers, which provides buyers with continuous access to a comprehensive selection of surplus assets. Our solution eliminates the need for sellers and buyers to rely on the highly fragmented and geographically dispersed group of traditional liquidators and auctioneers. Instead, sellers and buyers access our global e-commerce marketplaces for their entire surplus asset needs.

 Faster transaction cycle times for our sellers and buyers
 We believe our marketplace solutions allow our sellers to complete the entire sales process more rapidly than through other liquidation methods by reducing the complexities in the reverse supply chain and utilizing our multi-channel strategies to optimize recovery and velocity. As a result, our sellers can reduce surplus or less valuable inventory quickly, generate additional working capital and reduce the cost of carrying unwanted assets. We engineer sales around the unique needs of each customer, offering tailored solutions that align with their specific asset types, volume, and recovery goals. Our self-listing option enables sellers to initiate an around-the-clock auction cycle, providing greater speed and flexibility in the liquidation process. Additionally, we provide a complete solution to enable professional buyers of any size throughout the world to purchase assets efficiently. For these buyers, we provide a broad range of services to give them the information necessary to make an informed bid and ensure they quickly and efficiently receive the goods purchased.
 Global presence with an experienced track record
 Doing business for over 25 years with an international presence, our online marketplaces connect a global network of buyers and sellers within the circular economy. Our global operations allow each of our segments to be agile in responding to client demands, navigate hurdles of cross-border commerce, increase the pool of buyers and sellers, and empower global market pricing serving to maximize asset recovery rates for surplus assets across our over 900 assets categories.
 Integrated and comprehensive solution
 Our marketplaces provide sellers and buyers with a comprehensive solution for the online sale and purchase of surplus assets. We offer marketplaces with self-directed and full-service solutions. Our self-directed solutions provide transaction settlement and marketing support while allowing sellers to undertake the work of photographing, cataloging, and building their auctions.
 Our value-added services simplify the sales and supply chain processes for our sellers and improve the utility of our marketplaces for our buyers. For commercial and certain government sellers, we provide sales, marketing, logistics, and seller support services that are fully integrated with our marketplaces, creating operational and system efficiencies. For many of these sellers, asset disposition is not a core business function to which they desire to dedicate internal resources. With our solution, we manage each step of the transaction and reverse supply chain for our sellers, reducing complexity while providing the ability to optimize the seller's net financial return in the sale of surplus goods and assets. Sellers simply make goods available at their facilities or deliver them to our warehouses and we deliver the sale proceeds, less our portion of such proceeds and/or our commissions or fees, after the sale is completed.
 One example of additional support we are able to provide our sellers is an asset management tool as delivered through Asset Zone, a secure portal that provides clients with real-time visibility and control over their assets. Asset Zone enables informed decisions on asset disposition including the ability to easily list assets on our global marketplaces thereby producing value and efficiencies during the disposition process and lowering total cost of ownership for our clients. Designed for organizations managing fleets of any size, Asset Zone centralizes data to provide a unified view of fleet composition, utilization, and operating costs. These capabilities enable optimized asset performance, reduced capital expenditures, and improved overall financial efficiency, while facilitating streamlined participation in our marketplaces.
 We have also expanded our capabilities to process individual items, pallets, less-than-truckload (LTL) and full-truckload (FTL) auctions. This provides our retail sellers with flexible solutions that can scale to solve their unique liquidity challenges while leveraging our various retail channels to maximize their recovery value.
 Our buyer services include intelligent alerts, search tools, dynamic pricing, shipping and delivery where available, secure payment, live buyer support, and dispute resolution to enable effective methods to source assets for their businesses.

 Flexible and aligned transaction model
 We offer two primary transaction models to our sellers: the consignment transaction model and the purchase transaction model. Under the consignment transaction model, we do not purchase inventory from a seller; instead, we enable a seller to sell its goods in our marketplaces and we earn commission revenue based on the proceeds received from the sale. Sellers that elect the consignment transaction model are considered consignors. Under the purchase transaction model, we purchase inventory from a seller that we resell in our marketplaces. Sometimes our inventory purchase price is variable, as we may share the gross or net proceeds of such resales with the seller. Sellers that elect the purchase transaction model are considered vendors.
 Solutions that promote sustainability for improved corporate/government stewardship
 Our e-commerce marketplace solutions power the circular economy and provide benefits to businesses, communities, and the environment. We achieve this through our safe and effective resale and redeployment of surplus assets; our reduction of waste; and by creating markets for items that might otherwise have been landfilled. Some of the world's largest forward-thinking corporations and government agencies have enhanced their stewardship of communities and the environment by utilizing our services and selling their surplus assets through our marketplaces.
 Technology, data & analytics enhance our services and solutions for buyers and sellers
 We continue to make strategic investments in our technology capabilities. Aligning the capabilities of our auction platforms with the Company's unique, vertical-specific knowledge has enabled us to develop the AllSurplus marketplace. This platform provides an aggregated view of all assets available globally in our government and commercial sectors, and retail assets for select local markets. By coupling an intuitive, mobile-optimized design with site search and recommendations driven by AI and machine learning, the platform is optimized to assist buyers in quickly finding the assets that meet their needs. Our sellers benefit from the unique nature of our unified platform by having their assets available, simultaneously, on multiple marketplaces while guaranteeing the integrity of the cross-site auction bidding. Placing the assets on multiple sites enables the marketing organization to directly target unique buyer segments that resonate with an asset's unique audience niche.
 Our data infrastructure and analytics continue to provide near real-time operational insights. By coupling our click-stream data and bid activity with our campaign activity, the marketing organization leverages a feedback loop that increases campaign effectiveness and optimizes spending.
 RISE: A Blueprint for Success
 Establishing the world's premier marketplace for surplus assets that benefit buyers, sellers, and the planet requires a strategic plan focused on sustainable growth. Our strategic plan is grounded in over 25 years of industry experience and is structured around four foundational pillars known as RISE.

 Recovery Maximization
 With a long history of speaking with and listening to our sellers, we understand recovery maximization is the single most important driver to attracting sellers to our marketplaces. Through technology and innovation, we are able to improve the buyer experience across our network of marketplaces, which attracts more buyers to these marketplaces, thus driving higher net recovery.

 Increased Volume
 We intend to increase the volume of transacted surplus on our marketplaces with flexible service offerings and pricing models to meet the needs of existing and new sellers. Through enhanced service models, we have broadened our self-directed offering to allow government and commercial sellers that need a more comprehensive solution to leverage the power of our marketing and online marketplaces to drive buyer demand for their assets. This approach allows us to more completely penetrate the total addressable market by better meeting the needs of small and mid-sized organizations, equipment dealers, and organizations with lower volumes.
 Service Expansion
 We intend to grow our services with recurring revenue characteristics that leverage our technology platform, domain expertise, data, and marketplace channels. By leveraging our extensive knowledge and technology, we intend to grow our revenue by attracting more sellers and more volume through expanding our services to better support sellers and buyers and expanding and improving our asset management and redeployment tools for commercial and municipal government sellers on our new aggregated marketplace. Lastly, we are leveraging our Machinio & Software Solutions segment to expand our capabilities with respect to technology-enabled advertising. This is a natural adjunct to the self-service and full-service solutions available in our marketplaces.
 Expense Leverage
 We intend to improve operating expense leverage by controlling costs and leveraging technology innovation to increase productivity. We have simplified and streamlined our operations and consolidated business processes and systems, which has improved scalability.
 We maintain unified marking platforms and analytical capabilities in order to improve our seller and buyer marketing productivity by increasing the number of sellers using our platform and by driving increased volumes of highly targeted buyers to our marketplaces. Key marketing support activities are embedded directly at the business unit level to support the successful execution of asset sales at each of our marketplaces.
 Our Marketplaces
 Our network of marketplace brands serves buyers and sellers in numerous industries across hundreds of product categories.

 Our e-commerce marketplaces, designed to address the particular requirements and needs of buyers and sellers, are efficient and convenient methods for the sale of surplus consumer goods and capital assets in over 900 product categories including, but not limited to: consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet, and transportation equipment and specialty equipment. Our latest AI-powered personalized buyer recommendations help users find what they're looking for, or items they may be interested in, while additional proprietary technology investments have allowed us to better monetize the underbidders in an auction event by re-engaging them with a similar asset listing.
 Besides these leading business-to-business marketplaces, we recognize the need to reach end-users for some assets our sellers have entrusted to us. We have developed the capability to sell products on our sellers' behalf directly to end-users and/or consumers using a range of existing marketplaces. Our hyper-localized direct-to-consumer sales experiences are offered through AllSurplus Deals, providing for a convenient location pick-up solution connecting our retail supply directly to consumers in our target markets, and Retail Rush, a new direct-to-consumer experience introduced during fiscal year 2025 combining the excitement of an online retail deep discount experience with a physical bin store.
 In addition to our e-commerce marketplaces, we have dedicated sales teams supporting the needs of our established global buyer base that seek items in larger quantities than are offered through our standard auction platforms. These range from a single truckload to ongoing flows of goods for export anywhere in the world, where we market, handle, and support the full transaction on behalf of our buyers. We expect to continue to meet the needs of our sellers and to access a growing range of products for all buyers by enhancing our multi-channel strategy to ensure we create value for assets at the end of their initial product life cycle.
 Investing in a Better Future
 Our vision is to create a better future for surplus by providing trusted online marketplace platforms that power the circular economy, benefiting buyers, sellers, and the planet. We anticipate increasing volume on our marketplaces by placing a greater focus on certain categories, including heavy equipment and construction, where the global construction equipment market is expected to reach $191.7 billion by the end of 2034, with a CAGR of 4.1% from 2024 to 2034, according to the Construction Equipment Market Outlook (2024 to 2034), driven by increasing urbanization, developing industries, and government funding for infrastructure projects. We also intend to grow our volume within the retail supply chain by leveraging the self-directed service model, expanding our new Retail Rush marketplace where buyers can shop both online and in-store for surplus goods and assets. We will continue to provide flexible pricing models that enable our sellers to choose the consignment or a purchase-based model that fits their needs, while offering sustainable solutions designed for growth.
 Organizations are increasingly prioritizing sustainable solutions for surplus asset management. Our commitment to repurposing and efficiently redistributing surplus and capital assets, allows us to help our sellers minimize waste and maximize value for their buyers, company and the communities they serve. We play a vital role in the circular economy, keeping valuable goods in use and out of landfills, supporting the efficient flow of resources.

 Our Value-Added Services for Buyers and Sellers
 In addition to our self-directed tools for our sellers, we have integrated value-added services to simplify the reverse supply chain processes for both our sellers and buyers. We believe these services generate operational efficiencies within this element of the supply chain enabling the greatest value for sellers and buyers with the highest level of confidence and transparency in the services we provide. Additionally, we believe these services improve compliance with the policies, regulations, and sale restrictions of our commercial and government sellers while supporting, or greatly enhancing, many commercial or government environmental initiatives.
 Seller services. We offer value-added services to sellers in three areas: (a) merchandising and channel optimization; (b) logistics; and (c) settlement and seller support, including compliance services.
 • Merchandising and Channel Optimization. Our efforts encompass the services necessary to prepare retail merchandise for a successful auction and include the following:

 o Channel optimization - we determine the marketplace and channel sales strategy that we believe will create the most value for the individual asset using our real-time transaction systems and proprietary data to support ongoing optimization.

 o Marketing and promotion - we use a variety of both online and traditional marketing methods to promote our sellers' merchandise and generate interest in each asset.

 o Asset lotting and merchandising - we leverage our industry experience to organize the merchandise we receive into size and product combinations that meet buyer preferences within each marketplace and channel.

 o Product information enhancement - we provide digital images of the merchandise to be sold and combine the images with relevant information. To increase the realized sales value, we also research, collect, and use supplemental product information to enhance product descriptions and categorization.

 o Recommendations - we utilize AI and big data algorithms to match buyers to the right products, enhancing our sellers overall recovery.

 • Logistics. We provide logistics services designed to support the receipt, handling, transportation, and tracking of merchandise offered through our marketplaces, including the following:

 o Network of warehouses - we provide sellers with the flexibility of either having us manage the sales process at their location or delivering merchandise to one of our warehouses.

 o Inventory management - sellers benefit from our management and inventory tracking system designed so merchandise is received, processed, and delivered promptly.

 o Cataloguing merchandise - we catalogue all merchandise, which enables us to provide useful product information to buyers and sellers.

 o Inspection and grading - in certain circumstances, we inspect the merchandise and provide condition descriptions to improve quality and the financial recovery to the seller.

 o Testing, data wiping, de-labeling, and refurbishment - we test products, wipe electronic data, refurbish and remove labels and product markings from merchandise prior to sale to add value to the asset and protect sellers' brand equity and distribution relationships.

 o Return to vendor or product disposition to non-sales channels - we manage the end-to-end processes for our sellers ensuring that returned merchandise is disposed of in compliance with a variety of disposition requirements. We provide end-to-end management of returning products to vendors, charities, or channels outside of our leading marketplace solutions.

 o Outbound fulfillment - we can arrange for domestic or international shipping for all merchandise, whether it is a small item or container load for export located in one of our warehouses or at a seller's facility.

 • Settlement and seller support. Settlement and seller support services are designed for successful and reliable completion of transactions and include:

 o Buyer qualification - we qualify buyers to ensure their compliance with government or seller mandated terms of sale, as well as to confirm their ability to complete a transaction.

 o Collection and settlement - we collect payments on behalf of sellers prior to delivery of any merchandise and disburse the proceeds to the seller after the satisfaction of all conditions of a sale.

 o Transaction tracking - we enable sellers and buyers to track and monitor the status of their transactions throughout the sales process. We support the successful completion of each transaction on behalf of the buyer and seller.

 o Reporting - we provide a range of comprehensive reporting services to sellers throughout the sales process. Our invoicing and reporting tools can be integrated with the seller's information system, providing a more efficient flow of data.

 o Seller support and dispute resolution - we provide full support throughout the transaction process and dispute resolution for our buyers and sellers if needed.

 • Buyer services. Many of the services we provide to sellers also benefit buyers by providing them with the information to make a more informed bid and by delivering the goods they purchased. Our buyer-focused services include:

 o Intelligent alerts and recommendations - we notify buyers of upcoming auctions based on their registered preferences and prior transaction history. Registered preferences can be as broad as a product category or as specific as a part number or key word. We use this information to ensure informed recommendations whenever we identify a product that fits a buyer's preferences. We will alert our buyers based on their preferences when auctions are initially launched or nearing conclusion and based on various other parameters to enable our buyers to see relevant products.

 o Search and navigation tools - buyers can search our marketplaces for products based on a variety of criteria and personalized settings, including product category, keyword, lot size, product condition, product geographic location, and auction ending date.

 o Dynamic pricing tools, product information, and shipping quotes - we offer multiple dynamic pricing tools including outbid notification, automated bid agent, and automatic auction extension. In addition, we provide buyers with the information they need to make informed decisions, including product data, seller performance, and online shipping quotes to help understand their landed cost.

 o Broad and flexible range of shipping/pick-up options - we can provide packaging and shipping services for many transactions, whether it is a small item or container loads for export, including buyer pick-up at our premises, supporting buyer-arranged transportation through our preferred shippers network, or providing customer pick-up appointments for both Liquidation.com and AllSurplus Deals transactions at specific warehouse locations.

 o Secure settlement and buyer support - besides qualifying sellers, providing several electronic payment options and serving as a trusted market intermediary, we verify transaction completion, and ensure the buyers funds are secure throughout the transaction process, all of which enhances buyer confidence.

 o Buyer support - we provide full reliable buyer support and dispute resolution through phone, email, and chat throughout the transaction process.

 Sales and Marketing
 We use sales and marketing activities to acquire and manage our seller and buyer accounts. Our sales activities are focused on acquiring new sellers and expanding existing sellers' use of our solutions. Our marketing activities are focused on acquiring and activating new buyers and increasing existing buyers' participation. Our marketing team also manages our marketplace brands and seller-led generation efforts that support the sales team.

 Sales
 Our sales personnel develop seller relationships, contract to provide our services and manage the business accounts on an ongoing basis. Our sales team focuses on building long-term relationships with sellers that we believe will generate recurring transactions and position the Company as an integral partner helping them to achieve their goals. They also leverage our years of experience and market data of completed transactions to identify which of our various services would be beneficial to each new or existing seller. Our sales team brings our global scale and specialist knowledge to an ecosystem of auction partners, leveraging our expertise to create additional opportunities for us to participate in purchase and consignment transaction model projects across the globe. In addition, we have a lead generation team which tracks relevant media around the world, seeks to increase global awareness of the LSI brand and its reputation across target markets, and participates in selected trade show and industry events, each in an effort to increase demand for our offerings. The lead generation team uses several sources to research information relevant to our marketplaces, which sources include news aggregators, trade journals, industry-specific websites and business reports on a global basis.
 We organize our sellers into two distinct groups: full-service sellers, and self-directed sellers. We base our approach on our experience in understanding and serving the unique needs of each type of seller:
 • Full-service sellers. These sellers require an end-to-end solution, using a combination of our industry-focused sales team and our value-added services to create a comprehensive, scalable solution tailored to their needs.

 • Self-directed sellers. These sellers are offered a turn-key solution enabling them to self-direct the sale of their assets on our marketplaces by accessing tools and resources to optimize their net recovery.

 Our sales personnel receive salary and performance-based commissions.
 Marketing
 We use a variety of online and traditional marketing strategies to attract and activate buyers to maximize the number of bidders participating in our e-commerce marketplaces as well as to support our sales team:
 • Buyer acquisition. We utilize marketing automation and digital marketing, including paid search advertising, search engine optimization, affiliate programs and cross promotion to acquire new buyers. We supplement this online marketing with special event print media, classified advertisements, and selected direct mail campaigns. Public relations campaigns, participation in trade shows, and speaking engagements also complement our overall buyer acquisition efforts.

 • Buyer participation. We use many tools to increase buyer participation, including: targeted opt-in e-mail newsletters that provide content based on the buyer's stated categories of interest and past bidding or transaction activity; special e-mail alerts highlighting specific products of interest; personalized recommendation engines; and convenient search tools that enable a buyer or prospective buyer to find desired items on our e-commerce marketplaces.

 • Market research. In order to better target buyers by industry segment, geographic location, or other criteria, our marketing department continually gathers data and information from each of the buyer segments we serve. In addition, the marketing department conducts regular surveys to better understand buyers' behavior and needs. We have adopted a privacy policy and have implemented security measures to protect this information.

 • Sales Support. Our marketing department employs a robust demand generation program, creates documentation and research to support our sales team in presenting our Company to potential sellers, including sales brochures and white papers, and participates in selected trade shows.

 All marketing activities are evaluated based on the level of auction participation in our marketplaces, the cost to acquire new participants, and the cost effectiveness of each action.

 Technology and IT Infrastructure
 As digital transformation accelerates globally, sellers are searching for partner solutions that enable them to move faster and generate maximum recovery with minimal investment. Buyers search for marketplaces that enable them to locate the assets they need and transact in an efficient and secure manner, regardless of device. Our online marketplaces serve as the trusted platform for facilitating the seamless exchange of goods and payment between buyers and sellers of surplus assets. Our proprietary technology systems and committed teams enable us to automate and streamline many of the manual processes associated with finding, evaluating, bidding on, paying for, and shipping surplus assets, retail returns and overstocks, and foreclosed real-estate. The technology and content behind our marketplaces and integrated value-added services consists of a combination of proprietary technologies augmented with capabilities provided by specialized service providers. This combination enables our ability to rapidly enhance the core marketplace experience, in response to the specific needs of our buyers and sellers. Our infrastructure provides:
 • Efficient channels to sell online through a variety of pricing mechanisms (standard auction, sealed bid, make an offer, fixed price, and a combination of fixed price and auction);

 • A scalable back office that enables buyers and sellers to efficiently manage transactions among remote business users by utilizing account management tools, including payment collection, invoicing management, shipping, and transaction settlement; and

 • An input/output agnostic platform, including Application Programming Interfaces or other conduits that enable us to scale and integrate seamlessly with partners of all sizes, from single asset sellers to Fortune 500 enterprises.

 We have designed our websites and supporting infrastructure to leverage the full power of the leading cloud providers. Our services leverage the scale and power of Amazon Web Services and Microsoft's Azure Public Cloud platforms enabling us to efficiently respond to increased traffic. Our applications are designed with resiliency and fault tolerance in mind. We have experienced no financially material service interruptions on our e-commerce marketplaces.
 Our flagship marketplace platform combines the 20+ years of experience gained operating GovDeals.com with the modern user experience of AllSuplus.com. The net result is a consolidated, scalable platform that couples an enhanced and accessible user experience with state-of-the-art site search, navigation, and product recommendations. This engine is powered by a combination of artificial intelligence (AI) and machine learning (ML) algorithms which enable our buyers to locate the assets they desire in a more efficient manner. This platform enables the seamless cross-bidding interaction of assets. Sellers who upload assets to the GovDeals marketplace gain additional exposure and access to an international pool of bidders by the assets being automatically cross listed to AllSurplus.com. Leveraging the combined bidder pools facilitates the asset recovery values our sellers value.
 We devote substantial resources to the continuous improvement of our technology and IT infrastructure which allows us to continually deliver value to our buyers, sellers, and employees. We believe that the combination of proprietary technology coupled with public cloud flexibility, creates a competitive advantage as the solutions can be tailored to the unique requirements of each selling channel and customer need.
 Our retail business unit benefited from the acquisition of Auction Software and its Auction.io platform during the fiscal year ended September 30, 2025, helping to launch our newest direct to consumer brand, Retail Rush; see Note 3 - Acquisitions for further information. This new offering combines the excitement of an online retail deep discount experience with a physical bin store. Powering this experience is our Auction.io platform.
 Additionally, the Auction Software acquisition created our new Software Solutions segment which includes private label auction software delivery. The Auction.io and Simple Auction Site platforms power individual seller sites in industries ranging from retail liquidation to antiques and collectibles. This fills a distinct need for those sellers who value their own unique online auction experience higher than the recovery generated from participating in the consolidated marketplaces.

 Our core back-office infrastructure is flexible by design. We are a remote-first work organization. The cloud-based, flexible infrastructure has enabled our operations to continue, uninterrupted, in a variety of working models, including fully remote, on-site, and hybrid. This flexibility affords us the ability to recruit and retain outstanding talent and to service our customers' needs regardless of location.
 Our customers are increasingly looking to our solutions to facilitate robust recovery for their assets, regardless of industry or location. We continue to develop intelligent solutions for our customers that facilitate rapid and secure transactions between buyer and seller, whether they are in the same town or across the globe. Our goal is to lead the industry in several distinct areas over the long term, which we expect will translate to sustained growth. We are investing significant resources in:
 • Our marketplace user experiences;

 • Upgrading our sellers tools to be fully mobile-responsive;

 • Developing AI-powered asset cataloging tools that offer significant efficiency gains to the seller, and

 • Leveraging generative AI and other automation technologies to create efficiencies across the enterprise.

 Our future growth depends on our continued ability to execute these priorities.
 Data, Insights and Services
 Robust data and analytics are critical to powering a modern customer experience and maximizing the potential of our sales force. We invest in contextual data and analytics to generate sales leads, attract and retain buyers, and to optimize our marketing communication. The combination of our internal analytics and marketing technology enables our team to contact the right person, at the right time, with the right message to ultimately drive the bidding activity needed to maximize recovery.
 Cybersecurity and Data Privacy
 The protection of our clients' data, our brand, and our systems is of utmost importance. We are subject to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security and we employ robust cybersecurity and data privacy programs. Refer to Part I, Item 1C. Cybersecurity of this Annual Report on Form 10-K for further discussion of our cybersecurity and data privacy risk management and governance processes.
 Operations
 Supporting large organizations that have a recurring need to sell surplus assets requires systematic processes to enhance the financial value and convenience received by our sellers. We believe we have integrated the required operational processes into our solution to efficiently and effectively support our buyers and sellers. Our operations group comprises three functions as follows:
 Buyer relations
 Our buyer relations group supports the completion of buyer transactions by managing the buyer registration and qualification process, answering questions and requests from buyers, collecting buyer payments, and resolving disputes. Our websites contain extensive information about buying through our e-commerce marketplaces, including an online tutorial regarding the use of our marketplaces, answers to frequently asked buyer questions, and an indexed help section. Buyers can contact a buyer support service representative by live chat, e-mail or phone if they need additional support.

 Shipping logistics
 Our shipping logistics group manages and coordinates inbound and outbound shipping of merchandise for sellers and buyers of our Retail services. We offer, as part of our value-added services, integrated shipping services using multiple vetted and pre-qualified carrier partners. In addition, our shipping coordinators monitor the performance and service level of our network of carriers to help ensure speed and quality of service.
 Warehouse network and field service operations
 Our warehouse network and field service operations groups perform selected pre-sale and post-sale value-added services across our network of warehouses and at seller locations globally. These activities include unloading, manifesting and reporting discrepancies for all received assets and sales preparation of offered assets, including merchandising and organizing offered assets, writing product descriptions, capturing digital images and/or video and providing additional optional value-added services such as returns management (RM) services, return to vendor (RTV) services and product delabelling, data cleaning/wiping, testing, refurbishment and repackaging. Our warehouse network and field service operations personnel also arrange the outbound shipping or pick-up of purchased assets for our buyers.
 Competition
 The online services market for auctioning or liquidating surplus assets is competitive and growing rapidly. We compete with:
 • other e-commerce platforms;

 • auction, reverse auction, and direct sale websites;

 • government agencies that have created websites to sell surplus assets; and

 • traditional liquidators and fixed-site auctioneers.

 In our marketplaces for surplus assets, we compete with a variety of online, mobile, and offline channels. These include, but are not limited to, e-commerce providers, B2B online marketplace platforms, auction websites, retailers, distributors, liquidators, import and export companies, auctioneers, and government agencies that have created websites to sell surplus. As our product offerings continue to broaden into new categories of surplus items, we expect to face additional competition from other online, mobile, and offline channels.
 Our markets may become even more competitive as traditional and online liquidators and auctioneers continue to develop online and offline services for disposition, redeployment, and remarketing of surplus assets. In addition, manufacturers, retailers and government agencies may create their own websites to sell their own surplus assets and those of third parties.
 Competition may intensify as our competitors enter into business combinations or alliances and established companies in other market segments expand to become competitive with our business. In addition, new and enhanced technologies, including search, web and infrastructure computing services, artificial intelligence, digital content, and electronic devices, may increase our competition. The Internet facilitates competitive entry and comparison shopping, and increased competition may reduce our sales and profits.
 Our Vendor Contracts with Amazon.com, Inc.
 We have multiple vendor contracts with Amazon.com, Inc. under which we acquire and sell commercial merchandise. While purchase-model transactions account for less than 20% of our total GMV, the cost of inventory for purchase model transactions is the most significant component of our consolidated Costs of goods sold. $10.1 million and $12.2 million of inventory purchased under such contracts with Amazon.com, Inc. is included in our Inventory balances on our Consolidated Balance Sheets as of September 30, 2025 and 2024, respectively. The Company's vendor contracts with respect to sourcing or consigning merchandise for its RSCG segment generally reflect the concentration dynamics inherent to the retail industry.

 Government Regulation
 We are subject to federal and state consumer protection laws, including laws protecting the privacy of customer non-public information and regulations prohibiting unfair and deceptive trade practices. The growth and demand for e-commerce has resulted in and may continue to result in more stringent consumer protection laws and data privacy laws that impose additional compliance burdens on e-commerce companies. In particular, we continue to address changes in state, federal and international privacy laws and regulations, including the General Data Protection Regulations (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. Many jurisdictions also regulate "auctions" and "auctioneers" and may regulate online auction services. These consumer protection laws and regulations could cause substantial compliance costs and could interfere with the conduct of our business.
 Intellectual Property
 We regard our intellectual property, particularly domain names, copyrights, and buyer database trade secrets, as critical to our success. We rely on contractual restrictions and copyright and trade secret laws to protect our proprietary rights, know-how, information, and technology. We currently are the registered owners of several Internet domain names, including www.liquidation.com, www.govdeals.com, www.allsurplus.com, www.secondipity.com, www.retailrush.com, www.machinio.com, www.machineryhost.com, www.auction.io, and www.bid4assets.com. We pursue the registration of our domain names in the U.S. and internationally. We have no patents or registered copyrights. Effective patent, copyright, trademark, service mark, trade secret, and domain name protection are expensive to maintain and may require litigation to enforce.

 Human Capital Management
 To achieve our goal to build the world's leading marketplace for surplus assets to benefit buyers, sellers, and the planet, it is crucial that we attract, nurture, and retain employees who deliver outstanding performance. We strive to make Liquidity Services a rewarding place to work by attracting and retaining employees with a broad range of experiences, perspectives and skills. As of September 30, 2025, our number of employees by region was as follows:

 We also utilize temporary workers to augment staffing during peak business cycles and to fill certain open positions on a temporary basis.
 Importance of our Employees
 We believe our employees are key to achieving our business goals and growth strategy. Our human capital objective is to attract, retain, develop, and motivate talented employees. We use online search tools, specialized recruiting firms, employee referral programs, job postings on various media platforms, and university recruiting to identify and attract talented candidates. By leveraging the variety of experiences, skills and perspectives among our employees, we aim to improve our problem-solving abilities and bring innovative solutions to a wider range of clients and customers.
 Health and Well-Being
 We value the health and well-being of our employees and provide generous benefit options for our employees and their families. Our plans are designed to enhance employee wellness by focusing on health, financial security, life, and learning. Our health benefits include multiple medical plans, dental and vision coverage, mental health support and paid parental leave. In the U.S., we pay a significant portion of the benefit premiums related to our health benefits. Employees are offered certain benefits at no charge to them or their families, e.g., Life and AD&D insurance, short- and long-term disability insurance, and Health Savings Account contributions. The financial security benefits program includes a 401(k) plan with discretionary employer match and access to health savings accounts and health and dependent care flexible spending accounts.

 We provide a range of insurance products and employee assistance programs. Internationally, we also offer a variety of benefit plans customized to reflect local conditions. Our learning and development programs include tuition support for employees and a global training and development program that focuses on building technical skills and leadership development, as well as training in various topics including cybersecurity, anti-harassment, ethics, and regulatory compliance.
 Culture and Community
 The Company's culture is rooted in our core values and aligned to the Company's strategic framework. Our culture expresses our expansive vision and fervor for community and collaboration and is honed by the following core values:

 We reinforce, monitor, and assess our culture through a variety of programs which include performance management, succession planning, and employee engagement surveys, all of which serve to further our human capital objectives. Each of our team members is part of our global initiative to make a difference in the communities where we live and work. We actively support our global communities through outreach programs, relief efforts, sustainability initiatives, education and mentorship programs.
 Flexible Workspace
 We are a remote-first work environment. We are committed to allowing flexibility in our workplace to promote high performance and retention while also continuing to meet customer and business needs.
 Sustainability Efforts
 At our core, Liquidity Services strives to benefit businesses, communities, and the environment through our marketplaces which enable the continued use of surplus assets that may otherwise end up in landfills. These efforts extend to our employees as well, where our remote work structure for applicable employees has enabled lower expended energy and emissions from both transportation-related activities and operations across our real estate portfolio.

 Available Information
 Our proxy statement, annual, quarterly, and current reports, as well as amendments to those reports and other information, are provided free of charge on our website at www.investors.liquidityservices.com, as soon as reasonably practicable after we electronically file these materials with or furnish them to, the Securities and Exchange Commission (the SEC). We use our website as a channel of distribution for material Company information. We post important information, including news releases, analyst presentations, investor presentations, and financial information regarding the Company at  and
 Cautionary Note Regarding Forward-Looking Statements
 This document contains forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks and other factors include but are not limited to, statements regarding the Company's business outlook; anticipated economic and operational impacts as a result of global macro-trends and events; the migration of our retail marketplace to our core e-commerce technology platform; expected future effective tax rates; trends and assumptions about future periods, the numerous factors that influence the supply of and demand for used equipment; economic and other conditions in local, regional and global sectors; and those listed in Part I, Item 1A (Risk Factors) and in our other filings with the SEC from time to time. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. There may be other factors of which we are currently unaware or deem immaterial that may cause our actual results to differ materially from the forward-looking statements.
 All forward-looking statements apply only as of the date of this Annual Report on Form 10-K and are expressly qualified in their entirety by the cautionary statements included in this document. Except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances occurring after the date of this Annual Report or to reflect the occurrence of unanticipated events.
 Use of Market and Industry Data
 Unless otherwise indicated, information contained in this Annual Report on Form 10-K concerning our industry and the markets in which we operate, including our general expectations about our industry, market position, market opportunity, and market size, is based on data from various sources including internal data and estimates as well as third-party sources widely available to the public such as independent industry publications, government publications, reports by market research firms, or other published independent sources and on our assumptions based on that data and other similar sources. Industry publications and other published sources generally state that the information contained therein has been obtained from third-party sources believed to be reliable. Internal data and estimates are based upon information obtained from trade and business organizations and other contacts in the markets in which we operate and management's understanding of industry conditions, and such information has not been verified by any independent sources. This data involves several assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While we believe the market, industry, and other information included in this Annual Report on Form 10-K to be the most recently available and to be generally reliable, such information is inherently imprecise and we have not independently verified any third-party information or verified that more recent information is not available. The information in any such publication, report, survey, or article is not incorporated by reference in this Annual Report on Form 10-K.
 Item 1A. Risk Factors.
 You should carefully consider the risks described below, together with all of the other information in this Annual Report on Form 10-K, including the consolidated financial statements and related notes thereto, before making an investment decision regarding our common stock. If any of the following risks occur, our business, financial condition or operating results could suffer. As a result, the trading price of our common stock could decline, and you may lose all or part of your investment in our common stock. The risks and uncertainties described below are not the only significant risks we may face. Other events that we do not currently anticipate or that we currently deem immaterial also may affect our results of operations and financial condition.

 Summary Risk Factors
 Our Company is subject to several risks that if realized could materially affect our business, prospects, financial condition, results of operations, cash flows and access to liquidity.
 Business and Operating Risks
 • Our ability to source a sufficient supply of assets and attract engaged buyers. Our ability to increase our revenue and earn profits depends on whether we can successfully retain existing sellers, attract new sellers, expand the supply of assets available for sale on our e-commerce marketplaces and, at the same time, attract and retain active qualified buyers to purchase the assets in the categories we sell.

 • Our response to rapid technological changes. To remain competitive, we must continue to enhance and improve the functionality and features of our e-commerce business, as well as transaction processing systems and network infrastructure, to allow our operations to grow in both size and scope.

 • Our continuing initiatives. If our continuing initiatives are not implemented successfully and within budget, or if our systems do not perform in a satisfactory manner, we may not realize the anticipated benefits of such continuing initiatives.

 • Our information technology and digital marketing improvements and availability of technology. If we do not effectively manage improvements to our marketplaces, it could negatively affect our business and our operating results. Any system interruptions that affect our websites or our transaction systems could impair the services we provide.

 • Our vendor contracts with Amazon.com, Inc. If Amazon stopped selling inventory to us on acceptable terms or adversely changed the mix and quantity of the inventory that they make available to us for purchase, we likely could not procure alternative inventory from other vendors in a timely and efficient manner and on acceptable terms, or at all.

 • Retention of our senior management and other highly skilled employees. Our future success also depends on our ability to continue to attract, retain, and motivate highly skilled employees, and losing any member of our existing senior management team could damage key seller relationships, result in the loss of key information, expertise, or know-how, and lead to unanticipated recruitment and training costs.

 • Competition. Our businesses operate in intensely competitive markets.

 • Our use of software licensed from third parties, open-source software, SAAS, and PAAS offerings. Licenses to third-party software and global public cloud providers may not continue to be available on terms that are acceptable to us, or at all.

 • Our dependence on third parties for marketing technology. Our marketing technology relies heavily on our ability to track our promotional campaign performance across marketing channels.

 • Privacy and security of personal and business information. Losing confidential seller or buyer information could also expose us to the risk of liability, costly litigation and reputational harm.

 • Our purchase transaction model. If we fail to accurately predict our ability to sell assets in which we take inventory risk and credit risk, our margins may decline.

 • Fluctuation in operating results. Our quarterly operating results have fluctuated in the past and may do so in the future, which could cause volatility in our stock price.

 • Stock price volatility. Volatility in the global financial markets and other broad market and industry factors, among other factors, may adversely affect the market price of our common stock, regardless of our actual operating performance.

 • Seasonality of our business. If we cannot effectively manage increased demand, or the increased flow of goods we typically experience during these times, it could adversely affect our revenue and our future growth.

 • Our ability to identify, finance, and integrate acquisitions. If we cannot achieve our acquisition objectives in a cost-effective and timely manner, we may not realize the anticipated benefits of the acquisition, or it may take us longer than we expect to realize the benefits of the acquisition.

 • Our international operations. It is costly to establish, develop, and maintain international operations and websites, and promote our brand internationally, and international operations expose us to foreign exchange fluctuations.

 • Global economic conditions, including those from macro-trends and global events, may harm our business and results of operations.

 • Financing. We may need additional financing in the future, which may not be available on favorable terms, if at all.

 • Demand for our surplus assets. Our revenues could decrease if there was significant erosion in the supply of, demand for, or market values of the types of assets sold on our marketplaces.

 • Our reliance on banking partners and financial system stability. Instability or failure of any of our primary banks or financial partners could result in a sudden loss of access to our funds, delays or failures in payment processing, or increased costs of obtaining alternative banking services, and changes in the terms of our banking relationships could adversely affect our ability to manage working capital and meet our financial obligations.

 Legal and Regulatory Risks
 • Laws and regulations related to the technology systems and to the e-commerce industry. We face legal uncertainties relating to our technology systems and to the e-commerce industry in particular and may become subject to costly government regulation.

 • Government regulations applicable to our auction business. Many states and other jurisdictions have regulations governing the conduct of traditional "auctions", the liability of traditional "auctioneers" in conducting auctions, the sale of real property via traditional "auctions", and handling property by "secondhand dealers" which may apply to online auction services.

 • Privacy regulations. Our failure to comply with federal, state, and international laws and regulations relating to privacy could subject us to lawsuits, fines, criminal penalties, statutory damages, adverse publicity, and other costs which could decrease our profitability.

 • Asset-specific government restrictions. Certain categories of assets sold on our marketplaces are subject to government restrictions.

 • Product liability. We may be subject to product liability claims if people or property are harmed by the assets we sell.

 • Audits and investigations. Unfavorable findings resulting from audit or investigation could subject us to a variety of penalties and sanctions, could negatively impact our future operating results, and could force us to adjust previously reported operating results.

 • Anti-corruption laws and regulations. Due to the international scope of our operations, we are subject to extensive anti-corruption laws and regulations.

 • Fraudulent activity. We periodically receive complaints of fraudulent activities of buyers or sellers on our marketplace, which may cause us to lose sellers and buyers and hurt our ability to grow our business.

 • Our corporate documents and Delaware law. Some provisions of our charter, bylaws, and Delaware law inhibit potential acquisition bids.

 • Intellectual property rights. Our ability to effectively safeguard and enforce our intellectual property rights may be limited, potentially impacting our reputation and adversely affecting our business growth. Assertions that we infringe on intellectual property rights of others could result in significant costs and substantially harm our business and operating results.

 General Risk Factors
 • Internal controls over financial reporting. Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business, operating results, and stock price.

 • Accounting and reporting policies or practices. Changes in accounting and reporting policies or practices may affect our financial results, which may affect our stock price.

 • Our reputation. Damage to our reputation could harm our business.

 • Goodwill. We carry a significant amount of goodwill on our balance sheet and a future occurrence of a potential indicator of impairment could result in goodwill impairment charges.

 Risk Factors

 Business and Operating Risks
 The success of our business depends on our ability to source a sufficient supply of assets from sellers to attract and retain active professional buyers, who in turn attract more sellers.
 Our ability to increase our revenue and earn profits depends on whether we can successfully retain existing sellers, attract new sellers, expand the supply of assets available for sale on our e-commerce marketplaces and, at the same time, attract and retain active qualified buyers to purchase the assets in the categories we sell. Our ability to attract enough quantities of suitable assets and buyers with suitable interests in those assets will depend on various factors, some of which are out of our control. These factors include our ability to: offer sellers liquid marketplaces for their assets; offer buyers desirable assets; develop and implement effective seller and buyer marketing strategies; comply with regulatory and commercial seller requirements affecting marketing and disposition of certain assets; efficiently catalog, handle, store, ship, and track delivery of assets; and achieve high levels of seller and buyer satisfaction.
 Failure to continue to offer competitive assets to the marketplace, to supply assets that meet applicable regulatory requirements, or to predict market demands for, or gain market acceptance of, such assets, would have a negative impact on our business, results of operations and financial condition.
 If we do not respond to rapid technological changes or continuously upgrade our systems, we could fail to grow our business and our revenue could decrease.
 To remain competitive, we must continue to enhance and improve the functionality and features of our e-commerce business, particularly those that attract and retain buyers and sellers. As an e-commerce company, we must continuously improve and upgrade our technology, transaction processing systems, and network infrastructure to allow our operations to grow in both size and scope. Without such continuous improvements, our operations might suffer from unanticipated system disruptions, slow transaction processing, unreliable service levels, or impaired quality or delays in reporting accurate financial information, any of which could negatively affect our reputation and ability to attract and retain sellers and buyers. We may also face material delays in introducing new services, assets, and enhancements. The e-commerce industry is rapidly changing with increasing deployment of artificial intelligence (AI) driven platforms, which have the potential to alter the competitive dynamics of digital advertising by changing the way in which users consume information and interact with content over the internet. If competitors introduce capabilities and services using new technologies, such as AI, or if new industry standards and practices emerge, our existing online marketplaces and our proprietary technology and systems may become obsolete. If we are unable to address these new technologies, adapt to evolving market expectations, or compete effective with AI-driven ecosystems, our growth and market position could be adversely impacted. In addition, the expansion and improvement of our systems and infrastructure may require us to commit substantial financial, operational, and technical resources, with no assurance our business will grow as a result. We may lack sufficient resources to continue to make the significant investments in information technology to compete with our competitors. If we fail to respond to technological change or to adequately maintain, expand, upgrade, and develop our systems and infrastructure promptly, our ability to grow and remain competitive could be limited and our revenue could decrease.
 We may not realize the anticipated benefits from our continuing initiatives.
 We expect that our continuing initiatives to increase our efficiency and productivity, the functionality of our marketplaces, and our cross-selling opportunities, will drive our scale and growth and have a positive effect on our business, competitive position, and results of operations over time. We cannot assure you that these initiatives will be beneficial to the extent, or within the timeframes, expected, or that the estimated efficiency, cost savings, and other improvements will be realized as anticipated or at all.

 For example, we are simultaneously implementing enhancements for operating leverage in our retail operations and investing and expanding further our direct-to-consumer channel by opening a location in Columbus, Ohio under the name Retail Rush. The results of our Retail Rush initiative are affected by a variety of factors, including without limitation: national and regional economic trends in the United States; changes in shipping and transportation costs; changes in our merchandise mix; the weather; changes in pricing; changes in the timing of promotional and advertising efforts; and holidays or seasonal periods. If this initiative or our other initiatives are not implemented successfully and within budget, or if our systems do not perform in a satisfactory manner, it could disrupt or otherwise materially adversely affect our business and results of operations, as well as divert management resources.
 The information technology and digital marketing improvements that are core to our strategy place a significant strain on our management, operational, financial and other resources.
 We continue to decommission non-scalable legacy IT platform technology with modular technology including key modules for unified management of sellers and buyers, property handling, transaction processing and finance functions across our entire Company. Our AllSurplus marketplace is designed to provide our buyers with access to all of the property listed directly on AllSurplus as well as the GovDeals marketplaces. This provides our sellers with a common account experience and simplifies our operations. Iterative information technology and digital marketing improvements require management time and resources to educate employees, redesign internal processes, and implement new ways of conducting business with our sellers and buyers. If we do not effectively manage improvements to our marketplaces, including digital marketing and data driven improvements or the timing, costs, and adoption by sellers and buyers, it could negatively affect our business and our operating results, as well as damage our reputation and our prospects. In addition, the dedication of resources to sustain, secure, and enhance our existing sites constrains the ability to undertake transformation initiatives focused on growth opportunities.
 We have vendor contracts with Amazon.com, Inc. in our RSCG segment under which we acquire a significant portion of our purchased inventory, and a disruption in our relationship with Amazon could have a material adverse effect on our revenues and operating results.
 We have multiple vendor contracts with Amazon.com, Inc., under which we acquire and then resell assets. $10.1 million and $12.2 million of inventory purchased under such contracts with Amazon.com, Inc. is included in our Inventory balances on our Consolidated Balance Sheets as of September 30, 2025 and 2024, respectively. If Amazon stopped selling inventory to us on acceptable terms or adversely changed the mix and quantity of the inventory that they make available to us for purchase, we likely could not procure alternative inventory from other vendors in a timely and efficient manner and on acceptable terms, or at all, which could have a material adverse effect on our revenue and operating results.
 If we do not retain our senior management and other highly skilled employees, we may not achieve our business objectives.
 Our future success, including our ability to successfully implement recent initiatives, depends substantially on the continued service of our senior management and other key personnel, particularly William P. Angrick, III, our Chairman and Chief Executive Officer. We do not have key-person insurance for any of our officers or employees. Losing any member of our existing senior management team could damage key seller relationships, result in the loss of key information, expertise, or know-how, lead to unanticipated recruitment and training costs, and make it more difficult to operate our business and achieve our business goals. Our future success also depends on our ability to continue to attract, retain, and motivate highly skilled employees, particularly employees with technology, sales, marketing, operations, and administrative technical expertise. As AI-enabled tools and technology evolve at an accelerated pace, attracting talent, across all disciplines, that are able to safely leverage these technologies becomes of increasing importance. Competition for employees in our industry is intense. We have experienced occasional difficulty in attracting personnel to support the growth of our business due to labor market volatility among other factors, and we may experience similar difficulties in the future. If we cannot attract, assimilate, and retain employees with the skills we require, we may not grow our business and revenue as expected and we could experience increased turnover, decreased levels of buyer and seller service, low morale, inefficiency or internal control failures. Further changes to immigration policies in the U.S. and other key jurisdictions that restrain the flow of technical and professional talent may inhibit our ability to adequately recruit and retain highly skilled employees.

 We must also attract, train, and retain a large and growing number of qualified employees in our RSCG and GovDeals warehouses and storage lots, while controlling related labor costs and maintaining our core values. Our ability to control labor and benefit costs is subject to numerous internal and external factors, regulatory changes, prevailing wage rates, and healthcare and other insurance costs. We compete with other retail and non-retail businesses for these employees and invest significant resources in training and motivating them. We may not be able to attract or retain highly qualified employees in the future, which could have a material adverse effect on our business, financial condition, and results of operations.
 We face intense competition.
 Our businesses operate in intensely competitive markets. We have many competitors in different industries, including the online services market for auctioning or liquidating surplus assets and retail markets. Competitive pressures could affect our ability to attract and retain buyers and sellers, which could decrease our revenue and negatively affect our operating results.
 Some of our current and potential competitors have longer operating histories, larger seller and buyer bases, greater brand recognition and greater financial, marketing, and other resources than we do. They may devote greater financial resources to marketing and promotional campaigns, secure better terms from sellers and vendors, adopt more aggressive pricing or inventory availability policies, or devote substantially more resources to technology and infrastructure than we do.
 Several of our competitors have upgraded aspects of their core information and marketing technology stacks. This heightened focus on e-commerce has increased the competition we face. If this competition continues to intensify, it may become progressively more difficult to attract enough buyers and sellers to our marketplaces to sustain growth without significant increases in resources.
 In some geographies, we have competitors that may have a better understanding of local culture, commerce, and market dynamics. We increasingly may compete in other geographies with local competitors that have advantages we do not, such as a greater ability to operate within the local regulatory and political environments.
 In addition, we may face competition from certain of our retail clients and smaller actors. For example, a retail client may invest in its warehouse operational capacity to handle higher volumes of online returns which may cause such retailers to send us a reduced volume of returned merchandise or a product mix that is lower in value due to the removal of high value returns. Furthermore, a smaller competitor may achieve scale by means of competitive advantage over our company, resulting in their ability to directly compete with us for the same source of inventory that we currently acquire.
 If our strategy to compete against our many competitors is not effective, we may lose market share and our financial condition, results of operations, and long-term earnings growth may be negatively affected.
 Our operating results depend on the availability and performance of our marketplace technology, network infrastructure, and transaction processing systems, which leverage public cloud infrastructure. Significant service interruptions or system failures, whether internal or within the broader cloud ecosystem, could negatively affect the demand for our services and our ability to grow our revenue.
 Any system interruptions that affect our websites or our transaction systems could impair the services we provide to our buyers and sellers. Our systems rely on the availably and scalability of the public cloud providers in which they are hosted. These systems may be vulnerable to damage from a variety of other sources, including: damage to, or failure of, our computer software or hardware, or our connections to, and outsourced service arrangements with, third parties; failure of, or defects in, the third-party systems, software, or equipment on which we rely to access our hosted systems and other systems; errors in the processing of data; computer viruses, malware, or software defects; physical or electronic break-ins, sabotage, distributed denial of service, or DDoS, penetration attacks, intentional acts of vandalism, and similar events; and telecommunications failures, power outages, pandemics, political unrest, malicious human acts, and natural disasters.

 Improving the reliability and redundancy of our systems may be expensive or reduce our margins and may not be successful in preventing system failures.
 Our ability to provide services depends substantially on systems provided by third parties, over whom we have little control. We have occasionally experienced interruptions to our services due to system failures. Any disruption to the third-party data centers we utilize, interruptions or failures of our systems or our ability to communicate with third-party systems could negatively affect the demand for our services and our ability to grow our revenue.
 Many of our information technology systems consist of outsourced, cloud-based infrastructure, platform, and software-as-a-service solutions not under our direct management or control. Any disruption to either the outsourced systems or the communication links between us and the outsourced supplier could negatively affect our ability to operate our websites or our transaction systems and could impair our ability to provide services to our buyers and sellers. We may incur additional costs to remedy the damages caused by these disruptions.
 Our inability to use software licensed from third parties, open-source software, SAAS, and PAAS offerings under current license or contractual terms could interfere with our proprietary rights thereby disrupting our business.
 • We use a combination of licensed and open-source software, software as a service (SAAS), and platform as a service (PAAS) offerings from multiple third parties and global public cloud providers. Licenses to third-party software and global public cloud providers may not continue to be available on terms that are acceptable to us, or at all.

 Our inability to use third-party software or to enter into agreements on acceptable terms with providers of cloud-based solutions could cause disruptions to our business, or delays in developing future services or enhancements of existing services, which could impair our business. In addition, the terms of certain open-source software licenses may require us to provide modified versions of the open-source software or any proprietary software that we develop that incorporates all or a portion of the open-source software to others on unfavorable license terms consistent with the open-source license term. If we must license our proprietary software under the foregoing, our competitors and other third parties could obtain access to our intellectual property, which could harm our business.
 Certain aspects of our marketing technology depend on third parties over whom we have no direct control.
 Obtaining organic search engine traffic from Google is a significant traffic driver for our marketplaces. If Google modified the search engine algorithms that control our page rankings, we may experience a significant negative impact on the traffic coming to our marketplaces. A decrease in traffic would reduce the number of new buyers and sellers on our marketplaces and could harm our business.
 Our marketing technology relies heavily on our ability to track our promotional campaign performance across marketing channels (i.e., email, search engines, social media, and third-party banner ads). If industry leading software browsers, such as Google Chrome, Microsoft Edge, or Apple Safari, disable user analytics tracking or other similar capabilities, our ability to track our promotional campaign performance could be affected, which could in turn prevent us from fully optimizing the marketing spend associated with our promotional campaigns. Like many other e-commerce marketplaces, Apple's recent upgrades to provide greater transparency as to Identifier for Advertisers (IDFA) has, with respect to some categories of assets, made it harder and more expensive for us to target customers with an interest in purchasing those categories of assets.
 Additionally, our advertising products rely on organic search engine traffic to drive demand for our listing services. If substantial traffic shifts from organic 'click through' search to AI generated search results, we may experience a significant decrease in traffic for the advertising listings.
 We are required to maintain the privacy and security of personal and business information amidst multiplying threat landscapes and in compliance with privacy and data protection regulations globally. Failure to do so could damage our business, including our reputation with sellers, buyers, and employees, cause us to incur substantial additional costs, and make us subject to litigation and regulatory action.

 The cyber security threat landscape is rapidly evolving, driven by the emergence of AI-enabled fraudsters who are leveraging advanced automation and personalization tools to orchestrate increasingly sophisticated and targeted attacks. We rely upon IT systems and networks, some of which are managed by third parties, in connection with virtually all of our business activities. Additionally, we collect, store and process information relating to our business, sellers, buyers, and employees. Operating these IT systems and networks, and processing and maintaining this data, in a secure manner, is critical to our business operations and strategy. Losing confidential seller or buyer information could also expose us to the risk of liability and costly litigation. In addition, if there is any perception that we cannot protect our users' confidential information, we may lose the ability to retain existing, and attract new, sellers and buyers, and therefore our revenue could decline.
 Threats designed to gain unauthorized access to systems, networks and data, both ours and third parties with whom we work, are increasing in frequency and sophistication. New developments in the fields of AI, machine learning, and robotics may create new vulnerabilities and cybersecurity risks, and remote work has also increased the possible attack surfaces. These threats pose a risk to the security of our systems and networks and the confidentiality, integrity, and availability of our data. Cybersecurity incidents may range from random attempts to coordinated and targeted attacks, including sophisticated computer crimes and advanced persistent threats. Phishing attacks have also emerged, including as vectors for ransomware attacks, which have increased in breadth, frequency, and sophistication for the Company. In addition, it is possible that our IT systems and networks, or those managed by third parties such as cloud providers or suppliers that otherwise host confidential information, could have vulnerabilities, which could go unnoticed for a period of time. The actions and controls we and our third-party service providers have implemented and are implementing, may not be sufficient to protect our systems, information, or other property. We currently expend, and we may be required to expend in the future, significant capital and other resources to protect against such security breaches or to alleviate problems caused by such breaches.
 Furthermore, cybersecurity is a significant focus for legislators and regulators, resulting in an increasingly complex landscape of global and state privacy laws. The SEC has implemented requirements mandating enhanced disclosures regarding our cybersecurity risk management, strategy, and governance, as well as the reporting of material cybersecurity incidents. Non-compliance with applicable laws and regulations may lead to financial losses, business disruptions, investor liabilities, regulatory actions, or damage to our reputation. At this time, it is not possible to accurately forecast the additional costs associated with compliance or the timeline for incurring such expenses. Additionally, our insurance coverage may not fully address losses arising from related incidents.
 An interruption in the operations of our buyer and seller support service system or our warehouses could significantly harm our business and operating results.
 Our business depends, to a large degree, on the provision of effective support services to our buyers and sellers, and on effective warehouse operations (including leased commercial warehouse space). These operations could be harmed by several factors, including any material disruption or slowdown at our network of warehouses resulting from labor disputes, changes in the terms of our underlying lease agreements, telecommunications failures, power or service outages, human error, terrorist attacks, natural disasters, government mandated business closures, and shelter-in-place guidelines designed to contain the spread of epidemic or pandemic disease or other events.
 If we fail to accurately predict our ability to sell assets in which we take inventory risk and credit risk our margins may decline.
 Under our purchase transaction model, we purchase assets and assume the risk that the assets may sell for less than we paid for them. We assume general and physical inventory and credit risk with respect to these assets. These risks are especially significant because some of the goods we purchase and resell on our websites are impacted by rapid technological change, obsolescence, and price erosion, and because we sometimes make large purchases of particular types of inventory or industrial equipment when manufacturing facilities or campuses close. In addition, we do not typically receive warranties on the assets we purchase and, as a result, we must resell or dispose of any returned goods on an as-is basis, which limits the types of buyers willing to purchase our assets. To manage our inventory successfully, we must maintain enough buyer demand to sell assets for a reasonable financial return. We may overpay for the acquired assets if we miscalculate buyer demand or if the acquired assets are not as desirable as we predicted. If assets are not attractive to our buyer base, we may have to take significant losses resulting from lower sale prices, which could reduce our revenue and margins.

 Occasionally, in our CAG segment, we make very significant inventory acquisitions, such as the purchase of semi-conductor and oil and gas equipment, and biopharma and metal-working machinery, for later resale on our energy and industrial marketplaces. We plan to continue to opportunistically make such acquisitions. To satisfy local laws and regulations, maximize returns, or effectively manage our operational cash flows, among other business factors, we may acquire inventory in partnership with one or more third parties. In these partnership arrangements, the Company works with one or more third parties to maximize the return on the assets being sold, while utilizing the competitive advantages of all partners involved. The risks described above are heightened in these inventory acquisition transactions due to their size and, at times, the limited market for the assets we acquire. Obtaining financing to fund such acquisitions will increase our costs, which will decrease any profits we receive from the sale of the acquired assets.
 In our RSCG segment, we are obligated under certain supply agreements to take delivery of product regardless of prevailing demand conditions, which limits our ability to adjust our inventory levels in response to fluctuations in our buyer demand. Our customers are not generally required to purchase any minimum volume of products or services and may reduce or cease purchases at any time. If our buyer demand declines, whether due to the loss of a customer or from broader market weakness, we could experience excess inventory and operational inefficiencies, including increased storage and handling requirements, and reductions in our margins. The risk is heightened under purchase model transactions, where we also bear inventory risk.
 As we grow our business, we may increase the assets we purchase directly from sellers, resulting in increased inventory levels and related risks, including increased risk of losses on the sale of the inventory acquired. Any such increase would require the use of additional working capital and any funds so used would not be available for other purposes.
 Our quarterly operating results have fluctuated in the past and may do so in the future, which could cause volatility in our stock price.
 Our prior operating results have fluctuated due to changes in our business and the e-commerce industry. Similarly, our future operating results may vary significantly from quarter to quarter due to many factors, including factors beyond our control. You should not rely on period-to-period comparisons of our operating results as an indication of our future performance. Factors that may, among others, affect our quarterly operating results include the following:
 • our ability to increase sales to existing buyers, attract and retain new buyers, and satisfy buyer demands;

 • our ability to retain and expand our base of sellers;

 • entry into, or the modification, termination, or expiration of, contracts;

 • the volume, size, timing, and completion rate of transactions in our marketplaces, including variability due to the timing of large, project-based activities;

 • changes in the supply and demand for and the volume, price, mix, and quality of our supply of surplus assets, including vehicles and real estate;

 • introduction of new or enhanced websites, services, or product offerings by us or our competitors, which may affect our margins;

 • implementation costs of new contracts, particularly those requiring custom integrations and value-added services;

 • changes in our pricing policies or the pricing policies of our competitors;

 • changes in the conditions and economic prospects of the e-commerce industry or the economy generally, which could alter current or prospective buyers' and sellers' priorities;

 • the extent to which use of our services is affected by spyware, viruses, phishing and other spam emails, denial of service attacks, data theft, computer intrusions, outages, and similar events;

 • fiscal policies or inaction at the U.S. federal government level that may lead to federal government shutdowns or negative impacts on the U.S. economy;

 • customs or border control policies and new or changing tariffs or trade sanctions;

 • event-driven disruptions such as war, terrorism, armed hostilities, disease, and natural disasters;

 • changes in energy and commodities prices, including the timing and speed of recovery in energy sector macro conditions;

 • seasonal patterns in selling and purchasing activity; and

 • costs related to acquisitions of technology or equipment.

 Our operating results may fall below the expectations of market analysts and investors in some future periods. If this occurs, even temporarily, it could cause volatility in our stock price.
 Our stock price has been volatile, and your investment in our common stock could decline in value.
 Volatility in the global financial markets and other broad market and industry factors may adversely affect the market price of our common stock, regardless of our actual operating performance. Other factors that could cause fluctuation in our stock price may include:
 • actual or anticipated variations in quarterly operating results;

 • changes in financial estimates by us or by a securities analyst who covers our stock;

 • publication of research reports about our Company or industry;

 • conditions or trends in our industry;

 • stock market price and volume fluctuations of other publicly traded companies and, in particular, those whose business involves the Internet and e-commerce;

 • announcements by us or our competitors of significant contracts (or the amendment or loss of such contracts), acquisitions, commercial relationships, strategic partnerships, or divestitures;

 • announcements by us or our competitors of technological innovations, new services or service enhancements;

 • announcements of investigations or regulatory scrutiny of our operations or lawsuits filed against us;

 • the passage of legislation or other regulatory developments that adversely affect us, our sellers or buyers, or our industry;

 • additions or departures of key personnel;

 • sales of our common stock, including sales of our common stock by our directors and officers or specific stockholders; and

 • general global economic and/or political conditions and slow or negative growth of related markets.

 Volatility in the market price of shares may prevent investors from being able to sell their shares of common stock at prices they view as attractive. In the past, securities class action litigation has often been instituted against companies following periods of volatility in their stock price. This type of litigation could result in substantial costs and divert our management's attention and resources.
 The seasonality of our business places increased strain on our operations.
 We experience seasonality in each portion of our business at various times during the year. As a result, we expect a disproportionate number of transactions on our marketplaces to occur at certain times during the year. If we cannot effectively manage increased demand, or the increased flow of goods we typically experience during these times, it could adversely affect our revenue and our future growth. If too many buyers and sellers access our websites within a short period of time due to increased demand, we may experience system interruptions that make our websites unavailable or prevent us from providing efficient service, which may reduce our financial and operational results and the attractiveness of our value-added services. In addition, we may be unable to adequately staff our network of warehouses during these peak periods. If we cannot staff warehouses adequately, we may not be able to process assets quickly enough which, in turn, could mean dissatisfaction of sellers or increased third-party storage costs and reduced profitability.
 If we fail to identify, finance, and integrate acquisitions, our future operating results may be materially adversely affected.
 We have completed and may complete additional acquisitions in the future. The success of any acquisition, including anticipated synergies, benefits and cost savings, will depend, in part, on our ability to successfully combine and integrate our current operations with the acquisition. Our ability to successfully integrate the acquired businesses and operations with our existing businesses plays a significant role in realizing the anticipated benefits of any acquisitions. The integration process could cause the loss of key employees, buyers, sellers, or other vendors, increase our operating or other costs, decrease our profit margins, disrupt our other businesses, or divert management's attention and Company's resources from our existing businesses. If, as a result of these or other integration risks, we cannot achieve our acquisition objectives in a cost-effective and timely manner, we may not realize the anticipated benefits of the acquisition, or it may take us longer to realize the benefits of the acquisition than we expect. Any failure to timely and cost-effectively realize the anticipated benefits of an acquisition could have a material adverse effect on our revenues, expenses, and operating results
 Additionally, acquisitions could cause dilutive issuances of equity securities, the incurrence of debt, one-time write-offs of goodwill, and substantial amortization expenses of other intangible assets. We may not obtain any required acquisition financing on favorable terms, or at all, which could make it impossible or costlier to acquire other businesses. If we can obtain financing, the terms may be onerous and restrict our operations. Further, certain acquisitions may be subject to regulatory approval, which can be time-consuming and costly to obtain, and the terms of such regulatory approvals may impose limitations on our ongoing operations or require us to divest assets or lines of business. Additionally, businesses that we acquire outside the U.S. may present unique challenges or increase our exposure to risks associated with foreign operations, including foreign currency risks and risks associated with local regulatory regimes.
 The success of any future growth strategy involving acquisitions will depend on our ability to identify, and the availability of, suitable acquisition targets. We may incur costs, perhaps significant costs, in connection with evaluating and/or pursuing a potential acquisition but may be unable or unwilling to consummate the proposed transaction for various reasons.
 Our international operations expose us to several risks.
 Our international activities are significant to our revenues and profits, and we may continue to expand internationally, including through acquisitions, organic growth and through joint ventures or strategic alliances with third parties. We are required to comply with the laws of the countries or markets in which we operate. In addition, because our services are accessible worldwide and facilitate the sales of goods and provide services to users worldwide, one or more jurisdictions may claim that we or our users are required to comply with their laws based on the location of our servers, or one or more of our users, or location of the assets or service being sold or provided.
 It is costly to establish, develop, and maintain international operations and websites, and promote our brand internationally. Our international operations may not be profitable on a sustained basis or at all. In addition to the risks described elsewhere in this section, our international operations are subject to several risks, including:

 • local economic and political conditions, or civil unrest that may disrupt economic activity in affected countries;

 • government regulation of e-commerce and other services, competition, and restrictive governmental actions (such as trade protection measures, including export duties and quotas and custom duties and tariffs), nationalization, and restrictions on foreign ownership;

 • restrictions on sales or distribution of certain assets or services and uncertainty regarding liability for assets and services, including uncertainty because of less Internet-friendly legal systems, local laws, lack of legal precedent, and varying rules, regulations, and practices regarding the enforcement of intellectual property rights;

 • business licensing or certification requirements, such as for imports, exports, and web services;

 • limitations on the repatriation and investment of funds and foreign currency exchange restrictions;

 • shorter payable and longer receivable cycles and the resultant negative impact on cash flow;

 • laws and regulations regarding consumer and data protection including with respect to cross-border data transfers, privacy, network security, encryption, payments, and restrictions on pricing or discounts;

 • lower levels of consumer spending and fewer opportunities for growth compared to the U.S.;

 • lower levels of credit card usage and increased payment and foreign exchange risk;

 • different employee/employer relationships and the existence of works councils;

 • compliance with the U.S. Foreign Corrupt Practices Act and other applicable U.S. and foreign laws prohibiting certain payments to government officials and other third parties;

 • laws and policies of the U.S. and other jurisdictions affecting trade, foreign investment, loans, and taxes; and

 • geopolitical events, including war, terrorism, and political instability.

 If we expand internationally through joint ventures or strategic alliances, we will also face counterparty risk in addition to the risks described above. If any counterparty to our joint ventures or strategic alliances is unwilling or unable to perform its obligations to us, we may not realize the benefits of such arrangements and we may experience material unanticipated problems, expenses, and liabilities.
 Our international operations expose us to foreign exchange fluctuations that could harm our operations.
 We conduct business in many countries around the world and receive fees and pay expenses (including salaries to our international workforce) in several different currencies despite reporting our financial results in U.S. dollars. As a result, our financial results are impacted by fluctuations in foreign currency rates. The results of our foreign subsidiaries are translated from the local currency to U.S. dollars for financial reporting purposes. For example, if the U.S. dollar weakens against foreign currencies, the translation of these foreign currency denominated revenues and expenses will result in increased U.S. dollar denominated revenues and expenses. These factors and others may harm our business and our results of operations. In addition, currency exchange rates may negatively affect our results if we pay for inventory using a different currency than we receive when we sell the inventory.
 While from time to time we enter into transactions to hedge certain foreign currency exposures, it is impossible to eliminate the effects of this exposure. In addition, since the hedging activities are designed to lessen volatility, they not only reduce the negative impact of a stronger U.S. Dollar or other trading currency, but they also reduce the positive impact of a weaker U.S. Dollar or other trading currency. Our future financial results could be significantly affected by the value of the U.S. Dollar in relation to the foreign currencies in which

 we conduct business. The degree to which our financial results are affected for any given time period will depend in part upon our hedging activities.
 We may need additional financing in the future, which may not be available on favorable terms, if at all.
 We may need additional funds to finance our operations, as well as to enhance our services, acquire inventory for our businesses, fund initiatives, respond to competitive pressures, acquire complementary businesses or technologies, or otherwise support our growth. We may also require additional funds if vendors and other third parties from whom we purchase inventory, other goods or services extend less favorable credit terms to us. Our business may not generate the cash needed to finance such requirements. We currently maintain a Credit Agreement with Wells Fargo Bank, National Association (the Credit Agreement). Terms of the Credit Agreement provide for revolving loans (the Line of Credit) up to a maximum aggregate principal amount of $35.0 million with a $35.0 million sublimit for standby letters of credit, access to which expires on March 31, 2027. As of September 30, 2025, the Company had no outstanding borrowings under the Line of Credit and had $9.0 million of standby letters of credit outstanding. The amount of standby letters of credit are reserved against the Line of Credit and are not available for borrowing, resulting in $26.0 million of remaining borrowing capacity under the Line of Credit as of September 30, 2025. We are able to issue standby letters of credit for various purposes, including the facilitation of transactions with vendors or other counterparties. If our access to the Credit Agreement is reduced or if vendors or other counterparties change their transacting requirements, we could face higher costs and challenges in managing our working capital effectively, which may adversely affect our operations and financial condition.
 Although we have this existing Credit Agreement from which we may draw funds, there may be situations in which we seek funding through other sources. Further, upon expiration of this line of credit facility, commercial terms for subsequent credit facilities (such as the borrowing amount, interest rates, or related terms) may no longer be favorable to the Company. If, alternatively, we raise additional funds by issuing equity or convertible debt securities, the percentage ownership of our existing stockholders would be reduced, and these securities may have rights, preferences, or privileges senior to those of our common stock.
 Additionally, the general economic and capital market conditions in the United States and other parts of the world can deteriorate significantly, limiting access to capital and increasing the cost of capital. A large degree of economic uncertainty remains both domestically and abroad, which can adversely affect access to capital, and the cost of capital. If adequate funds are not available or are not available on acceptable terms, our ability to enhance our services, fund strategic initiatives, respond to competitive pressures, take advantage of business opportunities, or grow our business would be limited, and we might need to restrict our operations and initiatives.
 Global economic conditions, including those from macro-trends and global events, may harm our business and results of operations.
 Our overall performance depends in part on worldwide economic conditions. Global financial developments, downturns, and global health crises or pandemics may harm us, including due to disruptions or restrictions on our employees' ability to work and travel. The United States and other key international economies have been affected from time to time by falling demand for a variety of goods and services, restricted credit, poor liquidity, reduced corporate profitability, volatility in credit, equity, and foreign exchange markets, bankruptcies, labor shortages, labor unrest, pandemics, natural disasters, supply chain disruptions, inflation, and overall uncertainty with respect to the economy, including with respect to tariff and trade issues.
 Ongoing armed conflicts around the world, such as those in Ukraine and the Middle East, could create or exacerbate risks facing our business. The Russia-Ukraine conflict specifically resulted in numerous countries, including the United States, imposing significant new sanctions and export controls against Russia, Russian banks, and certain Russian individuals. These armed conflicts have resulted and could continue to result in, disruptions to trade, commerce, pricing stability, and/or supply chain continuity, in both Europe and globally, and has introduced significant uncertainty into the global markets. If global economic conditions remain uncertain or deteriorate further, particularly to the extent such conflicts escalate to involve additional countries, we could see potential scenarios having a material adverse effect on our business such as a reduction in the ability of international buyers and sellers to conduct business due to travel restrictions impacting the ability of: sellers and their agents to travel to prepare assets for sale; buyers traveling to inspect assets; sellers

 and buyers completing international transactions requiring assets to cross export and import border control points; and the overall willingness of sellers and buyers to decommission capital assets and engage in cross-border transactions.
 We believe that other potential conflicts that could result in similar disruption could include a military conflict between mainland China and Taiwan, possible international intervention and sanctions, and the resulting potential disruption to the operations of our CAG and Machinio teams in China. Moreover, in addition to our operations, in the case of a military conflict between China and Taiwan, global manufacturers would likely lose access to advanced semiconductor chips and other products that are sourced from Taiwan. Such a conflict would also likely limit access to key Chinese ports and exporters due to both military actions and potential international sanctions, which would create significant disruption for a variety of industries that we serve that rely on supply chain in China.
 Separately, any factors that reduce cross-border trade or make such trade more difficult could harm our business. Increasing costs, such as increasing tariffs and trade wars between nations, may make international trade less profitable and adversely affect our global business. Tariffs, economic sanctions and other changes in U.S. trade policy have in the past and could in the future trigger retaliatory actions by affected countries. Such changes have the potential to adversely impact the U.S. economy or certain sectors thereof or the economy of other countries in which we operate, our industry, the industries of our customers, the global demand for our products, and consumer spending generally.
 Decreases in the supply of, demand for, or market values of surplus assets, including used vehicles and real estate, could harm our business.
 Our revenues could decrease if there was significant erosion in the supply of, demand for, or market values of the types of assets sold on our marketplaces, including used vehicles and real estate, which could adversely affect our financial condition and results of operations. We have no control over any of the factors that affect the supply of, and demand for, such assets, and the circumstances that cause market values to fluctuate including, among other things, economic uncertainty, global geopolitical climate, disruptions to credit and financial markets, lower commodity prices, and our buyers' restricted access to capital. Recent economic conditions have caused fluctuations in the supply, mix, and market values of assets available for sale, which has a direct impact on our revenues. In addition, price competition and the availability of assets directly affect the supply of, demand for, and market value of such assets.
 For example, when the demand for used vehicles increases, the prices are also likely to increase, making it more costly for potential buyers to find suitable replacements for their existing vehicles. As a result, potential buyers may retain their existing vehicles for longer periods of time, further decreasing supply. These factors could impact the overall profitability of used vehicle sales on our marketplaces because although used vehicles are selling for higher prices, fewer vehicles are being sold. Climate change initiatives, including significant changes to engine emission standards applicable to certain types of assets, may also adversely affect the supply of, demand for, and market values of such assets.
 In addition, there are many factors that contribute to adverse market conditions in the real estate sector, including but not limited to, rising interest rates, inflationary pressures, changes in consumer demand or demographic trends, regulatory changes and natural disasters or climate-related events. Such adverse market conditions could impact the supply of, demand for, and market values of real estate, which could, in turn, adversely affect our financial condition and results of operations.
 Reliance on Banking Partners and Financial System Stability
 We rely on a limited number of banks and financial institutions both domestically and internationally to provide critical services, including cash management, payment processing, credit facilities, and other transactional support. Our ability to access funds, process payments, and manage liquidity depends on the continued stability and operational soundness of these banking partners.
 Instability or failure of any of our primary banks or financial partners—whether due to insolvency, regulatory action, cyberattack, or other disruptions—could result in a sudden loss of access to our funds, delays or failures in payment processing, or increased costs of obtaining alternative banking services.

 In addition, changes in the terms of our banking relationships, such as reduced credit availability, increased collateral requirements, or changes in transaction limits, could adversely affect our ability to manage working capital and meet our financial obligations. If we are unable to access our funds or secure alternative banking arrangements on acceptable terms, our operations, financial condition, and results of operations could be materially and adversely affected.
 Legal and Regulatory Risks
 We face legal uncertainties relating to our technology systems and to the e-commerce industry in particular and may become subject to costly government regulation.
 The laws and regulations related to the Internet and e-commerce are evolving, including laws and regulations regarding user privacy, freedom of expression, pricing, fraud, quality of assets and services, taxation, advertising, intellectual property rights, and information security. There are numerous federal, state, local and international laws, regulations, rules, industry codes of conduct, policies and standards regarding data privacy and security, such as the California Consumer Privacy Act, the Federal Trade Commission enforcement decisions, and the European Union's General Data Protection Regulation. Any failure or perceived failure by us, or third parties with which we do business, to comply with applicable data privacy and security laws, regulations, rules, industry codes of conduct, policies, standards or other legal or contractual obligations, may result in, among other things, governmental or regulatory investigations, enforcement actions, regulatory or other fines, orders requiring that we change our practices, criminal compliance orders, claims for damages by affected individuals or litigation or public statements against us by consumer advocacy groups or others, and could cause customers to lose trust in us. Current and future laws and regulations could increase our cost of doing business and/or decrease the demand for our services.
 Laws adopted prior to the advent of the Internet may not contemplate or address the unique issues of the Internet and related technologies and it is not clear how they may apply.
 Our auction business may be subject to a variety of additional costly government regulations.
 Many states and other jurisdictions have regulations governing the conduct of traditional "auctions", the liability of traditional "auctioneers" in conducting auctions, the sale of real property via traditional "auctions", and handling property by "secondhand dealers" which may apply to online auction services. In addition, certain states have laws or regulations that expressly apply to online auction services. We expect to continue to incur costs in complying with these laws and could be subject to fines or other penalties for any failure to comply with these laws. We may be required to make changes in our business to comply with these laws, which could increase our costs, reduce our revenue, cause us to prohibit the listing of certain items, or restrict certain listing formats in some locations, any of which may adversely affect our financial condition or operating results.
 In addition, the body of law regarding the potential liability of an online auction service for the activities of its users is not clear. Users of our websites may not always comply with our terms and conditions or with laws and regulations applicable to them and their transactions. It is possible that we may be subject to allegations of civil or criminal liability for any unlawful activities conducted by sellers or buyers. Any costs we incur because of any such allegations, or because of actual or alleged unlawful transactions using our marketplaces, or in our efforts to prevent any such transactions, may harm our opportunities for future revenue growth. In addition, any negative publicity we receive regarding any such transactions or allegations may damage our reputation, our ability to attract new sellers and buyers, and our business.
 In addition, if our sellers violate laws or regulations, or implement practices regarded as unethical, unsafe, or hazardous to the environment, it could damage our reputation, limit our growth, and negatively affect our business, prospects, financial condition, and results of operations.
 If we violate privacy regulations, our business could suffer harm.

 We are subject to regulation at the federal, state, and international levels relating to privacy and the use of third-party data, including personal user information and employee data. These statutory and regulatory requirements are evolving, increasing in complexity and number, sometimes conflicting, and may change significantly. How companies collect, process, use, store, share, or transmit personal and employee data is subject to increasing scrutiny by governments and the public, which could accelerate the adoption of additional legislation or regulations. New statutory or regulatory developments may restrict our ability to collect and use demographic and personal information from our buyers and our sellers, which could be costly or harm our marketing efforts. Further, there may be conflicts among the privacy and data protection laws adopted by the countries in which we operate. Judicial and regulatory application and interpretation of these statutory and regulatory requirements are often uncertain and may also limit our marketing efforts. Compliance with regulations regarding privacy, security, and protection of user and employee data, increased government or private enforcement, and changing public attitudes about data privacy, may increase the cost of growing our business and require us to expend significant capital and other resources. Our failure to comply with these federal, state, and international laws and regulations could subject us to lawsuits, fines, criminal penalties, statutory damages, adverse publicity, and other costs which could decrease our profitability.
 Certain categories of assets sold on our marketplaces are subject to government restrictions.
 We sell assets, such as scientific instruments, information technology equipment and aircraft parts, that are subject to export control and economic sanctions laws, among other laws, imposed by the United States and other governments. Such restrictions include the U.S. Export Administration Regulations, the International Traffic in Arms Regulations, and economic sanctions and embargo laws administered by the Office of the Foreign Assets Control Regulations. These restrictions prohibit us from selling property to (a) persons or entities that appear on lists of restricted or prohibited parties maintained by the United States or other governments or (b) countries, regimes, or nationals that are the target of applicable economic sanctions or other embargoes. Such laws could become even more restrictive and cover a wider array of assets in the event of escalations of geopolitical conflict.
 We may incur significant costs or be required to modify our business to comply with these requirements. If we are alleged to have violated these laws or regulations, we may be subject to civil and criminal penalties and administrative sanctions, including termination of contracts, forfeiture of profits, suspension of payments, fines, and suspension or debarment from doing business with U.S. federal government agencies. In addition, we could suffer serious harm to our reputation if allegations of impropriety are made against us, whether or not true.
 We may be subject to product liability claims if people or property are harmed by the assets we sell.
 Some assets we sell through our e-commerce marketplaces may expose us to product liability claims relating to personal injury, death, or environmental or property damage, and may be the subject of product recalls or other actions. Our exposure to product liability claims may be increased if, for example, the manufacturers of the relevant assets do not have enough protection from such claims. Defense of any such actions could be costly and involve significant time and attention of our management and commitment of other resources, may cause us to incur monetary liabilities or penalties, and may require us to change our business in ways adverse to us. We cannot be certain that our insurance coverage will be adequate for liabilities actually incurred or that insurance will continue to be available to us on commercially reasonable terms, or at all. In addition, some of our agreements with our vendors and sellers do not indemnify us against product liability.
 Unfavorable findings resulting from audit or investigation could subject us to a variety of penalties and sanctions, could negatively impact our future operating results, and could force us to adjust previously reported operating results.
 Many of our sellers, including large commercial corporations and governmental entities, have the right to audit our performance under our contracts. Any adverse findings from audits or reviews of our performance could result in a significant adjustment to our previously reported operating results. The results of an audit could significantly limit the volume and type of assets made available to us, resulting in lower revenue and profitability. If such an audit uncovers improper or illegal activities, we could be subject to civil and criminal penalties and administrative sanctions and we could suffer serious harm to our reputation. Government and law enforcement agencies may also investigate our activities under contracts with commercial businesses and governmental entities. If such an investigation alleges that we engaged in improper or illegal activities, we could be subject to civil and criminal penalties and administrative sanctions,

 including termination of contracts, forfeiture of profits, suspension of payments, fines, and suspension or debarment from doing business with government agencies. If, as the result of a government audit or investigation, or for any other reason, we are suspended or debarred from contracting with governments generally, or any specific agency, if our reputation or relationship with government agencies is impaired, or if any government otherwise ceases doing business with us or significantly decreases the amount of business it does with us, our revenue and profitability could substantially decrease.
 Our operations are subject to extensive anti-corruption laws and regulations.
 Due to the international scope of our operations, we are subject to the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act 2010 and similar anti-corruption laws of other countries. These laws generally prohibit companies and their intermediaries from making improper payments or providing anything of value to improperly influence foreign government officials to obtain or retain business or obtain an unfair advantage. Our practices and policies to promote compliance with such laws and regulations may not be effective and violations of anti-corruption laws or regulations by our employees or by intermediaries acting on our behalf may result in severe criminal or civil sanctions, disrupt our business, and adversely affect our reputation, business, and results of operations or financial condition.
 Fraudulent activities involving our websites and disputes relating to transactions on our websites may cause us to lose sellers and buyers and hurt our ability to grow our business.
 We periodically receive complaints of fraudulent activities of buyers or sellers on our marketplace, including disputes over the quality of goods and services, unauthorized use of credit card and bank account information and identity theft, credit chargebacks that are fraudulent in nature, potential breaches of system security, and infringement of third-party copyrights, trademarks and trade names or other intellectual property rights.
 From time to time, we have received complaints that our sellers or buyers trading in our marketplaces are alleged to have engaged in fraudulent or unlawful activity. In addition, we may suffer losses because of purchases paid for with fraudulent credit card data even though the associated financial institution approved payment. If a transaction is disputed, we may not be able to require users of our services to make required payments or to deliver promised goods. We also may receive complaints from buyers about the quality of purchased goods, requests for reimbursement or communications threatening or commencing legal actions against us. Negative publicity generated because of fraudulent conduct by third parties or failure to satisfactorily settle disputes related to transactions on our websites could damage our reputation, cause us to lose sellers and buyers and hurt our ability to grow our business.
 Some provisions of our charter, bylaws, and Delaware law inhibit potential acquisition bids.
 Our corporate documents and Delaware law contain provisions that may enable our Board of Directors to resist a change in control of our Company even if a change in control were to be considered favorable by you and other stockholders. These provisions include: a staggered Board of Directors; a prohibition on actions by our stockholders by written consent; limitations on persons authorized to call a special meeting of stockholders; the authorization of undesignated preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval; advance notice procedures required for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders; and the requirement that Board of Director vacancies be filled by a majority of our directors then in office.
 These provisions could discourage, delay or prevent a transaction involving a change in control of our Company. These provisions could also discourage proxy contests and may make it more difficult for you and other stockholders to elect directors of your choosing and cause us to take other corporate actions you may desire. In addition, our bylaws provide that the Delaware Court of Chancery will be the exclusive forum for certain types of legal action (or, if the Court of Chancery does not have jurisdiction, another state court or a federal court within Delaware). This exclusive forum provision may limit the ability of our stockholders to challenge certain corporate actions in a judicial forum that such stockholders find favorable for disputes with the Company or our current or former directors or officers.

 Our ability to effectively safeguard and enforce our intellectual property rights may be limited, potentially impacting our reputation and adversely affecting our business growth.
 We regard our intellectual property, particularly domain names, copyrights and buyer database trade secrets, as critical to our success. We rely on contractual restrictions and copyright and trade secret laws to protect our proprietary rights, know-how, information and technology. Despite these protections, a third party could copy or otherwise obtain and use our intellectual property without authorization or independently develop similar intellectual property.
 We currently are the registered owners of several Internet domain names, including www.liquidation.com, www.govdeals.com, www.allsurplus.com, www.secondipity.com, www.retailrush.com, www.machinio.com, www.machineryhost.com, www.bid4assets.com, and www.sierraauction.com. We pursue the registration of our domain names in the U.S. and internationally. We have no patents or registered copyrights. Effective patent, copyright, trademark, service mark, trade secret, and domain name protection are expensive to maintain and may require litigation to enforce. We have licensed in the past, and expect to license in the future, certain of our proprietary rights, such as trademarks or copyrighted material, to others. These licensees may take actions that diminish the value of our proprietary rights or harm our reputation. Our competitors may adopt trade names or domain names similar to ours, impeding our ability to promote our marketplaces and possibly leading to buyer or seller confusion. In addition, we could face trade name, trademark, or service mark infringement claims brought by owners of other registered or unregistered trademarks or service marks, including trademarks or service marks that may incorporate variations of our marketplace names. Any claims related to our intellectual property or confusion related to our marketplaces could damage our reputation and negatively affect the growth of our business.
 Assertions that we infringe on intellectual property rights of others could result in significant costs and substantially harm our business and operating results.
 Third parties may claim that our internally developed systems or licensed third-party technology for operating our online auction platform and related websites infringes their intellectual property rights. Similar claims could be made against the providers from whom we license technology. Defending against such infringement claims, regardless of their merit or outcome, could lead to litigation expenses, require resources from technical and management personnel, and potentially cause delays in completing sales. The resolution of these disputes may result in the need to modify technology, develop alternative solutions, or enter into royalty or licensing agreements. Transitioning to different technology could disrupt business operations. Developing non-infringing technology internally may be both costly and time-consuming, and there is no guarantee of success. In addition, royalty or licensing agreements may not be available on acceptable terms, or at all. Any of these factors could affect our operating results.
 General Risk Factors
 Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business, operating results, and stock price.
 Section 404 of the Sarbanes-Oxley Act of 2002 requires that we include in our annual report a report containing management's assessment of the effectiveness of our internal controls over financial reporting as of the end of our fiscal year and a statement as to whether or not such internal controls are effective. Compliance with these requirements has resulted in, and is likely to continue to result in, significant costs and the commitment of time and operational resources. Recently completed initiatives, as well as other changes in our business (including initiatives to invest in information systems, transition particular functions to third-party providers, and acquire new businesses) have necessitated, and will continue to necessitate, modifications to our internal controls. We cannot be certain that our design for internal controls over financial reporting, or any changes to be made, will enable management to determine that our internal controls are effective for any period. If we cannot conclude that our internal controls over financial reporting are effective, market perception of our financial condition and the trading price of our stock may be adversely affected, and seller and buyer perception of our business may suffer.

 Our internal control policies and procedures may not always protect us from reckless or criminal acts committed by our employees or agents, or by third parties with whom we work. Internal controls may become less effective over time because of, among other things, changes in conditions, failures to comply with our policies and procedures, or new business that strains our system of internal controls.
 Changes in accounting and reporting policies or practices may affect our financial results, which may affect our stock price.
 Our accounting policies are fundamental to determining and understanding our financial results and condition. Some require our management to use estimates and make subjective and complex judgments about matters that are uncertain. Factors may arise over time that lead us to change our estimates and judgments. Sometimes, our management must use judgment to select the accounting policy or method to apply from two or more alternatives, any of which may be reasonable under the circumstances, yet may cause us to report materially different results than would have been reported under a different alternative. Any changes in accounting policies or methods could reduce our net income, and such reductions may be independent of changes in our operations. These reductions in reported net income could cause our stock price to decline.
 Damage to our reputation could harm our business.
 Our positive reputation is based on our core values of integrity, customer focus, continuous improvement, innovation, mutual trust and accountability, shared success, and doing well and doing good. Our ability to attract and retain highly skilled employees, clients and buyers, and to successfully do business would be harmed if our reputation was damaged. Harm to our reputation can arise from numerous sources, including, among others, employee misconduct, security breaches, compliance failures, litigation or regulatory outcomes, or governmental investigations. Our reputation could also be harmed by the failure or perceived failure of an affiliate, joint-venture, or a vendor or other third party with which we do business, to comply with laws or regulations. In addition, our reputation or prospects may be significantly damaged by adverse publicity or negative information regarding us, whether or not true, that may be posted on social media, non-mainstream news services or other parts of the Internet, and this risk can be magnified by the speed and pervasiveness with which information is disseminated through those channels.
 Should any of these or other events or factors that can undermine our reputation occur, the additional costs and expenses that we may need to incur to address the issues giving rise to the damage to our reputation may adversely affect our earnings and results of operations. Any damage to our reputation could impair our ability to retain existing or attract new customers, investors and employees.
 We carry a significant amount of goodwill on our balance sheet.
 As of September 30, 2025, we had goodwill of $102.9 million. The future occurrence of a potential indicator of impairment, such as a significant adverse change in business climate, an adverse action or assessment by a regulator, unanticipated competition, a material negative change in relationships with significant customers, strategic decisions made in response to economic or competitive conditions, loss of key personnel, or a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or disposed of, could result in goodwill impairment charges. We have recorded goodwill impairment charges in the past, and such charges materially affected our historical results of operations. For additional information, see Note 7 - Goodwill to the accompanying consolidated financial statements.
 Item 1B. Unresolved Staff Comments.
 None.
 Item 1C. Cybersecurity.
 Risk Management and Strategy
 The protection of our clients' data, our brand, and our systems is of utmost importance. We are subject to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security. We have implemented comprehensive cybersecurity and data privacy programs, fostering a culture of awareness across all employee groups and systems. In 2025, we achieved SOC2 Type 2 certification, reflecting our commitment to supporting our clients by aligning our controls and processes with the System

 and Organization Controls (SOC) compliance framework established by the American Institute of Certified Public Accountants (AICPA). This achievement builds on our previous SOC2 Type 1 certification and complements our ongoing TX Ramp compliance.
 Our process to assess, identify and manage material risks from cybersecurity threats include potential threats associated with third-party service providers, including cloud-based platforms. On an annual basis, we review the SOC2 (or equivalent) attestation of controls for material third-party service providers, coupled with monitoring industry notices and threat intelligence regarding potential vulnerabilities or threats targeting these third-party services.
 We developed our cybersecurity program by integrating proactive training, vulnerability management, and system design with active threat defense mechanisms. Our marketplace services are protected by multiple layers of security including firewalls, endpoint protection, WAF and Bot mitigation. Our "defense in depth" approach to asset protection is backed by AI-powered threat detection and response systems and actively monitored 24/7 by a dedicated team of security professionals. We maintain a formal incident response plan, which is regularly tested and updated to ensure prompt detection, reporting, and mitigation of cybersecurity incidents.
 In addition, we undertake integrated planning activities to support business continuity and operational resiliency. We assess our program's effectiveness through various exercises, including active Disaster Recovery production environment tests, tabletop exercises, continuous vulnerability tests, and annual penetration testing. We conduct company-wide mandatory cybersecurity training as well as periodic employee education exercises, such as phishing simulation email campaigns designed to emulate real-world attacks.

 We view cybersecurity protection and data privacy as a shared responsibility in which all employees are active participants. Each employee undergoes annual cybersecurity training with supplemental training disseminated throughout the year. This continual education helps promote a culture that understands the critical role cybersecurity and data privacy play in protecting our clients' assets. Furthermore, our computing environments, products, and services are reviewed by our internal security team and our controls are tested regularly by independent third-party assessors as part of our annual SOC2 and SOX re-certifications.
 Cybersecurity Governance
 Board and Committee Oversight. Our Board of Directors is responsible for oversight of the Company's cyber risk management program, including risk identification, mitigation strategy and efforts, and resources and receives quarterly updates on cybersecurity risks and mitigation efforts from management, including our Chief Technology Officer (CTO). The Audit Committee of the Board of Directors is responsible for reviewing the Company's financial reporting of cybersecurity risks and incidents in accordance with SEC rules. We will continue to invest in our security infrastructure to ensure it meets or exceeds industry standards for cybersecurity and employs dedicated resources to protect our systems.

 Management's Role. Our internal security team in conjunction with the Chief Technology Officer (CTO) reviews current risks with a cross-functional leadership committee on a quarterly basis.
 We are not currently aware of risks from known cybersecurity threats that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. For additional information regarding cybersecurity risks, see the risk factor in Part I, Item 1A. Risk Factors captioned: "We are required to maintain the privacy and security of personal and business information amidst multiplying threat landscapes and in compliance with privacy and data protection regulations globally. Failure to do so could damage our business, including our reputation with sellers, buyers, and employees, cause us to incur substantial additional costs, and make us subject to litigation and regulatory action."

 Item 2. Properties.
 As a remote-first organization, the Company maintains a minimal amount of administrative spaces. The Company leases the following properties as of September 30, 2025:

 Purpose

 Location

 Segment

 Square Feet

 Lease Expiration Date

 Corporate Headquarters

 Bethesda, Maryland, USA

 Corporate & Other

 4,027

 January 31, 2029

 Brownsburg, Indiana, USA

 RSCG

 204,206

 May 31, 2029

 Garland, Texas, USA

 RSCG

 127,144

 January 31, 2026

 Pittston, Pennsylvania, USA

 RSCG

 108,536

 January 7, 2027

 North Las Vegas, Nevada, USA

 RSCG

 102,400

 June 30, 2026

 Phoenix, Arizona, USA

 RSCG

 84,690

 January 31, 2027

 Brampton, Canada

 RSCG

 53,621

 August 31, 2030

 Atlanta, Georgia, USA

 77,501

 July 31, 2026

 Kenilworth, NJ, USA

 CAG

 10,507

 December 31, 2026

 E. Brunswick, NJ, USA

 CAG

 4,800

 December 31, 2025

 Auction Staging Lot

 Montclair, California USA

 113,256

 November 30, 2026

 Auction Staging Lot

 Phoenix, Arizona USA

 10,760

 January 31, 2029

 Auction Staging Lot

 Tuscon, Arizona USA

 5,150

 September 30, 2030

 Retail Rush Store

 Columbus, Ohio USA

 RSCG

 30,000

 January 31, 2031

 Administrative

 Plano, Texas USA

 Corporate & Other

 2,280

 November 30, 2025

 In addition, we lease other administrative space in North America totaling 1,657 square feet, in Europe totaling 845 square feet, and in Asia totaling 6,976 square feet. We also own a 420,000 square foot warehouse located in North Wilkesboro, North Carolina, USA.
 Item 3. Legal Proceedings.
 From time to time, we may become involved in litigation relating to claims arising in the ordinary course of the business. Information regarding the Company's legal proceedings can be found in Note 15 - Legal Proceedings, of the accompanying Notes to the Consolidated Financial Statements.
 Item 4. Mine Safety Disclosures.
 Not applicable.

 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
 Market Information
 Our common stock has been traded on Nasdaq Stock Market under the symbol LQDT since February 23, 2006.
 Holders
 As of November 1, 2025, there were approximately 8,681 beneficial holders of our common stock and 26 holders of record of our common stock.

 Dividends
 We have not paid any cash dividends on our common stock, and we have no present intention to do so. Payment of cash dividends, if any, will be determined by our Board of Directors after consideration of our financial condition, operating results, current and anticipated cash needs and other relevant factors.
 Recent Sales of Unregistered Securities
 None.
 Stock Performance Graph

 Issuer Repurchases of Equity Securities
 The following table presents information about our repurchases of common stock that were made during the three months ended September 30, 2025 (in millions, except share and per share amounts):

 Period

 Total Number of Shares Purchased(1)

 Average Price Paid Per Share

 Total Number of Shares Purchased as a Part of a Publicly Announced Program

 Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(2)

 July 1 to July 31, 2025

 —

 $

 —

 —

 $

 17.6

 August 1 to August 31, 2025

 517,748

 25.67

 517,748

 4.3

 September 1 to September 30, 2025

 105,939

 26.52

 105,939

 1.5

 Total

 623,687

 623,687

 (1) Separate from the share repurchase program, our stock incentive plans allow for participants to exercise stock options by surrendering shares of common stock equivalent in value to the exercise price due. During the three months ended September 30, 2025, no shares of common stock were surrendered by participants in the exercise of stock options. Any shares surrendered to the Company in this manner are not available for future grant.

 From time to time, we have been authorized to repurchase issued and outstanding shares of our common stock under a share repurchase program approved by our Board of Directors. Share repurchases may be made through open market purchases, privately negotiated transactions, or otherwise, at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other market conditions. The repurchase program may be discontinued or suspended at any time and will be funded using our available cash.
 As of September 30, 2025, the Company had $1.5 million of remaining authorization to repurchase shares through December 31, 2026.
 Item 6. [Reserved]

 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
 The following discussion should be read in conjunction with our consolidated financial statements and related notes contained elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could vary materially from those indicated, implied, or suggested by these forward-looking statements as a result of many factors, including those discussed under "Risk Factors" and elsewhere in this Annual Report on Form 10-K.
 Overview
 About us. Liquidity Services is the leading global provider of e-commerce marketplaces and software solutions powering the circular economy. We create a better future for organizations, individuals, and the planet by using technology to capture and unleash the intrinsic value of surplus. We connect millions of buyers and thousands of sellers through our leading e-commerce auction marketplaces, search engines, asset management and auction software, and related services. Our comprehensive solutions enable the transparent, efficient, sustainable recovery of value from excess items owned by business and government sellers.
 Our business delivers value to shareholders by unleashing the intrinsic value of surplus through our online marketplace platforms. These platforms ignite and enable a self-reinforcing cycle of value creation where buyers and sellers attract one another in greater numbers. The result of this cycle is a continuous flow of goods that becomes increasingly valuable as more participants join the platforms, thereby creating positive network effects that benefit sellers, buyers, and shareholders. During the past three fiscal years, we conducted over 3.1 million online transactions that generated $4.1 billion in gross merchandise volume or GMV. GMV is the total sales value of all transactions for which we earned compensation upon their completion through our marketplaces or other channels during a given period of time.
 During the year ended September 30, 2025, the number of registered buyers grew from 5.5 million to 6.0 million, or 9%. We believe the continuous flow of goods in our marketplaces attracts a growing buyer base which creates a self-sustaining cycle for our buyers and sellers. We generated GMV of $1.6 billion and revenue of $477.7 million through multiple sources, including transaction fees from sellers and buyers, proceeds from the sale of products we purchased from sellers, and value-added service charges during the year ended September 30, 2025. Over the prior 5 years, our GMV has grown at a compound annual growth rate of 20.4%.
 Incorporated in Delaware as Liquidation.com in November 1999, Liquidity Services has over 25 years of industry experience.
 Reportable Segments
 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. Further information and operating results of our reportable segments can be found in Note 16 - Segment Information.
 • 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.

 Macroeconomic Conditions
 Tariffs and other trade barriers. A number of countries have implemented, or are actively considering, measures affecting cross-border trade. Such actions may impact both our buyers and sellers as well as the availability of assets to list on our marketplaces. Ongoing developments related to the timing, scope and application of tariffs, including changes in tariff rates, the range of affected goods, and the countries subject to such measures, remain fluid and subject to rapid and unpredictable change. Tariffs imposed by the U.S., as well as retaliatory tariffs by other countries on U.S. exports, could adversely affect international commerce and our business.
 Supply chain challenges and consumer sentiment. The supply of used vehicles available for sale on our marketplaces may be impacted by ongoing tariffs implemented, or actively being considered, by the U.S., as well as the slowing adoption of electric vehicles as a replacement to internal combustion vehicle fleets. Further, used car market price indices continue to experience heightened volatility. In addition, general consumer behavior can be turbulent, and changes in consumer sentiment can cause fluctuation in the mix, volumes, and demand for the products we receive. Change in these conditions or other challenges that may emerge in other key asset categories can impact our financial performance.
 Effects of inflation and heightened interest rates. Inflation in both the U.S. and internationally has weighed on the global economy, increasing prices for energy, shipping, and labor, among other areas of the macroeconomic environment. These events have caused a rise in borrowing costs as well, partly driven by actions taken by central banks to curb rising inflation, which has impacted buyer qualification and transaction timelines.
 Currently, the Company is unable to predict the likelihood, magnitude, and timing of inflationary risk to our business, if any. As a marketplace operator, the GMV, revenues and costs of revenues that result from our primarily auction-based sales may be influenced by macroeconomic factors, including but not limited to inflation, the impacts of which may vary across each of our individual asset classes.
 International armed and geopolitical conflicts. The global financial markets have experienced volatility subsequent to the invasion of Ukraine by Russia in February 2022, a conflict which remains ongoing, as well as the ongoing conflict in and adjacent to Israel. The Russia-Ukraine conflict specifically resulted in numerous countries, including the United States, imposing significant new sanctions and export controls against Russia, Russian banks, and certain Russian individuals. These sanctions and export controls and international responses to the ongoing conflict in and adjacent to Israel, have further heightened global supply chain disruptions and impacted the international trade markets. For the fiscal years ended September 30, 2025 and 2024, the Company's total revenues directly associated with Russia, Ukraine, and Israel were not material to our consolidated financial results. We will continue monitoring these armed and geopolitical conflicts around the world and any potential future impacts on our business.
 See Part I, Item 1A, Risk Factors, for an additional discussion of risks related to global economic conditions including those discussed above.
 Industry Trends
 We believe there are several industry trends positively impacting the long-term growth of our business including:
 • the increase in volume of returned merchandise handled both online and in stores as online and omni-channel retail grow as a percentage of overall retail sales;

 • the increase in government regulations and the need for corporations to have sustainability solutions with verifiable recycling and remarketing of surplus assets;

 • the increase in outsourcing surplus disposition and end-of-life assets by corporations and government entities as they focus on reducing costs, improving transparency, compliance and working capital, and increasingly prefer service providers with proven track records, innovative scalable solutions and the ability to make a strategic impact in the reverse supply chain;

 • an increase in buyer demand for surplus merchandise as consumers aspire to make more environmentally conscious decisions, while also seeking greater value through purchasing less expensive goods, both of which could impact our long-term growth;

 • the increase in demand from sellers and buyers to transact in an online solution ensuring assets are sold for fair market value; and

 • in the long-term we expect innovation in the retail supply chain will increase the pace of product obsolescence and, therefore, increase the supply of surplus assets.

 Revenues
 Substantially all of our revenue is earned through the following transaction models:
 Purchase model. Under our purchase transaction model, we recognize revenue within the Purchase revenues line-item on the Consolidated Statements of Operations from the resale of inventory that we purchased from sellers. We consider these sellers to be our vendors. We pay our sellers either a fixed amount or a portion of the net or gross proceeds received from our completed sales based on the value we receive from the sale, in some cases, after deducting a required return to us that we have negotiated with the seller. Because we are the principal in purchase transaction model sales, we recognize as revenue the sale price paid by the buyer upon completion of a transaction. The proceeds paid by buyers also include transaction fees, referred to as buyer premiums.
 Consignment model—fee revenue. Under our consignment transaction model, we enable our sellers to sell goods they own in our marketplaces, and we charge them a commission fee based on the gross or net proceeds received from such sales. The revenue from our consignment transaction model is recognized upon auction close or upon collection of auction proceeds, depending upon the settlement service level selected by the seller. Revenue under the consignment model is recorded within the Consignment and other fee revenues line-item on the Consolidated Statements of Operations. Because we are the agent in consignment model sales, our commission fee revenue, which we refer to as seller commissions, represents a percentage of the sales price the buyer pays upon completion of a transaction. We vary the percentage amount of the seller commission depending on the various value-added services we provide to the seller to facilitate the transaction. For example, we generally increase the percentage amount of the commission if we take possession, handle, ship, or provide enhanced product information for the merchandise. In most cases we collect the seller commission by deducting the appropriate amount from the sales proceeds prior to the distribution to the seller after completion of the transaction. In addition to seller commissions, we also collect buyer premiums.
 Other — fee revenue. We also earn non-consignment fee revenue from our Machinio and Software Solution subscription services, auction listing service fees for foreclosed real estate at our GovDeals segment (payable regardless of whether or not an auction is completed), as well as other services including asset valuation, product handling, and storage fees. Non-consignment fee revenue is recorded within the Consignment and other fee revenues line-item on the Consolidated Statements of Operations.
 Transaction Model Mix. Most of our transactions are conducted under the consignment model, which represented 81.3%, 85.1%, and 85.8% of our consolidated GMV for the years ended September 30, 2025, 2024, and 2023, respectively; however, only the consignment fee, representing a small portion of the consignment GMV, is recognized as revenue, causing consignment revenues to account for 29.0%, 34.9%, and 37.7% of our total revenues for the years ended September 30, 2025, 2024, and 2023, respectively.
 Purchase model transactions are a smaller proportion of our consolidated GMV, representing 18.7%, 14.9%, and 14.2% of our consolidated GMV for the years ended September 30, 2025, 2024, and 2023, respectively. However, all of the GMV associated with the purchase model transaction is generally able to be recognized as revenue, causing purchase revenues to account for 65.1%, 57.7%, and 54.7% of our total revenues for the years ended September 30, 2025, 2024, and 2023, respectively.

 Other fee revenues accounted for 5.9%, 7.3%, and 7.5% of our total revenues for the years ended September 30, 2025, 2024, and 2023, respectively.
 Our Vendor Agreements
 Commercial agreements. We have multiple vendor contracts with Amazon.com, Inc. under which it acquires and sells commercial merchandise. While purchase model transactions account for less than 20% of our total GMV, the cost of inventory for purchase model transactions is the most significant component of our consolidated Costs of goods sold. $10.1 million and $12.2 million of inventory purchased under such contracts with Amazon.com, Inc. is included in our Consolidated Inventory balances as of September 30, 2025 and 2024, respectively. The Company's vendor contracts with respect to sourcing or consigning merchandise for its RSCG segment generally reflect the concentration dynamics inherent to the retail industry.
 Key Business Metrics
 Our management periodically reviews certain key business metrics for operational planning purposes and to evaluate the effectiveness of our operational strategies, allocation of resources, and our capacity to fund capital expenditures and expand our business. These key business metrics include:
 Gross merchandise volume (GMV). GMV is the total sales value of all transactions for which we earned compensation upon their completion through our marketplaces or other channels during a given period of time. We review GMV because it provides a measure of the volume of goods being sold in our marketplaces and thus the activity of those marketplaces. GMV also provides a means to evaluate the effectiveness of investments that we have made and continue to make, including in the areas of buyer and seller support, value-added services, product development, sales and marketing, and operations. Our GMV for the year ended September 30, 2025, was $1.6 billion.
 Total registered buyers. We grow our buyer base through a combination of internal and external marketing, as well as other promotional efforts. An individual or company becomes a registered buyer by completing our online registration process for our marketplaces. During registration, we collect personal and business information, including name, company name, address, email, phone number, taxation information, and intended use of our marketplaces. Each prospective buyer must accept our User Agreement (Terms and Conditions) to proceed.
 Upon completion of registration, each buyer's information is automatically screened against global restricted party lists maintained by government regulatory agencies. If the screening flags a buyer, our Customer Support team manually reviews the registration, typically within 24 hours, and the registration is either approved, denied, or subject to further identity verification. Only buyers who pass this vetting process are activated and permitted to bid on our marketplaces. We also conduct ongoing screening of active buyers to ensure continued compliance.
 Total registered buyers, as of a given date, represent the aggregate number of persons or entities who have registered on one of our marketplaces. We use this metric to evaluate how well our marketing and promotional efforts are performing. Total registered buyers exclude duplicate registrations, buyers who are suspended from utilizing our marketplaces and buyers who have voluntarily removed themselves from our registration database. In addition, if we become aware of registered buyers that are no longer in business, we remove them from our database. As of September 30, 2025, 2024, and 2023, we had 6.0 million, 5.5 million, and 5.1 million, registered buyers, respectively.
 Total auction participants. For each auction we manage, the number of auction participants represents the total number of registered buyers who have bid one or more times in that auction. As a result, a registered buyer who bids, or participates, in more than one auction is counted as an auction participant in each auction in which he or she participates. Thus, total auction participants for a given period is the sum of the auction participants in each auction conducted during that period.
 We use this metric to allow us to compare our online auction marketplaces to our competitors, including other online auction sites and traditional on-site auctioneers. In addition, we measure total auction participants on a periodic basis to evaluate the activity level of our base of registered buyers and to measure the performance of our marketing and promotional efforts. During the years ended September 30, 2025, 2024, and 2023, 4.1 million, 4.0 million, and 3.3 million participants participated in auctions on our marketplaces, respectively.

 Completed transactions. Completed transactions represents the number of auctions in a given period from which we have recorded revenue. Similar to GMV, we believe that completed transactions is a key business metric because it provides an additional measurement of the volume of activity flowing through our marketplaces. During the years ended September 30, 2025, 2024, and 2023, we completed 1,066,000, 1,081,000 and 925,000 transactions, respectively.
 Critical Accounting Policies and Estimates
 The Company's consolidated financial statements, included in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K with their accompanying notes, have been prepared in accordance with GAAP, which requires management of the Company to make assumptions, judgments and estimates that affect amounts reported in its consolidated financial statements. Accounting policies and estimates are considered to be "critical" when the nature of the estimate includes subjective or sensitive assumptions or judgments that can have a material impact on the financial condition or operating performance of the Company. Actual results may differ from these estimates.
 We consider the following accounting policies to be critical: revenue recognition, business combinations, valuation of goodwill and intangible assets, and income taxes. Refer to Note 2 - Summary of Significant Accounting Policies to the Company's consolidated financial statements for further details on these accounting policies.
 We consider the following accounting estimates to be critical: business combinations (Note 3), and income taxes (Note 10). Refer to these individually referenced notes and Note 2 - Summary of Significant Accounting Policies to the Company's consolidated financial statements for further details on these accounting estimates. The following discussion is a supplement to the disclosures referenced.
 Intangible assets. The fair valuation of intangible assets acquired in a business combination consists of customer and supplier relationships, technology, trade names, and other intangibles (comprised of patents and related assets). Intangible assets are amortized using the straight-line method over their estimated useful lives. The preliminary fair value of acquired intangible assets, excluding goodwill, arising from the Auction Software acquisition was $2.6 million. This balance consisted of the following identified intangible assets, each with their own significant assumptions used, as follows:
 • Contract Intangibles - We valued the contract intangibles using the multi-period excess earnings method, an income approach valuation model. The significant assumptions used in the income approach includes estimates about future expected cash flows from supplier contracts, the attrition rate, and the discount rate.

 • Developed Technology - We valued the developed software by applying the relief-from-royalty method, an income approach valuation model. The significant assumptions used in the relief-from-royalty method include estimates about future expected cash flows from the developed software, the royalty rate, the obsolescence factor and the discount rate.

 • Trade Name - We valued the trade name acquired using a relief-from-royalty method. The significant assumptions used in the relief-from-royalty method include future expected cash flows from the trade name, the royalty rate, and the discount rate.

 Goodwill. Goodwill represents the costs in excess of the fair value of net assets acquired through acquisitions by the Company. Pursuant to our preliminary purchase price allocation, goodwill arising from the acquisition of Auction Software was determined to be $5.1 million; see Note 3 - Acquisitions, for further information.
 Components of Revenue and Expenses
 Revenue. Refer to the discussion in the Our revenue section above, and to Note 2 - Summary of Significant Accounting Policies to the Company's consolidated financial statements in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K for discussion of the Company's related accounting policies.
 Cost of goods sold. Refer to Note 2 - Summary of Significant Accounting Policies, to the Company's consolidated financial statements in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K for discussion of the Company's Costs of goods sold and related accounting policies.

 Technology and operations. Technology expenses primarily consist of the cost of technical staff (including stock compensation), third-party services, licenses, and infrastructure, all as required to develop, configure, deploy, maintain, and secure our marketplace platforms, business operational systems, and facilities. Technology expenses are net of the required capitalization of costs associated with enhancing our marketplace platforms and other software development activities. Depreciation and amortization of capitalized software development costs, purchased software, acquired developed software intangible assets, and computer hardware are included within Depreciation and amortization in the accompanying Consolidated Statements of Operations. Technology expenses are presented separately from Costs of goods sold (excluding depreciation and amortization) in the Consolidated Statements of Operations, as these expenses provide for the general availability of our marketplace platforms and other business operational systems and are not attributable to specific revenue generating transaction activity occurring on our marketplaces.
 Because our marketplaces and support systems require frequent upgrades and enhancements to maintain viability, we have determined that the useful life for certain internally developed software is less than one year. As a result, we expense those costs as incurred. However, where we determine that the useful life of the internally developed software will be greater than one year, we capitalize development costs in accordance with ASC 350-40, Internal-use software. As such, we are capitalizing certain development costs associated with our marketplaces and support systems, as well as other software development activities.
 Operations expenses consist primarily of costs to operate our network of warehouses, including shipping logistics, inventory management, refurbishment, and administrative functions; costs to enhance our online auctions listings and provide customer support; and costs associated with field support and preparation and transfer of goods from sellers to buyers. Operations expenses include both internal and external labor costs, as well as other third-party charges. These costs are expensed as incurred.
 Sales and marketing. Sales and marketing expenses include the cost of our sales and marketing personnel as well as the cost of lead generation, marketing and promotional activities, including buyer and seller acquisition, as well as general brand marketing. These activities include online marketing campaigns, such as paid search advertising and geofencing campaigns, as well as offline marketing efforts, trade shows, and marketing analytics.
 General and administrative. General and administrative expenses include all corporate and administrative functions that support our operations and provide an infrastructure to facilitate our future growth. These expenses are generally more fixed in nature than our other operating expenses and do not vary as significantly in response to the volume of merchandise sold through our marketplaces.
 Depreciation and amortization. Depreciation and amortization consist of depreciation of property and equipment, amortization of internally developed software, and amortization of intangible assets.
 Other operating expenses, net. Other operating expenses, net includes acquisition-related costs, impairment of long-lived and other assets, impacts of lease terminations, as well as business realignment expenses, including those associated with restructuring initiatives and the exit of certain business operations.
 Interest and other income, net. Interest and other income, net consists of interest income on interest-bearing checking accounts, money market funds, interest and unused commitment fees in connection with the Company's Credit Agreement, the components of net periodic pension cost (benefit) other than the service component and impacts of foreign currency fluctuations.
 Income taxes. Income taxes include current and deferred income tax expense for the U.S. federal, state, and foreign jurisdictions.

 Results of Operations
 The following table presents reportable segment GMV, revenue, segment direct profit (which is calculated as total revenue less cost of goods sold (exclusive of depreciation and amortization)), and segment direct profit as a percentage of total revenue for the periods indicated ($ in thousands):

 (dollars in thousands

 2025

 2024

 2023

 GovDeals:

 GMV

 $

 903,456

 $

 836,288

 $

 726,124

 $

 87,404

 $

 76,557

 $

 62,010

 $

 81,006

 $

 71,727

 $

 58,810

 Segment direct profit as a percentage of total revenue

 92.7

 %

 93.7

 %

 94.8

 %

 RSCG:

 GMV

 $

 418,418

 $

 320,683

 $

 285,574

 $

 330,291

 $

 233,003

 $

 200,218

 $

 74,747

 $

 66,873

 $

 68,068

 Segment direct profit as a percentage of total revenue

 22.6

 %

 28.7

 %

 34.0

 %

 CAG:

 GMV

 $

 249,017

 $

 209,661

 $

 191,333

 $

 39,296

 $

 37,668

 $

 38,476

 $

 34,828

 $

 31,268

 $

 32,215

 Segment direct profit as a percentage of total revenue

 88.6

 %

 83.0

 %

 83.7

 %

 Machinio & Software Solutions:

 GMV

 —

 —

 —

 $

 19,746

 $

 16,157

 $

 13,821

 $

 18,303

 $

 15,364

 $

 13,110

 Segment direct profit as a percentage of total revenue

 92.7

 %

 95.1

 %

 94.9

 %

 Consolidated:

 GMV

 $

 1,570,891

 $

 1,366,632

 $

 1,203,031

 $

 476,669

 $

 $

 314,462

 NM = not meaningful
 Year Ended September 30, 2025 Compared to Year Ended September 30, 2024
 Segment Results
 GovDeals. Total revenues from our GovDeals reportable segment increased 14.2%, or $10.8 million, due to a $67.2 million, or 8.0%, increase in GMV driven by new seller acquisition, service expansion and strong results across our personal property categories, partially offset by lower market prices for vehicles sold. Revenue grew at a higher rate than GMV due to the expansion of service offerings to new, higher-volume sellers, including through the acquisition of Sierra. Segment direct profit increased by $9.3 million, or 12.9%, and Segment direct profit as a percentage of total revenue decreased from 93.7% to 92.7%, as our expanded service offerings for higher-volume sellers have a higher revenue take-rate but require additional costs of goods sold relative to our traditional self-service model.
 RSCG. Revenue from our RSCG reportable segment increased by $97.3 million, or 41.8%, concentrated in the first three quarters of fiscal 2025, due to a $97.7 million, or 30.5%, increase in GMV from expanded multi-channel buyer development efforts with existing and new retail client programs alike, and increased volumes from our client purchase model programs relative to our consignment programs, while certain inventory purchases were reduced starting in the fourth quarter of fiscal 2025.Segment direct profit increased by $7.9 million, or 11.8%, and Segment direct profit as a percentage of total revenue decreased from 28.7% to 22.6%, reflecting the increased mix of purchase model transactions, purchase rate changes, partially offset by lower transaction processing fees.

 CAG. Revenue from our CAG reportable segment increased by $1.6 million, or 4.3%, due to a $39.4 million, or 18.8%, increase in GMV from continued growth of recurring sellers transacting under the consignment model in our heavy equipment category, as well as our biopharma and energy categories, partially offset by fewer large international spot purchase transactions, and certain industrial categories and regions experiencing tempered activity due to economic and tariff-related supply chain uncertainty, during the fiscal year ended September 30, 2025. Revenue increased at a lower rate than GMV due to the increase in transactions conducted under the consignment model during the current fiscal year. Segment direct profit increased by $3.6 million, or 11.4%, as the increased consignment mix, driven by the heavy equipment category, has a greater impact on Segment direct profit than total revenues. Segment direct profit as a percentage of total revenue increased from 83.0% to 88.6% due to fewer international spot purchase transactions in the current year. As a reminder, there are inherent variations in the mix of assets sourced and sold by the CAG segment in any given period. Global supply chains may experience heightened disruptions due to international tensions, including certain industrial categories and regions currently experiencing tempered activity due to economic and tariff-related supply chain uncertainty, as well as other factors, which could limit the volume of assets made available for sale in any period.
 Machinio & Software Solutions. Revenue in our Machinio & Software Solutions businesses increased 22.2%, or $3.6 million, due to Machinio price increases and continued growth in its subscribers, and from the acquisition of Auction Software to form our Software Solutions business. As a result of this increase in revenues, segment direct profit increased 19.1%, or $2.9 million. Segment direct profit as a percentage of total revenue decreased from 95.1% to 92.7% as a result of the Auction Software acquisition.
 Consolidated Results
 The following table sets forth, for the periods indicated, our operating results (dollars in thousands):

 Change

 2025

 2024

 $

 %

 Purchase revenues

 $

 310,538

 $

 209,800

 $

 100,738

 48.0

 %

 166,131

 153,518

 12,613

 8.2

 %

 476,669

 113,351

 31.2

 %

 Costs and expenses from operations:

 267,854

 178,152

 89,702

 50.4

 %

 Technology and operations

 68,542

 61,377

 7,165

 11.7

 %

 Sales and marketing

 60,964

 54,832

 6,132

 11.2

 %

 General and administrative

 32,774

 31,962

 2.5

 %

 10,409

 (1,711

)

 (14.1

)%

 Other operating expenses, net

 1,060

 1,471

 (411

)

 (27.9

)%

 Total costs and expenses

 441,603

 339,914

 101,689

 29.9

 %

 Income from operations

 35,066

 23,404

 11,662

 49.8

 %

 Interest and other income, net

 (4,375

)

 (3,854

)

 (521

)

 13.5

 %

 Income before provision for income taxes

 39,441

 12,181

 44.7

 %

 Provision for income taxes

 11,348

 7,269

 4,079

 56.1

 %

 $

 $

 $

 8,102

 40.5

 %

 NM = not meaningful
 Total revenues. Total consolidated revenue increased $113.4 million, or 31.2%. Refer to the discussion of Segment Results above for discussion of the increase in revenue.
 Cost of goods sold (excludes depreciation and amortization). Cost of goods sold increased $89.7 million, or 50.4%, primarily due to increased purchase transaction volumes at our RSCG reportable segment during the fiscal year ended September 30, 2025.
 Technology and operations expenses. Technology and operations expenses increased $7.2 million, or 11.7%, primarily to support higher transaction volumes across our segments, expanded service offerings including through the acquisition of Sierra in our GovDeals segment, a $0.6 million increase in stock compensation expense, the acquisition of Auction Software (see Note 3- Acquisitions). In response to higher temporary storage costs associated with elevated purchase volumes at our RSCG segment during the first half of fiscal 2025, we consolidated our RSCG warehouse locations and streamlined logistics to improve alignment between our buyers and our sources of inventory.

 Sales and marketing expenses. Sales and marketing expenses increased $6.1 million, or 11.2%, due to increased sales expenses incurred to support the greater purchase transaction volumes across our segments, including RSCG and GovDeals, as well as expansion in the heavy equipment vertical at CAG, other key initiatives, and a $1.7 million increase in stock compensation expense.
 General and administrative expenses. General and administrative expenses increased $0.8 million, or 2.5%, primarily due to a $1.2 million increase in stock compensation expense, partially offset by $0.5 million in litigation expense incurred during the prior year ended September 30, 2024; see Note 15 - Legal Proceedings for further information.
 Depreciation and amortization. Depreciation and amortization expense decreased $1.7 million, or 14.1%, primarily due to certain historically acquired intangible assets reaching the end of their useful lives during the fiscal year ended September 30, 2025.
 Other operating expenses, net. Other operating expenses, net decreased $0.4 million, or 27.9%, due to lower acquisition-related costs during the fiscal year ended September 30, 2025, partially offset by $0.5 million of impairment expense at our RSCG segment following the exit of a warehouse; see Note 6 - Leases for further information.
 Interest and other income, net. Interest and other income, net increased $0.5 million, or 13.5%, due to higher balances held in cash equivalent and short-term investments, partially offset by a decline in interest rates.
 Provision for income taxes. Provision for income taxes increased $4.1 million to an expense of $11.3 million from an expense of $7.3 million due to the increase in state and deferred income taxes resulting from higher pre-tax income in fiscal 2025. The Company's effective tax rate was 28.8% for the fiscal year ended September 30, 2025. The fiscal 2025 effective tax rate differed from the statutory federal rate of 21.0% primarily as a result of the impact of foreign, state, and local income taxes and permanent adjustments.
 Year Ended September 30, 2024 Compared to Year Ended September 30, 2023
 Segment Results
 GovDeals. Total revenues from our GovDeals reportable segment increased $14.5 million, or 23.5%, due to a $110.2 million, or 15.2%, increase in GMV driven by increased personal property sales, particularly in the vehicle and heavy equipment categories, and continued growth in our seller base. Revenue grew at a higher rate than GMV due to the expansion of service offerings to new, higher-volume sellers, including through the acquisition of Sierra. Segment direct profit increased by $12.9 million, or 22.0%, consistent with the increase in revenues. Segment direct profit as a percentage of revenue declined slightly due to the previously noted expansion in service offerings.
 RSCG. Revenue from our RSCG reportable segment increased by $32.8 million, or 16.4%, due to a $35.1 million, or 12.3%, increase in GMV due to expansion in our purchase programs and sell-in place consignment solutions. Segment direct profit decreased by $1.2 million, or 1.8%, and Segment direct profit as a percentage of total revenue decreased from 34.0% to 28.7%, due to increased volumes from expanded purchase programs, driven by general merchandise categories that are lower-touch and did not have a significant impact on RSCG's operating expenses, and a lower blended take-rate on our consignment sales. These increased purchase volumes and their effect of lowering Segment direct profit as a percentage of total revenue are expected to continue into fiscal 2025.
 CAG. Revenue from the CAG reportable segment decreased by $0.8 million, or 2.1%, while GMV increased by $18.3 million, or 9.6%. The increase in GMV was driven by consignment sales in our industrial and heavy equipment categories, while Revenue declined slightly due to lower availability of large spot purchase transactions with international clients as well as an increase in consignment sales. Despite inherent variations in the mix of assets sourced and sold by the CAG segment in any given period, Segment direct profit as a percentage of total revenue remained relatively consistent between the periods. As a result of the decline in revenues, Segment direct profit decreased by $0.9 million, or 2.9%. Global supply chains may experience heightened disruptions due to international tensions and other factors, which could limit the volume of assets made available for sale in any period.
 Machinio & Software Solutions. Revenue from our Machinio & Software Solutions reportable segment increased 16.9%, or $2.3 million, due to price increases and continued growth in subscribers. As a result of the increase in revenues, Segment direct profit increased 17.2%, or $2.3 million. Segment direct profit as a percentage of total revenue remained relatively consistent between the period.

 Consolidated Results
 The following table sets forth, for the periods indicated, our operating results (dollars in thousands):

 2024

 2023

 $ Change

 % Change

 Purchase revenues

 $

 209,800

 $

 172,089

 $

 37,711

 21.9

 %

 153,518

 142,373

 11,145

 7.8

 %

 Total revenues

 314,462

 48,856

 15.5

 %

 Costs and expenses from operations:

 178,152

 142,322

 35,830

 25.2

 %

 Technology and operations

 61,377

 57,078

 4,299

 7.5

 %

 Sales and marketing

 54,832

 49,443

 5,389

 10.9

 %

 General and administrative

 31,962

 28,074

 3,888

 13.8

 %

 11,255

 7.7

 %

 Other operating expenses, net

 1,471

 1,285

 692.8

 %

 Total costs and expenses

 339,914

 288,358

 51,556

 17.9

 %

 Income from operations

 23,404

 26,105

 (2,701

)

 (10.3

)%

 Interest and other income, net

 (3,854

)

 (2,912

)

 (943

)

 32.4

 %

 Income before provision for income taxes

 29,016

 (1,757

)

 (6.1

)%

 Provision for income taxes

 7,269

 8,039

 (770

)

 (9.6

)%

 $

 $

 $

 (986

)

 (4.7

)%

 NM = not meaningful
 Total revenues. Total consolidated revenue increased $48.9 million, or 15.5%. Refer to the discussion of Segment Results above for discussion of the increase in revenue.
 Cost of goods sold (excludes depreciation and amortization). Cost of goods sold increased $35.8 million, or 25.2%, which changed at a higher rate than Revenue primarily due to increased volumes from expanded purchase programs at our RSCG segment, driven by lower-touch general merchandise categories.
 Technology and operations expenses. Technology and operations expenses increased $4.3 million, or 7.5%, primarily in support of the increased transaction volumes across our segments, including operating costs associated with expanded full-service consignment solutions in our GovDeals segment through our acquisition of Sierra, and a $0.5 million increase in stock compensation.
 Sales and marketing expenses. Sales and marketing expenses increased $5.4 million, or 11.0%, due to our market share expansion and client diversification efforts, and a $0.6 million increase in stock compensation. Furthermore, the year ended September 30, 2023, included a $0.9 million non-recurring benefit from a concluded client program.
 General and administrative expenses. General and administrative expenses increased by $3.9 million, or 13.8%, due to a $1.8 million increase in stock compensation primarily from variable stock awards tied to financial performance targets, $0.5 million in litigation settlement expense incurred during the year ended September 30, 2024 (see Note 15 - Legal Proceedings for further information), and other costs in support of our growth.
 Depreciation and amortization. Depreciation and amortization expense increased $0.9 million, or 7.7%, in connection with our acquisition of Sierra; see Note 3 - Acquisitions.
 Interest and other income, net. Interest and other income, net increased $0.9 million, or 32.4%, due to higher balances held in cash equivalent and short-term investments and the effect of rising interest rates.

 Non-GAAP Financial Measures
 Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA. Non-GAAP EBITDA is a supplemental non-GAAP financial measure and is equal to Net income plus Interest and other (income) expense, net excluding the non-service components of net periodic pension cost (benefit); Provision for income taxes; and Depreciation and amortization. Interest and other (income) expense, net, can include non-operating gains and losses, such as from foreign currency fluctuations. Our definition of Non-GAAP Adjusted EBITDA differs from Non-GAAP EBITDA because we further adjust Non-GAAP EBITDA for stock-based compensation expense, acquisition costs such as transaction expenses and changes in earn out estimates, business realignment expenses, litigation settlement expenses that are not expected to reoccur, and goodwill, long-lived and other non-current asset impairment.
 We believe Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA are useful to an investor in evaluating our performance for the following reasons:
 • Depreciation and amortization expense primarily relates to property and equipment and the amortization of intangible assets. These expenses are non-cash charges that have fluctuated significantly in the past. As a result, we believe that adding back these non-cash charges is useful in evaluating the operating performance of our business on a consistent basis from year-to-year.

 • As a result of varying federal and state income tax rates, we believe that presenting a financial measure that adjusts for provision for income taxes is useful to investors when evaluating the operating performance of our business on a consistent basis from year to year.

 • The authoritative guidance for stock-based compensation requires all share-based payments to employees, including grants of employee stock options, restricted stock and stock appreciation rights to be recognized in the income statement based on their estimated fair values over the requisite vesting period. We believe adjusting for this stock-based compensation expense is useful to investors when evaluating the operating performance of our business on a consistent basis from year to year.

 • The authoritative guidance related to business combinations requires the initial recognition of contingent consideration at fair value based upon information known or knowable as of the acquisition date, with subsequent changes in fair value recorded through the Consolidated Statements of Operations and disallows the capitalization of transaction costs. We believe adjusting for these acquisition related expenses is useful to investors when evaluating the operating performance of our business on a consistent basis from year-to-year.

 • We believe adjusting for litigation settlement expenses that are not expected to reoccur is useful to investors when evaluating the operating performance of our business on a consistent basis from year-to-year.

 • We believe adjusting for business realignment expense is useful to investors when evaluating the operating performance of our business on a consistent basis from year-to-year, as these expenses are outside our ordinary course of business.

 • We believe isolating non-cash charges, such as amortization and depreciation, and other items, such as impairment costs incurred outside our ordinary course of business, provides additional information about our cost structure, and, over time, helps track our performance.

 • We believe Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA are important indicators of our operational strength and the performance of our business because they provide a link between profitability and operating cash flow.

 • We also believe that analysts and investors use Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA as supplemental measures to evaluate the overall operating performance of companies in our industry.

 Our management uses Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA:
 • as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis as they remove the impact of items not directly resulting from our core operations;

 • for planning purposes, including the preparation of our internal annual operating budget;

 • to allocate resources to enhance the financial performance of our business;

 • to evaluate the effectiveness of our operational strategies; and

 • to evaluate our capacity to fund capital expenditures and expand our business.

 Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA as calculated by us are not necessarily comparable to similarly titled measures used by other companies. In addition, Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA: (a) do not represent net income or cash flows from operating activities as defined by GAAP; (b) are not necessarily indicative of cash available to fund our cash flow needs; and (c) should not be considered as alternatives to net income, income from operations, cash provided by (used in) operating activities, or our other financial information as determined under GAAP.
 We prepare Non-GAAP Adjusted EBITDA by eliminating from Non-GAAP EBITDA the impact of items that we do not consider indicative of our core operating performance. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. As an analytical tool, Non-GAAP Adjusted EBITDA is subject to all of the limitations applicable to Non-GAAP EBITDA. Our presentation of Non-GAAP Adjusted EBITDA should not be construed as an implication that our future results will be unaffected by unusual or non-recurring items.
 The table below reconciles Net income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA for the periods presented.

 Year ended September 30,

 2025

 2024

 2023

 $

 $

 $

 Interest and other income, net(1)

 (4,574

)

 (4,048

)

 (2,859

)

 Provision for income taxes

 11,348

 7,269

 8,039

 10,409

 11,255

 Non-GAAP EBITDA

 $

 45,276

 $

 35,332

 $

 37,412

 8,191

 Acquisition-related costs and litigation settlement expense(2)

 1,830

 Business realignment expenses(3)

 —

 Non-GAAP Adjusted EBITDA

 $

 60,816

 $

 48,500

 $

 45,855

 1 Interest and other income, net excludes non-services pension and other postretirement expense (benefit).

 2 Acquisition-related costs are included in Other operating expenses, net on the Consolidated Statements of Operations. Litigation settlement expense reflects significant legal settlements not expected to reoccur and are included in General and administrative expenses on the Consolidated Statements of Operations. For further information see Note 15 - Legal Proceedings, for details about the litigation settlement that occurred during the fiscal year ended September 30, 2024.

 3 Business realignment expenses, included as a component of Other operating expenses, net on the Consolidated Statements of Operations, includes the amounts accounted for as exit costs under ASC 420, Exit or Disposal Cost Obligations, and the related impacts of business realignment actions subject to other accounting guidance including operating lease impairment expense resulting from such actions as described in Note 6 - Leases..
 Liquidity and Capital Resources
 Our operational cash needs primarily relate to working capital, including staffing costs, technology expenses, leases of real estate, and equipment used in our operations, and capital used for inventory purchases, which we have funded through existing cash balances and cash generated from operations. The Company has not paid a dividend historically, nor do we have any intention to do so in the foreseeable future. From time to time, we may use our capital resources for other activities, such as contract start-up costs, joint ventures, share repurchases and acquisitions. As of September 30, 2025, we had $174.6 million in Cash and cash equivalents and $11.2 million in Short-term investments, which we believe is sufficient to meet the Company's anticipated cash needs for at least one year from the date of these financial statements.
 The Company accepts multiple forms of payment including payment cards, bank transfers, and other merchant account providers. Generally, we require receipt of payment prior to shipment or buyer-arranged pick-up at the point of sale, which minimizes our collection risk on those transactions. However, for a limited number of financially qualified buyers, which can include re-sellers, we may from time-to-time extend credit for certain large purchases with negotiated payment periods. Credit terms commonly require payment to be made within 30 days, but where commercial terms or market conditions warrant these payment terms may be extended for up to six months. As a result, our consolidated accounts receivable balances are typically a small component of our overall financial position but may, at times, be concentrated among a limited, small number of such buyers. Collection risk from and credit exposure to these financially qualified buyers is regularly reviewed by management and adjusted as needed.

 Capital Expenditures
 Our capital expenditures consist primarily of capitalized software, warehouse equipment, computers and purchased software, office equipment, furniture and fixtures, and leasehold improvements. The timing and volume of such capital expenditures in the future will be affected by the addition of new sellers or buyers or expansion of existing seller or buyer relationships. We intend to fund those expenditures primarily from our existing cash balances and operating cash flows. Our capital expenditures for the year ended September 30, 2025, were $7.8 million. As of September 30, 2025, we had no significant outstanding commitments for capital expenditures.
 Our future capital requirements will depend on many factors including our rate of revenue growth, the timing and extent of spending to support development efforts, the expansion of sales and marketing activities, the development and deployment of new marketplaces, the introduction of new value-added services and the costs to expand our network of warehouses. We may seek to enter agreements with respect to potential investments in, or acquisitions of, complementary businesses, products or technologies, which could also require us to seek additional equity or debt financing. The sale of additional equity securities or convertible debt securities would result in additional dilution to our stockholders. Additional debt would result in increased interest expense and could result in covenants that would restrict our operations. There is no assurance that such financing, if required, will be available in amounts or on terms acceptable to us, if at all.
 Credit Agreement
 The Company maintains a $25.0 million revolving credit facility with Wells Fargo Bank, National Association (as amended the Credit Agreement). On March 31, 2023, the Credit Agreement was amended to extend the maturity date by 12 months to March 31, 2025 (the First Amendment). On March 27, 2024, the Credit Agreement was amended to extend the maturity date by an additional 12 months to March 31, 2026 (the Second Amendment). No other changes, including regarding the borrowing terms or capacities, were made to the Credit Agreement as a result of the First Amendment or the Second Amendment.
 On May 7, 2025, the Company entered into a Third Amendment to the Credit Agreement (the Third Amendment) that extended the maturity date of the Credit Agreement to March 31, 2027, increased the maximum aggregate borrowing amount from $25.0 million to $35.0 million, and increased the sublimit for standby letters of credit from $10.0 million to $35.0 million.
 The Company may draw upon the Credit Agreement for general corporate purposes. Repayments of any borrowings under the Credit Agreement shall become available for redraw at any time by the Company. The interest rate on borrowings under the Credit Agreement is a variable rate per annum equal to the Daily Simple Secured Overnight Financing Rate (SOFR) in effect plus a margin ranging from 1.25% to 1.75%. Interest is payable monthly. During the fiscal year ended September 30, 2025, the Company did not make any draws under the Credit Agreement, had no outstanding borrowings under the Credit Agreement and had $9.0 million of standby letters of credit outstanding. The amount of standby letters of credit are reserved against the Credit Agreement and are not available for borrowing, resulting in $26.0 million of remaining borrowing capacity under the Credit Agreement as of September 30, 2025.
 The obligations under the Credit Agreement are unconditionally guaranteed by us and each of our existing and subsequently acquired or organized domestic subsidiaries and secured on a first priority basis by a security interest (subject to permitted liens) in substantially all assets owned by us, and each of our other domestic subsidiaries, subject to limited exceptions. The Credit Agreement contains certain financial and non-financial restrictive covenants including, among others, the requirement to maintain a minimum level of earnings before interest, income taxes, depreciation and amortization (EBITDA). The Credit Agreement contains a number of affirmative and restrictive covenants including limitations on mergers, consolidations and dissolutions, investments and acquisitions, indebtedness and liens, and dividends and other restricted payments. As of September 30, 2025, the Company was in full compliance with the terms and conditions of the Credit Agreement.

 Working Capital Management
 Most of our sales are recorded subsequent to receipt of payment authorization, utilizing credit cards, wire transfers, ACH, and other secure electronic payment platforms as methods of payment. These platforms generally provide immediate authorization and timely settlement. As a result, we are not subject to significant collection risk, as goods are generally not shipped before payment is received. We expect to continue to invest in enhancements to our e-commerce technology platform, marketplace capabilities, and tools for data-driven product recommendations, omni-channel behavioral marketing, expanded analytics, and buyer/seller payment optimization.
 We intend to indefinitely reinvest the earnings of our foreign subsidiaries outside the United States. As a result, we did not record a provision for deferred U.S. tax expense on the $9.1 million of undistributed foreign earnings as of September 30, 2025. An aggregate of $22.5 million and $25.7 million of cash and cash equivalents and short-term investments was held outside of the U.S. as of September 30, 2025 and 2024, respectively. These amounts are not currently considered in our evaluation of near-term liquidity needs in the U.S. due to the potential for adverse tax consequences upon repatriation.
 Other Uses of Capital Resources
 Auction Software Acquisition. On January 31, 2025, the Company acquired Auction Software, a private-label marketplace and SaaS solutions provider. Auction Software results are reported within our Machinio & Software Solutions reportable segment. See Note 3 - Acquisitions for more information regarding this transaction.
 Sierra Acquisition. On January 1, 2024, the Company acquired all the issued and outstanding equity securities associated with Sierra Auction Management, Inc. (Sierra), a full-service auction company specializing in the sale of vehicles, equipment and surplus assets for government agencies, commercial businesses, and charities in the southwestern U.S. See Note 3 - Acquisitions for more information regarding this transaction.
 Share Repurchases. From time to time, we have been authorized to repurchase issued and outstanding shares of our common stock under a share repurchase program approved by our Board of Directors. Share repurchases may be made through open market purchases, privately negotiated transactions or otherwise, at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements and other market conditions. The repurchase program may be discontinued or suspended at any time and will be funded using our available cash.
 As of September 30, 2024, the Company had $7.6 million of remaining authorization to repurchase shares through December 31, 2025. On December 9, 2024, the Company's Board of Directors authorized the repurchase of up to an additional $10.0 million of the Company's outstanding shares of common stock through December 31, 2026.
 The Company repurchased 623,687 shares for $16.1 million during the year ended September 30, 2025. As of September 30, 2025, the Company had $1.5 million of remaining authorization to repurchase shares through December 31, 2026.
 On November 17, 2025, the Company's Board of Directors authorized the repurchase of up to $15.0 million of the Company's outstanding shares of common stock through December 31, 2027.
 Off-Balance Sheet Arrangements. We do not have any transactions, agreements or other contractual arrangements that could be considered material off-balance sheet arrangements.
 Changes in Cash Flows: 2025 Compared to 2024
 Net cash provided by operating activities was $66.8 million and $70.2 million for the twelve months ended September 30, 2025 and 2024, respectively. While our Net income as adjusted for non-cash items increased by $7.3 million, this was more than offset by a combined $15.8 million decrease in cash inflows associated with our Accounts payable and Payables to sellers accounts as the prior year benefited from the receipt of buyer payments for certain, larger consignment asset sales near the end of the year.

 Our working capital accounts are subject to natural variations depending on the rate of change of our transaction volumes, the timing of cash receipts and payments, and variations in our transaction volumes related to settlements between our buyers and sellers. RSCG's purchase program volume changes may cause operating cash flows from Accounts receivable, Accounts payable and Inventory to fluctuate. As GovDeals real estate sales with settlement services increase, operating cash flow fluctuations from Accounts payable and Payables to sellers may become more variable. The amount of cash received and settled will be substantially higher than our take-rate on such transactions, and the timing of auction events, cash collection period, and payment of settlements relative to period end dates can potentially drive substantial cash movements to the extent the timing of such activities cross fiscal periods. Our US federal income tax payments increased in fiscal 2025 as our remaining federal net operating loss carryforwards were fully utilized. There have been no other significant changes to the working capital requirements for the Company.
 Net cash used in investing activities was $23.0 million and $16.1 million for the twelve months ended September 30, 2025 and 2024, respectively. The $6.9 million increase in cash used in investing activities was primarily driven by a $16.8 million increase in the purchase of short-term investments, partially offset by an increase of $2.0 million in maturities of short-term investments, a $1.0 million decrease in capital expenditures, and a $6.7 million decrease in cash paid for business acquisitions; see Note 3 - Acquisitions.
 Net cash used in financing activities was $21.8 million and $11.2 million for the twelve months ended September 30, 2025 and 2024, respectively. The $10.6 million increase in cash used in financing activities was primarily driven by a $6.8 million increase in share repurchases and a $3.5 million increase in taxes paid associated with the net settlement of stock compensation awards.
 Changes in Cash Flows: 2024 Compared to 2023
 Net cash provided by operating activities was $70.2 million and $47.0 million for the years ended September 30, 2024 and 2023, respectively. The $23.2 million increase in cash provided by operating activities between periods was attributable to an $11.3 million increase in cash inflows associated with Accounts Payable and a $5.4 million increase in cash inflows associated with Inventory primarily due to increased purchases of inventory under standard payment terms related to the expansion of purchase programs at our RSCG segment, and a $9.3 million increase in cash inflows associated with Payables to sellers primarily attributable to increased consignment sales volumes at our GovDeals and RSCG segments as well as timing differences in the payment of GovDeals and RSCG seller settlements relative to the period end date. The settlements to the sellers for these sales will occur in the first quarter of fiscal 2025.
 Our working capital accounts are subject to natural variations depending on the rate of change of our transaction volumes, the timing of cash receipts and payments, and variations in our transaction volumes related to settlements between our buyers and sellers. As RSCG's purchase volumes increase in fiscal 2025, operating cash flow fluctuations from Accounts payable and Inventory may increase. As GovDeals real estate sales with settlement services increase, operating cash flow fluctuations from Accounts payable and Payables to sellers may become more variable. The amount of cash received and settled will be substantially higher than our take-rate on such transactions, and the timing of auction events, cash collection period, and payment of settlements relative to period end dates can potentially drive substantial cash movements to the extent the timing of such activities cross fiscal periods. We are also expecting to begin increasing our payments for US federal income taxes in fiscal 2025 as our remaining net operating loss carryforwards are used. There have been no other significant changes to the working capital requirements for the Company.
 Net cash used in investing activities was $16.1 million and $11.4 million for the years ended September 30, 2024 and 2023, respectively. The $4.7 million increase in cash used in investing activities was primarily driven by $13.2 million in cash paid, net of cash acquired, for the Sierra acquisition; see Note 3 - Acquisitions for further information. This was partially offset by a $6.2 million increase from the maturation of short-term investments.
 Net cash used in financing activities was $11.2 million and $22.1 million for the years ended September 30, 2024 and 2023, respectively. The $10.9 million decrease in cash used in financing activities was primarily driven by an $11.8 million decrease in share repurchases, offset slightly by $1.0 million in higher taxes paid associated with the net settlement of stock compensation awards.
 New Accounting Pronouncements
 Information regarding our adoption of new accounting and reporting standards is discussed in Note 2 - Summary of Significant Accounting Policies, to the consolidated financial statements included in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K.

 Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
 Interest rate sensitivity. Our investment policy requires us to invest funds in excess of current operating requirements. The principal objectives of our investment activities are to preserve principal, provide liquidity, and maximize income consistent with minimizing risk of material loss. As of September 30, 2025, we hold cash and cash equivalents and short-term investments that are subject to varying interest rates based upon their maturities. A hypothetical 100 basis point decline in interest rates would impact our pre-tax earnings by less than $1.0 million on an annualized basis.
 As of September 30, 2025, we do not have any debt; however, should the Company draw on our Letter of Credit in the future, such draw would incur interest as determined by the Daily Simple Secured Overnight Financing Rate (SOFR) in effect plus a margin ranging from 1.25% to 1.75%.
 Exchange rate sensitivity. Because of the number of countries and currencies we operate in, movements in currency exchange rates may affect our results. We report our operating results and financial condition in U.S. dollars. Our U.S. operations earn revenues and incur expenses primarily in U.S. dollars.
 Outside the United States, we generate revenues and incur expenses in both U.S. dollars and local currencies. Our primary foreign exchange exposures include British Pounds, Canadian Dollars, Chinese Yuan, Euros, and Hong Kong Dollars. When we translate the results and net assets of our international operations into U.S. dollars for financial reporting purposes, movements in exchange rates will affect our reported results. Volatile market conditions arising from ongoing macroeconomic conditions such as rising interest rates at federal banks and armed conflicts around the world, may result in significant changes in exchange rates, which could affect our results of operations expressed in U.S. dollars. A hypothetical 10% decrease in foreign exchange rates reduce our total expected revenues by approximately 1%. The potential impact on pre-tax earnings would be less as total expected expenses would also decrease.
 Item 8. Financial Statements and Supplementary Data.
 The consolidated financial statements and accompanying notes are included in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K.
 Item 9. Changes in and Disagreement with Accountants on Accounting and Financial Disclosure.
 None.
 Item 9A. Controls and Procedures.
 Attached as exhibits to this Form 10-K are certifications of our Chief Executive Officer and Chief Financial Officer, which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934, as amended (the Exchange Act). This "Controls and Procedures" section includes information concerning the controls and controls evaluation referred to in the certifications. The report of Deloitte & Touche LLP, our independent registered public accounting firm, regarding its audit of our internal control over financial reporting is set forth below in this section. This section should be read in conjunction with the certifications and the Deloitte & Touche LLP report for a more complete understanding of the topics presented.
 Evaluation of Disclosure Controls and Procedures
 Management conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures and our internal control over financial reporting as of the end of the period covered by this Form 10-K. The controls evaluation was conducted under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer. Disclosure controls and procedures are controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this Form 10-K, is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures are also designed to reasonably assure that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our quarterly evaluation of disclosure controls includes an evaluation of some components of our internal control over financial reporting. Internal control over financial reporting is also separately evaluated on an annual basis for purposes of providing the management report which is set forth below.

 The evaluation of our disclosure controls included a review of the controls' objectives and design, our implementation of the controls and their effect on the information generated for use in this Form 10-K. In the course of the controls evaluation, we reviewed identified data errors, control deficiencies and, where appropriate, sought to confirm that appropriate corrective actions, including process improvements, were being undertaken. This type of evaluation is performed on a quarterly basis so that the conclusions of management, including the Chief Executive Officer and Chief Financial Officer, concerning the effectiveness of the disclosure controls can be reported in our periodic reports on Form 10-Q and Form 10-K. Many of the components of our disclosure controls are also evaluated on an ongoing basis by our finance organization. The overall goals of these various evaluation activities are to monitor our disclosure controls, and to modify them as necessary. Our intent is to maintain the disclosure controls as dynamic systems that change as conditions warrant.
 Based upon the controls evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Form 10-K, our disclosure controls were effective to ensure assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified by the SEC, and that material information related to Liquidity Services and our consolidated subsidiaries is made known to management, including the Chief Executive Officer and Chief Financial Officer, particularly during the period when our periodic reports are being prepared. We reviewed the results of management's evaluation with the Audit Committee of our Board of Directors.
 Management Report on Internal Control over Financial Reporting
 Our management is responsible for establishing and maintaining effective internal control over financial reporting to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP; and (c) provide reasonable assurance regarding authorization to effect the acquisition, use, or disposition of Company assets, as well as the prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.
 Management assessed our internal control over financial reporting as of September 30, 2025, the end of our fiscal year. Management based its assessment on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Management's assessment included evaluation of such elements as the design and operating effectiveness of key financial reporting controls, process documentation, accounting policies and our overall control environment. This assessment is supported by testing and monitoring performed by our finance organization.
 As permitted by SEC guidance with respect to newly acquired entities, management excluded Auction Software, which was acquired on January 31, 2025, from its assessment of internal control over financial reporting. The financial statements of Auction Software, constitute less than 1% of revenues and total assets (excluding goodwill and intangible assets which were integrated into the Company's systems and control environment), in the consolidated financial statement amounts as of and for the year ended September 30, 2025. We are in the process of evaluating Auction Software's existing controls and procedures and integrating Auction Software into our internal control over financial reporting. See Note 3 - Acquisitions, in the Notes to the Consolidated Financial Statements for further discussion on the Auction Software acquisition and its impact on our consolidated financial statements.
 Based on this assessment, management has concluded that our internal control over financial reporting was effective as of the end of the fiscal year to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with GAAP.
 Our independent registered public accounting firm, Deloitte & Touche LLP, independently assessed the effectiveness of the Company's internal control over financial reporting. Deloitte & Touche LLP has issued an attestation report, which is included at the end of this section.
 Inherent Limitations on Effectiveness of Controls
 A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits

 of controls must be considered relative to their costs. Other inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
 Changes in Internal Control over Financial Reporting
 During the three months ended September 30, 2025, no change occurred in our internal controls over financial reporting that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

 Report of Independent Registered Public Accounting Firm
 To the Stockholders and the Board of Directors of Liquidity Services, Inc.
 Opinion on Internal Control over Financial Reporting
 We have audited the internal control over financial reporting of Liquidity Services, Inc. and subsidiaries (the "Company") as of September 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended September 30, 2025, of the Company and our report dated November 20, 2025, expressed an unqualified opinion on those financial statements.
 As described in the Management Report on Internal Control over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Auction Software, which was acquired on January 31, 2025, and whose financial statements constitute less than 1% of revenues and total assets (excluding goodwill and intangible assets which were integrated into the Company's systems and control environment), in the consolidated financial statement amounts as of and for the year ended September 30, 2025. Accordingly, our audit did not include the internal control over financial reporting at Auction Software.
 Basis for Opinion
 The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
 Definition and Limitations of Internal Control over Financial Reporting
 A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 /s/ Deloitte and Touche LLP
 McLean, Virginia
 November 20, 2025

 Item 9B. Other Information.
 On November 17, 2025, the Company's Board of Directors authorized the repurchase of up to $15.0 million of the Company's outstanding shares of common stock through December 31, 2027. This authorization follows the complete utilization of our previous December 9, 2024, authorization to repurchase up to $10.0 million in shares through December 31, 2026. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and the existence of alternative investment opportunities. The repurchase program will be executed consistent with the Company's capital allocation strategy of prioritizing investment to grow the business over the long term.

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
 Not applicable.

 Item 10. Directors, Executive Officers and Corporate Governance.
 The information required by Items 401(a), 401(b) 401(c), 401(d), 401(e)(1), 401(e)(2), 401(f), 401(g), 405(a), 407(c)(3), 407(d)(4), 407(d)(5), and 408(b) of Regulation S-K is incorporated by reference from the Company's Proxy Statement relating to its 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after September 30, 2025.
 Code of Ethics, Governance Guidelines and Committee Charters
 We have adopted a Code of Conduct that applies to all of our directors, officers and employees, including our principal executive, principal financial and principal accounting officers, or persons performing similar functions. The Code of Conduct is available on our website at  We intend to disclose future amendments to certain provisions of the Code of Conduct, and waivers of the Code of Conduct granted to executive officers and directors, on the website within four business days following the date of the amendment or waiver.
 Insider Trading Policy
 We have adopted an Insider Trading Policy to assist the Company's employees and directors in complying with insider trading laws and protect the Company from legal liability and promote its business interest in maintaining its reputation for integrity. A copy of the policy is filed as Exhibit 19.1 to this Form 10-K. Under this policy, employees, officers and directors of the Company, as well as other persons who may have access to material nonpublic information, are prohibited from engaging in certain transactions relating to Company securities held by them.
 Item 11. Executive Compensation.
 The information required by Items 402(b), 402(c), 402(d), 402(e), 402(f), 402(g), 402(h), 402(i), 402(j), 402(k), 402(s), 402(t), 402(u), 402(v), 402(w), 402(x), 407(e)(4), and 407(e)(5) of Regulation S-K is incorporated by reference from the Company's Proxy Statement relating to its 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after September 30, 2025.
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters.
 The information required by Items 201(d), 403(a), and 403(b) of Regulation S-K is incorporated by reference from the Company's Proxy Statement relating to its 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after September 30, 2025.
 Item 13. Certain Relationships and Related Transactions, and Director Independence.
 The information required by Items 404(a), 404(b), 407(a)(1), 407(a)(2) and 407(a)(3) of Regulation S-K is incorporated by reference from the Company's Proxy Statement relating to its 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after September 30, 2025.
 Item 14. Principal Accountant Fees and Services.
 The information required by Items 9(e)(1)-(4), 9(e)(5) and 9(e)(6) of Schedule 14A is incorporated by reference from the Company's Proxy Statement relating to its 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after September 30, 2025.

 Item 15. Exhibits and Financial Statement Schedules.

 (a)

 Page

 (1)

 The following documents related to the financial statements are filed as part of this report:

 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)

 Consolidated Balance Sheets as of September 30, 2025, and 2024

 Consolidated Statements of Operations for the years ended September 30, 2025, 2024, and 2023

 Consolidated Statements of Comprehensive Income for the years ended September 30, 2025, 2024, and 2023

 Consolidated Statements of Stockholders' Equity for the years ended September 30, 2025, 2024, and 2023

 Consolidated Statements of Cash Flows for the years ended September 30, 2025, 2024, and 2023

 Notes to the Consolidated Financial Statements

 (2)

 The following financial statement schedule is filed as part of this report:

 Schedules for the three years ended September 30, 2025, 2024, and 2023:

 II—Valuation and Qualifying Accounts

 All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required or are inapplicable and therefore have been omitted.

 (3)

 The documents required to be filed as exhibits to this report under Item 601 of Regulation S-K are listed in the Exhibit Index included elsewhere in this report, which list is incorporated herein by reference.

 Report of Independent Registered Public Accounting Firm
 To the Stockholders and the Board of Directors of Liquidity Services, Inc.
 Opinion on the Financial Statements
 We have audited the accompanying consolidated balance sheets of Liquidity Services, Inc. and subsidiaries (the "Company") as of September 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended September 30, 2025, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2025, in conformity with accounting principles generally accepted in the United States of America.
 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 20, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting.

 Basis for Opinion
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
 Critical Audit Matter
 The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
 Revenue - Refer to Note 2 to the financial statements
 Critical Audit Matter Description
 The Company earns revenue (1) on transactions where they resell inventory that they purchase from sellers, (2) from the sale of inventory that is sold on a consignment basis, and (3) from other non-consignment fee transactions. When acting as a principal, the Company purchases an asset or assets from a seller and then seeks to sell the asset or assets to a buyer. The Company then recognizes as purchase revenue the gross proceeds from the sale, including buyer's premiums. When the Company is acting as an agent, its performance obligation is to arrange for the seller to sell an asset or assets to the buyer directly. The Company recognizes consignment and other fee revenues based on the sales commissions that are paid to the Company by the sellers for utilizing the Company's services. Consideration

 is variable based on units, final auction prices, or other factors, until the buyer's purchase of the asset or assets is complete, or the service has been provided.
 We identified a critical audit matter related to revenue transactions recorded, which required an increased extent of effort, including the need for us to involve professionals with expertise in information technology ("IT"), to identify, test, and evaluate the Company's systems, applications, and automated controls.
 How the Critical Audit Matter Was Addressed in the Audit
 Our audit procedures related to the Company's revenue transactions included the following, among others:
 • With the assistance of our IT specialists, we:

 o Identified the significant systems used to process revenue transactions and tested the general IT controls over each of these systems, including testing of user access controls, change management controls, and IT operations controls.

 o Performed testing of system interface controls and automated controls relevant to the revenue processes.

 • We tested internal controls within the relevant revenue processes, including those in place to reconcile the various systems to the Company's general ledger.

 • We either developed an independent expectation of revenue and compared such expectation to the amounts recorded by the Company, or performed detailed transaction testing for a sample of revenue transactions, which included the following:

 o Agreeing the selected revenue transactions recognized to underlying source documents

 o Testing the classification of each transaction as either purchase revenue, where the Company acts as a principal and records revenue based on the gross value of the asset sale, or commission and other fee revenue, where the Company acts as an agent and records only the fee earned net of the sale transaction value.

 /s/ Deloitte and Touche LLP

 McLean, Virginia

 November 20, 2025

 We have served as the Company's auditor since 2021.

 Consolidated Balance Sheets
 (Dollars in Thousands, Except Par Value)

 2025

 2024

 Assets

 Current assets:

 Cash and cash equivalents

 $

 174,607

 $

 153,226

 Short-term investments

 11,212

 2,310

 Accounts receivable, net of allowance for doubtful accounts of $ 777 and $ 1,680

 11,176

 11,467

 Inventory, net

 14,180

 17,099

 Prepaid taxes and tax refund receivable

 1,757

 1,519

 Prepaid expenses and other current assets

 11,857

 13,614

 Total current assets

 224,789

 199,235

 Property and equipment, net

 18,259

 17,961

 Operating lease assets

 11,499

 12,005

 Intangible assets, net

 13,340

 13,912

 Goodwill

 102,875

 97,792

 Deferred tax assets

 1,728

 Other assets

 3,772

 4,255

 Total assets

 $

 375,101

 $

 346,888

 Liabilities and stockholders' equity

 Current liabilities:

 Accounts payable

 $

 61,454

 $

 58,693

 Accrued expenses and other current liabilities

 30,575

 28,261

 Current portion of operating lease liabilities

 5,071

 5,185

 Deferred revenue

 5,093

 4,788

 Payables to sellers

 59,432

 58,226

 Total current liabilities

 161,625

 155,153

 Operating lease liabilities

 8,723

 9,060

 Other long-term liabilities

 1,511

 Total liabilities

 171,859

 164,328

 Commitments and contingencies (Note 15)

 Stockholders' equity:

 Common stock, $ 0.001 par value; 120,000,000 shares authorized; 37,317,175 shares issued and outstanding at September 30, 2025; 36,707,840 shares issued and outstanding at September 30, 2024

 Additional paid-in capital

 285,721

 275,771

 Treasury stock, at cost; 6,640,580 shares at September 30, 2025, and 6,015,496 shares at September 30, 2024

 ( 110,002

)

 ( 93,854

)

 Accumulated other comprehensive loss

 ( 10,640

)

 ( 9,427

)

 Retained earnings

 38,126

 10,033

 Total stockholders' equity

 203,242

 182,560

 Total liabilities and stockholders' equity

 $

 375,101

 $

 346,888

 Consolidated Statements of Operations
 (Dollars in Thousands, Except Per Share Data)

 2025

 2024

 2023

 Purchase revenues

 $

 310,538

 $

 209,800

 $

 172,089

 166,131

 153,518

 $

 142,373

 476,669

 314,462

 Costs and expenses from operations:

 267,854

 178,152

 142,322

 Technology and operations

 68,542

 61,377

 57,078

 Sales and marketing

 60,964

 54,832

 49,443

 General and administrative

 32,774

 31,962

 28,074

 10,409

 11,255

 Other operating expenses, net

 1,060

 1,471

 Total costs and expenses

 441,603

 339,914

 288,358

 Income from operations

 35,066

 23,404

 26,105

 Interest and other income, net

 ( 4,375

)

 ( 3,854

)

 ( 2,912

)

 Income before provision for income taxes

 39,441

 29,016

 Provision for income taxes

 11,348

 7,269

 8,039

 $

 $

 $

 Basic income per common share

 $

 0.91

 $

 0.66

 $

 0.68

 Diluted income per common share

 $

 0.87

 $

 0.63

 $

 0.65

 Basic weighted average shares outstanding

 30,932,459

 30,496,306

 31,075,648

 Diluted weighted average shares outstanding

 32,411,075

 31,634,192

 32,074,561

 Consolidated Statements of Comprehensive Income
 (Dollars In Thousands)

 2025

 2024

 2023

 $

 $

 $

 Other comprehensive income (loss):

 Defined benefit pension plan—unrecognized amounts

 ( 922

)

 ( 485

)

 ( 1,411

)

 Foreign currency translation and other

 ( 291

)

 1,516

 1,238

 Other comprehensive income (loss)

 ( 1,213

)

 1,031

 ( 173

)

 Comprehensive income

 $

 26,880

 $

 21,022

 $

 20,805

 Consolidated Statements of Stockholders' Equity
 (Dollars In Thousands)

 Common Stock

 Treasury Stock

 Shares

 Additional
Paid-in
Capital

 Shares

 Accumulated
Other
Comprehensive
Income (Loss)

 Retained
Earnings
(Accumulated
Loss)

 Total

 Balance at September 30, 2022

 35,724,057

 $

 $

 258,275

 ( 3,813,199

)

 $

 ( 62,554

)

 $

 ( 10,285

)

 $

 ( 30,936

)

 $

 154,536

 —

 —

 —

 —

 —

 —

 Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units

 500,540

 —

 —

 —

 —

 —

 Taxes paid associated with net settlement of stock compensation awards

 ( 82,252

)

 —

 ( 1,261

)

 —

 —

 —

 —

 ( 1,261

)

 Common stock repurchases

 —

 —

 —

 ( 1,607,141

)

 ( 21,277

)

 —

 —

 ( 21,277

)

 Common stock surrendered in the exercise of stock options

 —

 —

 ( 12,705

)

 ( 200

)

 —

 —

 —

 Forfeiture of restricted stock awards

 —

 —

 —

 —

 —

 —

 —

 —

 —

 8,235

 —

 —

 —

 —

 8,235

 Defined benefit pension plan—unrecognized amounts, net of taxes

 —

 —

 —

 —

 —

 ( 1,411

)

 —

 ( 1,411

)

 Foreign currency translation

 —

 —

 —

 —

 —

 1,238

 1,239

 Balance at September 30, 2023

 36,142,345

 $

 $

 265,945

 ( 5,433,045

)

 $

 ( 84,031

)

 $

 ( 10,458

)

 $

 ( 9,958

)

 $

 161,533

 —

 —

 —

 —

 —

 —

 Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units

 684,745

 —

 —

 —

 —

 Taxes paid associated with net settlement of stock compensation awards

 ( 119,250

)

 —

 ( 2,254

)

 —

 —

 —

 —

 ( 2,254

)

 Common stock repurchases

 —

 —

 —

 ( 564,887

)

 ( 9,426

)

 —

 —

 ( 9,426

)

 Common stock surrendered in the exercise of stock options

 —

 —

 ( 17,564

)

 ( 397

)

 —

 —

 —

 —

 —

 —

 —

 —

 —

 Defined benefit pension plan—unrecognized amounts, net of taxes

 —

 —

 —

 —

 —

 ( 485

)

 —

 ( 485

)

 Foreign currency translation

 —

 —

 —

 —

 —

 1,516

 —

 1,516

 Balance at September 30, 2024

 36,707,840

 $

 $

 275,771

 ( 6,015,496

)

 $

 ( 93,854

)

 $

 ( 9,427

)

 $

 10,033

 $

 182,560

 —

 —

 —

 —

 —

 —

 Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units

 788,108

 —

 —

 —

 —

 —

 Taxes paid associated with net settlement of stock compensation awards

 ( 183,533

)

 —

 ( 5,743

)

 —

 —

 —

 —

 ( 5,743

)

 Acquisition consideration paid in common stock (Note 3)

 —

 —

 —

 —

 —

 Common stock repurchases

 —

 —

 —

 ( 623,687

)

 ( 16,101

)

 —

 —

 ( 16,101

)

 Common stock surrendered in the exercise of stock options

 —

 —

 ( 1,397

)

 ( 47

)

 —

 —

 —

 Forfeiture of restricted stock awards

 ( 22,500

)

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 Defined benefit pension plan—unrecognized amounts, net of taxes

 —

 —

 —

 —

 —

 ( 922

)

 —

 ( 922

)

 Foreign currency translation and other

 —

 —

 —

 —

 —

 ( 291

)

 —

 ( 291

)

 Balance at September 30, 2025

 37,317,175

 $

 $

 285,721

 ( 6,640,580

)

 $

 ( 110,002

)

 $

 ( 10,640

)

 $

 38,126

 $

 203,242

 Consolidated Statements of Cash Flows
 (Dollars In Thousands)

 2025

 2024

 2023

 Operating activities

 $

 $

 $

 Adjustments to reconcile net income to net cash provided by operating activities:

 10,409

 11,255

 8,191

 Inventory adjustment to net realizable value

 1,048

 Provision for doubtful accounts

 1,390

 Deferred tax expense

 2,396

 5,323

 6,578

 Impairment of long-lived and other non-current assets

 —

 —

 (Gain) loss on disposal of property and equipment

 ( 14

)

 ( 36

)

 Changes in operating assets and liabilities:

 Accounts receivable

 ( 4,269

)

 2,725

 Inventory

 5,241

 4,949

 ( 479

)

 Prepaid taxes and tax refund receivable

 ( 239

)

 ( 152

)

 Prepaid expenses and other assets

 1,452

 ( 3,036

)

 ( 1,166

)

 Operating lease assets and liabilities

 ( 345

)

 1,447

 ( 228

)

 Accounts payable

 ( 68

)

 8,374

 ( 2,889

)

 Accrued expenses and other current liabilities

 2,519

 4,212

 Deferred revenue

 ( 204

)

 Payables to sellers

 1,337

 8,684

 ( 581

)

 Other liabilities

 —

 ( 157

)

 Net cash provided by operating activities

 66,758

 70,221

 47,016

 Investing activities

 Purchases of property and equipment, including capitalized software

 ( 7,800

)

 ( 8,907

)

 ( 5,386

)

 Purchase of short-term investments

 ( 19,020

)

 ( 2,264

)

 ( 8,037

)

 Maturities of short-term investments

 10,142

 8,161

 1,923

 Cash paid for business acquisition, net of cash acquired

 ( 6,496

)

 ( 13,157

)

 —

 Other investing activities, net

 Net cash used in investing activities

 ( 22,984

)

 ( 16,113

)

 ( 11,432

)

 Financing activities

 Payments of the principal portion of finance lease liabilities

 ( 102

)

 ( 89

)

 ( 101

)

 Proceeds from exercise of common stock options, net of tax

 Taxes paid associated with net settlement of stock compensation awards

 ( 5,743

)

 ( 2,254

)

 ( 1,262

)

 Common stock repurchases

 ( 16,180

)

 ( 9,426

)

 ( 21,198

)

 Net cash used in financing activities

 ( 21,813

)

 ( 11,171

)

 ( 22,065

)

 Effect of exchange rate differences on cash and cash equivalents

 ( 580

)

 Net increase (decrease) in cash and cash equivalents

 21,381

 42,945

 14,159

 Cash and cash equivalents at beginning of year

 153,226

 110,281

 96,122

 Cash and cash equivalents at end of year

 $

 174,607

 $

 153,226

 $

 110,281

 Supplemental disclosure of cash flow information

 Cash paid for income taxes, net

 $

 9,201

 $

 1,710

 $

 1,590

 Non-cash: Common stock surrendered in the exercise of stock options

 $

 $

 $

 Non-cash: Acquisition consideration paid in common stock

 $

 $

 —

 $

 —

 Notes to Consolidated Financial Statements

 1. Organization
 Liquidity Services, Inc. (Liquidity Services, the Company) is the leading global provider of e-commerce marketplaces and software solutions powering the circular economy. We create a better future for organizations, individuals, and the planet by using technology to capture and unleash the intrinsic value of surplus. We connect millions of buyers and thousands of sellers through our leading e-commerce auction marketplaces, search engines, asset management and auction software, and related services. Our comprehensive solutions enable the transparent, efficient, sustainable recovery of value from excess items owned by business and government sellers.
 Our business delivers value to shareholders by unleashing the intrinsic value of surplus through our online marketplace platforms. These platforms ignite and enable a self-reinforcing cycle of value creation where buyers and sellers attract one another in greater numbers. The result of this cycle is a continuous flow of goods that becomes increasingly valuable as more participants join the platforms, thereby creating positive network effects that benefit sellers, buyers, and shareholders.
 Incorporated in Delaware as Liquidation.com in November 1999, Liquidity Services has over 25 years of industry experience.
 Reportable Segments
 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. Further information and operating results of our reportable segments can be found in Note 16 - Segment Information.
 • 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.

 The Company's operations are subject to certain risks and uncertainties, many of which are associated with technology-oriented companies, including, but not limited to, the Company's dependence on use of the Internet; the effect of general business and economic trends including inflationary pressures and impacts from interest rate changes; tariffs and other trade barriers; ongoing international armed and geopolitical conflicts; susceptibility to rapid technological change; actual and potential competition by entities with greater financial and other resources; collectability of payment from our buyers; and the potential for the commercial sellers from which the Company derives a significant portion of its inventory to change the way they conduct their disposition of surplus assets or to otherwise terminate or not renew their contracts with the Company.

 2. Summary of Significant Accounting Policies
 Use of Estimates
 The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect amounts in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates.

 Principles of Consolidation and Basis of Presentation
 The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
 The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In addition, in the opinion of management, all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation of the results for the periods presented have been included.

 Business Combinations
 The Company recognizes all of the assets acquired, liabilities assumed, contractual contingencies, and contingent consideration at their fair value on the acquisition date. Acquisition-related costs are recognized separately from the acquisition and expensed as incurred. Restructuring costs incurred in periods subsequent to the acquisition date are expensed when incurred. Subsequent changes to the purchase price (i.e., working capital adjustments) or other fair value adjustments determined during the measurement period are recorded as an adjustment to goodwill, with the exception of contingent consideration, which is recognized in the Consolidated Statements of Operations in the period it is modified. All subsequent changes to a valuation allowance or uncertain tax position that relate to the acquired company and existed at the acquisition date that occur both within the measurement period and as a result of facts and circumstances that existed at the acquisition date, are recognized as an adjustment to goodwill. All other changes in valuation allowances are recognized as a reduction or increase to income tax expense or as a direct adjustment to additional paid-in capital as required.

 Cash and Cash Equivalents
 The Company considers all highly liquid securities purchased with an initial maturity of three months or less to be cash equivalents and are included as a current asset in the line-item Cash and cash equivalents within our Consolidated Balance Sheets. Interest income earned through our cash and cash equivalents are recorded to Interest and other income, net within the Consolidated Statements of Operations.

 Short-term Investments
 The Company's short-term investments are designated as held-to-maturity investment securities, recorded at amortized cost, and are included as a current asset in the line-item Short-term investments within our Consolidated Balance Sheets as their maturity is less than one year from the balance sheet date. Interest income earned through our short-term investments are recorded to Interest and other income, net within the Consolidated Statements of Operations.

 Accounts Receivable
 Accounts receivable are recorded at the invoiced amount and are non-interest-bearing. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. Changes in allowances, which are included in Sales and marketing within the Consolidated Statements of Operations, are based on management's judgment, which considers historical bad debt experience, a specific review of all significant outstanding invoices, customer-specific information and relevant conditions, and an assessment of general economic conditions. As of September 30, 2025, the Company's allowance for doubtful accounts was $ 0.8 million.

 Inventory
 Inventory consists of property obtained for resale, generally through the online auction process, and is stated at the lower of cost or net realizable value in the line-item Inventory, net on the Consolidated Balance Sheets. Cost is generally determined using the specific identification method. Costs associated with our warehouse operations are expensed as incurred and included within Technology and operations expenses in the Consolidated Statements of Operations. Charges for unsellable inventory, as well as for inventory written down to net realizable value, are included in Cost of goods sold in the period in which they have been determined to occur. As of September 30, 2025 and 2024, the Company's Inventory, net on its Consolidated Balance Sheet is stated at net realizable value.

 Prepaid expenses and other current assets
 Prepaid expenses and other current assets include the short-term portion of contract assets (described in "Contract Assets and Liabilities"), capitalized sales commissions paid (described in "Contract Costs"), recoverable value-added tax, as well as other miscellaneous prepaid expenses.

 Property and Equipment
 Property and equipment are recorded at cost, and depreciated or amortized on a straight-line basis over the following estimated useful lives:

 Computers and purchased software

 One to five years

 Equipment

 Two to five years

 Furniture and fixtures

 Five to seven years

 Internally developed software for internal-use

 Two to five years

 Leasehold improvements

 Shorter of lease term or useful life

 Buildings

 Thirty-nine years

 Vehicles

 Five years

 Land

 Not depreciated

 Leases
 The Company determines if an arrangement is a lease upon inception. A contract is or contains a lease if the contract provides the right to control the use of an identified asset for a period of time.
 Lease assets and liabilities are recognized at the lease commencement date at an amount equal to the present value of the lease payments to be made over the lease term. The lease payments represent the combination of lease and nonlease components. The discount rate used to determine the present value is the Company's incremental borrowing rate for a duration that is consistent with the lease term, as the rates implicit in the Company's leases are generally not determinable. The Company's incremental borrowing rate is estimated using publicly available information for companies with comparable financial profiles, adjusted for the impact of collateralization. The lease term includes the impacts of options to extend or terminate the lease only if it is reasonably certain that the option will be exercised.
 Lease expense related to operating lease assets and liabilities is recognized on a straight-line basis over the lease term. Lease expense related to finance lease assets is recognized on a straight-line basis over the shorter of the useful life of the asset or the lease term, while

 lease expense related to finance lease liabilities is recognized using the interest method. Lease-related payments not included in the determination of the lease assets and liabilities, such as variable lease payments, are expensed as incurred.
 Lease assets and liabilities are not recognized when the lease term is 12 months or less; however, short-term lease expense is still recognized on a straight-line basis over the lease term.
 Balances related to the Company's operating leases are included within Operating lease assets, Current portion of operating lease liabilities, and Operating lease liabilities (non-current portion of operating lease liabilities) on the Consolidated Balance Sheets.
 Balances related to the Company's finance leases are included within Other assets (finance lease assets), Accrued expenses and other current liabilities (current portion of finance lease liabilities), and Other long-term liabilities (non-current portion of finance lease liabilities) on the Consolidated Balance Sheets.
 Lease assets are assessed for impairment in accordance with the Company's accounting policy for the impairment of long-lived assets.

 Intangible Assets
 Intangible assets consist of customer and supplier relationships, technology, trade names, and other intangibles (comprised of patents and related assets). Intangible assets are amortized using the straight-line method over their estimated useful lives.

 Impairment of Long-Lived Assets
 Long-lived assets, including definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If an impairment indicator is present, the Company evaluates recoverability by comparing the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If the assets are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the estimated fair value of the assets.

 Goodwill
 Goodwill represents the costs in excess of the fair value of net assets acquired through acquisitions by the Company. The Company reviews goodwill for impairment annually on July 1, or more frequently if events or circumstances indicate impairment may exist. Examples of such events or circumstances could include a significant change in business climate or the loss of a significant contract.
 In evaluating goodwill for impairment, the Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further testing of goodwill assigned to the reporting unit is required. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company applies a fair value-based test.

 In applying a fair value-based test, the Company determines the fair value of each of its reporting units and compares that amount to the carrying amount of the respective reporting units, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, no impairment loss is recognized. If, instead, the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in the amount of the excess carrying value.

 Net Investment Hedges
 The Company may designate certain derivative instruments (e.g., foreign currency forwards or cross currency swaps) as hedges of the foreign currency exposure of its net investments in foreign operations in accordance with ASC 815 and ASC 830. At hedge inception, management prepares contemporaneous documentation that identifies the hedged net investment, the hedging instrument, the risk being hedged, and the method used to assess hedge effectiveness. The Company applies the spot method to assess effectiveness and expects relationships to be highly effective when the derivative's currency pair and notional amount match the portion of the net investment designated as hedged; changes in fair value attributable to spot rate movements are recorded in accumulated other comprehensive income (loss) within the cumulative translation adjustment (CTA) to the extent the hedge is effective.
 Under the Company's policy, forward points (the excluded component) are recognized in current period earnings on a rational, systematic straight line basis over the hedge term; any difference between the change in fair value of the excluded component and the straight line recognition is recorded in CTA. The Company monitors hedge ratios each reporting period and will rebalance or prospectively dedesignate a portion of a hedge if the notional of the hedged net investment decreases below the derivative notional; amounts previously recognized in CTA are not reclassified to earnings solely due to such dedesignations. As of September 30, 2025, the Company had one outstanding net investment hedge applied to its Canadian subsidiary, however, such hedge was not material to its consolidated financial statements.

 Deferred Revenue
 Deferred revenue is primarily derived from subscriptions from our Machinio & Software Solutions segment that range primarily from one to twenty-four months. Subscription fees are recognized ratably over the term of the agreements.

 Revenue Recognition
 In the Consolidated Statements of Operations, revenue from the resale of inventory that the Company purchases from sellers is recognized within Purchase revenues. Revenue from the sale of inventory that the Company sells on a consignment basis, and other non-consignment fee revenue, which includes subscription services from our Machinio & Software Solutions segment, is recognized within Consignment and other fee revenues.
 The Company recognizes revenue when or as performance obligations are satisfied and control is transferred to the customer. Revenue is recognized in the amount that reflects the consideration to which the Company expects to be entitled.
 Revenue is also evaluated to determine whether the Company should report the gross proceeds as revenue, when the Company acts as the principal in the arrangement, or the Company should report its revenue on a net basis, when the Company acts as an agent. Specifically, when other parties are involved in providing goods or services to a customer, the Company must determine whether the nature of its promise is a performance obligation to provide the specified goods or services itself, or to arrange for another party to provide them. The Company evaluates the following factors to determine if it is acting as a principal: (a) whether the Company is primarily responsible for fulfilling the promise to provide the asset or assets; (b) whether the Company has inventory risk of the asset or assets before they are transferred to the buyer; and (c) whether the Company has discretion in establishing the price for the asset or assets.
 The Company enters into contracts with buyers and sellers. The Company has master agreements with some sellers pertaining to the sale of a flow of surplus assets over the term of the master agreement; however, a revenue contract for accounting purposes exists when the Company agrees to sell a specific asset or assets. When acting as a principal (a "purchase" arrangement), the Company purchases an asset or assets from a seller and then the Company seeks to sell the asset or assets to a buyer. The Company recognizes as Purchase revenues the gross proceeds from the sale, including buyer's premiums. In purchase arrangements, the contract with the seller is not a revenue contract in the scope of the revenue recognition guidance; rather, it is a purchase of inventory.
 When the Company is acting as an agent (a "consignment" arrangement), its performance obligation is to arrange for the seller to sell an asset or assets to the buyer directly. The Company recognizes Consignment revenues, which are composed of buyer's premiums

 and/or sales commissions, based on the amounts that are paid to the Company by the buyers and sellers for utilizing the Company's services, which represent a percentage of the gross transaction proceeds.
 For the Company's CAG segment, certain transactions may involve cooperation with third parties to satisfy the performance obligation of arranging for the sale of assets to a buyer, with proceeds shared among the parties. When a seller requests multiple parties to fulfill its performance obligation, the Company recognizes revenue in the amount of the portion of purchase or consignment proceeds to be retained by the Company. When the Company controls whether to use third parties to fulfill its performance obligation, it is considered the principal and revenue is recognized on a gross basis, with amounts due to third parties recognized as an expense.
 In both purchase and consignment arrangements, the Company sometimes provides varying levels of services to the seller, such as returns management, refurbishment of assets, or valuation services. These services are considered integrated with the broader performance obligation to sell the seller's assets to a buyer. Other services provided to sellers are not capable of being distinct, like providing access to the Company's e-commerce marketplaces or promoting the asset or assets for sale, because they could not benefit the seller separately from the sale of their assets.
 The consideration received from buyers and sellers includes (a) buyer's premiums, (b) seller's commissions, and (c) fees for services, including reimbursed expenses. Consideration is variable based on units, final auction prices, or other factors, until the buyer's purchase of the asset or assets is complete, or the service has been provided. Recognition of variable consideration that is based on the results of auctions or purchases by buyers is constrained until those transactions have been finalized. The Company estimates and recognizes amounts related to sales returns, discounts, or rebates promised to customers, and reimbursed expenses; however, those estimates are not significant relative to the Company's consolidated revenues. Revenue is recognized when or as the performance obligation is satisfied. Variable consideration is allocated to individual performance obligations when the variable consideration is related to satisfying that performance obligation. The Company's revenue is generally recorded subsequent to receipt of payment authorization, utilizing credit cards, wire transfers and other methods of payments. Goods are generally not shipped before payment is received. For certain transactions, payment is due upon invoice and the payment terms vary depending on the segments.
 The Company collects and remits sales taxes on merchandise that it purchases and sells and has elected the practical expedient to exclude such sales tax amounts from the transaction price. The Company also provides shipping and handling services in some arrangements and has elected the practical expedient to treat those activities as fulfillment costs and will recognize the costs of these services at the time revenue is recognized for the related assets sold. If the Company is acting as a principal for the combined obligation, amounts received from customers for shipping are recognized as Revenue, and amounts paid for shipping are recognized as Costs of goods sold. If the Company is acting as an agent for the combined obligation, shipping revenue and costs will be netted and recognized within Costs of goods sold.
 The Company's purchase and consignment performance obligations are satisfied at the point in time when control of the asset is transferred to the buyer or when the service is completed. The Company determines when control has transferred by evaluating the following five indicators: (a) whether the Company has a present right to payment for the asset or assets; (b) whether the buyer has legal title to the asset; (c) whether the buyer has physical possession of the asset or assets; (d) whether the buyer has the significant risks and rewards of ownership; and (e) whether the buyer has accepted the asset or assets.
 For the Company's Machinio & Software Solutions segment, the performance obligation has been identified as the stand ready obligation to provide access to subscription services offered by our Machinio and Software Solutions businesses, which are satisfied over time and recognized as other fee revenues in the line-item Consignment and other fee revenues on the Consolidated Statements of Operations. As of September 30, 2025, the Machinio & Software Solutions segment had a remaining performance obligation of $ 5.1 million; the Company expects to recognize the substantial majority of that amount as Fee Revenue over the next 12 months.
 Cost of Goods Sold
 Cost of goods sold includes direct and incremental costs of purchasing inventory, transporting property for auction, shipping and handling costs, and credit card and other transaction fees. For transactions where the Company resells inventory that was purchased

 from sellers, the cost of goods sold includes the cost of that inventory, generally using specific identification. There are no inventory costs associated with consignment sales.
 Contract Assets and Liabilities
 Contract assets reflect an estimate of expenses that will be reimbursed upon settlement with a seller. The contract asset balance was $ 1.3 million and $ 1.5 million as of September 30, 2025 and 2024, respectively, and is included in the line-item Prepaid expenses and other current assets on the Consolidated Balance Sheets.
 Contract liabilities reflect obligations to provide services for which the Company has already received consideration, and generally arise from up-front payments received in connection with our Machinio and Software Solutions subscription services. The contract liability balance was $ 5.1 million and $ 4.8 million as of September 30, 2025 and 2024, respectively, and is included in the line-item Deferred revenue on the Consolidated Balance Sheet. Of the September 30, 2024 contract liability balance, $ 4.7 million was earned as Fee Revenue during the year ended September 30, 2025.
 Contract Costs
 Contract costs relate to sales commissions paid on subscription contracts that are capitalized within our Machinio and Software Solutions businesses. Contract costs are amortized on a straight-line basis over the expected life of the customer contract. The contract cost balance was $ 2.3 million and $ 2.3 million as of September 30, 2025 and 2024, respectively, and is included in the line-item Prepaid expenses and other current assets and Other assets on the Consolidated Balance Sheets. Amortization expense was $ 1.6 million and $ 1.6 million during the year ended September 30, 2025 and 2024, respectively.

 Income Taxes
 The Company accounts for income taxes using an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statement and income tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for the years in which the taxes are expected to be paid or recovered. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such determination, the Company considers all available positive and negative evidence to estimate whether future taxable income will be generated to permit use of the existing deferred tax asset. The resulting net tax asset reflects management's estimate of the amount that will be realized.
 The Company applies the authoritative guidance related to uncertainty in income taxes. Accounting Standards Codification (ASC) 740 states that a benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of technical merits. The Company's policy is to recognize interest and penalties in the period in which they occur in the income tax provision. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and in foreign jurisdictions including, among others, Canada and the U.K.

 Stock-Based Compensation
 The Company has incentive plans under which stock options, restricted stock units, restricted stock awards, and stock appreciation rights are issued. The awards issued can contain service conditions, performance conditions based upon Company financial results, and/or market conditions based upon changes in the Company's stock price.

 Service- and performance-based stock awards are measured at fair value on their grant date. Stock options and stock appreciation rights are measured at fair value using the Black-Scholes option-pricing model; however, because the stock appreciation rights are cash settled, they are also measured at fair value in each reporting period. The Black-Scholes option-pricing model includes assumptions for the expected term, volatility, and dividend yield, each of which are determined in reference to the Company's historical results. Where applicable, the expected term assumption is derived separately for homogenous groups within the overall award population. Restricted stock units and restricted stock awards are measured at fair value using the closing price of the Company's stock on the grant date. For service-based stock awards, the Company recognizes expense on a straight-line basis over the service period, which is generally a period of one to four years. For performance-based stock awards, the Company recognizes expense on a straight-line basis over the derived service period expected to be required to achieve the performance condition. The Company records a cumulative adjustment to compensation expense for performance-based awards if there is a change in determination of whether it is probable that the performance condition will be achieved.
 Market-based stock awards are measured at fair value on their grant date using a Monte Carlo simulation. The Monte Carlo simulation includes assumptions for the expected term, volatility, and dividend yield, each of which are determined in reference to the Company's historical results. For market-based stock option and restricted stock awards, the Company recognizes expense on a straight-line basis over the derived service period determined by the Monte Carlo simulation, for each stock price target within the award. The Company accelerates expense when a stock price target is achieved prior to the derived service period. The Company, however, does not reverse expense recognized if the stock price target(s) are not ultimately achieved, as required by equity accounting for market-based awards. For market-based stock appreciation rights, because they are cash settled, they are measured at fair value in each reporting period. The Company recognized expense on a straight-line basis over the derived service period determined by the Monte Carlo simulation in each reporting period, for each stock price target within the award. The Company accelerates expense when a stock price target is achieved prior to the derived service period, and reverses expense recognized if the stock price target(s) are not ultimately achieved, as required by liability accounting for market-based awards.
 The Company recognizes the impact of forfeitures in the period they occur.
 Compensation expense from the stock awards is included in the same lines on the Consolidated Statements of Operations as the cash compensation to the employees receiving the stock awards.
 Excess tax benefits realized from stock awards are reported as cash flows from operating activities on the Consolidated Statements of Cash Flows.

 Advertising Costs
 Advertising expenditures are expensed as incurred. Advertising costs charged to expense were $ 3.9 million, $ 5.2 million, and $ 4.5 million for the years ended September 30, 2025, 2024, and 2023, respectively.

 Treasury Stock
 Treasury stock is presented at cost, including any applicable excise taxes, commissions and fees, as a reduction of stockholders' equity in the Consolidated Balance Sheets and Consolidated Statement of Stockholders' Equity. Treasury stock held by us may be retired or reissued in the future.

 Foreign Currency Translation
 The functional currency of the Company's foreign subsidiaries is primarily the local currency. The translation of the subsidiary's financial statements into U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The resulting translation adjustments are recognized in Accumulated other comprehensive loss, a separate component of stockholders' equity. Realized and unrealized foreign currency transaction gains and losses are included in Interest and other income, net in the Consolidated Statements of Operations.

 Accumulated Other Comprehensive Loss
 The following table shows the changes in accumulated other comprehensive loss, net of taxes (in thousands):

 Foreign Currency Translation Adjustments and Other

 Net Change Pension and Other Postretirement Benefit Plans

 Accumulated Other Comprehensive (Loss) Income

 Balance at September 30, 2022

 $

 ( 10,594

)

 $

 $

 ( 10,285

)

 Current-period other comprehensive income (loss)

 1,238

 ( 1,411

)

 ( 173

)

 Balance at September 30, 2023

 ( 9,356

)

 ( 1,102

)

 ( 10,458

)

 Current-period other comprehensive (loss)

 1,516

 ( 485

)

 1,031

 Balance at September 30, 2024

 ( 7,840

)

 ( 1,587

)

 ( 9,427

)

 Current-period other comprehensive (loss)

 ( 291

)

 ( 922

)

 ( 1,213

)

 Balance at September 30, 2025

 $

 ( 8,131

)

 $

 ( 2,509

)

 $

 ( 10,640

)

 Risk Associated with Certain Concentrations
 For the majority of buyers that receive goods before payment to the Company is made, credit evaluations are performed; however, for the remaining buyers, goods are not shipped before payment is made, and as a result the Company is not subject to significant collection risk from those buyers. However, for a limited number of financially qualified buyers, which can include re-sellers, we may from time-to-time extend credit for certain large purchases with negotiated payment periods. Credit terms commonly require payment to be made within 30 days, but where commercial terms or market conditions warrant these payment terms may be extended for up to six months. As a result, our consolidated accounts receivable balances are typically a small component of our overall financial position but may, at times, be concentrated among a limited, small number of such buyers. Collection risk from and credit exposure to these financially qualified buyers is regularly reviewed by management and adjusted as needed.
 For consignment sales transactions, funds are typically collected from buyers and are held by the Company on the sellers' behalf. The funds are included in Cash and cash equivalents on the Consolidated Balance Sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, through Accounts payable after the buyer has accepted the goods or within 30 days, depending on the state where the buyer and seller conduct business.
 Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash in banks within non-interest bearing, interest-bearing, and earnings allowance checking accounts, as well as cash equivalent money market funds, all of which exceed the applicable U.S. federal (FDIC and/or SIPC), local jurisdiction (foreign banking institutions) insurance limits, and Accounts receivable.
 The Company deposits its cash in interest bearing checking accounts, acquires cash equivalent money market funds, and holds short-term investments designated as held-to-maturity investment securities, each with financial institutions that the Company considers to be of high credit quality. Management continually monitors the financial institutions with whom we conduct business and responds appropriately, when necessary, to manage potential risk exposure to our cash balances above the insurance limits.

 The Company has multiple vendor contracts with Amazon.com, Inc. under which it acquires and sells commercial merchandise. While purchase model transactions account for less than 20 % of our total GMV, the cost of inventory for purchase model transactions is the most significant component of our consolidated Costs of goods sold. $ 10.1 million and $ 12.2 million of inventory purchased under such contracts with Amazon.com, Inc. is included in our Consolidated Inventory balances as of September 30, 2025 and 2024, respectively. The Company's vendor contracts with respect to sourcing or consigning merchandise for its RSCG segment generally reflect the concentration dynamics inherent to the retail industry.
 Recent Accounting Pronouncements
 Accounting Standards Adopted
 In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. It will require organizations to provide enhanced disclosures primarily regarding significant segment expenses. The Company adopted the new standard effective herein with our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. In accordance with the ASU, we have disclosed on a retrospective basis the significant expense, by segment, in deriving our segment profit (loss) measure; see Note 16 - Segment Information for further information.
 In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). The majority of the Company's sales require payment in advance of the sale, but a limited number of buyers are approved to conduct sales on credit. Accounts receivables related to those sales are generally short-term in nature and do not require the posting of collateral. The Company estimates its allowances for expected credit loss based on historical collection trends, the age of outstanding receivables, existing economic conditions, and the specific facts and circumstances of individual customers. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past-due account balances are written off when the Company's internal collection efforts have been unsuccessful in collecting the amounts due. The Company adopted the new standard effective October 1, 2023. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements.
 Accounting Standards Not Yet Adopted
 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU will require organizations to disclose specific categories in their tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance will be effective for the Company beginning with its Annual Report on Form 10-K for the fiscal year ending September 30, 2026. The guidance is required to be applied on a prospective basis; however, retrospective application is permitted. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements.
 In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses. This ASU will require organizations to disaggregate certain expense captions an entity presents on the face of the income statement into specific categories in disclosures within the footnotes to the financial statements. This guidance will be effective for the Company beginning with its Annual Report on Form 10-K for the fiscal year ending September 30, 2028. The guidance is required to be applied on a prospective basis; however, retrospective application is permitted. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements.
 In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU modernizes the accounting for internal-use software, removing for all references to software development stages and instead, requires capitalization of software costs when management has committed to the software project and it is probable the software will be completed and perform its intended use. This guidance will be effective for the Company beginning with its Annual Report on Form 10-K for the fiscal year ended September 30, 2029. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements.

 3. Acquisitions
 Auction Software
 On January 31, 2025, the Company acquired Auction Software, a private-label marketplace and SaaS solutions provider offering scalable auction platform services to entrepreneurs and businesses, for $ 6.5 million in cash paid and $ 0.9 million in stock issuance at closing, for a total preliminary purchase price of $ 7.4 million. As of September 30, 2025, the Company's purchase price allocation related to this acquisition is preliminary and subject to revision as additional information is obtained about the facts and circumstances that existed as of the acquisition date. During the three months ended June 30, 2025, the Company recorded a measurement period adjustment of $ 0.3 million for the acquired intangible assets' fair value with a corresponding increase to goodwill. In connection with its acquisition of Auction Software, the Company preliminarily allocated the fair value to acquired intangible assets totaling $ 2.6 million, and goodwill of $ 5.1 million. The total goodwill arising from the acquisition is included in the Software Solutions operating segment and is deductible for tax purposes.
 Auction Software's financial results are reported within the Software Solutions operating segment. Revenue, net income (loss), and pro forma information related to the Auction Software acquisition was immaterial to the consolidated financial statements and its related notes for the twelve months ended September 30, 2025.
 Sierra Auction Management, Inc.
 On January 1, 2024, the Company acquired all the issued and outstanding equity securities associated with Sierra Auction Management, Inc. (Sierra), a full-service auction company specializing in the sale of vehicles, equipment and surplus assets for government agencies, commercial businesses, and charities. Total purchase consideration was approximately $ 13.7 million, paid in cash.
 In connection with its acquisition of Sierra, the Company recorded the fair value of acquired supplier relationships and trade name assets for $ 5.1 million and $ 0.3 million, respectively, and goodwill of $ 7.9 million. The supplier relationships and trade name shall be amortized on a straight-line basis over a useful life of six and three years, respectively. The total goodwill arising from the acquisition is included in the GovDeals reportable segment and is deductible for tax purposes.
 Sierra's financial results are reported within the GovDeals reportable segment. Revenue, net income (loss), and pro forma information related to the Sierra acquisition was immaterial to the consolidated financial statements and its related notes for the twelve months ended September 30, 2025 and 2024.

 4. Earnings Per Share
 The Company calculates basic EPS by dividing net income by the weighted-average number of common shares outstanding during the reporting period, excluding unvested restricted stock awards.
 The Company calculates diluted EPS by dividing net income by the weighted-average number of common shares and potentially dilutive common shares outstanding during the reporting period using the treasury stock method.
 The Company's potentially dilutive common shares include stock options, restricted stock units, and restricted stock awards. For such awards that have performance- or market-conditions, they are considered dilutive only when those performance- or market-conditions have been satisfied as of the reporting date; however, in periods of a net loss, the Company's diluted EPS will equal its basic EPS, as all its potential common shares are anti-dilutive in that case. In periods of net income, the calculation of diluted net income per share will exclude all anti-dilutive common shares.
 The computation of basic and diluted net income per share is as follows:

 2025

 2024

 2023

 Numerator:

 $

 $

 $

 Denominator:

 Basic weighted average shares outstanding

 30,932,459

 30,496,306

 31,075,648

 Dilutive impact of stock options, RSUs and RSAs

 1,478,616

 1,137,886

 998,913

 Diluted weighted average shares outstanding

 32,411,075

 31,634,192

 32,074,561

 Basic income per common share

 $

 0.91

 $

 0.66

 $

 0.68

 Diluted income per common share

 $

 0.87

 $

 0.63

 $

 0.65

 Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive

 401,418

 1,286,030

 1,808,606

 5. Property and Equipment
 Property and equipment, including equipment under capital lease obligations, consists of the following:

 2025

 2024

 Computers and purchased software

 $

 2,504

 $

 2,351

 Developed software for internal-use

 37,169

 30,341

 Equipment

 9,383

 10,177

 Leasehold improvements

 4,470

 4,182

 Building

 2,213

 2,203

 Furniture and fixtures

 Vehicles

 1,687

 1,536

 Land

 Construction in progress

 2,441

 3,030

 Total property and equipment

 61,135

 54,965

 Less: Accumulated depreciation and amortization

 ( 42,876

)

 ( 37,004

)

 Total property and equipment, net

 $

 18,259

 $

 17,961

 Depreciation and amortization expense related to property and equipment for the years ended September 30, 2025, 2024, and 2023, was $ 7.1 million, $ 8.1 million, and $ 7.4 million, respectively. Included in those amounts is amortization of internally developed software for internal use of $ 4.8 million, $ 6.0 million, and $ 5.6 million, respectively.
 The Company did no t record impairment charges on material property and equipment during the years ended September 30, 2025, 2024, and 2023.

 6. Leases
 The Company has operating leases for its corporate offices, warehouses, vehicles and equipment.
 The operating leases have remaining terms of up to 5.3 years. Some of the leases have options to extend or terminate the leases. The exercise of such options is generally at the Company's discretion. The lease agreements do not contain any significant residual value guarantees or restrictive covenants. The Company also subleases excess office and warehouse space, when applicable. The Company's finance leases and related balances are not significant.
 The components of lease expense are:

 2025

 2024

 Finance lease – lease asset amortization

 $

 $

 Finance lease – interest on lease liabilities

 Operating lease cost

 5,928

 5,457

 Operating lease impairment expense (1)

 —

 Short-term lease cost

 Variable lease cost (2)

 1,319

 1,458

 Sublease income

 ( 84

)

 ( 19

)

 Total net lease cost

 $

 8,171

 $

 7,295

 (1) During the twelve months ended September 30, 2025, the Company exited from a RSCG warehouse in an effort to consolidate its warehouse operations and incurred $ 0.5 million of impairment expense.
 (2) Variable lease costs primarily relate to the Company's election to combine non-lease components such as common area maintenance, insurance and taxes related to its real estate leases. To a lesser extent, the Company's equipment leases have variable costs associated with usage and subsequent changes to costs based upon an index.

 Maturities of lease liabilities are:

2025

 Operating Leases

 Finance Leases

 2026

 $

 5,676

 $

 2027

 3,369

 2028

 2,990

 2029

 2,163

 2030

 Thereafter

 Total lease payments (1)

 15,207

 Less: imputed interest (2)

 $

 ( 1,412

)

 $

 ( 44

)

 Total lease liabilities

 $

 13,795

 $

 (1) The weighted average remaining lease term is 3.4 years for operating leases and 4.2 years for finance leases as of September 30, 2025, and 3.3 years for operating leases and 2.4 years for finance leases as of September 30, 2024.
 (2) The weighted average discount rate is 5.9 % for operating leases and 5.8 % for finance leases as of September 30, 2025, and 6.1 % for operating leases and 5.6 % for finance leases as of September 30, 2024.

 Supplemental disclosures of cash flow information related to leases are:

 Years Ended September 30,

 2025

 2024

 Cash paid for amounts included in operating lease liabilities

 $

 5,581

 $

 4,667

 Cash paid for amounts included in finance lease liabilities

 $

 $

 Non-cash: lease liabilities arising from new operating lease assets obtained

 $

 2,209

 $

 5,695

 Non-cash: lease liabilities arising from new finance lease assets obtained

 $

 $

 Non-cash: adjustments to lease assets and liabilities(1)

 $

 2,944

 $

 (1) These include adjustments due to lease modifications, renewals, and other related adjustments.

 The increase in adjustments to lease assets and liabilities during the year ended September 30, 2025, is due to execution of renewal of an existing warehouse lease in Brampton, Ontario (Canada) associated with our RSCG reportable segment. The increase in lease liabilities arising from new operating lease assets obtained during the year ended September 30, 2025, was primarily driven by our new Retail Rush store in Columbus, Ohio, and auction staging lot in Montclair, California for our GovDeals reportable segment.
 Lease liabilities increased during the year ended September 30, 2024, due to the commencement of a lease for new warehouse space in Brownsburg, Indiana during the period, as well as new leases relating to the Sierra acquisitions; see Note 3 - Acquisitions for further information.

 7. Goodwill
 The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows:

 Goodwill (in thousands)

 CAG

 Machinio & Software Solutions

 Total

 Balance at September 30, 2022

 $

 53,814

 $

 20,538

 $

 14,558

 $

 88,910

 Translation adjustments

 —

 —

 Balance at September 30, 2023

 $

 53,814

 $

 21,016

 $

 14,558

 $

 89,388

 Sierra acquisition (see Note 3)

 7,869

 —

 —

 7,869

 Translation adjustments

 —

 —

 Balance at September 30, 2024

 $

 61,683

 $

 21,551

 $

 14,558

 $

 97,792

 Translation adjustments

 —

 —

 Auction Software acquisition (see Note 3)

 —

 —

 5,066

 5,066

 Balance at September 30, 2025

 $

 61,683

 $

 21,568

 $

 19,624

 $

 102,875

 The increase in the goodwill balance of approximately $ 5.1 million at the Software Solutions business during the twelve months ended September 30, 2025, is due to the Auction Software acquisition; see Note 3 - Acquisitions for further information.
 The increase in the goodwill balance of approximately $ 7.9 million at the GovDeals reportable segment and reporting unit during the year ended September 30, 2024, is due to the Sierra acquisition; see Note 3 - Acquisitions for further information.
 Our RSCG reportable segment did not maintain a goodwill balance during any of the fiscal year ends presented above. Accumulated goodwill impairment losses as of September 30, 2025 and 2024 were $ 168.6 million.
 Impairment Analysis
 Goodwill is tested for impairment at the beginning of the fourth quarter and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. As of July 1, 2025, the Company performed its annual impairment test on a qualitative basis and concluded that it was more likely than not that the fair value of each reporting unit exceeded their carrying amounts. The Company did no t record impairment charges on goodwill during the years ended September 30, 2025, 2024, and 2023.
 The Company did not identify any indicators of impairment that required an interim goodwill impairment test during the three months ended September 30, 2025.

 8. Intangible Assets
 Intangible assets consist of the following:

 September 30, 2025

 September 30, 2024

 Useful
Life
(in years)

 Weighted
average
useful Life
(in years)

 Gross
Carrying

 Accumulated
Amortization

 Net
Carrying

 Gross
Carrying

 Accumulated
Amortization

 Net
Carrying

 Customer and supplier relationships

 6 - 8

 $

 23,600

 $

 ( 11,518

)

 $

 12,082

 $

 22,100

 $

 ( 8,805

)

 $

 13,295

 Technology

 3 - 5

 5,800

 ( 5,020

)

 4,900

 ( 4,839

)

 Trade names

 3 - 7

 2,412

 ( 2,100

)

 2,200

 ( 1,803

)

 Other intangibles

 ( 784

)

 ( 738

)

 Total intangible assets, net

 $

 32,761

 $

 ( 19,421

)

 $

 13,340

 $

 30,097

 $

 ( 16,185

)

 $

 13,912

 The gross carrying amount of total intangible assets increased by $ 2.7 million during the twelve months ended September 30, 2025, due to the Auction Software acquisition; see Note 3 - Acquisitions for further information.
 Future expected amortization of intangible assets at September 30, 2025, is as follows:

 Year Ending September 30,

 Amortization

 2026

 $

 3,131

 2027

 3,048

 2028

 3,012

 2029

 3,007

 2030

 Thereafter

 Total

 $

 13,340

 Amortization expense related to intangible assets for the years ended September 30, 2025, 2024, and 2023 was $ 3.2 million, $ 4.0 million, and $ 3.8 million, respectively. The decrease in intangible amortization expense during the year ended September 30, 2025, was due to the completion of previously acquired intangible assets in the normal course.
 The Company did no t record impairment charges on any intangible assets during the years ended September 30, 2025, 2024, and 2023. The Company did not identify any indicators of impairment requiring an interim impairment test on material long-lived assets during the year ended September 30, 2025.

 9. 401(k) Benefit Plan
 The Company has a retirement plan (the Plan), which is intended to be a qualified plan under Section 401(k) of the Internal Revenue Code of 1986, as amended. The Plan is a defined contribution plan available to all eligible employees and allows participants to contribute up to the legal maximum of their eligible compensation, not to exceed the maximum tax-deferred amount allowed by the Internal Revenue Service. The Plan also allows the Company to make discretionary matching contributions.
 During the fiscal year ended September 30, 2023, the Company stopped accepting investments in the Company's stock fund under the Plan and all shares of the Company and other Plan interests held in the stock fund under the Plan were reinvested into non-Company investment vehicles. On March 28, 2023, the Company filed a post-effective amendment on Form S-8 with the SEC to deregister all of the previously registered shares and other Plan interests that remained unissued and unsold under the Plan. As a result, interests in the Plan no longer require registration under the Securities Exchange Act of 1934, as amended. On October 2, 2023, the Company filed a Form 15 to suspend the duty of the Plan to file reports under Section 15(d) of the Securities Exchange Act of 1934, as amended.
 For the years ended September 30, 2025, 2024, and 2023, the Company recorded expenses of $ 1.6 million, $ 1.5 million, and $ 1.4 million, respectively, related to its contributions to the Plan.

 10. Income Taxes
 The components of the provision for income taxes of continuing operations are as follows:

 2025

 2024

 2023

 Current tax provision (benefit):

 U.S. Federal

 $

 7,411

 $

 $

 —

 State

 1,559

 1,105

 1,179

 Foreign

 ( 18

)

 8,952

 1,946

 1,461

 Deferred tax provision (benefit):

 U.S. Federal

 3,811

 5,251

 State

 1,721

 1,468

 1,280

 Foreign

 2,396

 5,323

 6,578

 Total provision (benefit)

 $

 11,348

 $

 7,269

 $

 8,039

 Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:

 2025

 2024

 Deferred tax assets:

 Net operating losses—Foreign

 $

 17,444

 $

 17,605

 Net operating losses—U.S.

 2,770

 5,974

 Accrued vacation and bonus

 Inventory capitalization

 Inventory reserves

 Allowance for doubtful accounts

 4,968

 4,354

 Operating lease liabilities

 2,059

 3,488

 Other

 Total deferred tax assets before valuation allowance

 28,817

 33,737

 Less: valuation allowance

 ( 17,050

)

 ( 17,193

)

 Net deferred tax assets

 11,767

 16,544

 Deferred tax liabilities:

 Amortization of intangibles

 1,163

 1,835

 Amortization of goodwill

 8,597

 8,203

 Depreciation

 1,050

 Capitalized costs

 —

 Operating/right of use assets

 1,543

 2,933

 Pension liability

 Total deferred tax liabilities

 $

 12,434

 $

 14,816

 Net deferred taxes

 $

 ( 667

)

 $

 1,728

 The reconciliation of the U.S. federal statutory rate to the effective rate for continuing operations is as follows:

 2025

 2024

 2023

 U.S. statutory rate

 21.0

 %

 21.0

 %

 21.0

 %

 Stock-based stock compensation expense

 ( 5.2

)%

 ( 3.2

)%

 ( 1.3

)%

 Nondeductible compensation expense

 4.1

 %

 1.2

 %

 0.5

 %

 Other permanent items

 0.3

 %

 0.4

 %

 0.1

 %

 State taxes

 7.5

 %

 7.9

 %

 7.8

 %

 Net foreign rate differential

 ( 0.1

)%

 0.2

 %

 0.0

 %

 Unrecognized tax benefits

 0.0

 %

 0.0

 %

 ( 0.5

)%

 Change in valuation allowance

 0.2

 %

 4.3

 %

 1.4

 %

 Write-down of deferred tax assets on share-based stock compensation

 0.4

 %

 0.9

 %

 0.2

 %

 Write-down of deferred tax assets on net operating loss

 0.2

 %

 ( 4.1

)%

 ( 0.8

)%

 Other

 0.4

 %

 ( 1.9

)%

 ( 0.7

)%

 Effective rate

 28.8

 %

 26.7

 %

 27.7

 %

 As of September 30, 2025 and 2024, the Company had federal and state deferred tax (liabilities) and assets of $( 1.2) million and $ 1.4 million, respectively, related to available federal and state net operating loss (NOL) carryforwards, foreign tax credit carryforwards, and other U.S. temporary differences. The federal NOL carryforward from fiscal year 2024 is fully utilized as of September 30, 2025. The state NOL carryforwards expire beginning in 2026. The Company's ability to use these various carryforwards to offset any taxable income generated in future taxable periods may be limited under Section 382 and state tax provisions. The foreign tax credit carryforwards expire beginning in 2031. At September 30, 2025 and 2024, the Company had deferred tax assets related to available foreign NOL carryforwards of $ 17.4 million and $ 17.6 million, respectively. All but $ 0.3 million of our foreign NOLs maintain an indefinite carry forward life. The NOLs with limited carryforward periods will expire beginning in 2027.
 The Company evaluates the recoverability of its deferred tax assets on a jurisdictional basis by considering whether deferred tax assets will be realized on a more likely than not basis. To the extent a portion or all of the applicable deferred tax assets do not meet the more likely than not threshold, a valuation allowance is recorded. Consideration was given to the tax planning strategies and, when applicable, future taxable income as to how much of the relevant deferred tax asset could be realized on a more likely than not basis. The Company has recorded a valuation allowance of $ 17.1 million and $ 17.2 million against its gross deferred tax asset balance at September 30, 2025 and 2024, respectively. At each reporting date, the Company considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of September 30, 2025, the Company determined that there was sufficient positive evidence to conclude that it is more likely than not that all of its U.S. deferred tax assets are realizable.
 The Tax Act and Jobs Act of 2017 (the Tax Act) subjects a U.S. shareholder to a minimum tax on "global intangible low-taxed income" (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A Topic 740 No. 5. Accounting for Global Intangible Low-Taxed Income states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. The Company has elected to recognize the resulting tax on GILTI as an expense in the period the tax is incurred.
 The Inflation Reduction Act (IRA) was enacted on August 16, 2022. The IRA includes provisions imposing a 1 % excise tax on share repurchases that occur after December 31, 2022, and introduces a 15 % corporate alternative minimum tax (CAMT) on adjusted financial statement income. The CAMT became effective for us in fiscal year 2024 and has not had a material adverse impact on our financial statements.

 On July 4th, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses. The OBBBA allows 100 % bonus depreciation for property acquired and placed in service on or after January 19, 2025 and permits companies to expense, rather than amortize over a five-year period, domestic research and development costs paid or incurred in tax years beginning after December 31. 2024. This rule is effective for the Company beginning with its tax return for the fiscal year ending September 30, 2026. We have evaluated the effects of the legislation on our effective tax rate and cash tax position and the impact to our financial statements is not material.
 On January 1, 2024, the Company acquired all the issued and outstanding equity securities associated with Sierra Auction Management, Inc. (Sierra) for $ 13.7 million paid in cash. The purchase of the equity securities of Sierra was treated as at purchase of assets of Sierra for tax purposes. The total goodwill arising from the acquisition is deductible for tax purposes.
 On January 31, 2025, the Company acquired Auction Software, a private-label marketplace and SaaS solutions provider offering scalable auction platform services to entrepreneurs and businesses, for $ 6.5 million in cash paid and $ 0.9 million in stock issuance at closing, for a total preliminary purchase price of $ 7.4 million. The total goodwill arising from the acquisition is deductible for tax purposes.
 The Company has not recorded a provision for deferred U.S. tax expense on the undistributed earnings of foreign subsidiaries since the Company intends to indefinitely reinvest the earnings of these foreign subsidiaries outside the U.S. The amount of such undistributed foreign earnings was $ 9.1 million as of September 30, 2025. As of September 30, 2025 and 2024, $ 22.5 million and $ 25.7 million, respectively, of cash and cash equivalents was held overseas and not available to fund domestic operations without incurring taxes upon repatriation.
 The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):

 2025

 2024

 2023

 Beginning balance at October 1

 —

 —

 $

 Additions based on positions related to the current year

 —

 —

 —

 Additions for tax positions of prior years

 —

 —

 —

 Reductions for tax positions of prior years

 —

 —

 ( 143

)

 Settlements

 —

 —

 —

 Balance at September 30

 —

 —

 —

 The Company applies the authoritative guidance related to uncertainty in income taxes. ASC 740 states that a benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. During 2025, the Company did not identify any new uncertain tax positions.
 The Company recognizes interest and penalties in the period in which they occur in the income tax provision. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions and in foreign jurisdictions, primarily Canada and the U.K. In July 2024, the state of California opened an income tax examination for tax years 2020 and 2021. The examination was closed in January, 2025, with no material adjustments. The Company has no open income tax examinations in the U.S. and the statute of limitations for years prior to fiscal year 2022 is now closed; however, certain tax attribute carryforwards that were generated prior to fiscal year 2022 may be adjusted upon examination by tax authorities if they are utilized.

 11. Debt
 On February 10, 2022, the Company entered into a revolving credit facility with Wells Fargo Bank, National Association (as amended, the Credit Agreement). Terms of the Credit Agreement provide for revolving loans (the Line of Credit) up to a maximum aggregate borrowing amount of $ 25.0 million with a $ 10.0 million sublimit for standby letters of credit.
 On March 31, 2023, the Credit Agreement was amended to extend the maturity date by 12 months to March 31, 2025 (the First Amendment).

 On March 27, 2024, the Credit Agreement was amended to extend the maturity date by an additional 12 months to March 31, 2026 (the Second Amendment). No other changes, including regarding the borrowing terms or capacities, were made to the Credit Agreement as a result of the First Amendment or the Second Amendment.
 On May 7, 2025, the Company entered into a Third Amendment to the Credit Agreement (the Third Amendment) that extended the maturity date of the Credit Agreement to March 31, 2027, increased the maximum aggregate borrowing amount from $ 25.0 million to $ 35.0 million, and increased the sublimit for standby letters of credit from $ 10.0 million to $ 35.0 million.
 The applicable interest rate on any draws under the Credit Agreement is a variable rate per annum equal to the Daily Simple Secured Overnight Financing Rate (SOFR) in effect plus a margin ranging from 1.25 % to 1.75 %. Interest is payable monthly. The Company pays an Unused Commitment Fee (as defined in the Credit Agreement), on a quarterly basis, equal to 0.05 % per annum on the daily amount of the available, but unused, balance on the Credit Agreement. The Company also pays a Line of Credit Fee (as defined in the Credit Agreement), on a quarterly basis, equal to 1.25 % on the daily amount available to be drawn for standby letters of credit. Interest incurred on any draws under the Credit Agreement, as well as the Unused Commitment Fee and Line of Credit Fee, are included within Interest and other income, net in the Consolidated Statements of Operations.
 The Company may draw upon the Credit Agreement for general corporate purposes. Repayments of any borrowings under the Credit Agreement shall become available for redraw at any time by the Company.
 The Credit Agreement contains certain financial and non-financial restrictive covenants including, among others, the requirement to maintain a minimum level of earnings before interest, income taxes, depreciation and amortization (EBITDA). The Credit Agreement contains affirmative and restrictive covenants including covenants placing limitations on mergers, consolidations and dissolutions, investments and acquisitions, indebtedness and liens, and dividends and other restricted payments. As of September 30, 2025, the Company was in full compliance with the terms and conditions of the Credit Agreement.
 During the year ended September 30, 2025, the Company did not make any draws under the Credit Agreement and issued $ 9.0 million of standby letters of credit.
 During the fiscal year ended September 30, 2025, the Company did not make any draws under the Credit Agreement, had no outstanding borrowings under the Credit Agreement and had $ 9.0 million of standby letters of credit outstanding. The amount of standby letters of credit are reserved against the Credit Agreement and are not available for borrowing, resulting in $ 26.0 million of remaining borrowing capacity under the Credit Agreement as of September 30, 2025.
 During the year ended September 30, 2025, interest expense incurred by the Company under the Credit Agreement was immaterial to the consolidated financial statements.

 12. Equity Transactions
 Stock Compensation Incentive Plans
 The Company has several incentive plans under which stock options, restricted stock units (RSUs), restricted stock awards (RSAs), and cash-settled stock appreciation rights (SARs) have been issued, including the Third Amended and Restated 2006 Omnibus Long-Term Incentive Plan (as amended, the LTIP) and a plan and private placement issuances related to the Company's acquisition of Machinio and Bid4Assets. As of September 30, 2025, the Company has reserved a total of 22,800,000 shares of its common stock for exercises of stock options, vesting of RSUs, and grants of RSAs under the LTIP. Vesting of RSUs and grants of RSAs count as 1.5x shares against the plan reserves. As of September 30, 2025, 1,325,740 shares of common stock remained available for use.
 Stock Compensation Expense
 The table below presents the components of share-based compensation expense (in thousands):

 2025

 2024

 2023

 Equity-classified awards:

 Stock options

 $

 2,445

 $

 2,329

 $

 2,002

 RSUs & RSAs

 12,045

 8,758

 6,233

 Total Equity-classified award

 8,235

 Liability-classified awards:

 SARs

 —

 —

 ( 44

)

 Total stock compensation expense:

 $

 $

 $

 8,191

 The Company had no liabilities for liability-classified stock compensation awards as of September 30, 2025 and 2024, respectively.
 The table below presents the components of share-based compensation expense by line item within our Consolidated Statements of Operations (in thousands):

 2025

 2024

 2023

 Stock Compensation Expense by Line Item

 Technology and operations

 $

 2,292

 $

 1,698

 $

 1,226

 Sales and marketing

 4,646

 2,989

 2,363

 General and administrative

 7,552

 6,400

 4,602

 Total stock compensation expense:

 $

 $

 $

 8,191

 Share-Based Award Activity
 Stock Options
 The table below presents stock option activity (aggregate intrinsic value in thousands):

 Stock Options

 Weighted-
Average
Exercise Price

 Weighted-
Average
Remaining
Contractual Term (years)

 Aggregate Intrinsic Value

 Outstanding as of September 30, 2024

 2,188,418

 $

 12.25

 5.22

 $

 23,269

 Granted

 250,000

 $

 22.55

 $

 —

 Exercised

 ( 235,897

)

 $

 14.43

 $

 4,062

 Forfeited

 ( 30,596

)

 $

 17.25

 $

 ( 180

)

 Expired

 —

 $

 —

 $

 —

 Outstanding as of September 30, 2025

 2,171,925

 $

 13.13

 4.87

 $

 31,061

 Vested and expected to vest as of September 30, 2025

 2,171,925

 $

 13.13

 4.87

 $

 31,061

 Exercisable as of September 30, 2025

 1,539,713

 $

 10.44

 3.69

 $

 26,154

 Of the 632,274 stock options not yet exercisable as of September 30, 2025, 262,627 can become exercisable by satisfying service conditions only, and 369,647 can become exercisable by satisfying service and performance or market conditions.
 Stock options containing only service conditions generally vest over periods of one to four years and expire five to ten years from the date of grant. Stock compensation cost is expensed ratably over the entire service period. As of September 30, 2025, there was $ 2.1 million of unrecognized compensation cost related to stock options containing only service conditions, which is expected to be recognized over a weighted-average period of 2.3 years.

 The range of assumptions used to determine the fair value of stock options using the Black-Scholes option-pricing model during the years ended September 30, 2025, 2024, and 2023 were as follows:

 2025

 2024

 2023

 Dividend yield

 —

 —

 —

 Expected volatility

 56.1 % - 58.0 %

 59.1 % - 60.8 %

 56.9 % - 62.2 %

 Risk-free interest rate

 4.1 % - 4.1 %

 3.8 % - 3.9 %

 3.4 % - 3.9 %

 Expected term

 4.4 - 5 years

 4.5 - 5 years

 4.5 - 7.6 years

 The weighted-average grant date fair value of options granted during the year-ended September 30, 2025, 2024, and 2023 was $ 11.14, $ 8.96, and $ 7.49, respectively. The total intrinsic value of options exercised during 2025, 2024, and 2023 was $ 4.1 million, $ 6.6 million, and $ 3.0 million, respectively. Stock options containing performance conditions are discussed separately in the section below.
 RSUs & RSAs
 The table below presents RSU & RSA activity (aggregate fair value in thousands):

 RSU & RSA

 Weighted-
Average
Grant Date Fair Value

 Weighted-
Average
Remaining
Contractual Term (years)

 Aggregate Fair Value

 Outstanding as of September 30, 2024

 1,775,627

 $

 18.38

 2.24

 $

 40,484

 Granted

 658,464

 $

 24.16

 $

 15,907

 Vested

 ( 652,678

)

 $

 18.07

 $

 20,234

 Forfeited

 ( 104,242

)

 $

 19.40

 $

 2,405

 Outstanding as of September 30, 2025

 1,677,171

 $

 20.70

 2.08

 $

 46,005

 Expected to vest as of September 30, 2025

 1,676,541

 $

 20.70

 2.08

 $

 45,988

 Of the outstanding RSUs & RSAs as of September 30, 2025, 845,755 can vest by satisfying service conditions only, and 831,416 can vest by satisfying service and performance or market conditions.
 RSUs containing only service conditions vest ratably each year over periods of one to four years. Stock compensation cost is expensed ratably over the entire service period. As of September 30, 2025, there was $ 12.1 million of unrecognized compensation cost related to RSUs containing only service conditions, which is expected to be recognized over a weighted-average period of 2.5 years. RSUs and RSAs containing performance conditions and market conditions are discussed separately in the section below.
 SARs
 The Company made cash payments of $ 0 million, $ 0 million and $ 0.2 million to settle SARs exercised during the years ended September 30, 2025, 2024, and 2023, respectively. As of September 30, 2025, there were no SARs outstanding. No new SARs were awarded during the year ended September 30, 2025.
 Stock Awards Containing Performance and Market Conditions
 Stock awards containing performance conditions vest upon the achievement of specified financial targets of the Company or its business units. Vesting is generally measured on the first day of each fiscal quarter over the four-year terms of the awards, starting with the first fiscal quarter after the first anniversary of the grant date, based upon the trailing twelve months performance of the Company or its business units. When it is probable that the performance targets will be achieved, stock compensation expense is recognized ratably over the derived service period. If the Company determines that achievement of the performance targets is no longer probable, the Company no longer records expense and reverses all previously recognized expense. As of September 30, 2025, there was $ 3.7 million of unrecognized compensation costs related to stock options and RSUs & RSAs, containing performance conditions that are considered probable of being met, which is expected to be recognized over a weighted-average period of approximately 1 year.

 Stock awards containing market conditions vest upon the achievement of specified increases in the Company's share price. Vesting is measured the first day of each fiscal quarter over the four-year terms of the award, starting with the first fiscal quarter after the first anniversary of the grant date, based upon the trailing 20 -days average of the Company's share price. Stock compensation cost is expensed on a straight-line basis over the derived service period for each stock price target within the award. The Company accelerates expense when a stock price target is achieved prior to the derived service period. For equity-classified awards, the Company does not reverse expense recognized if the stock price target(s) are not ultimately achieved, but expense is reversed when such situations occur for liability classified awards. As of September 30, 2025, there was $ 0.1 million of unrecognized compensation costs related to stock options and RSUs containing market conditions, which is expected to be recognized over a weighted-average period of three months. There were no awards containing market conditions for which to determine their fair value during the year ended September 30, 2025.

 Share Repurchase Program
 From time to time, we may be authorized to repurchase issued and outstanding shares of our common stock under a share repurchase program approved by our Board of Directors. Share repurchases may be made through open market purchases, privately negotiated transactions, or otherwise, at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements and other market conditions. The repurchase program may be discontinued or suspended at any time and will be funded using our available cash.
 On December 6, 2022, March 13, 2023, and September 8, 2023, the Company's Board of Directors authorized new stock repurchase plans of up to $ 8.4 million, $ 8.0 million and $ 15.2 million, respectively. The Company repurchased 1,607,141 shares for $ 21.2 million during the year ended September 30, 2023. As of September 30, 2023, the Company had $ 17.0 million of remaining share repurchase authorization through December 31, 2025.
 The Company repurchased 564,887 shares for $ 9.4 million during the year ended September 30, 2024. As of September 30, 2024, the Company had $ 7.6 million of remaining authorization to repurchase shares through December 31, 2025.
 On December 9, 2024, the Company's Board of Directors authorized the repurchase of up to an additional $ 10.0 million of the Company's outstanding shares of common stock through December 31, 2026.
 The Company repurchased 623,687 shares for $ 16.1 million during the year ended September 30, 2025. As of September 30, 2025, the Company had $ 1.5 million of remaining authorization to repurchase shares through December 31, 2026.
 On November 17, 2025, the Company's Board of Directors authorized the repurchase of up to $ 15.0 million of the Company's outstanding shares of common stock through December 31, 2027.
 Other Share Repurchases
 Separate from the share repurchase program, our stock incentive plans allow for participants to exercise stock options by surrendering shares of common stock equivalent in value to the exercise price due.
 During the years ended September 30, 2025, 2024, and 2023, participants surrendered 1,397, 17,564, and 12,705 shares of common stock in the exercise of stock options, respectively. Any shares surrendered to the Company in this manner are not available for future grant.

 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 no t have any material assets or liabilities measured at fair value on a non-recurring basis.

 14. Defined Benefit Pension Plan
 Certain employees of Liquidity Services UK Limited (GoIndustry), which the Company acquired in July 2012, are covered by the Henry Butcher Pension Fund and Life Assurance Scheme (the Scheme), a qualified defined benefit pension plan. The Company guarantees GoIndustry's performance on all present and future obligations to make payments to the Scheme for up to a maximum of 10 million British pounds. The Scheme was closed to new members on January 1, 2002.
 The Company recognizes the funded status of its postretirement benefit plans, with a corresponding noncash adjustment to accumulated other comprehensive loss, net of tax, in stockholders' equity. The funded status is measured as the difference between the fair value of the Scheme's assets and the benefit obligation of the Scheme.
 The net periodic pension cost (benefit) is recognized within Interest and other income, net in the Consolidated Statements of Operations, and for the years ended September 30, 2025, 2024, and 2023, included the following components:

 2025

 2024

 2023

 Interest cost

 $

 $

 $

 Expected return on plan assets

 ( 589

)

 ( 600

)

 ( 876

)

 Amortization of prior service cost

 Total net periodic pension cost (benefit)

 $

 $

 $

 ( 56

)

 The following table provides a reconciliation of benefit obligations, plan assets, and funded status related to the Company's qualified defined benefit pension plan for the years ended September 30, 2025 and 2024:

 2025

 2024

 Change in benefit obligation

 Beginning balance

 $

 16,027

 $

 13,847

 Interest cost

 Benefits paid

 ( 1,063

)

 ( 1,003

)

 Actuarial gain

 ( 1,464

)

 Foreign currency exchange rate changes

 1,394

 Ending balance

 $

 14,325

 $

 16,027

 2025

 2024

 Change in plan assets

 Beginning balance at fair value

 $

 18,382

 $

 16,332

 Actual return on plan assets

 ( 1,793

)

 1,131

 Benefits paid

 ( 1,063

)

 ( 1,003

)

 Employer's contributions

 Foreign currency exchange rate changes

 1,601

 Ending balance at fair value

 $

 15,902

 $

 18,382

 Overfunded status of the Scheme

 $

 1,577

 $

 2,355

 The pension asset of $ 1.6 million is recorded in Other long-term assets in the Consolidated Balance Sheets. Because the Scheme is closed to new participants, the accumulated benefit obligation is equal to the projected benefit obligation, which was $ 14.3 million and $ 16.0 million at September 30, 2025 and 2024, respectively.
 The amounts recognized in Other comprehensive income (loss) related to the Company's qualified defined benefit pension plan, net of taxes, and the related foreign currency translation adjustments, for the years ended September 30, 2025 and 2024, is shown in the following table:

 2025

 2024

 Accumulated other comprehensive (loss) income at beginning of year

 $

 ( 1,662

)

 $

 ( 1,094

)

 Net actuarial loss

 ( 312

)

 ( 339

)

 Foreign currency translation adjustments

 ( 596

)

 ( 230

)

 Accumulated other comprehensive (loss) at end of year

 $

 ( 2,570

)

 $

 ( 1,662

)

 The plan complies with the funding provisions of the U.K. Pensions Act 2004 and the Occupational Pension Schemes Regulations Act 2005. The Company does not plan to make contributions to the plan in the near future.

 Actuarial Assumptions
 The actuarial assumptions used to determine the benefit obligations at September 30, 2025 and 2024, and to determine the net periodic (benefit) cost for the year were as follows:

 September 30, 2025

 September 30, 2024

 Discount rate to determine net periodic (benefit) cost

 5.00

 %

 5.70

 %

 Expected return on plan assets

 3.59

 %

 4.82

 %

 Discount rate to determine benefit obligations

 5.80

 %

 5.00

 %

 Rate of increases to deferred CPI linked benefits

 2.70

 %

 2.90

 %

 Rate of increases to deferred RPI linked benefits

 3.20

 %

 3.40

 %

 Mortality— 100 % for males and 99 % for females of S3PMA mortality tables, projected in line with the 2023 Continuous Mortality Investigation projection model and a 1.3 % per annum long-term rate of improvement.
 Estimated Future Benefit Payments
 The Company's pension plan expects to make the following benefit payments to participants over the next 10 years:

 Pension Benefits

 Year ending September 30,

 2025

 $

 2026

 2027

 2028

 2029

 1,091

 2030 through 2034

 5,241

 Total

 $

 10,090

 Fair Value Measurements
 The investment policy and strategy of the plan assets, as established by the Trustees (the "Trustees") of the plan, strive to maximize the likelihood of achieving primary objectives of the investment policy established for the plan, which are:
 • Funding—to ensure that the Plan is fully funded using assumptions that contain a modest margin for prudence. Where an actuarial valuation reveals a deficit, a recovery plan will be put in place which will take into account the financial covenant of the employer;

 • Stability—to have due regard to the likely level and volatility of required contributions when setting the Plan's investment strategy; and

 • Security—to ensure that the solvency position of the Scheme is expected to improve. The Trustees will take into account the strength of employer's covenant when determining the expected improvement in the solvency position of the Plan.

 The assets are allocated among government bonds, corporate bonds, and diversified funds. The assets are not rebalanced, but the allocation is reviewed on a periodic basis to ensure that the investments are appropriate to the Scheme's circumstances. The Trustees review the investment policy on an ongoing basis, to determine whether a change in the policy or asset allocation targets is necessary. The basis of the Trustees' strategy is to divide the Scheme's assets between a "growth" portfolio, comprising assets such as multi-asset / diversified growth funds, and a "stabilizing" portfolio, comprising assets such as government bonds (both fixed and inflation-linked) and corporate bonds. The Trustees recognize the benefits of diversification across asset classes, as well as within them, in reducing the risk that results from investing in any one particular market. The Company has elected to use a bid value of Scheme assets to calculate the expected return on assets in the net periodic benefit cost. The assets consisted of the following as of September 30, 2025 and 2024:

 September 30, 2025

 September 30, 2024

 Government bonds

 58.4

 %

 59.7

 %

 Equity securities

 0.0

 %

 0.0

 %

 Corporate bonds

 29.0

 %

 29.7

 %

 Diversified fund

 9.7

 %

 10.0

 %

 Cash

 2.9

 %

 0.6

 %

 Total

 100.0

 %

 100.0

 %

 The expected long-term rate of return for the plan's total assets is based on the expected returns of each of the above categories, weighted based on the current target allocation for each class. The Trustees evaluate whether adjustments are needed based on historical returns to more accurately reflect expectations of future returns.
 The Company is required to present certain fair value disclosures related to its postretirement benefit plan assets, even though those assets are not included in the Company's Consolidated Balance Sheets. The following table presents the fair value of the assets of the Company's qualified defined benefit pension plan by asset category and their level within the fair value hierarchy.

 Balance as of September 30, 2025

 Level 1

 Level 2

 Level 3

 Total

 Government bonds

 $

 —

 $

 9,280

 $

 —

 $

 9,280

 Corporate bonds

 —

 4,611

 —

 4,611

 Diversified fund

 —

 1,542

 —

 1,542

 Cash

 —

 —

 Total

 $

 $

 15,433

 $

 —

 $

 15,902

 Balance as of September 30, 2024

 Level 1

 Level 2

 Level 3

 Total

 Equity securities

 $

 —

 $

 10,977

 $

 —

 $

 10,977

 Corporate bonds

 —

 5,453

 —

 5,453

 Diversified fund

 —

 1,830

 —

 1,830

 Cash

 —

 —

 Total

 $

 $

 18,260

 $

 —

 $

 18,382

 Valuation Techniques
 The Company relies on pricing inputs from investment fund managers to value investments. The fund manager prices the underlying securities using independent external pricing sources.

 15. Legal Proceedings
 The Company reserves for contingent liabilities based on ASC 450, Contingencies, when it determines that a liability is probable and reasonably estimable. From time to time, the Company may become involved in litigation relating to claims arising in the ordinary course of the business; however, unless otherwise noted, there are no claims or actions pending or threatened against the Company that, if adversely determined, would in the Company's management's judgment have a material adverse effect on the Company.

 Former Employee Matters
 On December 28, 2022, the Company's former Chief Marketing Officer (the "Former CMO") filed a complaint (the "Original Complaint") in the United States District Court for the District of Maryland (the "District Court"), alleging wrongful termination on the basis of race and age and that the Company retaliated against him. On April 26, 2023, the Former CMO filed an amended complaint with the District Court, alleging the same claims made in the Original Complaint. The Company's motion to dismiss certain of the claims was denied on March 27, 2024. Discovery has concluded. The Company filed a motion for summary judgment on the retaliation claim in July 2025. The Company is asserting substantial defenses and cannot estimate a range of potential liability, if any, at this time. The Company's employment practices liability insurance carrier, CNA, has accepted tender of these claims.
 In May 2021, the Company's former Vice President, Human Resources filed a complaint against the Company in the United States District Court for the District of Maryland (the "District Court"), alleging wrongful termination on the basis of gender, race, and age. The Company's employment practices liability insurance carrier, CNA, accepted tender of these claims. In December 2022, the District Court dismissed the plaintiff's age discrimination claim but the court allowed the race and gender claims to go to trial. Trial on the race and gender claims began late October 2023. The jury was unable to reach a unanimous verdict on either claim, and accordingly, the judge declared a mistrial in November 2023. On August 1, 2024, plaintiff and the Company entered into a settlement agreement under which the Company agreed to pay the plaintiff $ 3.5 million in exchange for a full release and dismissal with prejudice of plaintiff's claims. The Company entered into the Agreement as a negotiated compromise and settlement of litigation, and not in any way as an admission of liability or fault by the Company. CNA funded $ 3.0 million of the settlement pursuant to the terms of the Company's insurance policy. As a result of the settlement agreement, the Company recorded a $ 0.5 million litigation settlement expense net of insurance recovery during the year ended September 30, 2024, which is included in General and administrative expenses on the Consolidated Statements of Operations.

 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:

 2025

 2024

 2023

 GovDeals:

 Purchase revenue

 $

 $

 $

 —

 86,714

 76,366

 62,010

 87,404

 76,557

 62,010

 ( 6,398

)

 ( 4,830

)

 ( 3,200

)

 $

 81,006

 $

 71,727

 $

 58,810

 RSCG:

 Purchase revenue

 $

 303,854

 $

 201,034

 $

 161,780

 26,437

 31,969

 38,438

 330,291

 233,003

 200,218

 ( 255,544

)

 ( 166,130

)

 —

 ( 132,150

)

 $

 74,747

 $

 66,873

 $

 68,068

 CAG:

 Purchase revenue

 $

 5,994

 $

 8,575

 $

 10,309

 33,302

 29,093

 28,167

 39,296

 37,668

 38,476

 ( 4,468

)

 ( 6,400

)

 ( 6,261

)

 $

 34,828

 $

 31,268

 $

 32,215

 Machinio & Software Solutions:

 Purchase revenue

 $

 —

 $

 —

 $

 —

 19,746

 16,157

 13,821

 19,746

 16,157

 13,821

 ( 1,444

)

 ( 793

)

 ( 711

)

 $

 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:

 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

 $

 $

 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:

 2025

 2024

 Segment Assets:

 $

 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:

 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

 $

 $

 314,462

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

 2025

 2024

 Assets by geographic area

 United States

 $

 18,039

 $

 17,827

 Rest of the world

 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.

 LIQUIDITY SERVICES, INC.
 SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
 (Dollars in Thousands)

 Balance at
beginning
of period

 Charged
(credited) to
expense

 Reductions

 Balance at
end of
period

 Deferred tax valuation allowance (deducted from net deferred tax assets)

 Year ended September 30, 2023

 $

 12,259

 3,770

 —

 $

 16,029

 Year ended September 30, 2024

 16,029

 1,164

 —

 17,193

 Year ended September 30, 2025

 $

 17,193

 ( 143

)

 —

 $

 17,050

 Allowance for doubtful accounts (deducted from accounts receivable)

 Year ended September 30, 2023

 $

 1,392

 ( 417

)

 $

 1,424

 Year ended September 30, 2024

 1,424

 ( 583

)

 1,680

 Year ended September 30, 2025

 $

 1,680

 ( 1,298

)

 $

 Provision for inventory allowance (deducted from inventory)

 Year ended September 30, 2023

 $

 1,048

 ( 100

)

 $

 1,044

 Year ended September 30, 2024

 1,044

 ( 1,204

)

 Year ended September 30, 2025

 $

 ( 459

)

 $

 EXHIBIT INDEX

 Exhibit No.

 Description

 3.1

 Fourth Amended and Restated Certificate of Incorporation, incorporated herein by reference to Exhibit 3.1 to Amendment No. 2 to the Company's Registration Statement on Form S-1 (Registration No. 333-129656), filed with the SEC on January 17, 2006.

 3.1.1

 Certificate of Amendment to the Company's Fourth Amended and Restated Certificate of Incorporation, incorporated herein by reference to Appendix A to the Company's Schedule 14A filed with the SEC on January 24, 2023.

 3.2

 Amended and Restated Bylaws, incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on August 5, 2022.

 4.1

 Form of Certificate of Common Stock of the Company, incorporated herein by reference to Exhibit 4.1 to Amendment No. 5 to the Company's Registration Statement on Form S-1 (Registration No. 333-129656), filed with the SEC on February 21, 2006.

 4.2

 Description of Securities

 10.1

 Credit Agreement, dated February 10, 2022, by and between Liquidity Services, Inc., and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on February 10, 2022.

 10.1.1

 First Amendment to Credit Agreement, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on April 4, 2023.

 10.1.2

 Second Amendment to Credit Agreement, dated March 27, 2024, by and between Liquidity Services, Inc., and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on March 27, 2024.

 10.1.3

 Third Amendment to Credit Agreement, dated May 7, 2025, by and between Liquidity Services, Inc., and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on May 8, 2025.

 10.2#

 Form of Amended and Restated Executive Employment Agreement, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on January 20, 2023.

 10.3#

 Form of Change in Control Agreement, incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed with the SEC on January 20, 2023.

 10.4#

 Form of Indemnification Agreement for directors and officers, incorporated herein by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on February 2, 2023

 10.5#

 Form of Employee Agreement Regarding Confidentiality, Intellectual Property, and Competitive Activities, incorporated herein by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on February 2, 2023.

 10.8#

 Liquidity Services, Inc. Third Amended and Restated 2006 Omnibus Long-Term Incentive Plan, incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A, filed with the SEC on January 28, 2020.

 10.8.1#

 2022 Amendment to the Liquidity Services, Inc. Third Amended and Restated 2006 Omnibus Long-Term Incentive Plan, incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A, filed with the SEC on January 24, 2022.

 10.8.2#

 2024 Amendment to the Liquidity Services, Inc. Third Amended and Restated 2006 Omnibus Long-Term Incentive Plan, incorporated herein by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A, filed with the SEC on January 19, 2024.

 10.9#

 Form of Notice of Time-Based Stock Option Grant (Officers).

 10.10#

 Form of Notice of Time-Based Restricted Stock Unit Grant (Officers)

 10.11#

 Form of Notice of Time-Based Restricted Stock Unit Grant (Directors).

 10.12#

 Form of Notice of Performance Based Stock Options Grant (Officers).

 10.13#

 Form of Notice of Performance-Based Restricted Stock Unit Grant (Officers).

 10.14#

 Liquidity Services Inc. Annual Incentive Plan, adopted on December 2, 2020, incorporated herein by reference to Exhibit 10.20 to the Company's Annual Report on Form 10-K, filed with the SEC on December 11, 2020.

 19.1

 Liquidity Services, Inc. Insider Trading Policy

 21.1

 List of Subsidiaries.

 23.1

 Consent of Deloitte & Touche LLP.

 24.1

 Power of Attorney (included on signature page).

 31.1

 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 31.2

 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 32.1

 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 32.2

 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 97.1

 Revised Liquidity Services, Inc. Clawback Policy, incorporated herein by reference to Exhibit 99.1 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 3, 2023.

 # Indicates management contract or compensatory plan.
 Item 16. Form 10-K Summary.
 None.

 SIGNATURES
 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 20, 2025.

 LIQUIDITY SERVICES, INC.

 By:

 /s/ WILLIAM P. ANGRICK, III

 William P. Angrick, III

 Chairman of the Board of Directors

 and Chief Executive Officer

 We, the undersigned directors and officers of Liquidity Services, Inc., hereby severally constitute William P. Angrick, III, Jorge A. Celaya, and Mark A. Shaffer, and each of them singly, our true and lawful attorneys with full power to them and each of them to sign for us, in our names in the capacities indicated below, any and all amendments to this Annual Report on Form 10-K filed with the Securities and Exchange Commission.
 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on November 20, 2025.

 Signature

 Title

 /s/ WILLIAM P. ANGRICK, III
 William P. Angrick, III

 Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer)

 /s/ JORGE A. CELAYA
 Jorge A. Celaya

 Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

 /s/ KATHARIN S. DYER
 Katharin S. Dyer

 /s/ GEORGE H. ELLIS
 George H. Ellis

 /s/ THIERNO A. FALL
 Thierno A. Fall

 /s/ BEATRIZ V. INFANTE
 Beatriz V. Infante

 /s/ PAUL J. HENNESSY
 Paul J. Hennessy

 /s/ EDWARD J. KOLODZIESKI
 Edward J. Kolodzieski

 /s/ JAIME MATEUS-TIQUE
 Jaime Mateus-Tique