v3.26.1
Segment Information
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information
14.
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 managed direct-to-consumer sales across a network of online sale channels, including Retail Rush, AllSurplus Deals, Secondipity and other online marketplaces.
•
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:

 

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

(in thousands)

2026

 

 

2025

 

 

2026

 

 

2025

 

GovDeals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

 

$

176

 

 

$

120

 

 

$

178

 

 

$

684

 

 

Consignment and other fee revenues

 

 

25,348

 

 

 

23,846

 

 

 

68,904

 

 

 

63,041

 

 

Total revenue

 

 

25,524

 

 

 

23,966

 

 

 

69,082

 

 

 

63,725

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

1,361

 

 

 

1,806

 

 

 

3,861

 

 

 

5,037

 

 

Segment direct profit

 

$

24,163

 

 

$

22,160

 

 

$

65,221

 

 

$

58,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RSCG:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

$

80,365

 

 

$

75,269

 

 

$

230,320

 

 

$

232,405

 

 

Consignment and other fee revenues

 

7,455

 

 

 

6,275

 

 

 

22,720

 

 

 

19,512

 

 

Total revenue

 

87,820

 

 

 

81,544

 

 

 

253,040

 

 

 

251,917

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

62,663

 

 

 

62,173

 

 

 

185,057

 

 

 

197,483

 

 

Segment direct profit

$

25,157

 

 

$

19,371

 

 

$

67,983

 

 

$

54,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAG:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

$

1,296

 

 

$

1,128

 

 

$

6,544

 

 

$

4,070

 

 

Consignment and other fee revenues

 

9,498

 

 

 

8,033

 

 

 

26,510

 

 

 

24,533

 

 

Total revenue

 

10,794

 

 

 

9,161

 

 

 

33,054

 

 

 

28,604

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

1,234

 

 

 

701

 

 

 

4,461

 

 

 

2,695

 

 

Segment direct profit

$

9,560

 

 

$

8,460

 

 

$

28,593

 

 

$

25,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machinio & Software Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

Consignment and other fee revenues

 

5,440

 

 

 

5,221

 

 

 

16,354

 

 

 

14,386

 

 

Total revenue

 

5,440

 

 

 

5,221

 

 

 

16,354

 

 

 

14,386

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

484

 

 

 

431

 

 

 

1,411

 

 

 

1,006

 

 

Segment direct profit

$

4,956

 

 

$

4,790

 

 

$

14,943

 

 

$

13,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment direct profit

$

63,836

 

 

$

54,781

 

 

$

176,740

 

 

$

152,411

 

Corporate expenses, including elimination adjustments

 

$

—

 

 

$

(17

)

 

$

—

 

 

$

(51

)

Consolidated direct profit

$

63,836

 

 

$

54,764

 

 

$

176,740

 

 

$

152,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 



Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

(in thousands)

2026

 

 

2025

 

 

2026

 

 

2025

 

Reconciliation:

 

 

 

 

 

 



 

 



 

Total segment direct profit

$

63,836

 

 

$

54,764

 

 

$

176,740

 

 

$

152,360

 

Other costs and expenses from operations (1)

$

49,694

 

 

 

43,846

 

 

 

143,503

 

 

 

127,180

 

Interest and other income, net

$

(1,356

)

 

 

(377

)

 

 

(3,450

)

 

 

(2,011

)

Income before provision for income taxes

$

15,498

 

 

$

11,295

 

 

$

36,687

 

 

$

27,191

 

 

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

 

The percent of our revenues that came from transactions conducted outside of the United States for the three months ended June 30, 2026 and 2025, was 9.7% and 8.6% respectively. The percent of our revenues that came from transactions conducted outside of the United States for the nine months ended June 30, 2026 and 2025 was 10.1% and 9.0%, respectively.