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Segment Information
 6 Months Ended
Mar. 31, 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 direct-to-consumer sales on its Retail Rush, 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:

 

 

 

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

(in thousands)

2026

 

 

2025

 

 

2026

 

 

2025

 

GovDeals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

 

$

1

 

 

$

51

 

 

$

1

 

 

$

563

 

 

Consignment and other fee revenues

 

 

21,290

 

 

 

19,185

 

 

 

43,556

 

 

 

39,195

 

 

Total revenue

 

 

21,291

 

 

 

19,236

 

 

 

43,557

 

 

 

39,758

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

1,410

 

 

 

1,524

 

 

 

2,499

 

 

 

3,230

 

 

Segment direct profit

 

$

19,881

 

 

$

17,712

 

 

$

41,058

 

 

$

36,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RSCG:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

$

75,965

 

 

$

76,451

 

 

$

149,955

 

 

$

157,136

 

 

Consignment and other fee revenues

 

7,260

 

 

 

6,241

 

 

 

15,265

 

 

 

13,237

 

 

Total revenue

 

83,225

 

 

 

82,692

 

 

 

165,220

 

 

 

170,373

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

61,860

 

 

 

66,123

 

 

 

122,394

 

 

 

135,309

 

 

Segment direct profit

$

21,365

 

 

$

16,569

 

 

$

42,826

 

 

$

35,064

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAG:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

$

1,886

 

 

$

1,325

 

 

$

5,248

 

 

$

2,943

 

 

Consignment and other fee revenues

 

8,890

 

 

 

8,267

 

 

 

17,012

 

 

 

16,500

 

 

Total revenue

 

10,776

 

 

 

9,592

 

 

 

22,260

 

 

 

19,443

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

1,122

 

 

 

940

 

 

 

3,227

 

 

 

1,995

 

 

Segment direct profit

$

9,654

 

 

$

8,652

 

 

$

19,033

 

 

$

17,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Machinio & Software Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase revenue

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

Consignment and other fee revenues

 

5,440

 

 

 

4,872

 

 

 

10,915

 

 

 

9,166

 

 

Total revenue

 

5,440

 

 

 

4,872

 

 

 

10,915

 

 

 

9,166

 

 

Cost of goods sold (excludes depreciation and amortization)

 

 

470

 

 

 

359

 

 

 

928

 

 

 

576

 

 

Segment direct profit

$

4,970

 

 

$

4,513

 

 

$

9,987

 

 

$

8,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment direct profit

$

55,870

 

 

$

47,446

 

 

$

112,904

 

 

$

97,630

 

Corporate expenses, including elimination adjustments

 

$

—

 

 

$

(17

)

 

$

—

 

 

$

(34

)

Consolidated direct profit

$

55,870

 

 

$

47,429

 

 

$

112,904

 

 

$

97,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 



Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

(in thousands)

2026

 

 

2025

 

 

2026

 

 

2025

 

Reconciliation:

 

 

 

 

 

 



 

 



 

Total segment direct profit

$

55,870

 

 

$

47,429

 

 

$

112,904

 

 

$

97,596

 

Other costs and expenses from operations (1)

$

46,146

 

 

 

40,369

 

 

 

93,808

 

 

 

83,333

 

Interest and other income, net

$

(948

)

 

 

(646

)

 

 

(2,093

)

 

 

(1,633

)

Income before provision for income taxes

$

10,672

 

 

$

7,706

 

 

$

21,189

 

 

$

15,896

 

 

(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 March 31, 2026 and 2025, was 10.4% and 8.7% respectively. The percent of our revenues that came from transactions conducted outside of the United States for the six months ended March 31, 2026 and 2025 was 10.3% and 9.3%, respectively.