Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 01, 2018
Document and Entity Information
Entity Registrant Name	LIQUIDITY SERVICES INC
Entity Central Index Key	0001235468
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		32,123,193
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 83,411	$ 94,348
Short-term investments	10,000	0
Accounts receivable, net of allowance for doubtful accounts of $531 and $668 at June 30, 2018 and September 30, 2017, respectively	5,856	11,598
Inventory	12,797	20,736
Prepaid taxes	2,267	2,466
Prepaid expenses and other current assets	6,857	9,774
Total current assets	121,188	138,922
Property and equipment, net	15,952	16,793
Intangible assets, net	397	427
Goodwill	45,316	45,388
Net deferred long-term tax assets	963	962
Other assets	13,624	12,737
Total assets	197,440	215,229
Current liabilities:
Accounts payable	16,264	13,099
Accrued expenses and other current liabilities	18,204	30,193
Distributions payable	2,239	3,081
Payables to sellers	28,925	24,383
Total current liabilities	65,632	70,756
Deferred taxes and other long-term liabilities	6,487	11,837
Total liabilities	72,119	82,593
Commitments and contingencies (Note 12)	0	0
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized; 32,109,731 shares issued and outstanding at June 30, 2018; 31,503,349 shares issued and outstanding at September 30, 2017	29	29
Additional paid-in capital	231,327	227,264
Accumulated other comprehensive loss	(7,195)	(6,431)
Retained earnings (accumulated deficit)	(98,840)	(88,226)
Total stockholders’ equity	125,321	132,636
Total liabilities and stockholders’ equity	$ 197,440	$ 215,229

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 531	$ 668
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	32,109,731	31,503,349
Common stock, shares outstanding (in shares)	32,109,731	31,503,349

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 32,080	$ 44,404	$ 115,464	$ 144,799
Fee revenue	18,489	21,116	56,345	63,851
Total revenue	50,569	65,520	171,809	208,650
Costs and expenses from operations:
Cost of goods sold	19,489	30,413	75,847	97,248
Seller distributions	3,936	5,189	11,107	14,697
Technology and operations	13,663	19,639	47,718	62,607
Sales and marketing	8,386	8,273	24,921	27,410
General and administrative	6,763	8,751	21,791	26,836
Depreciation and amortization	1,020	1,365	3,375	4,228
Other operating expenses	452	652	2,222	1,044
Total costs and expenses	53,709	74,282	186,981	234,070
Loss from operations	(3,140)	(8,762)	(15,172)	(25,420)
Interest and other income, net	(47)	(189)	(776)	(291)
Loss before provision (benefit) for income taxes	(3,093)	(8,573)	(14,396)	(25,129)
Provision (benefit) for income taxes	612	41	(3,824)	91
Net loss	$ (3,705)	$ (8,614)	$ (10,572)	$ (25,220)
Basic and diluted loss per common share (in dollars per share)	$ (0.12)	$ (0.27)	$ (0.33)	$ (0.80)
Basic and diluted weighted average shares outstanding (in shares)	32,104,368	31,485,599	31,984,222	31,369,077

Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,705)	$ (8,614)	$ (10,572)	$ (25,220)
Other comprehensive (loss) income:
Foreign currency translation	(748)	323	(764)	(68)
Other comprehensive (loss) income, net of taxes	(748)	323	(764)	(68)
Comprehensive loss	$ (4,453)	$ (8,291)	$ (11,336)	$ (25,288)

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net loss	$ (10,572)	$ (25,220)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	3,375	4,228
Stock compensation expense	4,134	5,462
Provision for inventory allowance	2,092	8,101
Provision for doubtful accounts	191	(1)
Deferred tax benefit	(4,814)	0
Impairment of intangible assets	0	1,028
Change in fair value of financial instruments	90	(749)
Gain from sale of property and equipment	(489)	0
Changes in operating assets and liabilities:
Accounts receivable	5,551	(1,274)
Inventory	5,847	633
Prepaid and deferred taxes	197	1,356
Prepaid expenses and other assets	1,938	981
Accounts payable	3,165	2,036
Accrued expenses and other current liabilities	(12,149)	(13,422)
Distributions payable	(842)	8,208
Payables to sellers	4,542	(4,971)
Other liabilities	(664)	(662)
Net cash provided by (used in) operating activities	1,592	(14,266)
Investing activities
Increase in intangibles	(23)	(78)
Purchases of property and equipment, including capitalized software	(2,697)	(6,210)
Proceeds from sales of property and equipment	828	0
Purchase of short-term investments	(10,000)	0
Net cash used in investing activities	(11,892)	(6,288)
Financing activities
Proceeds from exercise of common stock options (net of tax)	12	93
Net cash provided by financing activities	12	93
Effect of exchange rate differences on cash and cash equivalents	(649)	(117)
Net decrease in cash and cash equivalents	(10,937)	(20,578)
Cash and cash equivalents at beginning of period	94,348	134,513
Cash and cash equivalents at end of period	83,411	113,935
Supplemental disclosure of cash flow information
Cash paid (received) for income taxes, net	$ 800	$ (931)

Organization	9 Months Ended
Organization	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Liquidity Services (the “Company”) operates a network of leading ecommerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering over 500 product categories. The Company’s marketplaces provide professional buyers access to a global, organized supply of new, surplus, and scrap assets presented with digital images and other relevant product information. Additionally, the Company enables its corporate and government sellers to enhance their financial return on offered assets by providing a liquid marketplace and value-added services that encompass the consultative management, valuation, and sale of surplus assets. The Company's services include program management, valuation, asset management, reconciliation, Return to Vendor ("RTV") and Returns Management Authorization ("RMA"), refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer support, and compliance and risk mitigation, as well as self-service tools for its sellers. The Company organizes the products on its marketplaces into categories across major industry verticals such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment and specialty equipment. The Company’s marketplaces are www.liquidation.com, www.govliquidation.com, www.govdeals.com, www.networkintl.com, www.secondipity.com, www.go-dove.com, www.irondirect.com, and www.auctiondeals.com. The Company has over 10,000 sellers, including Fortune 1000 and Global 500 organizations as well as federal, state, and local government agencies. The Company has three reportable segments, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and GovDeals. See Note 13 in the Notes to the Consolidated Financial Statements for Segment Information. 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, the Company's susceptibility to rapid technological change, actual and potential competition by entities with greater financial and other resources than the Company, and the potential for the U.S. Government agencies or the commercial sellers from which the Company derives a significant portion of its inventory to change the way they conduct their disposition of surplus or scrap assets or to otherwise terminate or elect not to renew their contracts with the Company. The Company has evaluated subsequent events through the date that these financial statements were issued and filed with the Securities and Exchange Commission.

Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal, recurring adjustments considered necessary for a fair presentation have been included. The information disclosed in the notes to the consolidated financial statements for these periods is unaudited. Operating results for the three and nine months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending September 30, 2018 or for any future period.

In the Consolidated Statements of Operations, revenue from the resale of inventory that the Company purchases from sellers is recognized within “Revenue”. Commission fees from the sale of inventory that the Company sells on a consignment basis and other non-consignment fee revenue, which is largely made up of service revenue, is recognized within “Fee Revenue”.

New Accounting Pronouncements

Accounting Standards Adopted

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718). This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies and an accounting policy election for forfeitures. As part of the new guidance:


•	Excess tax benefits and deficiencies arising from share-based awards are reflected in the condensed consolidated statements of operations as income tax expense rather than within stockholders’ equity.


•	Excess tax benefits will be presented as an operating activity on the statement of cash flows rather than as a financing activity.

•

A forfeiture election will be made to either estimate forfeitures (similar to the requirement in effect prior to adoption of the update) or recognize actual forfeitures as they occur. Entities will apply the forfeiture election provision using a modified retrospective transition approach, with a cumulative effect adjustment recorded to retained earnings as of the beginning of the period of adoption.


•	Methods used to satisfy statutory tax withholding requirements by employers who withhold shares upon settlement of an award on behalf of an employee to cover tax obligations are broadened to allow for a range of withholding from the minimum to the maximum statutory allowable amounts.

The Company adopted the provisions of this guidance during the first quarter of fiscal 2018 as follows:


•	Excess tax benefits and deficiencies arising from share-based awards are reflected within the Consolidated Statements of Operations as income tax expense; adopted prospectively, with no impact to prior year amounts;


•	Excess tax benefits are presented as an operating activity on the statement of cash flows; adopted prospectively with no impact on prior year amounts.

As part of its adoption of ASU 2016-09, the Company made an accounting policy election to change the way in which it accounts for forfeitures of share-based awards. Specifically, beginning in the first quarter of fiscal 2018, the Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture rather than estimating the number of awards expected to be forfeited at the grant date and subsequently adjusting the estimate when awards are actually forfeited. The change in accounting policy resulted in an adjustment to retained earnings as of October 1, 2017 of approximately $0.2 million.

Accounting Standards Not Yet Adopted

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805). ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. This guidance will become effective for the Company beginning on October 1, 2018. The amendments in this update should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company does not expect the adoption of this standard to have a material effect upon the consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes most existing revenue recognition guidance under GAAP. The new standard will change the way the Company recognizes revenue and significantly expand the disclosure requirements for revenue arrangements. The guidance may be adopted either retrospectively or on a modified retrospective basis whereby the new standard would be applied to new and existing arrangements with remaining performance obligations as of the effective date, with a cumulative catch-up adjustment recorded to retained earnings at the effective date for existing arrangements with remaining performance obligations. During the fiscal year ended September 30, 2017, the Company initiated a formal project to assess the new standard, which is being completed in three phases: an assessment phase, a design phase, and an implementation phase. The Company has completed the assessment phase, which consisted of reviewing a representative sample of contracts, engaging in discussions with key stakeholders, and cataloging potential impacts on the Company’s accounting policies, financial statements, and systems and processes. The implementation team has apprised both management and the audit committee of project status on a regular basis. As part of the design phase, the Company is performing an in-depth contract review process, and drafting a set of accounting policies in compliance with the new standard. The Company is continuing to evaluate all potential impacts of the new standard, including certain potential accounting impacts that the Company has identified that, require more detailed analysis, including the principal-agent guidance, the transfer of control guidance, and the guidance on when certain services that the Company provides would be considered separate performance obligations. Because this assessment is preliminary and the accounting for revenue recognition is subject to significant judgment, this could change as the Company finalizes its assessment of the new standard. The Company does not yet know and cannot reasonably estimate the quantitative impact of adoption of the new standard on the consolidated financial statements. This guidance will become effective for the Company beginning on October 1, 2018. The Company intends to adopt the new standard on a modified retrospective basis.

In February 2016, the FASB issued ASU 2016-2, Leases. ASU 2016-02 will change the way the Company recognizes its leased assets. ASU 2016-2 will require organizations that lease assets—referred to as "lessees"—to recognize on the balance sheet the assets and liabilities representing the rights and obligations created by those leases. ASU 2016-2 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The guidance will be effective for the Company beginning on October 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the new standard and the effect that adoption of the standard is expected to have on the Company's consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350). Under ASU 2017-04 the entity is required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity is required to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity is required to consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This guidance will become effective for the Company beginning on October 1, 2020. The Company is currently evaluating the methods of adoption allowed by the new standard.

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the cost of the benefits in the income statement. Under this standard, employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. This guidance will become effective for the Company beginning on October 1, 2018. The Company is currently evaluating the methods of adoption allowed by the new standard. The Company does not expect the adoption of this standard to have a material effect upon the consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 allows entities to elect to classify from accumulated other comprehensive income (loss) to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017. An entity that does not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act shall disclose in the period of adoption a statement that the election was not made. This guidance will become effective for the Company beginning on October 1, 2019. The Company is currently evaluating the methods of adoption of the new standard and the effect that adoption of the standard is expected to have on the Company’s consolidated financial statements and related disclosures.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The update provides new guidance regarding the classification of debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investments, beneficial interests in securitized transactions, and separately identifiable cash flows and application of the predominance principle. This standard will be effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2017. Early adoption of the standard is permitted. The Company is currently evaluating the effect that adoption of the standard is expected to have on the Company’s consolidated financial statements and related disclosures.

Promissory Note

On September 30, 2015, the Company sold certain assets related to its Jacobs Trading business to Tanager Acquisitions, LLC (the ‘‘Buyer’’). In connection with the disposition, the Buyer assumed certain liabilities related to the Jacobs Trading business. The Buyer issued a $12.3 million five-year interest bearing promissory note to the Company. Of the $12.3 million, $2.5 million has been repaid. Of the remaining $9.8 million, $8.3 million is recorded in Other assets, and $1.5 million in Prepaid expenses and other current assets as of June 30, 2018.

Risk Associated with Certain Concentrations

The Company does not perform credit evaluations for the majority of its buyers. However, substantially all sales are recorded subsequent to payment authorization being received. As a result, the Company is not subject to significant collection risk, as most goods are not shipped before payment is received.

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 in the consolidated financial statements. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods or within 30 days, depending on the state where the buyer and seller conduct business. The amount of cash held on behalf of the sellers is recorded within Accounts payable and Payables to sellers in the accompanying Consolidated Balance Sheets.

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash in banks over FDIC limits, certificates of deposit, and accounts receivable. The Company deposits its cash with financial institutions that the Company considers to be of high credit quality.

During the nine months ended June 30, 2018, the Company had two material vendor contracts with the Department of Defense (DoD) under which it acquired, managed and sold government property, the Surplus Contract and the Scrap Contract. Revenue from the sale of property acquired, as well as provision of services, under the Surplus Contract accounted for approximately 0.2% and 26.4% of the Company's consolidated revenue for the three months ended June 30, 2018 and 2017, respectively, and for approximately 16.2% and 27.8% of the Company's consolidated revenue for the nine months ended June 30, 2018 and 2017, respectively. Revenue from the sale of property acquired under the Scrap Contract accounted for approximately 12.1% and 12.3% of the Company's consolidated revenue for the three months ended June 30, 2018 and 2017, respectively, and 10.0% and 10.9% of the Company's consolidated revenue for the nine months ended June 30, 2018 and 2017, respectively. These contracts are included within the Company's CAG segment. See Note 3, Significant Contracts, for further information related to the wind-down of the Surplus Contract.

Additionally, the Company has a vendor contract with Amazon.com, Inc. under which the Company acquires and sells commercial merchandise. The property purchased under this contract represented approximately 41.0% and 25.0% of cost of goods sold for the three months ended June 30, 2018 and 2017, respectively, and 28.5% and 22.1% of cost of goods sold for the nine months ended June 30, 2018 and 2017, respectively. This contract is included within the Company's RSCG segment.

Earnings per Share

The Company calculates net income (loss) per share in accordance with FASB Topic 260 Earnings Per Share (“ASC 260”). Under ASC 260, basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock units. Diluted net income (loss) per share reflects the potential dilution that could occur assuming conversion or exercise of all dilutive unexercised stock options and unvested restricted stock units. The dilutive effect of unexercised stock options and unvested restricted stock units was determined using the treasury stock method. Under the treasury stock method, the proceeds received from the exercise of stock options, and the amount of compensation cost for future service not yet recognized by the Company are assumed to be used to repurchase shares of the Company’s common stock. Stock options and restricted stock units are not included in the computation of diluted net income (loss) per share when they are antidilutive.

For the three and nine months ended June 30, 2018 and 2017, the basic and diluted weighted average common shares were the same because the inclusion of dilutive securities in the computation of diluted net income would have been anti-dilutive. See Note 7 for outstanding stock options and unvested restricted stock, all of which are anti-dilutive for the three and nine months ended June 30, 2018 and 2017.

The following summarizes the basic and diluted loss per share:



	Three Months Ended June 30,						Nine Months Ended June 30,
	2018			2017			2018			2017
	(Unaudited) (dollars in thousands, except per share amounts)
Weighted average shares calculation:
Basic weighted average common shares outstanding	32,104,368			31,485,599			31,984,222			31,369,077
Treasury stock effect of options and restricted stock	—			—			—			—
Diluted weighted average common shares outstanding	32,104,368			31,485,599			31,984,222			31,369,077

Net loss	$	(3,705	)	$	(8,614	)	$	(10,572	)	$	(25,220	)
Basic and diluted loss per common share	$	(0.12	)	$	(0.27	)	$	(0.33	)	$	(0.80	)

Stock-Based Compensation

The Company estimates the fair value of share-based awards on the date of grant. The Company issues stock options and stock appreciation rights with restrictions that lapse upon either the passage of time (service vesting conditions), the achievement of performance targets (performance vesting conditions), or some combination thereof. In addition, the Company issues stock options that vest upon the achievement of certain Company stock price targets (market vesting conditions). The fair value of stock options and stock appreciation rights with service and/or performance vesting conditions is determined using the Black-Scholes option-pricing model. For those stock options with only service vesting conditions, the Company recognizes compensation cost on a straight-line basis over the explicit service period. For stock options with both performance and service vesting conditions, the Company starts recognizing compensation cost over the remaining service period, when it is probable the performance condition will be met.

The Company issues restricted stock units with service vesting conditions, performance vesting conditions, and market vesting conditions, or some combination thereof. For those restricted stock units with only service vesting conditions, the Company recognizes compensation cost on a straight-line basis over the explicit service period. For restricted stock units with both performance and service vesting conditions, the Company starts recognizing compensation cost over the remaining service period when it is probable the performance condition will be met. The fair value of restricted stock units with service vesting and/or performance vesting is based on the closing price of the Company’s common stock on the date of grant.

For the Company's stock options and restricted stock units with market vesting conditions, the ultimate number of shares to be earned depends on the Company's total shareholder return during the performance period. The fair value of these stock options and restricted stock units is estimated on the grant date using a Monte Carlo simulation model. The Company recognizes compensation cost for stock options and restricted stock units with market vesting conditions over the derived service period.

The determination of the fair value of the Company’s stock options and stock appreciation rights with service and performance vesting conditions is based on a variety of factors including, but not limited to, the Company’s common stock price on the date of grant, expected stock price volatility over the expected life of units, and actual and projected exercise behavior. The determination of the fair value of the Company’s stock options and restricted stock units with service and market vesting conditions is based on a variety of factors including, but not limited to, the Company’s common stock price on the grant date, expected stock price volatility, risk free interest rate, dividend yield, and projected exercise behavior.

Upon adoption of ASU 2016-09, in the first quarter of fiscal 2018, the Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture rather than estimating the number of awards expected to be forfeited at the grant date and subsequently adjusting the estimate when awards are actually forfeited. The change in accounting policy resulted in an adjustment to retained earnings of $0.2 million as of October 1, 2017.

Stock options and restricted stock units that contain performance vesting or market vesting conditions are excluded from, diluted earnings per share computations until the applicable contingency is met as of the end of that reporting period.

The Company presents the cash flows from the tax benefits resulting from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) as an operating activity in the Consolidated Statements of Cash Flows.

Significant Contracts	9 Months Ended
Significant Contracts	Jun. 30, 2018
Contractors [Abstract]
Significant Contracts	Significant Contracts Historically, the Company had two material vendor contracts with the DoD, the Scrap Contract and the Surplus Contract. Under the Scrap Contract, the Company is the remarketer of all DoD non-electronic scrap turned into the Defense Logistics Agency (DLA) available for sale within the United States, Puerto Rico, and Guam. The Scrap contract was awarded to the Company in April 2016. The Scrap Contract has a 36-month base term that commenced in the first quarter of fiscal year 2017, with two 12-month extension options exercisable by the DLA. The base term of the Scrap contract will expire on September 30, 2019. The Company pays a revenue-sharing payment to the DLA under this contract equal to 64.5% of the gross resale proceeds of the scrap property, and the Company bears all of the costs for the sorting, merchandising and sale of the property. The contract contains a provision permitting the DLA to terminate the contract for convenience upon written notice to the Company. The Company commenced operations under this contract in the quarter ended December 31, 2016, the first quarter of fiscal year 2017. Revenue from the Scrap Contract accounted for approximately 12.1% and 12.3% of the Company's consolidated revenue for the three months ended June 30, 2018 and 2017, respectively, and 10.0% and 10.9% of the Company's consolidated revenue for the nine months ended June 30, 2018 and 2017, respectively. The Surplus Contract was a competitive-bid contract under which the Company acquired, managed and sold usable DoD surplus personal property turned into the DLA. Surplus property generally consisted of items determined by the DoD to be no longer needed, and not claimed for reuse by any federal agency, such as electronics, industrial equipment, office supplies, scientific and medical equipment, aircraft parts, clothing and textiles. The Surplus Contract required the Company to purchase all usable surplus property offered to the Company by the DoD at 4.35% of the DoD's original acquisition value. The Company retained 100% of the profits from the resale of the property and bore all of the costs for the merchandising and sale of the property. Included in Accrued expenses and other current liabilities in the Consolidated Balance Sheet is a liability to the DoD for the inventory that has not been paid for in the amount of $0.9 million and $6.8 million as of June 30, 2018 and September 30, 2017, respectively. On October 11, 2017, the DLA published a Request for Technical Proposal (“RFTP”) and draft Invitation for Bid (“IFB”) for the sale of surplus, useable non-rolling stock property. The RFTP and IFB related to the DLA’s award of two new term surplus contracts. On December 5, 2017, the DLA determined that the Company was not the high bidder for either of the two contracts. The Company made its final inventory purchase under the Surplus Contract during December 2017, and as of June 30, 2018 has completed its wind-down of the Surplus Contract. Revenue from the Surplus Contract accounted for approximately 0.2% and 26.4% of the Company's consolidated revenue for the three months ended June 30, 2018 and 2017, respectively, and for approximately 16.2% and 27.8% of the Company's consolidated revenue for the nine months ended June 30, 2018 and 2017, respectively.

Goodwill

9 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The goodwill of acquired companies is primarily related to the acquisition of an experienced and knowledgeable workforce. The following table presents goodwill balances and foreign currency translation adjustments to those balances during the nine months ended June 30, 2018:



Goodwill (in thousands)	CAG			GovDeals		Total
Balance at September 30, 2017	$	21,657		$	23,731	$	45,388
Translation adjustments	(72		)	—		(72		)
Balance at June 30, 2018	$	21,585		$	23,731	$	45,316

As part of the Company's fiscal year 2017 annual goodwill impairment assessment, the Company determined that certain events required performing a step one evaluation of goodwill to identify potential impairment. After performing the step one test, the Company concluded its remaining reporting units with goodwill had fair values, that substantially exceeded their respective book values as of July 1, 2017.

Intangible Assets

9 Months Ended

Jun. 30, 2018

Finite-Lived Intangible Assets, Net [Abstract]

Intangible Assets

The components of identifiable intangible assets as of June 30, 2018 and September 30, 2017 are as follows:



		June 30, 2018							September 30, 2017
	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(dollars in thousands)
Patent and trademarks	3 - 10	793		(396		)	397		943		(516		)	427
Total intangible assets		$	793	$	(396	)	$	397	$	943	$	(516	)	$	427

Future expected amortization of intangible assets at June 30, 2018 is as follows:



	Future Amortization
Years ending September 30,	(in thousands)
2018 Remaining three months	$	19
2019	66
2020	64
2021	76
2022 and thereafter	172
Total	$	397

Intangible assets amortization expense was approximately $0.02 million and $0.3 million for the three months ended June 30, 2018 and 2017, respectively. Intangible assets amortization expense was approximately $0.1 million and $0.9 million for the nine months ended June 30, 2018 and 2017, respectively.

Income Taxes	9 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Act was signed into law. The Tax Act reduces the corporate tax rate from 35% to 21%. During the three months ending December 31, 2017, the Company revised its estimated annual effective tax rate to reflect this change in the statutory rate. The rate change is administratively effective at the beginning of the Company's 2018 fiscal year, using a blended rate of 24.53%. At June 30, 2018, the Company had not yet completed its accounting for the tax effects of the Tax Act; however, in the following cases the Company has made a provisional estimate of the Tax Act's effects. The Company recognized a tax benefit of $3.5 million for the period ended December 31, 2017 as a result of adjusting its deferred tax balance to reflect the new corporate tax rate. In addition, the Tax Act makes the alternative minimum tax (“AMT”) credit refundable in tax years beginning after 2017 and before 2022. As a result of this change, the Company reduced its valuation allowance on its AMT credits and recognized an income tax benefit of $1.7 million. The effect of the international provisions of the Tax Act, which establish a territorial tax system and subjects certain foreign earnings on which US tax is currently deferred to a one-time transition tax, is uncertain. As a result, the Company has not recorded any provisional amounts in its financial statements for the three and nine months ending June 30, 2018. The Company’s interim effective income tax rate is based on management’s best current estimate of the Company's expected annual effective income tax rate. The Company recorded a pre-tax loss in the first nine months of fiscal year 2018 and its corresponding effective tax rate is approximately -8.6% before recognition of a $5.2 million tax benefit resulting from the new Tax Act netted against a $0.1 million charge for interest related to the federal income tax examination for fiscal years 2013 through 2015 which was closed during the second quarter of 2018. The $5.2 million benefit resulted from the reduction to the Company’s deferred tax balance to reflect the new corporate tax rate and reduction to its valuation allowance on AMT credits. 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 resolution of any related appeals or litigation processes, on the basis of technical merits. The Company records unrecognized tax benefits as a reduction to its deferred tax asset for its net operating loss carryforward. The Company identified no new uncertain tax positions during the nine months ended June 30, 2018. 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, primarily Canada and the U.K. During the nine months ended June 30, 2018, the Company closed the examination of its federal and state income tax returns for fiscal years 2012 through 2015 and incurred a $0.1 million tax charge to close out the examination of its federal income tax returns for fiscal years 2013 through 2015. As of June 30, 2018, none of the Company's federal or state income tax returns are under examination. The statute of limitations for U.S. federal income tax returns for years prior to fiscal 2014 is now closed. However, certain tax attribute carryforwards that were generated prior to fiscal 2014 may be adjusted upon examination by tax authorities if they are utilized.

Stockholders' Equity

9 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Share Repurchase Program

The Company is authorized to repurchase issued and outstanding shares of its common stock under a share repurchase program approved by the Company's 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 available cash. The Company's Board of Directors reviews the share repurchase program from time to time, the last such review having occurred in May 2016. The Company did not repurchase shares under this program during the nine months ended June 30, 2018 or 2017. As of June 30, 2018, the Company may repurchase an additional $10.1 million in shares under this program.

2006 Omnibus Long-Term Incentive Plan (the 2006 Plan)

Under the 2006 Omnibus Long-Term Incentive Plan, or the 2006 Plan, as amended, 13,000,000 shares of common stock were available for issuance as of September 30, 2016. On February 23, 2017, at the Company's annual meeting of stockholders, the stockholders approved amendments to the 2006 Plan to increase the number of shares available for issuance under the 2006 Plan by 3,300,000, to a total of 16,300,000 shares. The 2006 Plan has a fungible share pool so that awards other than options or stock appreciation rights granted would be counted as 1.5 shares from the shares reserved for issuance.

The maximum number of shares subject to options or stock appreciation rights that can be awarded under the 2006 Plan to any person is 1,000,000 per year. The maximum number of shares that can be awarded under the 2006 Plan to any person, other than pursuant to an option or stock appreciation right, is 700,000 per year. The Company issues stock appreciation rights with restrictions that lapse upon either the passage of time (service vesting), achievement of performance targets (performance vesting), or some combination of these conditions. For those stock appreciation rights with only service vesting conditions, the Company recognizes compensation cost on a straight-line basis over the explicit service period. For awards subject to both performance and service vesting conditions, the Company starts recognizing compensation cost over the remaining service period, when it is probable the performance vesting condition will be met. The stock appreciation rights that include only service vesting conditions generally vest over a period of one to four years conditioned on continued employment for the incentive period.

Cash-Settled Stock Appreciation Rights

During the nine months ended June 30, 2018, the Company did not issue any cash-settled stock appreciation rights. During the nine months ended June 30, 2018, 87,084 cash-settled stock appreciation rights were exercised, and 358,660 cash-settled stock appreciation rights were forfeited. As of June 30, 2018, 1,007,889 cash-settled stock appreciation rights were outstanding. During fiscal year 2017, the Company issued 218,550 cash-settled stock appreciation rights at the price of $10.30, and 234,313 cash-settled stock appreciation rights were forfeited. Cash-settled stock appreciation rights are recorded as liability awards.

Stock Option Activity

A summary of the Company’s stock option activity for the nine months ended June 30, 2018, and year ended September 30, 2017 is as follows:



	Options		Weighted- Average Exercise Price
Options outstanding at September 30, 2016	1,708,487		$	13.91
Options granted	232,845		9.18
Options exercised	(12,421	)	7.41
Options canceled	(223,938	)	13.00
Options outstanding at September 30, 2017	1,704,973		13.43
Options granted	546,644		4.71
Options exercised	(1,762	)	6.63
Options canceled	(297,147	)	12.54
Options outstanding at June 30, 2018	1,952,708		$	11.13
Options exercisable at June 30, 2018	1,137,727		$	14.88

The intrinsic value and weighted average remaining contractual life in years of outstanding and exercisable options at June 30, 2018 is approximately $1.1 million and 6.12 years, and $0.06 million and 5.2 years, respectively, based on a stock price per share of $6.55 on June 30, 2018. Over the last three years, volatility rates have ranged from 51.49% to 58.59%, the dividend rate has been 0%, risk free interest rates have ranged from 0.47% to 2.17% and expected forfeiture rates have ranged from 0% to 23.54%. Upon adoption of ASU 2016-09, beginning in the first quarter of fiscal 2018, the Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture rather than estimating the number of awards expected to be forfeited at the grant date and subsequently adjusting the estimate when awards are actually forfeited.

Restricted Share Activity

A summary of the Company’s restricted share activity for the nine months ended June 30, 2018, and year ended September 30, 2017 is as follows:



	Restricted Shares		Weighted- Average Fair Value
Unvested restricted shares at September 30, 2016	2,661,245		$	9.34
Restricted shares granted	849,352		8.78
Restricted shares vested	(748,266	)	11.04
Restricted shares canceled	(571,900	)	9.81
Unvested restricted shares at September 30, 2017	2,190,431		8.42
Restricted shares granted	517,561		6.59
Restricted shares vested	(604,620	)	9.23
Restricted shares canceled	(501,122	)	8.89
Unvested restricted shares at June 30, 2018	1,602,250		$	7.38

The intrinsic value and weighted average remaining contractual life in years of unvested restricted stock units at June 30, 2018 was approximately $10.5 million and 8.32 years, respectively, based on a stock price per share of $6.55 on June 30, 2018.

Fair Value Measurement

9 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

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.

As of June 30, 2018, and September 30, 2017, the Company had no Level 1 or Level 2 assets or liabilities measured at fair value. As of September 30, 2017, the Company had financial assets that were measured at fair value and were classified as Level 3 assets within the fair value hierarchy. The Company elected to record the financial assets using the fair value option under ASC 825, Financial Instruments. These financial assets represented the value of rights the Company holds from its participation in certain principal transactions in the Company's commercial business, where a third-party partner owns the underlying assets to be sold, and the Company has contributed funds to the partner towards purchasing those underlying assets. These assets were included in Prepaid expenses and other current assets in the Consolidated Balance Sheets. The changes in financial assets measured at fair value for which the Company has used Level 3 inputs to determine fair value for the quarter ended June 30, 2018 are as follows (dollars in thousands):



	Level 3 Assets

Balance at September 30, 2017	$	491
Acquisition of financial assets	—
Settlements	(401		)
Change in fair value of financial assets	(90		)
Balance at June 30, 2018	$	—

During the nine months ended June 30, 2018, the Company recognized a loss of approximately $0.1 million on its financial assets.

When valuing its Level 3 assets, the Company gives consideration to asset condition, economic and/or market events, and other pertinent information that would impact its estimate of the expected generated proceeds. The valuation procedures are primarily based on management's projection of the value of the assets securing the financial investment. Management’s estimation of the fair value of these assets is based on the best information available in the circumstances and may incorporate management's own assumptions around market demand for these assets which could involve a level of judgment, taking into consideration a combination of internal and external factors. Changes in fair value of the Company's Level 3 assets are recorded in Other operating expense in the Consolidated Statements of Operations.

The Company’s financial assets not measured at fair value are cash and cash equivalents (which includes cash and commercial paper with original maturities of less than 90 days), certificates of deposit, accounts receivable, and a promissory note. The Company believes the carrying values of these instruments approximates fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Defined Benefit Pension Plan

9 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

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 “HB Pension Fund”), a qualified defined benefit pension plan.

The net periodic benefit recognized for the three and nine months ended June 30, 2018 and 2017 included the following components:



	Three Months Ended June 30,						Nine Months Ended June 30,
Qualified Defined Benefit Pension Plan	2018			2017			2018			2017
	(dollars in thousands)
Service cost	$	—		$	—		$	—		$	—
Interest cost	158			148			493			436
Expected return on plan assets	(242		)	(213		)	(750		)	(623		)
Settlement cost	—			—			(8		)	—
Total net periodic (benefit)	$	(84	)	$	(65	)	$	(265	)	$	(187	)

Guarantees	9 Months Ended
Guarantees	Jun. 30, 2018
Guarantees [Abstract]
Guarantees	Guarantees During the second quarter of 2015, the Company issued a guarantee to GoIndustry (the "Subsidiary") and the Trustees (the “Trustees”) of the HB Pension Fund. Under the arrangement, the Company irrevocably and unconditionally (a) guarantees to the Trustees punctual performance by the Subsidiary of all its Guaranteed Obligations, defined as all present and future obligations and liabilities (whether actual or contingent and whether owed jointly or severally in any capacity whatsoever) of the Company to make payments to the HB Pension Fund up to a maximum of 10 million British pounds, (b) undertakes with the Trustees that, whenever the Subsidiary does not pay any amount when due in respect of its Guaranteed Obligations, it must immediately on demand by the Trustees pay that amount as if it were the principal obligor; and (c) indemnifies the Trustees as an independent and primary obligation immediately on demand against any cost, charge, expense, loss or liability suffered or incurred by the Trustees if any payment obligation guaranteed by it is or becomes unenforceable, invalid or illegal; the amount of the cost, charge, expense, loss or liability under this indemnity will be equal to the amount the Trustees would otherwise have been entitled to recover on the basis of a guarantee. The guarantee is a continuing guarantee that will extend to the ultimate balance of all sums payable by the Company in respect of its Guaranteed Obligations. As of June 30, 2018, the Company's plan assets exceeded plan liabilities by approximately $2.1 million. As of September 30, 2017, the Company's plan assets exceeded plan liabilities by approximately $1.9 million. The funded status of the HB Pension Fund as of September 30, 2017, was disclosed in Note 12, Defined Benefit Pension Plan, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2017.

Business Realignment Expenses

9 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Business Realignment Expenses

During the fourth quarter of fiscal year 2017, the Company began to restructure its CAG business. The restructuring plan resulted in a reduction in force across a number of departments, including Sales, Marketing and Operations in both the US and in Europe. In connection with this restructuring, on September 25, 2017 the Company terminated the employment of the President of the CAG business and provided a severance package to the executive in the amount of $0.3 million. Overall, severance costs associated with this restructuring amounted to approximately $0.9 million. In addition, the restructuring plan calls for the closure of several offices and legal entities in Europe and Asia. Legal and administrative costs associated with the restructuring amounted to $0.1 million.

The Company continued to implement its CAG cost cutting initiatives during the nine months ended June 30, 2018. In addition, as discussed in Note 3, Significant Contracts, the Company was not the high bidder for the new surplus contracts, and therefore completed winding down operations of the Surplus Contract during the nine months ended June 30, 2018. As a result, the Company recognized an additional $1.5 million in restructuring costs during the first nine months of fiscal 2018, $1.0 million of which related to severance and occupancy cost as a result of the loss of the Surplus Contract. Restructuring costs associated with the restructuring plan were recognized within the other operating expense (income) line item in the consolidated statement of operations. This activity is included within employee severance and benefit costs in the table below.

During fiscal year 2017, the Company reorganized its IronDirect business. As a result, the Company recorded approximately $0.9 million of net expense related to the impairment of long-lived assets associated with the IronDirect business, as well as a fair value adjustment. The impairment was comprised of $1.2 million of impairment of contract intangibles, and $0.6 million of impairment of fixed assets. This expense was netted against a $0.9 million reversal of an earn-out liability. In addition to these impairments, and the restructuring of its IronDirect business model, the Company terminated the employment of the President and incurred severance costs of approximately $0.1 million, which is included within employee severance and benefit costs in the table below. During the first nine months ended June 30, 2018, the Company recorded restructuring costs of approximately $0.1 million related to occupancy and certain onerous contract costs related to its IronDirect business.

On June 16, 2017, the Company entered into an agreement to sub-lease 18,412 square feet of office space at 6931 Arlington Road, Bethesda, Maryland. The sub-lease commenced September 29, 2017 and will expire April 30, 2023. On the sub-lease commencement date, the Company relocated its headquarters from 1920 L Street NW, Washington DC, to the new Bethesda location. The Company ceased using the previous location as of September 30, 2017 and recognized a $2.0 million cease-use charge in its consolidated statements of operations at September 30, 2017, under the Other operating expenses line item. During the nine months ended June 30, 2018, the Company paid down the cease-use charge in the amount of approximately $0.8 million. This activity is presented under occupancy cost in the table below.

During the nine months ended June 30, 2018, the Company recognized an additional $0.5 million in severance cost primarily related to the restructuring of its Corporate IT department. This is recorded within the Corporate & Other line item below.

The table below sets forth the significant components of and activity in the liability for business realignment initiatives during the nine months ended June 30, 2018, on a segment and consolidated basis:



(in thousands)	Liability Balance at September 30, 2017		Business Realignment Expenses		Cash Payments			Liability Balance at June 30, 2018
Employee severance and benefit costs:
CAG	$	793	$	910	$	(1,644	)	$	59
Corporate & Other	399		462		(850		)	11
Total employee severance and benefit costs	1,192		1,372		(2,494		)	70
Occupancy and other costs:
CAG	—		675		(188		)	487
Corporate & Other	1,988		35		(841		)	1,182
Total occupancy and other costs	1,988		710		(1,029		)	1,669
Total business realignment	$	3,180	$	2,082	$	(3,523	)	$	1,739

The $2.1 million in employee severance and occupancy cost per the table above is recorded in Other operating expenses (income) in the Consolidated Statements of Operations. Of this $2.1 million in cost, approximately $0.9 million is associated with general and administrative, $0.2 million with sales and marketing, and $1.0 million with technology and operations activities.

The Company expects that the remaining liability balance at June 30, 2018, of approximately $1.7 million, will be paid during fiscal years 2018 and 2019.

Legal Proceedings	9 Months Ended
Legal Proceedings	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings Howard v. Liquidity Services, Inc., et al., Civ. No. 14-1183 (D. D. C. 2014). On July 14, 2014, Leonard Howard filed a putative class action complaint in the United States District Court for the District of Columbia (the ‘‘District Court’’) against the Company and its chief executive officer, chief financial officer, and chief accounting officer, on behalf of stockholders who purchased the Company's common stock between February 1, 2012 and May 7, 2014. The complaint alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting the Company's growth initiative, growth potential, and financial and operating conditions, thereby artificially inflating the Company's stock price, and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees. On October 14, 2014, the Court appointed Caisse de Dépôt et Placement du Québec and the Newport News Employees’ Retirement Fund as co-lead plaintiffs. The plaintiffs filed an amended complaint on December 15, 2014, which alleges substantially similar claims, but which does not name the chief accounting officer as a defendant. On March 2, 2015, the Company moved to dismiss the amended complaint for failure to state a claim or plead fraud with the requisite particularity. On March 31, 2016, the Court granted that motion in part and denied it in part. Only the claims related to the Company's retail division were not dismissed. On May 16, 2016, the defendants answered the amended complaint, denying all allegations of wrong-doing. Plaintiffs’ class certification motion was granted, and defendants’ motion for partial summary judgment was denied, on September 6, 2017. On June 19, 2018, the parties reached agreement to settle this action, including the dismissal and release of all claims against all defendants, in exchange for the payment by the Company’s insurance carriers of $17 million to plaintiffs and the class. The agreement was submitted to the District Court and was preliminarily approved on June 20, 2018. Final approval of the settlement will be decided at a hearing before the District Court scheduled for October 5, 2018 after notice to the class and other customary conditions are satisfied. There can be no assurance that the settlement will be approved and, even if approved, whether the conditions to effectiveness will be satisfied. In re Liquidity Services, Inc. Derivative Litigation, Civ. No. 2017-0080-JTL (Del. Ch.). On February 2, 2017, plaintiff David Girardi filed a putative derivative complaint in the Court of Chancery of the State of Delaware (the “Court of Chancery”), and on February 7, 2017, plaintiff Harold Slingerland filed a putative derivative complaint in the Court of Chancery. On March 9, 2017, plaintiffs Girardi and Slingerland filed a consolidated putative derivative complaint in the Court of Chancery, purportedly on the Company’s behalf. The consolidated complaint names as defendants the Company’s chief executive officer and chief financial officer, as well as certain other individuals who served on the Company’s Board of Directors between 2012 and 2014, and seeks recovery from those individuals, not from us. The complaint asserts that, among other things, the defendants breached their fiduciary duties to the Company and its stockholders by causing or allowing the Company to make the same misstatements that are alleged in the amended complaint in the Howard action, and for alleged trading in Company securities while in possession of material non-public information. On November 27, 2017, the Court of Chancery granted the defendants’ motion to dismiss. Following the dismissal of the putative derivative action discussed above, former plaintiffs Girardi and Slingerland sent the Company a letter dated January 5, 2018 (the “Shareholder Demand”) demanding that the Board of Directors take action to remedy purported breaches of fiduciary duties allegedly related to the claims asserted in the above-discussed securities class action and derivative actions. The Company acknowledged the Shareholder Demand on January 22, 2018. The Company’s Board of Directors has delegated to a special committee of the Board, comprised of independent directors who are not named in the letter, the initial evaluation of and the formulation of recommendations to the Board with respect to the Shareholder Demand. The special committee has retained counsel to assist and advise it in connection with its work.

Segment Information

9 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Information

The Company provides operating results in three reportable segments: GovDeals, Capital Assets Group (CAG), and Retail Supply Chain Group (RSCG). These three segments constitute 98% of the Company's revenue as of June 30, 2018, and each offers separately branded marketplaces to enable sellers to achieve channel marketing objectives to reach buyers. Across its segments, the Company offers its sellers two primary transaction models as well as a suite of services, and our revenues vary depending upon the models employed and the level of service required. A description of the reportable segments follows:

•

The GovDeals reportable segment provides self-service solutions in which sellers list their assets for sale without relying on our services, and it consists of marketplaces that enable local and state government entities including city, county and state agencies, as well as commercial businesses located in the United States and Canada to sell surplus and salvage assets. GovDeals also offers a suite of services that includes asset sales and marketing services. This segment includes the Company's GovDeals.com and AuctionDeals.com marketplaces.

•

The CAG reportable segment provides full-service solutions to sellers and it consists of marketplaces that enable federal government agencies as well as commercial businesses to sell surplus, salvage, and scrap assets. The assets that the Company receives as a contractor of the DLA of the Department of Defense (DoD) are sold in this segment. CAG also offers a suite of services that includes surplus management, asset valuation, and asset sales and marketing services. Commercial sellers are located worldwide. This segment includes the Company's Network International, GoIndustry DoveBid, and Government Liquidation marketplaces.

•

The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. RSCG also offers a suite of services that includes returns management, asset recovery, and eCommerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces.

Corporate & Other primarily consists of the Company's IronDirect and former TruckCenter operating segments which are not individually significant, as well as elimination adjustments. The TruckCenter business consisted of land-based, live auctions for fleet and transportation equipment. On January 30, 2017, the Company exited the TruckCenter land-based, live auction business in order to focus its time and resources on its ecommerce marketplace strategy. IronDirect offers buyers access to construction equipment, parts and services through a single ecommerce marketplace.

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 CEO, with oversight by the Board of Directors. The Company reports 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 gross profit to evaluate the performance of each segment. Gross profit is calculated as total revenue less cost of goods sold and seller distributions.

The amount of our revenue that came from sales outside of the U.S. for the three months ended June 30, 2018 and 2017 was 14.5% and 10.0%, respectively. The amount of our revenue that came from sales outside of the U.S. for the nine months ended June 30, 2018 and 2017 was 12.9% and 11.3%, respectively.

The following table sets forth certain financial information for the Company's reportable segments and Corporate & Other:



		Three Months Ended June 30,					Nine Months Ended June 30,
		2018		2017			2018			2017
GovDeals:
	Revenue	$	8,421	$	7,464		$	22,554		$	19,901
	Gross profit	$	7,795	$	7,023		$	20,927		$	18,670

CAG:
	Revenue	$	15,011	$	34,400		$	72,230		$	113,978
	Gross profit	$	9,911	$	17,418		$	39,973		$	56,961

RSCG:
	Revenue	$	26,343	$	23,528		$	73,742		$	72,029
	Gross profit	$	9,305	$	7,398		$	24,649		$	22,566

Corporate & Other:
	Revenue	$	794	$	128		$	3,283		$	2,742
	Gross profit	$	133	$	(1,921	)	$	(694	)	$	(1,492	)

Consolidated:
	Revenue	$	50,569	$	65,520		$	171,809		$	208,650
	Gross profit	$	27,144	$	29,918		$	84,855		$	96,705

The following table presents a reconciliation between the Company's reportable segments and the Company's consolidated results:



		Three Months Ended June 30,						Nine Months Ended June 30,
		2018			2017			2018			2017
Reconciliation:
	Gross profit	$	27,144		$	29,918		$	84,855		$	96,705
	Operating Expenses	30,284			38,680			100,027			122,125
	Interest and other income, net	(47		)	(189		)	(776		)	(291		)
	Provision (benefit) for income taxes	612			41			(3,824		)	91
	Net loss	$	(3,705	)	$	(8,614	)	$	(10,572	)	$	(25,220	)

Subsequent Event	9 Months Ended
Subsequent Event	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On July 10, 2018, the Company acquired all of the outstanding stock of Machinio Corporation, a privately owned company based in Chicago, Illinois, for net cash consideration of approximately $16.7 million, equity consideration of approximately $2.0 million, and contingent consideration payable in 2020 of up to $5.0 million. Machinio operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Unaudited Interim Financial Information

New Accounting Pronouncements

Accounting Standards Adopted


•	Excess tax benefits and deficiencies arising from share-based awards are reflected in the condensed consolidated statements of operations as income tax expense rather than within stockholders’ equity.


•	Excess tax benefits will be presented as an operating activity on the statement of cash flows rather than as a financing activity.

•


•	Methods used to satisfy statutory tax withholding requirements by employers who withhold shares upon settlement of an award on behalf of an employee to cover tax obligations are broadened to allow for a range of withholding from the minimum to the maximum statutory allowable amounts.

The Company adopted the provisions of this guidance during the first quarter of fiscal 2018 as follows:


•	Excess tax benefits and deficiencies arising from share-based awards are reflected within the Consolidated Statements of Operations as income tax expense; adopted prospectively, with no impact to prior year amounts;


•	Excess tax benefits are presented as an operating activity on the statement of cash flows; adopted prospectively with no impact on prior year amounts.

Accounting Standards Not Yet Adopted

Promissory Note

Risk Associated with Certain Concentrations

Earnings per Share

Stock-Based Compensation

- Definition

Disclosure of accounting policy for trade and other accounts receivable, and finance, loan and lease receivables, including those classified as held for investment and held for sale. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the valuation allowance for receivables is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of origination fees and costs, including the amortization method for net deferred fees or costs (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status and (7) the treatment of foreclosures or repossessions (8) the nature and amount of any guarantees to repurchase receivables.

+ References + Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of the basic and diluted income per share

The following summarizes the basic and diluted loss per share:



	Three Months Ended June 30,						Nine Months Ended June 30,
	2018			2017			2018			2017
	(Unaudited) (dollars in thousands, except per share amounts)
Weighted average shares calculation:
Basic weighted average common shares outstanding	32,104,368			31,485,599			31,984,222			31,369,077
Treasury stock effect of options and restricted stock	—			—			—			—
Diluted weighted average common shares outstanding	32,104,368			31,485,599			31,984,222			31,369,077

Net loss	$	(3,705	)	$	(8,614	)	$	(10,572	)	$	(25,220	)
Basic and diluted loss per common share	$	(0.12	)	$	(0.27	)	$	(0.33	)	$	(0.80	)

Goodwill (Tables)

9 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of goodwill activity

The following table presents goodwill balances and foreign currency translation adjustments to those balances during the nine months ended June 30, 2018:



Goodwill (in thousands)	CAG			GovDeals		Total
Balance at September 30, 2017	$	21,657		$	23,731	$	45,388
Translation adjustments	(72		)	—		(72		)
Balance at June 30, 2018	$	21,585		$	23,731	$	45,316

Intangible Assets (Tables)

9 Months Ended

Jun. 30, 2018

Finite-Lived Intangible Assets, Net [Abstract]

Schedule of intangible assets

The components of identifiable intangible assets as of June 30, 2018 and September 30, 2017 are as follows:



		June 30, 2018							September 30, 2017
	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(dollars in thousands)
Patent and trademarks	3 - 10	793		(396		)	397		943		(516		)	427
Total intangible assets		$	793	$	(396	)	$	397	$	943	$	(516	)	$	427

Schedule of future expected amortization of intangible assets

Future expected amortization of intangible assets at June 30, 2018 is as follows:



	Future Amortization
Years ending September 30,	(in thousands)
2018 Remaining three months	$	19
2019	66
2020	64
2021	76
2022 and thereafter	172
Total	$	397

Stockholders' Equity (Tables)

9 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Summary of stock option activity

A summary of the Company’s stock option activity for the nine months ended June 30, 2018, and year ended September 30, 2017 is as follows:



	Options		Weighted- Average Exercise Price
Options outstanding at September 30, 2016	1,708,487		$	13.91
Options granted	232,845		9.18
Options exercised	(12,421	)	7.41
Options canceled	(223,938	)	13.00
Options outstanding at September 30, 2017	1,704,973		13.43
Options granted	546,644		4.71
Options exercised	(1,762	)	6.63
Options canceled	(297,147	)	12.54
Options outstanding at June 30, 2018	1,952,708		$	11.13
Options exercisable at June 30, 2018	1,137,727		$	14.88

Summary of restricted share activity

A summary of the Company’s restricted share activity for the nine months ended June 30, 2018, and year ended September 30, 2017 is as follows:



	Restricted Shares		Weighted- Average Fair Value
Unvested restricted shares at September 30, 2016	2,661,245		$	9.34
Restricted shares granted	849,352		8.78
Restricted shares vested	(748,266	)	11.04
Restricted shares canceled	(571,900	)	9.81
Unvested restricted shares at September 30, 2017	2,190,431		8.42
Restricted shares granted	517,561		6.59
Restricted shares vested	(604,620	)	9.23
Restricted shares canceled	(501,122	)	8.89
Unvested restricted shares at June 30, 2018	1,602,250		$	7.38

Fair Value Measurement (Tables)

9 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Changes in financial assets fair value

The changes in financial assets measured at fair value for which the Company has used Level 3 inputs to determine fair value for the quarter ended June 30, 2018 are as follows (dollars in thousands):



	Level 3 Assets

Balance at September 30, 2017	$	491
Acquisition of financial assets	—
Settlements	(401		)
Change in fair value of financial assets	(90		)
Balance at June 30, 2018	$	—

Defined Benefit Pension Plan (Tables)

9 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Schedule of net periodic benefit cost recognized

The net periodic benefit recognized for the three and nine months ended June 30, 2018 and 2017 included the following components:



	Three Months Ended June 30,						Nine Months Ended June 30,
Qualified Defined Benefit Pension Plan	2018			2017			2018			2017
	(dollars in thousands)
Service cost	$	—		$	—		$	—		$	—
Interest cost	158			148			493			436
Expected return on plan assets	(242		)	(213		)	(750		)	(623		)
Settlement cost	—			—			(8		)	—
Total net periodic (benefit)	$	(84	)	$	(65	)	$	(265	)	$	(187	)

Business Realignment Expenses (Tables)

9 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs



(in thousands)	Liability Balance at September 30, 2017		Business Realignment Expenses		Cash Payments			Liability Balance at June 30, 2018
Employee severance and benefit costs:
CAG	$	793	$	910	$	(1,644	)	$	59
Corporate & Other	399		462		(850		)	11
Total employee severance and benefit costs	1,192		1,372		(2,494		)	70
Occupancy and other costs:
CAG	—		675		(188		)	487
Corporate & Other	1,988		35		(841		)	1,182
Total occupancy and other costs	1,988		710		(1,029		)	1,669
Total business realignment	$	3,180	$	2,082	$	(3,523	)	$	1,739

Segment Information (Tables)

9 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

The following table sets forth certain financial information for the Company's reportable segments and Corporate & Other:



		Three Months Ended June 30,					Nine Months Ended June 30,
		2018		2017			2018			2017
GovDeals:
	Revenue	$	8,421	$	7,464		$	22,554		$	19,901
	Gross profit	$	7,795	$	7,023		$	20,927		$	18,670

CAG:
	Revenue	$	15,011	$	34,400		$	72,230		$	113,978
	Gross profit	$	9,911	$	17,418		$	39,973		$	56,961

RSCG:
	Revenue	$	26,343	$	23,528		$	73,742		$	72,029
	Gross profit	$	9,305	$	7,398		$	24,649		$	22,566

Corporate & Other:
	Revenue	$	794	$	128		$	3,283		$	2,742
	Gross profit	$	133	$	(1,921	)	$	(694	)	$	(1,492	)

Consolidated:
	Revenue	$	50,569	$	65,520		$	171,809		$	208,650
	Gross profit	$	27,144	$	29,918		$	84,855		$	96,705

Reconciliation of Revenue from Segments to Consolidated

The following table presents a reconciliation between the Company's reportable segments and the Company's consolidated results:



		Three Months Ended June 30,						Nine Months Ended June 30,
		2018			2017			2018			2017
Reconciliation:
	Gross profit	$	27,144		$	29,918		$	84,855		$	96,705
	Operating Expenses	30,284			38,680			100,027			122,125
	Interest and other income, net	(47		)	(189		)	(776		)	(291		)
	Provision (benefit) for income taxes	612			41			(3,824		)	91
	Net loss	$	(3,705	)	$	(8,614	)	$	(10,572	)	$	(25,220	)

Organization - Narrative (Details) client in Thousands	9 Months Ended
Organization - Narrative (Details) client in Thousands	Jun. 30, 2018 reportablesegment categories client
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Minimum number of product categories offered (in categories) \| categories	500
Number of clients \| client	10
Reportable segments (in segments) \| reportablesegment	3

Summary of Significant Accounting Policies - Narrative (Details)			3 Months Ended		9 Months Ended
	Oct. 11, 2017 contract	Sep. 30, 2015 USD ($)	Jun. 30, 2018 USD ($) contract	Jun. 30, 2017	Jun. 30, 2018 USD ($) contract	Jun. 30, 2017	Sep. 30, 2017 USD ($)
Surplus Contract
Business Combination [Line Items]
Number of contracts \| contract	2
Government Contracts Concentration Risk
Business Combination [Line Items]
Number of contracts \| contract			2		2
Government Contracts Concentration Risk \| Sales Revenue \| Surplus Contract
Business Combination [Line Items]
Concentration risk (as a percentage)			0.20%	26.40%	16.20%	27.80%
Government Contracts Concentration Risk \| Sales Revenue \| Scrap Contract
Business Combination [Line Items]
Concentration risk (as a percentage)			12.10%	12.30%	10.00%	10.90%
Supplier Concentration Risk \| Cost of Goods \| Contract With Commercial Client
Business Combination [Line Items]
Concentration risk (as a percentage)			41.00%	25.00%	28.50%	22.10%
Tanager Acquisitions Promissory Note
Business Combination [Line Items]
Receivable with imputed interest, face amount		$ 12,300,000.0
Receivable with imputed interest, term		5 years
Proceeds from collection of notes receivable		$ 2,500,000
Receivable with imputed interest, net amount			$ 9,800,000		$ 9,800,000
Tanager Acquisitions Promissory Note \| Other Assets
Business Combination [Line Items]
Receivable with imputed interest, net amount			8,300,000		8,300,000
Tanager Acquisitions Promissory Note \| Prepaid Expenses and Other Current Assets
Business Combination [Line Items]
Receivable with imputed interest, net amount			$ 1,500,000		$ 1,500,000
Accounting Standards Update 2016-09 \| Retained Earnings
Business Combination [Line Items]
Decrease to retained earnings							$ 200,000

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Weighted average shares calculation:
Basic weighted average shares outstanding (in shares)	32,104,368	31,485,599	31,984,222	31,369,077
Treasury stock effect of options and restricted stock (in shares)	0	0	0	0
Diluted weighted average common shares outstanding (in shares)	32,104,368	31,485,599	31,984,222	31,369,077
Net loss	$ (3,705)	$ (8,614)	$ (10,572)	$ (25,220)
Basic and diluted loss per common share (in dollars per share)	$ (0.12)	$ (0.27)	$ (0.33)	$ (0.80)

Significant Contracts - Narrative (Details) $ in Thousands		3 Months Ended			9 Months Ended
Significant Contracts - Narrative (Details) $ in Thousands	Oct. 11, 2017 contract	Jun. 30, 2018 USD ($) option contract	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2018 USD ($) option contract	Jun. 30, 2017	Sep. 30, 2017 USD ($)
Significant Contracts
Liability for inventory included in accrued expenses and other current liabilities \| $		$ 18,204			$ 18,204		$ 30,193
Government Contracts Concentration Risk
Significant Contracts
Number of contracts \| contract		2			2
Surplus Contract
Significant Contracts
Number of contracts \| contract	2
Liability for inventory included in accrued expenses and other current liabilities \| $		$ 900			$ 900		$ 6,800
Surplus Contract \| Government Contracts Concentration Risk \| Sales Revenue
Significant Contracts
Concentration risk (as a percentage)		0.20%	26.40%		16.20%	27.80%
Scrap Contract
Significant Contracts
Term of contract				36 months
Number of extensions \| option		2			2
Term of each renewal options extended					12 months
Adjusted percentage of profit sharing distribution					64.50%
Scrap Contract \| Government Contracts Concentration Risk \| Sales Revenue
Significant Contracts
Concentration risk (as a percentage)		12.10%	12.30%		10.00%	10.90%
Non-rolling stock \| Surplus Contract
Significant Contracts
Usable surplus property to be purchased as a fixed percentage of DoD's original acquisition value					4.35%
Profits from resale of the property retained (as a percent)					100.00%

Goodwill - Adjustments (Details) $ in Thousands	9 Months Ended
Goodwill - Adjustments (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Goodwill
Balance at the beginning of the period	$ 45,388
Translation adjustments	(72)
Balance at the end of the period	45,316
CAG
Goodwill
Balance at the beginning of the period	21,657
Translation adjustments	(72)
Balance at the end of the period	21,585
GovDeals
Goodwill
Balance at the beginning of the period	23,731
Translation adjustments	0
Balance at the end of the period	$ 23,731

Intangible Assets - Carrying Amount (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 793	$ 943
Accumulated Amortization	(396)	(516)
Total	397	427
Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	793	943
Accumulated Amortization	(396)	(516)
Total	$ 397	$ 427
Minimum \| Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	3 years
Maximum \| Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	10 years

Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Future expected amortization of intangible assets
2018 (remaining three months)	$ 19
2019	66
2020	64
2021	76
2022 and thereafter	172
Total	$ 397	$ 427

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Amortization of intangible assets	$ 20	$ 300	$ 50	$ 900

Income Taxes - Narrative (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 22, 2017	Dec. 31, 2017	Jun. 30, 2018
Income Tax Examination [Line Items]
Blended effective tax rate (as a percentage)			24.53%
Tax benefit relating to adjustment in corporate tax rate		$ 3.5
Tax benefit relating to adjustment to ATM credits	$ 1.7
Expected effective tax rate (as a percent)			(8.60%)
Change in tax rate, income tax benefit			$ 5.2
Federal Tax Authority
Income Tax Examination [Line Items]
Income Tax Examination, Penalties Expense			$ 0.1

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended	12 Months Ended	36 Months Ended
	Feb. 23, 2017	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Sep. 30, 2016
Stockholders' Equity
Amount yet to be expended under the program		$ 10,100		$ 10,100
Shares available for issuance (in shares)	16,300,000				13,000,000
Increase in shares available for issuance (in shares)	3,300,000
Reserve shares counted per share granted from fungible share pool (in shares)	1.5
Options or stock appreciation rights \| Maximum
Stockholders' Equity
Number of shares awarded per person per year (in shares)		1,000,000
Other than options or stock appreciation rights \| Maximum
Stockholders' Equity
Number of shares awarded per person per year (in shares)		700,000
Employee and director options
Stockholders' Equity
Intrinsic value of outstanding shares		$ 1,100		1,100
Weighted average remaining contractual life of outstanding options		6 years 1 month 13 days
Intrinsic value of exercisable shares		$ 60		$ 60
Weighted average remaining contractual life of exercisable options		5 years 2 months 12 days
Stock price (USD per share)		$ 6.55		$ 6.55
Expected volatility, minimum (as a percent)				51.49%
Expected volatility, maximum (as a percent)				58.59%
Dividend yield (as a percent)				0.00%
Risk free interest rate, minimum (as a percent)				0.47%
Risk free interest rate, maximum (as a percent)				2.17%
Employee and director options \| Minimum
Stockholders' Equity
Shares and options vesting period		1 year
Expected forfeiture rate (as a percent)				0.00%
Employee and director options \| Maximum
Stockholders' Equity
Shares and options vesting period		4 years
Expected forfeiture rate (as a percent)				23.54%
Cash-settled stock appreciation rights
Stockholders' Equity
Exercised (in shares)		87,084
Forfeited (in shares)		358,660	234,313
Outstanding (in shares)		1,007,889		1,007,889
Granted (in shares)			218,550
Granted (USD per share)			$ 10.30
Restricted shares
Stockholders' Equity
Forfeited (in shares)		501,122	571,900
Granted (in shares)		517,561	849,352
Granted (USD per share)		$ 6.59	$ 8.78
Stock price (USD per share)		$ 6.55		$ 6.55
Intrinsic value of unvested restricted shares		$ 10,500		$ 10,500
Weighted average remaining contractual life of unvested restricted shares		8 years 3 months 26 days

Stockholders' Equity - 2006 Plan Activity (Details) - Employee and director options - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Stock option activity
Options outstanding at the beginning of the period (in shares)	1,704,973	1,708,487
Options granted (in shares)	546,644	232,845
Options exercised (in shares)	(1,762)	(12,421)
Options canceled (in shares)	(297,147)	(223,938)
Options outstanding at the end of the period (in shares)	1,952,708	1,704,973
Options exercisable at the end of the period (in shares)	1,137,727
Weighted-Average Exercise Price
Options outstanding at the beginning of the period (USD per share)	$ 13.43	$ 13.91
Options granted (USD per share)	4.71	9.18
Options exercised (USD per share)	6.63	7.41
Options canceled (USD per share)	12.54	13.00
Options outstanding at the end of the period (USD per share)	11.13	$ 13.43
Options exercisable at the end of the period (USD per share)	$ 14.88

Stockholders' Equity - Restricted Share Activity (Details) - Restricted shares - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Restricted share activity
Unvested restricted shares at the beginning of the period (in shares)	2,190,431	2,661,245
Restricted shares granted (in shares)	517,561	849,352
Restricted shares vested (in shares)	(604,620)	(748,266)
Restricted shares canceled (in shares)	(501,122)	(571,900)
Unvested restricted shares at the end of the period (in shares)	1,602,250	2,190,431
Weighted-Average Fair Value
Unvested restricted shares at the beginning of the period (USD per share)	$ 8.42	$ 9.34
Granted (USD per share)	6.59	8.78
Restricted shares vested (USD per share)	9.23	11.04
Restricted shares cancelled (USD per share)	8.89	9.81
Unvested restricted shares at the end of the period (USD per share)	$ 7.38	$ 8.42

Fair Value Measurement - Narrative (Details) - USD ($)	9 Months Ended
Fair Value Measurement - Narrative (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of financial instruments	$ (90,000)	$ 749,000
Recurring basis \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0		$ 0
Liabilities, fair value	0		0
Recurring basis \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0		0
Liabilities, fair value	0		$ 0
Recurring basis \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of financial instruments	$ (90,000)

Fair Value Measurement - (Change in Level 3 Assets) (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value of financial assets	$ (90)	$ 749
Recurring basis \| Level 3 Assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at September 30, 2017	491
Acquisition of financial assets	0
Settlements	(401)
Change in fair value of financial assets	(90)
Balance at June 30, 2018	$ 0

Defined Benefit Pension Plan - Net Periodic Benefit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	158	148	493	436
Expected return on plan assets	(242)	(213)	(750)	(623)
Settlement cost	0	0	(8)	0
Total net periodic (benefit)	$ (84)	$ (65)	$ (265)	$ (187)

Guarantees - Narrative (Details) $ in Millions	Jun. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Mar. 31, 2015 GBP (£)
Guarantees [Abstract]
Guarantee obligation value, maximum \| £			£ 10,000,000
Funded (unfunded) status of plan \| $	$ 2.1	$ 1.9

Business Realignment Expenses - Narrative (Details) $ in Thousands		3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 25, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 16, 2017 ft²
Restructuring Cost and Reserve [Line Items]
Impairment of intangible assets			$ 0	$ 1,028
Restructuring charges			2,082
Restructuring reserve		$ 3,180	1,739		$ 3,180
Other Operating Expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges			2,100
Bethesda, Maryland \| Office Building
Restructuring Cost and Reserve [Line Items]
Area of real estate property \| ft²						18,412
District of Columbia \| Other Operating Expense \| Office Building
Restructuring Cost and Reserve [Line Items]
Loss on contract termination					2,000
Payment on contract loss termination			800
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges			1,372
Restructuring reserve		1,192	70		1,192
Employee Severance \| Corporate and Other
Restructuring Cost and Reserve [Line Items]
Restructuring costs			500
Restructuring charges			462
Restructuring reserve		399	11		399
General and Administrative Expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges			900
Selling and Marketing Expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges			200
Technology and Operations
Restructuring Cost and Reserve [Line Items]
Restructuring charges			1,000
CAG
Restructuring Cost and Reserve [Line Items]
Restructuring costs			1,500
CAG \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs		900	1,000
Restructuring charges			910
Restructuring reserve		793	59		793
CAG \| Employee Severance \| Severance Agreement
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 300
CAG \| Legal and Administrative Costs
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 100
IronDirect
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges					900
Reversal of earn-out liability					900
IronDirect \| Leasehold Improvements
Restructuring Cost and Reserve [Line Items]
Impairment of long-lived assets					600
IronDirect \| Contract-Based Intangible Assets
Restructuring Cost and Reserve [Line Items]
Impairment of intangible assets					1,200
IronDirect \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs					$ 100
IronDirect \| Occupancy And Contract Costs
Restructuring Cost and Reserve [Line Items]
Restructuring costs			$ 100

Business Realignment Expenses - Restructuring related costs (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2018 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 3,180
Business Realignment Expenses	2,082
Cash payments	(3,523)
Ending balance	1,739
Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance	1,192
Business Realignment Expenses	1,372
Cash payments	(2,494)
Ending balance	70
Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance	1,988
Business Realignment Expenses	710
Cash payments	(1,029)
Ending balance	1,669
Corporate and Other \| Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance	399
Business Realignment Expenses	462
Cash payments	(850)
Ending balance	11
Corporate and Other \| Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance	1,988
Business Realignment Expenses	35
Cash payments	(841)
Ending balance	1,182
CAG \| Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance	793
Business Realignment Expenses	910
Cash payments	(1,644)
Ending balance	59
CAG \| Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance	0
Business Realignment Expenses	675
Cash payments	(188)
Ending balance	$ 487

Segment Information - Narrative (Details) - reportablesegment	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Major Customer [Line Items]
Reportable segments (in segments)			3
Segments percentage of revenue (as a percentage)			98.00%
Non-US \| Sales Revenue \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk (as a percentage)	14.50%	10.00%	11.30%	12.90%

Segment Information - Reconciliation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 50,569	$ 65,520	$ 171,809	$ 208,650
Gross profit	27,144	29,918	84,855	96,705
Operating Expenses	30,284	38,680	100,027	122,125
Interest and other income, net	(47)	(189)	(776)	(291)
Provision (benefit) for income taxes	612	41	(3,824)	91
Net loss	(3,705)	(8,614)	(10,572)	(25,220)
Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Revenue	8,421	7,464	22,554	19,901
Gross profit	7,795	7,023	20,927	18,670
Operating Segments \| CAG
Segment Reporting Information [Line Items]
Revenue	15,011	34,400	72,230	113,978
Gross profit	9,911	17,418	39,973	56,961
Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Revenue	26,343	23,528	73,742	72,029
Gross profit	9,305	7,398	24,649	22,566
Corporate and Other
Segment Reporting Information [Line Items]
Revenue	794	128	3,283	2,742
Gross profit	$ 133	$ (1,921)	$ (693)	$ (1,492)

Subsequent Event - Narrative (Details) - Subsequent Event $ in Millions	Jul. 10, 2018 USD ($)
Subsequent Event [Line Items]
Cash consideration	$ 16.7
Equity consideration	2.0
Maximum
Subsequent Event [Line Items]
Contingent consideration, non-current	$ 5.0

Legal Proceedings - Narrative (Details) $ in Millions	Jun. 19, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimate of possible loss	$ 17