StubHub (STUB) Q1 2026 earnings summary

Executive summary

• Gross Merchandise Sales (GMS) rose 7% year-over-year to $2.2 billion in Q1 2026, with revenue up 12% to $446 million and net income reaching $48 million, reversing a prior-year loss.

• Adjusted EBITDA increased 50% year-over-year to $72.1 million (16% margin), with margin expanding over 400 basis points.

• Strong cash flow generation, with trailing twelve-month free cash flow of $298 million and cash and equivalents at $1.5 billion as of March 31, 2026.

• Continued deleveraging with $100 million debt repayment in May and net leverage reduced to 4.0x trailing adjusted EBITDA.

• Ongoing investments in AI, open distribution, and advertising initiatives to drive future growth and scale.

Financial highlights

• Revenue increased 12% year-over-year to $446 million, outpacing GMS growth.

• Gross margin expanded to 85%, up from 84% year-over-year.

• Adjusted EBITDA was $72.1 million (16% margin), up 50% year-over-year.

• Net income for Q1 was $48 million (11% margin), compared to a net loss of $22.2 million last year.

• Free cash flow (trailing 12 months) was $298 million, representing 116% conversion of adjusted EBITDA.

Outlook and guidance

• Reiterated full-year 2026 guidance: GMS of $9.9–$10.1 billion (8–10% YoY growth) and adjusted EBITDA of $400–$420 million.

• Expect annual GMS and profitability phasing to mirror 2025, with more profitability in the second half due to seasonality.

• Dilution expected in low to mid-single-digit percentage range for 2026.

• Management expects existing cash and equivalents to cover anticipated needs for at least the next 12 months.

• Ongoing investments in platform improvements and international expansion are planned.