StubHub (STUB) Q3 2025 earnings summary

Executive summary

• Completed IPO in September 2025, raising $758 million in net proceeds and $1 billion in gross proceeds, and repaid $750 million in debt, materially de-levering the balance sheet.

• Achieved 11% year-over-year GMS growth to $2.4 billion in Q3 2025, with 24% growth excluding the Taylor Swift "Eras" Tour impact.

• Revenue rose 8% to $468 million, with adjusted EBITDA up 21% to $67 million, representing a 14% margin.

• Net loss for the quarter was $1.3 billion, primarily due to a one-time $1.4 billion stock-based compensation expense triggered by the IPO.

• Strategic investments and partnerships, including a new MLB agreement launching in 2026, are driving market share growth and expansion into new categories.

Financial highlights

• Adjusted gross margin improved to 84% from 82% year-over-year, driven by lower ticket substitution and replacement costs.

• Free cash flow for the trailing 12 months was $5.6 million, impacted by seller proceed outflows and cash interest costs; excluding these, free cash flow was $279 million, about 100% of adjusted EBITDA.

• Net leverage reduced to 3.9x trailing twelve months adjusted EBITDA, down from 7.7x pre-IPO.

• Ended Q3 with $1.4 billion in cash and $1.1 billion in net debt.

• Annual debt service reduced to $99 million, down 43% from prior year, saving ~$75 million annually.

Outlook and guidance

• No specific Q4 or 2026 guidance provided; annual guidance for 2026 will be shared with Q4/full-year 2025 results.

• Expect all-in pricing headwind to persist until May 2026, after which year-over-year comparisons will normalize.

• Management expressed confidence in long-term strategy, with ongoing investments in technology, products, and partnerships.

• Ongoing investments in technology, digital advertising, original issuance, and international markets, targeting a $726 billion future opportunity.

• Management expects existing cash and cash equivalents to be sufficient for at least the next 12 months.