StubHub (STUB) Q3 2025 earnings summary

Executive summary

• Completed IPO, raising between $758 million and $1 billion in net proceeds, and repaid $750 million in debt, significantly de-leveraging the balance sheet and reducing annual debt service by ~$75 million.

• Achieved $2.4 billion in Gross Merchandise Sales (GMS), up 11% year-over-year; excluding Taylor Swift "Eras" Tour, GMS grew 24%.

• Revenue rose 8% to $468 million, with adjusted EBITDA up 21% to $67 million (14% margin), reflecting strong operational execution and market share gains.

• Net loss for Q3 2025 was $1.3 billion, primarily due to a one-time $1.4 billion stock-based compensation charge related to the IPO.

• Strategic investments in technology, direct issuance, and advertising, including a new MLB partnership and ReachPro POS system, are driving growth and market expansion.

Financial highlights

• GMS reached $2.4 billion, up 11% year-over-year; excluding the prior year’s Taylor Swift tour, GMS grew 24%.

• Revenue was $468 million, up 8% year-over-year, with take rates declining to 19% from 20% due to strategic market share investments.

• Adjusted EBITDA was $67 million (14% of revenue), up from $56 million (13%) in Q3 2024.

• Free cash flow for the trailing 12 months was $5.6 million, impacted by timing of seller payments and interest costs.

• Net loss for Q3 2025 was $1.3 billion, compared to $33 million in Q3 2024, driven by IPO-related stock-based compensation.

Outlook and guidance

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

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

• Ongoing investments in technology, products, and market expansion are planned, with advertising and direct issuance expected to be significant growth drivers.

• Announced multi-year partnership with Major League Baseball to distribute primary ticket inventory starting 2026.