StubHub Holdings, Inc.

What they do

StubHub operates a two-sided marketplace connecting buyers and sellers of tickets to live events, including sports, concerts, theater, and festivals. It generates revenue primarily by charging fees on transactions, with revenue recognized as a percentage of Gross Merchandise Sales (GMS). The company services customers in over 200 countries and territories, supports over 30 languages, and accepts payments in over 45 currencies.

Revenue drivers

• Secondary ticketing marketplace (StubHub and viagogo) — Generates revenue from transaction fees on ticket sales. For Q2 2026, revenue was $573.1 million, approximately 19% of GMS, with GMS of $3.1 billion.
• Gross Merchandise Sales (GMS) growth — GMS drives revenue; Q2 2026 GMS increased 34% year-over-year to a record $3.1 billion, fueled by major events like the World Cup.
• Original issuance ticketing market — Stated early-stage opportunity to list content rights holders' tickets directly on the platform, which could expand revenue sources beyond secondary sales.

Recent performance

In Q2 2026 (three months ended June 30, 2026), revenue rose 33% year-over-year to $573.1 million, and net income was $14.6 million versus a net loss of $53.8 million in the prior-year period. Adjusted EBITDA increased 94% to $105.7 million, with margin up nearly 600 basis points to 18%. Operating cash flow was $321.9 million and free cash flow was $309.7 million, compared to $19.3 million and $9.7 million respectively in Q2 2025. For the first half of 2026, revenue was $1.02 billion and net income was $62.7 million. The company reduced debt by $200 million year-to-date through July, with total debt reduction of $1.1 billion in the last 12 months.

Strategy

Management focuses on enhancing fan experience, democratizing access to live events, and expanding addressable market. Key initiatives include growing the original issuance market where content rights holders list tickets directly on the platform, leveraging technology, global distribution, data intelligence, and trusted brands. The company aims to capture more live event categories and expand geographically. It also prioritizes strengthening the balance sheet through debt reduction, as evidenced by $1.1 billion in debt reduction over the last 12 months.

Risks

• Dependence on live events and consumer demand — A reduction in the supply of or demand for large-scale events, or consumers' willingness to attend, would materially hurt revenue and results.
• Intense competition in ticketing — The industry is highly competitive, and failure to maintain or grow market share could reduce revenue and profitability.
• Search engine and platform dependencies — Changes in internet search algorithms or limitations on paid search support could reduce website traffic and adversely affect the business.
• Seasonality and quarterly volatility — Results vary significantly due to tour schedules, sports seasons, and event timing, making quarterly comparisons and forecasts difficult.

Outlook

For full year 2026, management increased GMS guidance to $10.1 billion to $10.3 billion and reiterated Adjusted EBITDA guidance of $400 million to $420 million. The company cites strong demand for live events, including a record-setting World Cup, as a driver. Management expects continued growth from its core marketplace and expansion into original issuance, while maintaining focus on debt reduction and improving leverage.