StubHub Holdings, Inc. (STUB): Results of Operations and Financial Condition
StubHub Holdings, Inc. (STUB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 StubHub Announces Second Quarter 2026 Results – Gross Merchandise Sales increased to a record $3.1 billion, up 34% year over year – – Revenue increased to a record $573.1 million, up 33% year over year – – Adjusted EBITDA increased 94% to $105.7 million; adjusted EBI
How this was made
The 30-second read
Why it matters
The key tradable elements are the record Q2 GMS and revenue growth, the large adjusted EBITDA improvement, and the raised full-year GMS outlook alongside reiterated adjusted EBITDA guidance.
Market read
A same-day earnings and guidance update with explicit upside ranges and improved leverage can drive estimate revisions and near-term momentum.
What to watch
Traders may focus on the sustainability of buyer/seller receipts and working-capital dynamics, since operating cash flow and free cash flow improvements can be timing-sensitive.
StubHub Announces Second Quarter 2026 Results
Record GMS and revenue grew 34% and 33% year over year, respectively, adjusted EBITDA rose 94%, the company returned to GAAP net income, generated $309.7 million of free cash flow, raised its full-year GMS outlook, and reduced debt.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Gross Merchandise Sales (GMS)other | $3.1 billion | – | 34% |
| RevenueGAAP | $573.1 million | – | 33% |
| Revenue as a percentage of GMSother | approximately 19% of GMS | – | – |
| Cost of revenue (exclusive of depreciation and amortization shown separately below)GAAP | $ 104,592 (In thousands) | – | – |
| Operations and supportGAAP | $ 18,780 (In thousands) | – | – |
| Sales and marketingGAAP | $ 274,087 (In thousands) | – | – |
| General and administrativeGAAP | $ 146,338 (In thousands) | – | – |
| Depreciation and amortizationGAAP | $ 9,815 (In thousands) | – | – |
| Total costs and expensesGAAP | $ 553,612 (In thousands) | – | – |
| Income from operationsGAAP | $ 19,456 (In thousands) | – | – |
| Interest incomeGAAP | $ 12,236 (In thousands) | – | – |
| Interest expenseGAAP | $ (22,200) (In thousands) | – | – |
| Other expense, netGAAP | — | – | – |
| Foreign currency gains (losses)GAAP | $ 3,864 (In thousands) | – | – |
| Loss on extinguishment of debtGAAP | $ (1,877) (In thousands) | – | – |
| Gains (losses) on derivativesGAAP | $ 753 (In thousands) | – | – |
| Total other income (expense), netGAAP | $ (7,224) (In thousands) | – | – |
| Income (loss) before income taxesGAAP | $ 12,232 (In thousands) | – | – |
| Benefit for income taxesGAAP | $ 2,375 (In thousands) | – | – |
| Net income (loss)GAAP | $14.6 million | – | – |
| Net income marginGAAP | 3% | – | – |
| Net income (loss) attributable to common stockholdersGAAP | $ (40) (In thousands) | – | – |
| Basic net income (loss) per share attributable to common stockholdersGAAP | $ (0.00) | – | – |
| Diluted net income (loss) per share attributable to common stockholdersGAAP | $ (0.00) | – | – |
| Weighted-average shares used in computing basic net income (loss) per share attributable to common stockholdersGAAP | 378,710,978 | – | – |
| Weighted-average shares used in computing diluted net income (loss) per share attributable to common stockholdersGAAP | 378,710,978 | – | – |
| Adjusted EBITDAnon-GAAP | $105.7 million | – | 94% |
| Adjusted EBITDA marginnon-GAAP | 18% | – | up nearly 600 basis points year over year |
| Net cash provided by operating activitiesGAAP | $321.9 million | – | – |
| Free cash flownon-GAAP | $309.7 million | – | – |
| Net leveragenon-GAAP | 3.0x trailing 12-month adjusted EBITDA | a 1.5x reduction | – |
| Cash and cash equivalentsGAAP | $1.7 billion | – | – |
| Long-term debt obligations, non-currentGAAP | $ 1,396,271 (In thousands) | – | – |
| Payments due to buyers and sellersGAAP | $ 1,306,617 (In thousands) | – | – |
Full Year 2026 outlook
- NoteGMS of $10.1 billion to $10.3 billion
- NoteAdjusted EBITDA of $400 million to $420 million
What drove it
- The company cited strong demand for live events, highlighted by a record-setting World Cup.
- GMS reached a record $3.1 billion and revenue reached a record $573.1 million.
- Management attributed the results to StubHub's leadership in the resale market and ability to deliver live-event experiences to fans at scale.
Concerns
- GAAP income from operations was $ 19,456 (In thousands), compared with $ 25,056 (In thousands) in the prior-year period.
- General and administrative expense was $ 146,338 (In thousands), compared with $ 74,529 (In thousands) in the prior-year period.
- Net income attributable to common stockholders was $ (40) (In thousands), and diluted net income (loss) per share attributable to common stockholders was $ (0.00).
- Payments due to buyers and sellers were $ 1,306,617 (In thousands) as of June 30, 2026.
What to watch
- Delivery against full-year 2026 GMS guidance of $10.1 billion to $10.3 billion.
- Delivery against full-year 2026 adjusted EBITDA guidance of $400 million to $420 million.
- Whether adjusted EBITDA margin sustains its reported 18% level.
- Further debt reduction and net leverage following the reported 3.0x trailing 12-month adjusted EBITDA as of June 30, 2026.
- The relationship between operating income, sales and marketing expense, and general and administrative expense.
Balance sheet and cash flow
- Cash and cash equivalents of $1.7 billion.
- Payments due to sellers of $1.2 billion.
- Net cash provided by operating activities was $321.9 million, inclusive of net inflows of buyer receipts and seller payments, compared to $19.3 million in the prior-year period.
- Free cash flow was $309.7 million, compared to $9.7 million in the prior-year period.
- Year-to-date debt reduction of $200.0 million, including a $100.0 million payment in May and a $100.0 million payment in July.
- Total debt reduction of $1.1 billion in the last 12 months.
- Net leverage improved to 3.0x trailing 12-month adjusted EBITDA as of June 30, 2026, a 1.5x reduction compared to 4.5x as of December 31, 2025.
Analysis
StubHub reported record second-quarter GMS of $3.1 billion, up 34% year over year, and record revenue of $573.1 million, up 33%. The release linked demand to live events and a record-setting World Cup. Revenue represented approximately 19% of GMS, indicating the company converted the elevated marketplace activity into reported revenue at the stated rate.
Profitability improved substantially on the measures highlighted by management. Adjusted EBITDA increased 94% to $105.7 million and adjusted EBITDA margin reached 18%, up nearly 600 basis points year over year. GAAP net income was $14.6 million, compared with a net loss of $53.8 million in the prior-year period. However, GAAP income from operations was $ 19,456 (In thousands), below $ 25,056 (In thousands) a year earlier, while general and administrative expense was $ 146,338 (In thousands), compared with $ 74,529 (In thousands).
Cash generation was a prominent feature of the release. Net cash provided by operating activities was $321.9 million, inclusive of net inflows of buyer receipts and seller payments, and free cash flow was $309.7 million. The balance sheet showed cash and cash equivalents of $1.7 billion, while payments due to buyers and sellers were $ 1,306,617 (In thousands). Investors should distinguish the company-wide GAAP net income from net income attributable to common stockholders of $ (40) (In thousands).
Capital allocation focused on deleveraging rather than shareholder distributions. The company reported year-to-date debt reduction of $200.0 million, including payments of $100.0 million in May and $100.0 million in July, and total debt reduction of $1.1 billion in the last 12 months. Net leverage improved to 3.0x trailing 12-month adjusted EBITDA as of June 30, 2026, from 4.5x as of December 31, 2025.
Management increased full-year 2026 GMS outlook to $10.1 billion to $10.3 billion and reiterated adjusted EBITDA outlook of $400 million to $420 million. No prior-quarter financial comparatives or prior outlook were provided in the supplied document, so quarter-over-quarter changes and performance against earlier guidance cannot be assessed from this filing.
Management, verbatim
The second quarter demonstrated strong demand for live events, highlighted by a record-setting World Cup. Our results reflect StubHub’s leadership in the resale market and our ability to deliver these experiences to fans at scale.
Eric Baker, Founder, Chairman and Chief Executive Officer of StubHub
We remain focused on our vision for long-term growth — enhancing the fan experience, democratizing access to live events, and expanding our addressable market.
Eric Baker, Founder, Chairman and Chief Executive Officer of StubHub
Not in the filing
stated, not guessed- Revenue guidance
- Gross margin and gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Segment revenue, segment growth, and segment drivers
- Non-GAAP EPS
- Prior-quarter figures for reported operating metrics
- Previous-quarter outlook needed to compare actual results with prior guidance
- Share repurchases
- Dividends
- Detailed investing cash flow and capital expenditures
- Complete balance-sheet and cash-flow-statement information beyond the portion supplied in the filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) attaching an earnings release for StubHub’s second quarter 2026 results and full-year outlook.
Ticker impact
StubHub reported Q2 2026 results with record GMS of $3.1B (+34% YoY) and raised full-year GMS outlook to $10.1B-$10.3B.
Likely positive bias for STUB into the next trading session as traders price the raised GMS outlook and improved leverage.
This is a primary earnings-and-guidance disclosure in an 8-K, including specific upside ranges and balance-sheet/leverage improvements that directly affect forward estimates.
Market effects
Supports the view that live-event demand and resale marketplace monetization are strengthening, which can lift sentiment toward ticketing platforms.
Limited direct regional spillover; mostly US-listed single-name impact.
StubHub cites global operations (viagogo) and World Cup demand, which can matter for cross-border ticketing sentiment.
Counterpoint
Despite strong metrics, the company still reports only modest net income margin and guidance is for GMS and adjusted EBITDA, leaving room for GAAP volatility.
Key entities
- companyStubHub Holdings, Inc.
Reports Q2 2026 financial results and updates full-year 2026 GMS and adjusted EBITDA outlook.
- personEric Baker
Founder, Chairman and CEO quoted on demand and long-term growth vision.
