StubHub Shares Plummet 20% Following Disappointing Quarterly Results

Post by : Bianca Suleiman

StubHub experienced a significant downturn in its stock price on Thursday, with shares sliding by approximately 20% in after-hours trading following the release of its first earnings report since going public in September. The results revealed a much larger quarterly loss than analysts had anticipated, overshadowing the company's revenue growth and robust demand for live events.

The company reported a loss of $4.27 per share, primarily due to a one-time stock-based compensation expense of $1.4 billion associated with its IPO. This pushed StubHub's total net loss to $1.33 billion, a sharp increase from the $45.9 million loss reported a year prior.

On a brighter note, revenue reached $468.1 million, exceeding expectations of $452 million and showing an 8% year-on-year increase from $433.8 million.

Moreover, StubHub noted an 11% rise in gross merchandise sales, totaling $2.43 billion. The company indicated that the previous year's results were exceptionally strong due to Taylor Swift’s Eras Tour. Excluding this, GMS exhibited a notable 24% year-over-year growth, reflecting a persistent demand for concerts, sports, and live entertainment.

During the investor call, StubHub stated it would not provide guidance for the current quarter, citing variability in ticket sales. However, the company plans to offer its 2026 outlook along with its fourth-quarter results.

Founded in 2000, StubHub competes with other platforms such as Vivid Seats, SeatGeek, and Ticketmaster’s parent, Live Nation. The company’s long-awaited IPO raised $800 million after facing numerous delays due to market fluctuations.

By the end of Thursday, StubHub's stock closed at $18.82, which is around 20% lower than its IPO price of $23.50 as investors balance strong consumer demand against the heavy costs associated with the IPO and the lack of near-term guidance.