0001628280-25-052164
SEC filingIPO-driven stock-based compensation caused GAAP net loss, but adjusted EBITDA grew 21% in Q3 on 11% GMS growth.
For the three months ended September 30, 2025, StubHub reported revenue of $468.1 million, up 7.9% year-over-year from $433.8 million in Q3 2024. The growth was driven by a 11% increase in Gross Merchandise Sales (GMS) to $2.43 billion, primarily from higher transaction volume, and a $11.0 million decrease in refunded transaction fees due to fewer cancellations. This was partially offset by an $8.5 million decline in sales of tickets for which the company assumed inventory risk.
GAAP cost of revenue (exclusive of depreciation and amortization) increased 26.3% to $100.5 million, including $23.4 million of stock-based compensation from the IPO. Excluding stock-based compensation, cost of revenue would have been $77.2 million, roughly flat year-over-year. Gross margin contracted from 81.7% to 78.5% primarily due to the stock-based compensation charge in cost of revenue.
Operating expenses soared due to $1.4 billion in total stock-based compensation, of which $1,349.5 million was in general and administrative. As a result, GAAP operating loss was $1,368.2 million, compared to operating income of $12.1 million in Q3 2024. Net loss attributable to common stockholders was $1,294.6 million, versus a net loss of $33.0 million in the prior year quarter.
On an adjusted basis, EBITDA grew 21% to $67.5 million (14% of revenue), reflecting higher transaction fees from increased GMS, partially offset by higher customer acquisition spend.
StubHub operates as a single reportable segment. The company's marketplace spans two brands: StubHub in North America and viagogo internationally. Management commentary highlights strength in North American secondary market and international growth, with GMS up 11% in both Q3 and 9M 2025. Excluding the Taylor Swift Eras tour impact, year-over-year GMS growth was 24% in Q3 and 22% in 9M. The company noted a one-time 10% impact on North American secondary market growth from federally mandated all-in pricing regulation implemented in May 2025. No further segment-level financials are disclosed.
StubHub did not provide explicit forward guidance. Management's strategic priorities include attracting buyers efficiently through performance marketing, expanding seller inventory, and investing in technology and original issuance ticketing. The company expects increased stock-based compensation going forward as a public company and plans to continue investing in customer acquisition to gain market share. No specific revenue or margin outlook was provided. The company's near-term liquidity is supported by $1,392.5 million in cash and equivalents post-IPO, and the credit facilities have been refinanced with maturities in 2030. Management expects existing cash to fund anticipated requirements for the next 12 months.
Net loss of $1,370.6M was significantly offset by non-cash charges totaling $1,412.8M in stock-based compensation, which alone exceeded the loss. This resulted in positive CFO of $181.4M, though down sharply from $410.9M in the prior year. The decline was driven by a $150.4M unfavorable swing in working capital (particularly Payments due to buyers and sellers decreasing by $150.4M vs. increase of $281.6M in 2024). Capex increased to $25.2M (from $5.2M), mainly for capitalized software development, indicating higher investment in digital infrastructure. No free cash flow is explicitly stated, but CFO less capex yields $156.2M, down from $405.7M. The IPO in September 2025 generated $758M in proceeds, offset by $759.8M in debt repayments and $81.6M in tax withholding payments on vested equity awards. Share repurchases were minimal ($1M). No dividends were paid. Overall, operating cash flow quality is weak given reliance on non-cash charges, and working capital management remains a key driver.