0001628280-25-052164
SEC filingIPO-related stock-based compensation drove large net loss, but revenue grew 8% YoY and adjusted EBITDA improved 21%.
For the three months ended September 30, 2025, revenue increased 7.9% to $468.1M, driven by GMS growth of 11% to $2.43B, partially offset by lower inventory risk sales. Cost of revenue rose 26.3% to $100.5M, including $23.4M in IPO-related stock-based compensation. Excluding SBC, cost of revenue increased due to higher payment processing costs, partly offset by lower ticket substitution costs. Operating loss was $1,368.2M vs. income of $12.1M in prior year, almost entirely due to $1.4B in stock-based compensation. Net loss was $1,294.6M vs. $33.0M. Adjusted EBITDA improved 21% to $67.5M, with margin expanding to 14% from 13%, driven by higher transaction volume and operational efficiencies.
The company operates through two brands: StubHub in North America and viagogo internationally. While no segment-level financials are disclosed, management noted GMS growth was driven by ongoing market share gains in North American secondary market and continued growth in international markets and direct issuance. Excluding the impact of Taylor Swift's Eras tour in the prior year, GMS growth would have been 24% in the quarter. The implementation of all-in pricing regulation in May had a one-time 10% impact on North American secondary market growth.
Management plans to continue investing in technology, products, and services to support buyer and seller experience, including expansion into original issuance ticketing and digital advertising. They expect operating as a public company to increase general and administrative expenses due to compliance and insurance costs. No specific numerical guidance was provided. The early principal payment of $750M on the USD term loan using IPO proceeds reduces debt service requirements. The company believes existing cash will fund operations for at least the next 12 months.
As of September 30, 2025, cash and equivalents stood at $1.39B, up from $1.00B at year-end 2024, driven by the IPO and debt repayments. Total debt net of discounts was $1.65B, down from $2.33B, primarily due to a $750M early payment on the 2024 USD Term Loan. Shareholders' equity surged to $1.69B from $0.88B after the IPO and conversion of redeemable preferred stock.
The company reported $174.9M in total purchase commitments as of September 30, 2025, consisting of inventory costs and sponsorship/partnership fees. Of this, $84.3M is due within one year, $77.3M in years 1-3, and $13.8M thereafter. These commitments are reflected in the cost of revenue and sales & marketing expenses.
No common stock dividends were declared. Share repurchases were minimal at $1.0M (25,915 shares). The company executed significant debt reduction, repaying $759.8M in long-term debt during the nine months, including the $750M early payment. Capital expenditures totaled $25.2M, or 1.9% of revenue, focused on software development and property/equipment.
The company operates as a single reportable segment. All operating decisions and resource allocations are based on consolidated metrics. Revenue is derived primarily from transaction fees ($1.265B in nine months) and other revenue ($30.9M). No geographic mix is disclosed in the notes.
Despite a net loss of $1,370.6M, operating cash flow was positive at $181.4M, driven by $1,412.8M of stock-based compensation (largely IPO-related) and non-cash charges like depreciation and amortization ($19.2M), derivative losses ($7.6M), and deferred tax benefit ($135.5M). Working capital provided $140.7M, primarily from increased payments due to buyers and sellers ($131.2M) and accrued liabilities ($26.6M), partially offset by lower accounts payable ($49.9M). Capex of $24.0M (capitalized software $22.8M, PP&E $1.2M) was modest relative to CFO, yielding a strong free cash flow conversion (implicitly $157.4M). Financing was dominated by IPO net proceeds of $758.0M, offset by debt repayments of $759.8M and tax withholding payments of $81.6M. Share repurchases were minimal ($1.0M). The sharp decline in CFO versus prior year reflects normalization of working capital and higher interest payments. No one-time tax payments were noted; deferred taxes provided a large non-cash benefit.