SEATW · Vivid Seats Inc.

Vivid Seats' Q1 2026 results showed Marketplace GOV of $612.4 million, down from $820.4 million year-over-year but with sequential improvement as noted by CEO Lawrence Fey, who highlighted strong execution against fiscal priorities and substantial cash generation. Revenues fell to $125.8 million from $164.0 million, driven by lower Marketplace orders (1,716 vs 2,296) and Resale orders (82 vs 105), alongside event cancellations impacting GOV by $9.0 million. Despite a GAAP net loss of $14.6 million, Adjusted EBITDA of $9.5 million exceeded the high end of prior guidance, supported by cost reductions including $70 million annualized savings ($45 million cash). Operating loss widened to $8.8 million from $4.3 million due to higher general and administrative expenses relative to revenue decline, though marketing expenses decreased. Balance sheet strengthened with cash rising to $143.6 million from $102.7 million year-end, fueled by $46.0 million operating cash flow versus prior year's use. FY2026 guidance projects Marketplace GOV $2.2-2.6 billion and Adjusted EBITDA $30-40 million, signaling return to growth. Separately, Item 7.01 discloses Cleansing Material from halted talks with an ad hoc group of first lien term loan lenders under the 2017 Credit Facility. Proposals involved term loan exchanges into takeback or second lien debt with equity components (Company: 12.5% equity for discount; ad hoc: substantial equity via $50 million ERO backstop), but discussions ended while negotiations continue with other lenders. Unrestricted subsidiaries like Vegas.com, LLC provide capital structure flexibility. Cleansing Material, not for investment decisions, underscores debt refinancing efforts amid ongoing lender talks.