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StubHub (STUB) shares took a hit in after-hours trading Thursday, sliding 5% following the release of its first quarterly earnings report as a publicly traded company since its September IPO.
The highlights from the Q3 2025 report, compared against LSEG consensus estimates, are as follows:
- Loss per share: $4.27
- Revenue: $468.1 million vs. $452 million expected
The company reported an 8% increase in revenue compared to the $433.8 million recorded in the same quarter last year.
While StubHub posted revenue above expectations, the company’s net loss amounted to a substantial $1.33 billion, translating to a loss of $4.27 per share. This contrasts sharply with the $45.9 million net loss, or $0.15 loss per share, reported during the corresponding period in 2024. StubHub attributed this significant loss to a one-time, $1.4 billion stock-based compensation charge related to its recent IPO – a common occurrence for companies going public but one that significantly impacts profitability in the short term.
Gross Merchandise Sales (GMS), the total value of tickets purchased, saw a healthy increase of 11% year-over-year, reaching $2.43 billion. This metric is a key indicator of overall transaction volume on the platform and signals continued strong demand for live event tickets.
However, analysts noted that this quarter faced challenging year-over-year comparisons due to the exceptional performance in the previous year, significantly boosted by Taylor Swift’s Eras Tour. Discounting the “Swift lift,” StubHub management stated that GMS experienced a more robust 24% year-over-year growth rate. This adjusted figure provides a clearer picture of the company’s organic growth trajectory.
The market’s reaction suggests investors are weighing the strong revenue growth against the sizable net loss and the initial valuation. StubHub’s technology investments, particularly in AI-driven pricing algorithms and fraud detection, are crucial for sustained growth and profitability. Furthermore, strategic partnerships with venues and event organizers will be critical for securing inventory and enhancing the overall customer experience. The company’s ability to innovate and adapt to the evolving live entertainment landscape will determine its long-term success in a competitive market.
Thursday’s closing price was $18.82. Since its IPO priced at $23.50, the stock has declined approximately 20%, reflecting market concerns and recalibration after the initial hype surrounding the public offering.
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