StubHub's honeymoon period as a public company just ended with a thud. The ticket reseller beat Wall Street's revenue expectations in its debut earnings report, but investors weren't impressed - shares plunged 7% after hours as a staggering $1.4 billion IPO-related charge overshadowed the company's operational wins. For a company that's already trading 20% below its September IPO price, this wasn't the market confidence booster management hoped for.
StubHub just delivered its first earnings report as a public company, and the market's verdict was swift and harsh. Despite beating revenue expectations, shares tumbled 7% in after-hours trading as investors grappled with the reality of what it costs to take a 25-year-old company public in 2025.
The numbers tell two different stories. On the surface, StubHub's operational performance looked solid - revenue hit $468.1 million, topping Wall Street's $452 million consensus by a comfortable margin. The 8% year-over-year growth from $433.8 million painted a picture of steady expansion in the competitive ticket resale market.
But then came the financial haymaker that sent shares spiraling. StubHub reported a net loss of $1.33 billion, or $4.27 per share, compared to just $45.9 million in losses during the same period last year. The culprit? A massive $1.4 billion stock-based compensation charge tied directly to the company's September IPO.
"We are building a truly differentiated consumer product that improves the experience for fans while unlocking better economics for venues, teams, and artists through open distribution," CEO and founder Eric Baker said in the earnings release. "We're early in that journey, but our progress so far gives us great confidence in our strategy and the long-term value we're creating."
The underlying business metrics actually showed impressive momentum. Gross merchandise sales - the total dollar value of tickets sold through the platform - jumped 11% to $2.43 billion. More tellingly, when you strip out the Taylor Swift Eras Tour effect that boosted last year's numbers, GMS actually grew 24% year-over-year, suggesting StubHub's core market is expanding rapidly.
This performance comes as StubHub battles intensifying competition from Vivid Seats, which went public via SPAC in 2021, along with privately-held SeatGeek and the industry gorilla, Ticketmaster, owned by Live Nation Entertainment. The ticket resale market has become increasingly cutthroat as live entertainment rebounds post-pandemic and fans seek alternatives to primary market monopolies.
