Summary of StubHub Q2 2026 Earnings Call

1Key Financial Results and Metrics

Gross Merchandise Sales (GMS): $3.1 billion, up 34% year-over-year.

Revenue: $573 million, a 33% increase year-over-year.

Adjusted EBITDA: Approximately $106 million, nearly doubling from the previous year, with an adjusted EBITDA margin of 18%, up 600 basis points.

Net Income: $14.6 million, impacted by $69 million in stock-based compensation.

Free Cash Flow: Approximately $598 million over the trailing 12 months, representing a 194% conversion of adjusted EBITDA.

Net Leverage: Improved to 3x trailing 12-month adjusted EBITDA, down from 4.5x at the end of 2025.

2Strategic Updates and Business Highlights

StubHub's marketplace continues to thrive, driven by strong demand for live events, particularly highlighted by the World Cup.

The company is enhancing its self-service capabilities for rights holders and expanding distribution partnerships, including with the NCAA.

StubHub is exploring advertising opportunities through sponsored listings, aiming to create a new high-margin revenue stream.

Investments in customer support and fulfillment were increased during the World Cup to address operational challenges, reflecting a commitment to customer experience.

3Forward Guidance and Outlook

Full Year GMS Guidance: Raised to a range of $10.1 billion to $10.3 billion, representing year-over-year growth of 10% to 12%.

Adjusted EBITDA Guidance: Maintained at $400 million to $420 million, with expectations for margin expansion in the second half of the year.

The company is cautious about consumer spending patterns following the World Cup and is monitoring demand closely.

4Bad News, Challenges, or Points of Concern

Some fulfillment issues occurred during the World Cup, leading to customer dissatisfaction, although the majority of transactions were successful.

Increased costs related to customer support during the World Cup impacted gross margins, which were slightly compressed at 82%.

Regulatory scrutiny continues, particularly regarding high-demand concert ticket sales, although StubHub believes it operates in a favorable environment for resale markets.

Concerns were raised about potential consumer spending shifts post-World Cup and the impact of a possible MLB strike on demand for live events.

5Notable Q&A Insights

Management emphasized a disciplined approach to guidance, citing the unique nature of the World Cup and the need to monitor consumer behavior.

The company is focused on retaining new customers acquired during the World Cup and increasing repeat purchases through improved marketing efficiency.

Discussions around advertising opportunities revealed that StubHub is still in the early stages of rolling out sponsored listings, with expectations for significant revenue growth in the future.

Management reiterated their commitment to improving customer experience and minimizing fulfillment issues, acknowledging that even a small number of problems can lead to significant customer dissatisfaction. Overall, StubHub's Q2 2026 results reflect strong growth and operational execution, although management remains cautious about future consumer spending trends and potential regulatory challenges.