10-Q · May 5, 2026
Vivid Seats reported Q1 2026 revenues of $125.8 million, slightly above the consensus estimate of $124.6 million, but a decline compared to $164 million in Q1 2025. The company's net loss was $14.6 million, resulting in…
Earnings analysis · 10-Q
SEAT earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Vivid Seats posted Q2 revenue of $129.861 million, up sequentially but down 10% year over year, as Marketplace order volume remained under pressure. Gross margin improved sequentially and cost reductions narrowed the…
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Vivid Seats posted Q2 revenue of $129.861 million, up sequentially but down 10% year over year, as Marketplace order volume remained under pressure. Gross margin improved sequentially and cost reductions narrowed the operating loss, while six-month operating cash flow recovered to $45.208 million. However, both segments contracted, management cautioned that World Cup-driven sports pricing is non-recurring, and $388.1 million of debt remains a material constraint.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Sequential revenue and margin improvement
Q2 revenue was $129.861 million, up $4.078 million sequentially from implied Q1 revenue of $125.783 million, while gross margin expanded to 70.2% from 68.8% in Q1. Revenue remained down $13.705 million, or 10%, from $143.566 million a year earlier.
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Operating loss narrowed
Operating loss narrowed sequentially to $6.441 million from an implied $8.788 million in Q1, lifting operating margin to -5.0% from -7.0%. Versus Q2 2025, the operating loss improved from $331.725 million, although that prior period included a $320.449 million impairment charge.
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Operating cash flow turned positive
Six-month operating cash flow turned positive to $45.208 million from a $53.908 million outflow in the prior-year period. The improvement was aided by a $37.5 million working-capital inflow, primarily higher accounts payable tied to ticket-seller payables and World Cup order volume.
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Liquidity remains adequate
Cash and cash equivalents were $136.7 million at June 30, 2026, and management states this is sufficient for liquidity needs over the next 12 months and thereafter for the foreseeable future. The company had no revolver borrowings and $388.1 million of total debt outstanding.
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Fewer Marketplace cancellations
Marketplace event cancellations fell to 30,767 from 47,845 a year ago, while their negative Marketplace GOV impact declined to $16.4 million from $20.3 million. This partially mitigated lower underlying transaction activity.
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Cost-reduction program lowered G&A
Cost actions lowered Q2 general and administrative expense 30% to $32.589 million and personnel expense 39% to $20.812 million. Management attributes this principally to lower equity compensation and headcount reductions.
What to watch
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Order-volume contraction continues
Demand and volume remain weak: Marketplace GOV declined 4% to $659.359 million, Marketplace orders declined 16% to 1.825 million, and total revenue fell 10% year over year. Management attributes pressure to economic uncertainty affecting discretionary spending and competitive intensity in performance-marketing channels.
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Broad segment declines and partner loss
Both operating segments declined, with Marketplace revenue down $10.530 million (9%) and Resale revenue down $3.175 million (11%). Private Label Offering revenue fell 40% to $10.230 million following the loss of a significant distribution partner.
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AI and search-distribution risk emphasized
The filing newly and separately emphasizes disruption from AI-led ticket search alongside search-engine dependence. This risk is material against a Q2 online-advertising spend of $50.446 million, up $1.816 million year over year, as adverse search placement could require more paid traffic and pressure margins.
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High debt burden and variable-rate exposure
Leverage remains substantial: total debt was $388.1 million at June 30 versus $136.7 million of cash, and interest expense was $6.055 million in Q2. The new $75.0 million revolver has pricing of Term SOFR plus 3.750%, with availability reduced by letters of credit.
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Further impairment remains possible
The impairment risk disclosure remains material: Q2 2025 included $320.4 million of impairment charges, while accumulated goodwill impairment stood at $1.038 billion at December 31, 2025. Goodwill was still $283.5 million, or 41.2% of total assets, at June 30, 2026 and could face further impairment if profitability weakens.
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Operating cash flow relied on payables
Cash generation has a timing risk: six-month operating cash flow of $45.208 million was supported by a $37.5 million working-capital inflow from higher accounts payable. Seasonal ticket-seller payment timing could reverse this benefit in subsequent periods.
Management's outlook
The 10-Q provides no numeric revenue or EPS outlook. Management states that the 2026 FIFA World Cup-driven increase in sports average order size is “not expected to recur in future periods” and is not necessarily indicative of the underlying run rate; numeric FY2026 Marketplace GOV and adjusted EBITDA guidance was provided separately in the August 4 earnings release.
Earlier filings 4
10-K · March 12, 2026
Vivid Seats describes a two-segment model (Marketplace and Resale) focused on marketplace liquidity, proprietary seller tools (Skybox) and loyalty (Vivid Seats Rewards), but the company recorded material deterioration…
10-Q · May 6, 2025
Vivid Seats reported a weaker Q1 (period ended March 31, 2025) with revenues of $164.0M versus $190.9M in Q1 2024 and an operating loss of $4.3M (vs. operating income $20.7M prior year). Gross margin remained high…
10-K · March 12, 2025
Vivid Seats positions itself as a two-segment online ticket marketplace (Marketplace and Resale) focused on customer acquisition, retention, and seller tools (Skybox), with recent product launches including Skybox Drive…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.