10-Q · May 13, 2026
StubHub Holdings, Inc. reported Q1 2026 revenue of $446.0 million, up 12.2% year-over-year, exceeding estimates of $420.5 million. EPS reached $0.06 compared to the expected $0.03, marking a significant turnaround from…
Earnings analysis · 10-Q
STUB earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
StubHub delivered strong Q2 growth, with revenue up 33.2% year over year to $573.1 million, GMS up 34% to $3.1 billion, and free cash flow of $309.7 million. However, gross and operating margins declined sequentially,…
Read full summary
StubHub delivered strong Q2 growth, with revenue up 33.2% year over year to $573.1 million, GMS up 34% to $3.1 billion, and free cash flow of $309.7 million. However, gross and operating margins declined sequentially, diluted EPS was $0.00, and elevated stock compensation of $69.0 million weighed on GAAP earnings. Liquidity and debt improved, but persistent material weaknesses, $139.6 million of legal accruals, significant leverage, and currency exposure temper the positive operating momentum.
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.
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.
Reported figures
- Earnings per share
- $0.0
- Segment
- Single operating and reportable segment: $573.1 million revenue in Q2 2026, up 33.2% year over year from $430.3 million; transaction fees were $562.1 million and other revenue was $10.9 million.
What stood out
-
Revenue accelerated strongly
Q2 revenue was $573.1 million, up $127.1 million, or 28.5%, sequentially from $446.0 million and up 33.2% year over year from $430.3 million. Management attributed the year-over-year increase primarily to higher GMS per transaction.
-
GMS and EBITDA surged
GMS increased 34% year over year to $3.1 billion from $2.3 billion, led by ongoing North American and international secondary-market growth and the World Cup. Adjusted EBITDA rose 94% to $105.7 million from $54.3 million.
-
Margins compressed
Gross margin was 82%, down from 85.2% in Q1 2026 and 83% in Q2 2025. Operating margin was 3.4%, versus 5.8% in Q1 and approximately 5.8% in the prior-year quarter, reflecting increased operating expenses.
-
GAAP profit but EPS missed
Diluted EPS was $0.00, down from $0.06 in Q1 2026 and versus $(0.25) in Q2 2025. Net income was $14.6 million compared with a $53.8 million net loss in the prior-year quarter, but $69.0 million of stock-based compensation materially affected reported earnings.
-
Cash generation strengthened
Operating cash flow was $321.9 million in Q2, versus $19.3 million in Q2 2025, and free cash flow was $309.7 million versus $9.7 million. Six-month operating cash flow reached $620.3 million, with $20.0 million of investing cash outflows, implying low capex intensity relative to cash generation.
-
Balance sheet improved
Cash and cash equivalents increased to $1.693 billion from $1.242 billion at December 31, 2025. Term-loan debt declined to $1.396 billion net from $1.507 billion, following a $100.0 million May repayment; management disclosed another $100.0 million repayment in July and expects liquidity to cover requirements for at least 12 months.
What to watch
-
Material weaknesses persist
The company stated that disclosure controls were not effective as of June 30, 2026 because previously reported material weaknesses remained. The weaknesses span accounting personnel, financial reporting controls, revenue and tax accounting, and IT controls, and management warned they could affect substantially all accounts or disclosures.
-
Litigation and tax exposure
Accrued legal and regulatory losses totaled $139.6 million as of June 30, 2026. The Pennsylvania matter was deemed probable but had no estimable loss range, while the company also recorded an $8.0 million D.C. AG accrual and a $68.0 million state sales-tax liability.
-
SBC and debt burden
Stock-based compensation expense rose to $69.0 million in Q2 from $2.0 million a year earlier and totaled $100.0 million for the first six months. The company also had $1.396 billion of net long-term debt, with stated June 30 rates of 7.18% on the euro term loan and 8.39% on the USD term loan.
-
Currency volatility remains material
The filing states there were no material changes to the risk factors disclosed in the 2025 Form 10-K. Nevertheless, the euro-denominated term loan creates material currency sensitivity: a hypothetical 10% euro-dollar move would have changed reported foreign-currency gains or losses by $51.6 million.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Prior outlook figures were disclosed in the August 12, 2026 earnings release rather than the filing.
Earlier filings 3
10-K · March 5, 2026
StubHub Holdings, Inc. reported a net loss of $1.91 billion for the year ending December 31, 2025, despite a slight revenue decrease of 1% to $1.75 billion. The company's gross merchandise sales reached $9.2 billion,…
10-Q · November 14, 2025
StubHub Holdings reported its Q3 2025 results, showing a revenue increase to $468 million, up 7.9% year-over-year, despite a broadened net loss of $1.295 billion. Operating expenses surged, particularly in sales and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.