StubHub GMS Falls 8% to $2.3B, Revenue Drops 16%, Wedbush Cuts Rating
Wedbush cut its rating on StubHub Holdings to Neutral after Q2 gross merchandise sales fell about 8% to $2.3 billion and revenue slid 16% to $449 million, with adjusted EBITDA of $63 million missing by $3 million. Management now guides 2026 GMS up 9% to ~$10 billion and EBITDA of $410 million.
1. Weak Q2 Results and Downgrade
StubHub reported Q2 gross merchandise sales of $2.3 billion, down roughly 8% year over year, and revenue of $449 million, a 16% decline that fell about 7% below estimates. Adjusted EBITDA totaled $63 million, missing forecasts by $3 million, prompting Wedbush to lower its rating to Neutral, citing limited visibility in the direct issuance segment and regulatory headwinds from all-in pricing changes and AI disintermediation.
2. Shares Drop to Record Low after Broker Cuts
Shares plunged about 15% to a record low near $8.06 following the results, as J.P. Morgan cut its rating to Neutral and BMO and Bank of America trimmed price targets to $15 and $11. Options volume surged to eight times the daily average, led by buy-to-open activity in March 10.50 calls, reflecting heightened investor caution.