StubHub Shares Jump 19% on Q1 Beat, Revenue of $446M
StubHub’s Q1 revenue rose 12% to $446 million, beating forecasts, while net income swung to $48 million from a $22.2 million loss a year earlier. Adjusted EBITDA climbed to $72.1 million with 400-basis-point margin expansion, free cash flow hit $290.6 million, and full-year guidance was reaffirmed.
1. Q1 Financial Results
StubHub reported revenue of $446 million for the quarter ended March 31, up 12% year-over-year and surpassing the $425 million forecast, while gross merchandise sales increased 7% to $2.2 billion and net income swung to $48 million, or $0.06 per share, from a $22.2 million loss a year ago.
2. Profitability and Margins
Adjusted EBITDA rose to $72.1 million, up from $47.9 million year-over-year, driving a 400-basis-point expansion in margins to 16%, reflecting improved operational efficiencies and higher fee realization.
3. Cash Flow and Balance Sheet
Operating cash flow climbed 88% to $298.4 million, free cash flow nearly doubled to $290.6 million, and the company finished the quarter with $1.5 billion in cash against $1.0 billion in payments due; a $100 million debt reduction was completed in May.
4. Outlook and Guidance
Management reaffirmed full-year 2026 guidance with gross merchandise sales expected between $9.9 billion and $10.1 billion and adjusted EBITDA targeted at $400 million to $420 million, while advancing open distribution and advertising initiatives to drive future monetization.