Vivid Seats Inc. Q4 FY2025 earnings call

1. Leadership team update: Austin Arnett named general counsel, Joe Thomas new CFO. 2. Technology and product: Redoubling focus on product innovation and efficiency, introduced Vivid Seats app within ChatGPT, continuing AI-driven shopping capabilities. 3. Cost reduction: Achieved $60 million annualized savings, reinvesting in growth initiatives. 4. Corporate simplification: Terminated tax receivable agreement and collapsed dual class share structure. 5. Customer value proposition: Centering on being the most rewarding ticket company, appGOV up over 20% YOY, app share of GOV increased by over 500 basis points since Q3 last year.

In Q4 2025, marketplace GOV was $581 million compared to $994 million in the prior year. Total marketplace orders were down 32% year-over-year with average order size down to $329 from $380. Revenues were $127 million vs. $200 million prior year. Marketplace take rate was 16.8% in Q4 2025, up slightly from 16.6% in Q4 2024. Adjusted EBITDA for the quarter was $1 million. Annualized cost reduction target of $60 million was achieved. Ended Q4 with $103 million cash and $390 million debt, net debt $287 million. Q1 2026 guidance: GOV $570 - $620 million, adjusted EBITDA $8 - $10 million, cash balance $125 - $135 million. Fiscal year 2026 guidance: GOV $2.2 - $2.6 billion, adjusted EBITDA $30 - $40 million.

1. Fiscal year 2026: Expect marketplace GOV in range of $2.2 to $2.6 billion and adjusted EBITDA in range of $30 to $40 million. 2. Q1 2026: Expect marketplace GOV in range of $570 to $620 million, adjusted EBITDA $8 to $10 million, cash balance $125 to $135 million.

1. Competitive dynamics and intensity, with some competitors still aggressive on GOV and volume over unit economics. 2. Industry trends and fluctuations, such as seasonally lower working capital flow in Q4. 3. AI impact still in early stages with unclear consumer behavior reflection. 4. Regulatory uncertainties and details in term sheets yet to be fully understood.

Q: Ryan Sigdahl from Craig Hallam Capital Group asked about competitive dynamics and AI impact.

A: Ryan was told competitive landscape has moderation, AI direct traffic from AI channel is a very small percentage.

Q: Cameron Mastone-Peron from Morgan Stanley asked about industry trends and World Cup.

A: Q4 industry was down double digits, Q1 on sales picked up, World Cup volumes expected to be substantial.

Q: Dan Kernos from Benchmark asked about customer acquisition strategy.

A: Focus on clear value prop, onboarding experience, targeted messaging to existing database and exploring complementary marketing channels.

Q: Maria Ripps from Canaccord asked about Vivid app in ChatGPT and supply side.

A: ChatGPT app not mainstream yet, conversion rates higher but data not clear; supply side had solid concert lineup in Q1.

Q: Thomas Forte from Maxim Group asked about recurring sporting events and cash conversion.

A: Recurring sports have higher repeat proclivity, cash conversion depends on EBITDA and working capital.

Q: Andrew Marock from Raymond James asked about comps.

A: Super Bowl comps had up-down-up, MLB comp most daunting.

Q: Benjamin Black from Deutsche Bank asked about guidance and app share.

A: Can reach high end of guidance through execution; app share growth from new customers and existing customer repeat.

Q: Ralph Shackert from William Blair asked about key priorities.

A: Refined strategy includes efficiency, enhanced value proposition, focused core customer journey and private label return to growth.