StubHub Holdings, Inc. Q3 FY2025 earnings call

• Eric highlighted that StubHub has consistently gained market share in the North American market, with GMS now approximately 4x larger than a competitor based on comparable metrics. The company launched ReachPro, a point-of-sale product, which has seen rapid adoption and is driving market share gains.
• Direct issuance is a key strategic initiative, aiming to allow enterprise sellers like sports teams and promoters to access StubHub's marketplace. MLB and music festivals have already partnered with StubHub for open distribution. The addressable market for direct issuance is over $100 billion.
• StubHub is developing an advertising business with two models: sponsored listings for sellers to bid for premier placement and corporate advertising partnerships. Examples include Booking.com for event tourism.
• Connie discussed the company's financial principles of prioritizing sustainable market share growth, long-term margin expansion, and cash flow generation. The business model has favorable cash flow characteristics with minimal CapEx and significant NOLs leading to low cash taxes.

StubHub's gross merchandise sales (GMS) in the third quarter of 2025 reached $2.4 billion, representing an 11% growth from the prior year period. Revenue for the third quarter was $468 million, up 8% compared to the previous year. Adjusted EBITDA was $67 million, representing 14% of revenue, up 21% from the same period last year. GMS growth reflects sustained share gains in the North America secondary ticketing market and continued international expansion. Revenue growth was driven by GMS growth but offset by a reduction in take rates for market share expansion and phasing out minimum guarantees for direct issuance sellers.

• Eric stated that no detailed 2026 guidance would be provided on this call, with the outlook to be shared during the next earnings call in early 2026.
• Connie mentioned that while not providing specific 2025 guidance, the company plans to share annual guidance for 2026 when reporting fourth quarter and full-year 2025 results.

• The transition to federally mandated all-in pricing in the United States had an estimated 10% one-time impact on the size of the North American secondary ticketing market, with this effect expected to continue influencing year-over-year comparisons through May 2026.
• Timing shifts in on-sales of events, such as the concentration of seller proceed outflows and shifts in concert on-sale timing, can impact quarterly comparisons.

Q: Could you talk about the pull forward in 3Q affecting 4Q and the impact of unfavorable World Series relative to last year?

A: Connie said there was a timing shift in on-sales in September, but the company is focused on long-term market share capture. The outlook for 2026 remains strong, and the company is well-positioned to capture on-sales when they occur.

Q: How does StubHub manage speculative selling?

A: Connie stated the focus is on long-term market share capture, and Eric added that minimizing fraud and ensuring authentic ticket delivery is part of the business, with the company focused on business as usual to guarantee genuine ticket transactions.