StubHub Holdings, Inc. Q4 FY2025 earnings call

• StubHub is a leading global ticketing marketplace with durable advantages like leading marketplace position, proven network effects, asset - light online marketplace model, extensive data set, scale, and an exceptional team. - 2025 was a pivotal year with growth, strengthened competitive position, transformed balance sheet, and became a public company. - In 2026, prioritizing building product foundation for direct issuance to scale broadly, shifting from business development - led to product - led strategy. - Advertising business showing promising early results but taking disciplined approach. - Regulatory environment: Secondary ticketing market solves ecosystem needs, StubHub is diversified and aims to educate policymakers.

In 2025, StubHub delivered $9.2 billion of GMS. In the fourth quarter of 2025, GMS was $2.3 billion, down 8% year - over - year. Revenue in the fourth quarter was $449 million, down 16% year - over - year. Adjusted gross margin in the fourth quarter was 83%, up from 76% in the prior year period. For the full year 2025, revenue was $1.7 billion, 19% of GMS compared to $1.8 billion in 2024. Adjusted gross margin for the year was 83%, up 200 basis points from 2024. Adjusted EBITDA for the full year was $232 million, 13% of revenue. North America secondary market has historically grown at low double - digit rates, and StubHub expanded its share in North America to approximately 50% of the secondary market. International GMS growth outpaced that in North America.

For 2026, expect GMS to grow to between $9.9 billion and $10.1 billion (9% growth at midpoint), and adjusted EBITDA to expand to between $400 million and $420 million. GMS growth driven by North American market growth, incremental market share gains, and international growth. 2026 plan reflects evolving direct issuance strategy to more scalable technology - enabled model and raising customer acquisition efficiency in core resale.

• Regulatory changes in live events are complex and could affect the secondary ticketing market. Public discussion often focuses on a subset of the resale market, but StubHub's diversification provides insulation. - AI brings both opportunities and risks, need to execute and innovate appropriately to mitigate risks and seize opportunities. - Primary ticketers' dynamic pricing and other policies could potentially impact the business, but historically no significant impact seen so far.

Q: Doug Anmuth with JP Morgan asked about 9% GMS growth and direct issuance outlook.

A: Doug was answered on market growth drivers, all - in pricing overhang, share gains, international growth, and shift in direct issuance strategy to product development.

Q: Eric Sheridan from Goldman Sachs asked about lessons from marketing in 2025 and acquisition effectiveness in 2026.

A: Answered on marketplace flywheels, relative market share impact, 2025 investment in market share, and 2026 improved acquisition efficiency.

Q: Justin Post from Bank of America asked about concert season, World Cup impact, and U.S. secondary regulatory environment.

A: Answered on concert season health, World Cup inclusion in forecast, and regulatory environment including Live Nation trial.

Q: Mark Mahaney from Evercore ISI asked about advertising initiatives.

A: Answered on advertising revenue generation, testing phase, and disciplined approach for long - term value.

Q: John Blackledge from TD Cowan asked about AI and agentic commerce.

A: Answered on AI's transformational nature, StubHub's position in live event market, marketplace operations and experience layers, and AI's cost efficiency and customer delight benefits.

Q: Brian Pitts, BMO Capital Markets asked about primary ticketers' dynamic pricing and international GMS growth.

A: Answered on no impact from primary ticketers' dynamic pricing historically, international GMS growth at multiples of North America.

Q: Andrew Boone, Citizens asked about marketing efficiency and Reach Pro.

A: Answered on Reach Pro's benefits in share gains and data - wise, and marketing efficiency related to 2025 investment and 2026 normalized marketing levels