StubHub Holdings reported second-quarter revenue of $573.1 million , a 33% increase from a year earlier, but costs outpaced that growth and the company posted a net loss attributable to common stockholders of $40,000, or zero cents a share.
Total costs and expenses reached $553.6 million, a 37% jump that pushed operating income down 22% to $19.5 million for the quarter. Analysts had been expecting a profit of 11 cents a share, according to The Wall Street Journal . A year earlier, the company posted a net loss attributable to stockholders of $75.9 million.
Gross merchandise sales hit $3.1 billion, reflecting a 34% year-over-year gain in the total value of tickets transacted on the platform. The company raised its full-year GMS outlook to a range of $10.1 billion to $10.3 billion.
Founder and Chief Executive Officer Eric Baker credited the quarter's performance to demand for live events and the World Cup. "Fans from more than 150 countries attended matches with tickets bought on the StubHub platform," Baker said on an analyst call, according to The Wall Street Journal.
Revenue costs ran 39% higher than the prior-year period, while marketing and sales outlays increased 16% and general and administrative expenses came close to doubling. On an adjusted basis, gross margin contracted one percentage point to 82% compared with the same period last year. Chief Financial Officer Connie James said on the earnings call that, given the World Cup's scale and complexity, StubHub opted to pour more resources into the customer experience, and that the tournament weighed on payment processing and fulfillment efficiency. "These costs are not representative of our underlying margin structure," James said.
On an adjusted basis, earnings before interest, taxes, depreciation, and amortization came in at $105.7 million, up 94% from $54.3 million a year earlier, representing an 18% margin.
The company also said it made an additional $100 million debt payment in July, bringing total debt reduction to $1.1 billion over the past 12 months. Net leverage improved to 3.0x trailing 12-month adjusted EBITDA as of June 30, down from 4.5x at the end of 2025.
StubHub stock fell 14% on Thursday, extending a year-to-date decline of 37%.
