StubHub Raises 2026 GMS Outlook After Record Quarter

The Tip Desk · August 12, 2026 · 4 min read

Gross merchandise sales reached a record $3.1 billion in the second quarter, up 34% from a year earlier, and the company lifted its full-year GMS range to $10.1 billion to $10.3 billion.

StubHub Holdings (STUB), a global ticketing marketplace for live events, reported record second-quarter gross merchandise sales of $3.1 billion, up 34% from a year earlier, after first-quarter GMS growth of 7%.

The acceleration marked a break from the slower start to the year. Revenue reached a record $573.1 million, up 33% from a year earlier, after 12% year-over-year growth in the first quarter. Adjusted EBITDA rose 94% to $105.7 million, with the margin expanding to 18% from 16% in the prior quarter.

Founder, Chairman and Chief Executive Officer Eric Baker said the quarter “demonstrated strong demand for live events, highlighted by a record-setting World Cup,” and that results reflected StubHub’s position in the resale market.

Revenue equaled approximately 19% of GMS, down from 20% in the first quarter. Net income was $14.6 million, a 3% margin, compared with a $48.0 million profit and 11% margin in the first quarter. Cost of revenue was $104.6 million. Sales and marketing expense was $274.1 million. General and administrative expense was $146.3 million, including $69.0 million of stock-based compensation, $3.9 million of indirect tax contingency costs and $3.4 million of litigation reserves. Adjusted general and administrative expense was $77.7 million. Adjusted gross margin was 82% of revenue.

The company raised its full-year 2026 GMS outlook to $10.1 billion to $10.3 billion from $9.9 billion to $10.1 billion. It reiterated adjusted EBITDA guidance of $400 million to $420 million.

Cash generation continued to strengthen. Net cash provided by operating activities was $321.9 million in the quarter, compared with $19.3 million a year earlier. Free cash flow was $309.7 million. Trailing 12-month free cash flow was $597.6 million. Cash and cash equivalents were $1.7 billion at June 30, 2026. Payments due to sellers were $1.2 billion.

StubHub reduced debt by $200.0 million year to date, including $100.0 million payments in May and July, bringing total debt reduction to $1.1 billion in the last 12 months. Net leverage improved to 3.0 times trailing 12-month adjusted EBITDA as of June 30, 2026, from 4.5 times as of December 31, 2025. Long-term debt obligations, non-current, were $1.4 billion.

Interest expense in the quarter was $22.2 million. Interest income was $12.2 million. The company recorded a $1.9 million loss on extinguishment of debt. Foreign currency gains were $3.9 million.

Baker said the company remains focused on enhancing the fan experience, democratizing access to live events and expanding its addressable market. The company services customers in more than 200 countries and territories.

The quarter’s mix was a World Cup-driven spike in ticket volume rather than a higher take rate. GMS of $3.1 billion and revenue of $573.1 million both set company records, and the 19% take rate sat below the first quarter’s 20%. Adjusted EBITDA of $105.7 million and an 18% margin showed the scale translating into operating profit even as the company booked $69.0 million of stock-based compensation and $7.3 million of tax and litigation add-backs in the adjusted EBITDA reconciliation.

Cash and cash equivalents of $1.7 billion sat against $1.2 billion of payments due to sellers. Operating cash flow of $321.9 million and free cash flow of $309.7 million funded the May and July $100.0 million debt payments, leaving net leverage at 3.0 times trailing 12-month adjusted EBITDA. Trailing 12-month free cash flow of $597.6 million gave a longer view that is less affected by seasonality in GMS and seller payments.

The raised GMS range of $10.1 billion to $10.3 billion now sits above the $9.9 billion to $10.1 billion band reiterated after the first quarter. Adjusted EBITDA guidance of $400 million to $420 million was left unchanged.

Baker’s comments on the World Cup and on long-term growth framed the quarter as a demand event layered on StubHub’s resale marketplace, with the company still describing its mission as expanding access to live events rather than as a shift in how it prices tickets. The 19% take rate, the $14.6 million net profit and the $105.7 million of adjusted EBITDA are the operating snapshot of that mix.