StubHub Holdings, Inc.

StubHub reported second-quarter 2026 revenue of $573 million, up 33% year over year, with GMS of $3.1 billion, up 34% year over year. Adjusted EBITDA nearly doubled to approximately $106 million, and adjusted EBITDA margin was 18%, up nearly 600 basis points year over year. Gross margin was approximately 82%, with GMS-to-revenue conversion around 19%, both impacted by the World Cup mix and higher customer-experience costs. Net income was $14.6 million. For the full year, StubHub raised GMS guidance to $10.1 billion-$10.3 billion, representing 10%-12% growth, while maintaining adjusted EBITDA guidance of $400 million-$420 million. Management said margins should expand in the second half as temporary World Cup-related costs normalize.

Eric Baker framed the quarter as proof that StubHub’s marketplace scale, liquidity, and global reach are becoming more valuable in live events. He emphasized strong demand across sports, concerts, theater, and the World Cup, which he said validated the company’s role in connecting global buyers and sellers. His tone was upbeat but disciplined, repeatedly stressing a cautious, data-driven approach to guidance after the unusually concentrated World Cup demand. He also pointed to open distribution and advertising as longer-term growth opportunities.

Constance James focused on the financial leverage in the model: GMS up 34% to $3.1 billion, revenue up 33% to $573 million, gross margin at about 82%, and adjusted EBITDA at about $106 million. She noted sales and marketing efficiency improved about 800 basis points year over year, while operations and support held near 3% of revenue and G&A rose because of professional fees tied to the regulatory environment. She said trailing 12-month free cash flow was about $598 million, or 194% conversion of adjusted EBITDA, and underlying free cash flow was $288 million. She also said cash and cash equivalents were about $1.7 billion, net leverage improved to 3x from 4.5x at year-end 2025, and debt repayment reached $1.1 billion over the last 12 months, leaving about $1.3 billion of gross debt with no maturities until March 2030.

Analysts pressed management on whether the World Cup pulled demand forward and could cause a softer second half, with several asking why guidance implies relatively modest GMS growth after such a strong Q2. Management would not quantify the World Cup contribution by quarter, saying it was too early to read consumer spending patterns and that guidance is intentionally disciplined. Questions also focused on advertising, where management said sponsored listings remain early and the business expects tens of millions of dollars of full-year revenue. Analysts asked about the operational issues during the World Cup; management acknowledged a small subset of fulfillment problems, said the event was unusually complex, and stressed that customer support spending was proactive as well as reactive.