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Get filing alertsStubHub reports record Q2 with GMS up 34% to $3.1B, swings to profit, raises guidance
Filed August 12, 2026 · Period ending August 12, 2026 · ~1 min read
Key Changes
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Q2 GMS surged 34% to $3.1B and revenue rose 33% to $573M, driven by strong live-event demand including World Cup. Company swung to $14.6M net income from $53.8M loss year-ago; adjusted EBITDA nearly doubled to $105.7M (18% margin).
Exhibit 99.1 view on EDGAR → -
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Paid down $200M debt year-to-date ($1.1B over trailing 12 months), reducing net leverage to 3.0x from 4.5x at year-end 2025. Operating cash flow jumped to $321.9M from $19.3M year-ago; free cash flow reached $309.7M.
Exhibit 99.1 view on EDGAR → -
high
Raised full-year 2026 GMS guidance to $10.1B–$10.3B while reiterating adjusted EBITDA outlook of $400M–$420M, reflecting confidence in sustained live-event demand.
Exhibit 99.1 view on EDGAR → -
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Stock-based compensation expense surged to $69M in Q2 from $2M year-ago ($100M vs. $7.5M for first half), tied to IPO equity awards and retention programs. Non-cash charge excluded from adjusted EBITDA.
Exhibit 99.1 view on EDGAR →
Summary
StubHub delivered a breakout second quarter, with gross merchandise sales climbing 34% to $3.1 billion and revenue up 33% to $573 million, fueled by robust demand for live events including a record-setting World Cup.
The company swung to a $14.6 million profit from a $53.8 million loss in the prior-year period, while adjusted EBITDA nearly doubled to $105.7 million with margin expanding nearly 600 basis points to 18%. Operating cash flow surged to $321.9 million from $19.3 million, enabling $200 million in year-to-date debt reduction and bringing net leverage down to 3.0x from 4.5x at year-end 2025.
Management raised full-year GMS guidance to $10.1 billion–$10.3 billion while reiterating the $400 million–$420 million adjusted EBITDA outlook, signaling confidence in sustained momentum. The strong cash generation and deleveraging trajectory improve financial flexibility. Stock-based compensation expense jumped to $69 million in the quarter from $2 million year-ago, reflecting IPO-related equity awards, though this non-cash charge is excluded from adjusted EBITDA. The combination of accelerating top-line growth, margin expansion, and aggressive debt paydown positions StubHub well as it scales its live-event marketplace.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Further strengthened balance sheet with year-to-date debt reduction of $200.0 million, including a $100.0 million payment in May and a $100.0 million payment in July, with total debt reduction of $1.1 billion in the last 12 months.
•Net leverage ... improved to 3.0x trailing 12-month adjusted EBITDA as of June 30, 2026, a 1.5x reduction compared to 4.5x as of December 31, 2025.
StubHub made $200 million in debt payments year-to-date through June 2026 ($100 million in May, $100 million in July), part of $1.1 billion in total debt reduction over the trailing 12 months. Net leverage improved significantly to 3.0x trailing-12-month adjusted EBITDA as of June 30, 2026, down from 4.5x at year-end 2025, demonstrating substantial deleveraging and improved financial flexibility.
Added in current filing · view on EDGAR →
Net cash provided by operating activities was $321.9 million, inclusive of net inflows of buyer receipts and seller payments, compared to $19.3 million in the prior-year period.
•Free cash flow ... was $309.7 million, compared to $9.7 million in the prior-year period.
StubHub generated $321.9 million in operating cash flow during Q2 2026, up dramatically from $19.3 million in the prior-year period, driven by strong business performance and favorable working capital dynamics. Free cash flow reached $309.7 million versus $9.7 million in Q2 2025, providing substantial resources for debt reduction and other capital allocation priorities.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 13, 2026 · How we verify