StubHub Holdings Incorporation Class A (STUB) AI Stock Analysis

• Market Cap: $3.30B
• Dividend Yield: N/A
• Average Volume (3M): 3.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 16.55%
• EPS Growth: -675.83%
• Country: US
• Employees: 918
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): -4.27
• Shares Outstanding: 320,789,980
• 10 Day Avg. Volume: 3,344,280
• 30 Day Avg. Volume: 3,325,079
• PEG Ratio: 22.44
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 28.08
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: -2.62
• 1Y Price Target: $15.17
• Price Target Upside: 59.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): $2.49B

• Rating: 58 Neutral
• Price Target: $11.50 ▲(21.18% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven mainly by mixed financial performance (exceptional revenue growth but ongoing profitability and leverage concerns) and a constructive earnings call (solid GMS/revenue/adjusted EBITDA growth and meaningful debt reduction). These positives are tempered by weak technical trends (below key moving averages with negative MACD) and valuation constraints due to losses (negative P/E and no dividend yield provided).

Positive Factors

Dominant North American market share

Sizable market share (roughly 4x the nearest rival by GMS) creates durable network effects: more buyers attract more sellers and vice versa, supporting pricing power, distribution scale, and higher seller adoption of tools like ReachPro, reinforcing competitive moat over the medium term.

High gross margin with strong revenue momentum

Very high gross margin (81%) combined with large revenue growth indicates a scalable marketplace with low incremental cost of transactions. This supports reinvestment in product, marketing, and direct-issuance initiatives, enabling sustained market expansion and margin leverage as scale continues.

Material liquidity and debt reduction

A 30% reduction in total debt and a $1.4B cash balance materially improve financial flexibility. Lower leverage and ample cash reduce refinancing and liquidity risk, enabling continued investment in market-share initiatives and strategic partnerships without immediate balance-sheet pressure.

Negative Factors

Elevated leverage and modest equity base

Relatively high leverage (debt/equity ~1.7) and a modest equity ratio constrain financial flexibility, raising interest and refinancing sensitivity. Negative ROE signals the company is not yet generating returns for shareholders, amplifying downside if revenue or cash generation weakens.

Negative net income and earnings deterioration

A negative net margin and steep EPS decline indicate remaining profitability hurdles despite healthy gross and EBITDA margins. Persistent bottom-line losses limit retained earnings, restrict organic capital formation, and may force continued reliance on external financing to fund growth initiatives.

Declining free cash flow growth

A 35% drop in free cash flow growth and only $6M trailing FCF point to constrained cash available for reinvestment or faster debt paydown. Even with positive operating cash conversion, weaker FCF growth can limit strategic flexibility and increase dependence on balance-sheet actions to fund expansion.

StubHub Holdings Incorporation Class A Business Overview & Revenue Model

Company Description

StubHub is a leading global platform for secondary ticket sales for live events, facilitating millions of tickets for sports, concerts, theater, and more across over 200 countries. Founded in 2000, it enables buyers and sellers to connect and transact tickets through its online marketplace, earning primarily through transaction fees. The platform supports various event types and offers a digital marketplace for ticket resale.

How the Company Makes Money

StubHub generates revenue primarily through service fees charged to both buyers and sellers on its platform. When a ticket is sold, StubHub takes a percentage of the sale price as a commission, which constitutes a significant portion of its earnings. Additionally, the company earns money through promotional partnerships and collaborations with event organizers and venues, enhancing ticket visibility and sales through targeted marketing. StubHub also benefits from ancillary revenue streams, such as advertising on its platform and selling ticket-related services, which further contribute to its financial performance.

StubHub Holdings Incorporation Class A Financial Statement Overview

Summary

Very strong revenue growth (120.38%) and high gross margin (81.13%) are positives, but profitability is still weak with a negative net profit margin (-0.16%). Leverage is elevated (debt-to-equity 1.69) and ROE is negative (-0.20%). Cash generation is mixed: operating cash flow is positive relative to net income (0.24), but free cash flow growth is declining (-35.44%).

Income Statement

The company has shown impressive revenue growth of 120.38% in the latest year, indicating strong market demand or successful expansion strategies. However, the net profit margin is negative at -0.16%, suggesting profitability challenges despite the high gross profit margin of 81.13%. The EBIT and EBITDA margins are healthy at 12.26% and 13.64% respectively, but the negative net income highlights potential cost management issues.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.69, indicating significant leverage which could pose financial risks if not managed properly. The return on equity is negative at -0.20%, reflecting the company's struggle to generate profit from shareholders' equity. The equity ratio stands at 27.05%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

The free cash flow growth rate is negative at -35.44%, indicating a decline in cash available for reinvestment or debt repayment. However, the operating cash flow to net income ratio is positive at 0.24, suggesting that the company is generating cash from its operations despite reporting a net loss. The free cash flow to net income ratio is high at 97.56%, indicating efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.77B	1.37B	1.04B	672.79M	35.64M
Gross Profit	1.45B	1.44B	1.14B	851.10M	583.77M	-191.38M
EBITDA	-1.23B	241.57M	264.29M	-43.71M	-251.81M	-617.56M
Net Income	-1.32B	-2.80M	405.20M	-260.99M	-629.95M	-910.71M
Balance Sheet
Total Assets	5.60B	5.09B	4.98B	4.34B	4.41B	4.86B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.00B	775.71M	372.36M	554.06M	673.08M
Total Debt	1.65B	2.33B	2.41B	2.40B	2.44B	2.48B
Total Liabilities	3.15B	3.72B	3.59B	3.44B	3.27B	3.38B
Stockholders Equity	2.45B	1.38B	1.39B	907.43M	1.14B	1.48B
Cash Flow
Free Cash Flow	164.25M	255.11M	301.95M	-49.83M	-139.64M	-253.47M
Operating Cash Flow	181.44M	261.49M	307.39M	-47.52M	-136.09M	-252.41M
Investing Cash Flow	-25.21M	-6.38M	-5.44M	-710.00K	-49.00M	-4.06B
Financing Cash Flow	224.54M	-46.71M	94.13M	-134.15M	126.13M	4.71B

StubHub Holdings Incorporation Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTF	66 Neutral	$337.30M	-10.85	-20.20%	―	-6.23%	28.57%
EB	64 Neutral	$443.92M	-38.14	-5.81%	―	-11.54%	-54.32%
SPT	61 Neutral	$400.85M	-8.36	-26.69%	―	13.09%	32.34%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STUB	58 Neutral	$3.30B	-2.28	―	―	16.55%	-675.83%
GRND	53 Neutral	$2.08B	-30.18	-171.54%	―	28.97%	-4.18%
SMRT	51 Neutral	$298.94M	-4.56	-25.48%	―	-24.30%	-181.62%