Core Insights - Vivid Seats Inc. operates as an online ticket marketplace but faces significant financial challenges, particularly in capital utilization efficiency [1][6] Financial Performance - Vivid Seats has a Return on Invested Capital (ROIC) of -61.41%, which is substantially lower than its Weighted Average Cost of Capital (WACC) of 5.00%, indicating inefficiencies in capital utilization [2][6] - In contrast, Sovos Brands, Inc. has a positive ROIC of 5.54% and a WACC of 5.21%, suggesting effective capital utilization and value creation for shareholders [3][6] - Bowlero Corp. and CareMax, Inc. also show negative ROICs of -114.39% and -117.47%, respectively, highlighting similar inefficiencies in capital utilization despite differing business models [4][6] - Stagwell Inc. presents a mixed financial picture with a positive ROIC of 3.11% but a WACC of 4.23%, indicating that while returns are generated, they are insufficient to cover the cost of capital [5][6]

Core Insights - Vivid Seats Inc. has launched an upgraded mobile app aimed at enhancing the event discovery experience for fans, focusing on personalization and ease of use [1][2][3] Group 1: App Features - The updated app includes a new interactive map for real-time event browsing, allowing users to filter by venue, event type, and price range [4] - Enhanced seat previewing provides hyper-realistic visuals of venue-specific views, addressing common consumer concerns about sightlines [4] - Users can connect their Spotify accounts for personalized concert recommendations based on their listening habits, and follow favorite teams and venues for tailored notifications [4] Group 2: Value Proposition - Vivid Seats emphasizes a customer-first approach with features like the Lowest Price Guarantee and All-in Pricing, ensuring transparency in ticket costs [6] - The Vivid Seats Rewards program allows fans to earn rewards on every purchase, offering exclusive perks such as surprise gifts and ticket upgrades [6] Group 3: Company Background - Founded in 2001, Vivid Seats is a leading online ticket marketplace that connects fans with a wide selection of live events across North America [7] - The company has been recognized for its customer service excellence, reinforcing its commitment to providing exceptional value in the ticketing industry [7]

Core Insights - Vivid Seats Inc. operates in a competitive online ticket marketplace but faces significant financial challenges, particularly in capital efficiency [1][5] Financial Performance - Vivid Seats has a Return on Invested Capital (ROIC) of -61.41%, which is substantially lower than its Weighted Average Cost of Capital (WACC) of 4.95%, indicating insufficient returns to cover capital costs [2][5] - The ROIC to WACC ratio for Vivid Seats is -12.41, further emphasizing its inefficiency in capital utilization [2] - In contrast, Sovos Brands, Inc. has a positive ROIC of 5.54% and a WACC of 5.21%, suggesting effective capital use and strong financial health [3][5] - Bowlero Corp. and CareMax, Inc. both report negative ROICs of -114.39% and -117.47%, respectively, indicating similar challenges in covering their capital costs as Vivid Seats [4][5] - Stagwell Inc. shows a slightly better scenario with a positive ROIC of 3.11%, although it still does not meet its WACC of 4.11%, indicating room for improvement [4]

Core Insights - Vivid Seats Inc. has announced a strategic collaboration with United Airlines to allow MileagePlus members to earn miles on live event ticket purchases through Vivid Seats [2][4] Group 1: Collaboration Details - United MileagePlus members can earn two miles per dollar spent on Vivid Seats purchases exclusively at united.vividseats.com [3] - Eligible United MileagePlus Chase Cardmembers can earn additional miles, with United Explorer Cardmembers earning three miles per dollar and United Quest Cardmembers earning four miles per dollar spent [3] - United Club and United Club Business Cardmembers will earn five miles per dollar spent [3] Group 2: Strategic Importance - The partnership aims to leverage United Airlines' extensive loyalty program, which has over 130 million members, to reach new audiences [4] - Vivid Seats will connect customers to personalized content through United's Kinective Media, enhancing the travel experience with integrated media [4] Group 3: Company Overview - Vivid Seats, founded in 2001, is a leading online ticket marketplace focused on connecting fans to live events [6][7] - The company offers a wide selection of events and tickets in North America and has been recognized for its customer service [7]

Core Strategy and Value Proposition - The company is increasing focus and investment in delivering a leading value proposition to customers, combining a loyalty program with a lowest price guarantee in the app, which is expected to enhance customer engagement and transaction volume [1][5] - The foundational advantages of the company, including leading technology and unique data, are seen as critical for returning to profitable growth, with a focus on building a loyal customer base [2][11] Leadership Transition - A leadership transition has occurred, with Lawrence C. Fey succeeding Stan Chia as CEO, who is credited with guiding the company through significant challenges [3][4] - The new CEO aims to take decisive actions to reverse recent trends and position the company for long-term success [3][4] Financial Performance and Outlook - In Q3, the company reported $618 million in Marketplace Gross Order Value (GOV), down 29% year-over-year, with revenues of $136 million, also down 27% [13][14] - The company anticipates 2026 Marketplace GOV to be between $2.2 billion and $2.6 billion, with an expected adjusted EBITDA of $30 to $40 million [15][16] Cost Reduction and Corporate Simplification - The company has doubled its fixed cost reduction target from $25 million to $60 million, with substantial progress already made [7][10] - A corporate simplification agreement has been executed, which is expected to yield significant savings and improve operational efficiency [8][9] Marketing and Customer Engagement - A national marketing campaign in partnership with ESPN aims to increase awareness of the app, reaching over 127 million global subscribers [6][39] - The company is focusing on personalized marketing efforts to engage existing users and drive app usage [41][42] Competitive Landscape - The competitive environment has shown signs of stabilization, with a noted shift in marketing aggressiveness from competitors like StubHub [30][56] - The company believes that its enhanced app value proposition will provide a competitive edge, particularly as it moves more transactions into the app [5][47] International Expansion and Market Position - The international business has reached a contribution margin positive status, with plans to continue investing in competitive supply across various countries [66] - The company is focused on defending its core business while exploring opportunities for future growth and potential consolidation in the industry [62][66]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported $618 million in marketplace Gross Order Value (GOV), down 29% year-over-year, and $136 million in revenues, down 27% year-over-year [12][14] - The adjusted EBITDA for Q3 was $5 million, significantly lower than the previous year due to reduced volume and lower take rates [13][14] - The marketplace take rate decreased to 17.0% from 17.5% in Q3 2024, with expectations of near-term take rates in the 16% range [13] Business Line Data and Key Metrics Changes - The private label business faced significant pressure, contributing to the overall decline in marketplace orders, which were also down 29% year-over-year [12] - Owned properties showed signs of stabilization with sequential GOV growth, while the Vivid Seats App experienced double-digit sequential growth and returned to year-over-year GOV growth [10][12] Market Data and Key Metrics Changes - The overall marketplace GOV was down 10% sequentially compared to Q2 2025, primarily due to private label headwinds [12] - The company ended Q3 with $391 million in debt and $145 million in cash, resulting in a net debt of $246 million [15] Company Strategy and Development Direction - The new CEO emphasized a strategy focused on enhancing the app's value proposition, including the launch of a Lowest Price Guarantee and a loyalty program [5][6] - The company plans to double its fixed cost reduction target from $25 million to $60 million, aiming for a more efficient operational structure [8][9] - Investments will be directed towards building a loyal customer base and improving the app's performance, which is expected to insulate the company from competitive pressures in performance marketing [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competitive environment but expressed confidence in the company's path to recovery and growth through strategic investments [4][10] - The initial guidance for 2026 anticipates marketplace GOV in the range of $2.2 billion to $2.6 billion, assuming industry volumes remain flat year-over-year [14][15] Other Important Information - A leadership transition was announced, with Lawrence Fey becoming the new CEO and Ted Pickus serving as interim CFO [3][11] - The company is focusing on corporate simplification to yield substantial savings and improve operational efficiency [9] Q&A Session Summary Question: What gives confidence in issuing 2026 guidance early? - Management indicated that the guidance assumes a flat year-over-year industry outlook and is based on recent stabilization trends and cost reduction initiatives [18][20] Question: Can you elaborate on the leadership transition? - The transition was deemed necessary to prepare the business for an efficiency push, with the new CEO focusing on enhancing the app's value proposition [26][28] Question: Are competitors focusing more on profitability? - There has been a notable shift in competitive posture, with some competitors reducing marketing aggressiveness, which has positively impacted Vivid Seats' market share [32][34] Question: What assumptions are built into the 2026 outlook regarding the World Cup? - The company has not assumed a meaningful impact from the World Cup due to a lack of precedent data and aggressive monetization strategies from FIFA [52][53] Question: How is the company driving awareness of the app? - A brand marketing surge via ESPN is planned, focusing on targeted performance-based metrics rather than broad brand marketing [47][48] Question: What are the capital allocation priorities? - The company will prioritize reinvesting in the core business and maintaining capital for strategic initiatives, with a cautious approach to cash outflows [70][71] Question: What signals are seen in the international business? - The international business has reached contribution margin positivity, and the company plans to continue investing in competitive supply areas [73][75]

Q3 2025 Financial Results November 6, 2025 (Nasdaq: SEAT) Important Disclaimers Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "can," "continue," "could," "design," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "may," "plan," "project," "propose," "seek," "should," "target," "will," and "would," a ...

Financial Performance - Total revenues for Q3 2025 were $136.4 million, a decrease of 27% compared to $186.6 million in Q3 2024[19]. - Net loss for Q3 2025 was $19.7 million, compared to a net income of $9.2 million in Q3 2024[21]. - For the nine months ended September 30, 2025, Vivid Seats Inc. reported a net loss of $292.828 million, compared to a net income of $18.716 million for the same period in 2024[29]. - Net income for the quarter was $5,296,000, showing a significant increase compared to the previous period[24]. - The company reported a loss from operations of $22.8 million for the three months ended September 30, 2025, compared to income from operations of $10.8 million for the same period in 2024[53]. - For the three months ended September 30, 2025, Vivid Seats reported a net loss of $19.713 million compared to a net income of $9.196 million in the same period of 2024, representing a significant decline[164]. - The net income attributable to Class A common stockholders for the nine months ended September 30, 2025, was a loss of $154.143 million, down from a profit of $10.311 million in 2024[164]. Assets and Liabilities - Total current assets decreased to $233.9 million as of September 30, 2025, down from $345.2 million as of December 31, 2024[16]. - Total liabilities decreased to $771.6 million as of September 30, 2025, compared to $1.0 billion as of December 31, 2024[16]. - The company’s total assets decreased to $1.1 billion as of September 30, 2025, down from $1.6 billion as of December 31, 2024[16]. - Cash and cash equivalents decreased to $145.1 million as of September 30, 2025, from $243.5 million as of December 31, 2024[16]. - The company’s accumulated deficit increased to $1.1 billion as of September 30, 2025, compared to $930.2 million as of December 31, 2024[16]. Impairment and Expenses - The company reported a significant impairment charge of $320.4 million for the nine months ended September 30, 2025[19]. - The company incurred impairment charges of $320.449 million during the nine months ended September 30, 2025[29]. - Goodwill, net, decreased to $648.6 million as of September 30, 2025, from $943.1 million at the end of 2024, primarily due to a non-cash impairment expense of $297.4 million recognized in Q2 2025[62]. - A non-cash impairment expense of $23.0 million was recognized for certain indefinite-lived trademarks during the three and nine months ended September 30, 2025, following a quantitative impairment test[72]. Revenue Breakdown - For the three months ended September 30, 2025, Marketplace revenues were $104.8 million, a decrease of 31.3% from $152.7 million in the same period of 2024[43]. - Resale revenues for the three months ended September 30, 2025, were $31.5 million, down from $34.0 million in the same period of 2024, representing a decline of 7.4%[44]. - The contribution margin for the three months ended September 30, 2025, was $36.1 million, down from $67.7 million in the same period of 2024, representing a decline of 46.6%[53]. Stock and Equity - Issuances of Class A common stock totaled 16,563 shares during the quarter[24]. - The company experienced a repurchase of Class A common stock amounting to $2,929,000, demonstrating a commitment to shareholder value[24]. - The company repurchased Class A common stock amounting to $18.292 million during the nine months ended September 30, 2025[29]. - The company authorized a share repurchase program for up to $100.0 million of Class A common stock on February 29, 2024[116]. - As of September 30, 2025, $59.1 million remained available for future repurchases under the Share Repurchase Program[118]. Tax and Compliance - For the nine months ended September 30, 2025, Vivid Seats recorded an income tax benefit of $9.2 million and an income tax expense of $70.1 million[134]. - The total Tax Receivable Agreement (TRA) payment obligation was estimated at $155.7 million as of September 30, 2025, with $5.9 million deemed probable[139]. - The company was in compliance with all debt covenants related to the 2025 First Lien Loan and the 2024 First Lien Loan as of September 30, 2025[97]. Corporate Structure and Changes - The company entered into a Corporate Simplification Agreement on October 19, 2025, aimed at simplifying its corporate structure, which included the merger of three Blocker Corporations into wholly owned subsidiaries[166]. - The Corporate Simplification involved the exchange of all Class B common stock for Class A common stock, resulting in the cancellation of all outstanding Class B shares[168]. - The company issued an aggregate of 403,022 shares of Class A common stock to the TRA Parties as part of the Corporate Simplification[168].

Financial Performance - Marketplace Gross Order Value (GOV) for Q3 2025 was $618.1 million, down 29% from $871.7 million in Q3 2024[7] - Revenues for Q3 2025 were $136.4 million, down 27% from $186.6 million in Q3 2024[7] - Net loss for Q3 2025 was $19.7 million, compared to net income of $9.2 million in Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $4.9 million, down from $34.1 million in Q3 2024[7] - Total revenues for the three months ended September 30, 2025, were $136,373,000, a decrease of 27% compared to $186,605,000 for the same period in 2024[21] - Net loss for the nine months ended September 30, 2025, was $292,828,000, compared to a net income of $18,716,000 for the same period in 2024[23] - Adjusted EBITDA is presented as a key measure for evaluating operating performance, although it is not based on U.S. GAAP[26] - For the three months ended September 30, 2025, the net loss was $19.713 million compared to a net income of $9.196 million for the same period in 2024[29] - Adjusted EBITDA for the three months ended September 30, 2025, was $4.905 million, a decrease of 85.6% from $34.077 million in the same period of 2024[29] Cost Management - The company is targeting annualized cost savings of $60 million, more than doubling its previous target[4] - The corporate simplification agreement is expected to eliminate $6 million in cash payments due in Q1 2026 and result in up to $180 million in lifetime savings[11] - Total costs and expenses for the nine months ended September 30, 2025, were $802,854,000, compared to $536,451,000 for the same period in 2024, reflecting an increase of 49%[21] - Cash paid for interest increased to $20,984,000 for the nine months ended September 30, 2025, compared to $16,728,000 for the same period in 2024[25] - Severance compensation costs were $1.239 million for the nine months ended September 30, 2025, as part of a strategic cost reduction program[30] Asset and Liability Changes - Total current assets decreased to $233,912,000 as of September 30, 2025, from $345,171,000 as of December 31, 2024, representing a decline of 32%[19] - Total liabilities increased to $771,583,000 as of September 30, 2025, compared to $1,022,061,000 as of December 31, 2024[19] - Cash and cash equivalents decreased to $145,108,000 as of September 30, 2025, from $243,482,000 as of December 31, 2024, a decline of 40%[19] Impairment and Expenses - The company incurred impairment charges of $320,449,000 during the nine months ended September 30, 2025[21] - The company reported impairment charges of $320.449 million during the nine months ended September 30, 2025, reflecting declines in financial performance and stock price[30] - Depreciation and amortization expenses increased to $37.689 million for the nine months ended September 30, 2025, up from $31.654 million in 2024[29] - Equity-based compensation costs were $33.886 million for the nine months ended September 30, 2025, compared to $38.284 million in the same period of 2024[29] - The company recognized a loss on extinguishment of debt amounting to $801 thousand during the nine months ended September 30, 2025[30] Market Projections - Marketplace GOV is projected to be in the range of $2.2 billion to $2.6 billion for the year ending December 31, 2026[13] - Adjusted EBITDA is expected to be in the range of $30.0 million to $40.0 million for the year ending December 31, 2026[13] Leadership Changes - The leadership transition includes Lawrence Fey as the new CEO, succeeding Stan Chia, who will remain in an advisory role[3] Event Cancellations - The company experienced 39,414 event cancellations in Q3 2025, compared to 77,012 in Q3 2024[13] Foreign Currency and Transaction Costs - Foreign currency losses for the nine months ended September 30, 2025, were $2.363 million, compared to a gain of $266 thousand in 2024[29] - Transaction costs for the nine months ended September 30, 2025, amounted to $8.816 million, an increase from $6.649 million in 2024[29]

Core Insights - Vivid Seats Inc. has appointed Lawrence Fey as the new Chief Executive Officer, succeeding Stan Chia, who will remain in an advisory role until December 1, 2025 [4][5] - The company has provided its financial results for Q3 2025, reporting a significant decline in key metrics, including a 29% drop in Marketplace Gross Order Value (GOV) and a 27% decrease in revenues compared to Q3 2024 [7][8] - Vivid Seats aims to enhance operational efficiency and has doubled its annualized cost savings target to $60 million, which will support reinvestment in its value proposition [5][9] Leadership Transition - Lawrence Fey, previously the Chief Financial Officer, is expected to leverage his extensive experience with the company to navigate the evolving industry landscape [5] - Stan Chia's leadership over the past seven years is acknowledged, particularly for guiding the company through the COVID-19 pandemic and launching the Vivid Seats Rewards program [5][4] Financial Performance - For Q3 2025, Vivid Seats reported a Marketplace GOV of $618.1 million, down from $871.7 million in Q3 2024, and revenues of $136.4 million, down from $186.6 million [7][8] - The company experienced a net loss of $19.7 million in Q3 2025, a decline from a net income of $9.2 million in the same quarter of the previous year [7][8] - Adjusted EBITDA for Q3 2025 was $4.9 million, down from $34.1 million in Q3 2024, indicating a significant decrease in operational profitability [7][8] Strategic Outlook - Vivid Seats anticipates Marketplace GOV for 2026 to be in the range of $2.2 billion to $2.6 billion, with Adjusted EBITDA projected between $30 million and $40 million [11][9] - The company is focused on maximizing operational efficiency through a simplified corporate structure and strategic cost reductions [5][11] Corporate Simplification - A corporate simplification agreement was executed to streamline the organizational structure, eliminating the dual-class stock structure and terminating the Tax Receivable Agreement [12][13] - This simplification is expected to result in significant tax savings, reducing annual cash tax payments to approximately $3 million and providing up to $180 million in lifetime savings [13][12]