Financial Data and Key Metrics Changes - Gross Merchandise Sales (GMS) reached $2.4 billion in Q3 2025, representing an 11% growth from the prior year period [25] - Revenue for Q3 was $468 million, up 8% compared to last year, driven by GMS growth but offset by a reduction in take rates [27] - Adjusted EBITDA was $67 million, representing 14% of revenue, up 21% from $56 million in the same period last year [30] Business Line Data and Key Metrics Changes - The company has seen nearly 20% GMS growth over the last 12 months, indicating strong performance across its marketplace [8] - The launch of the Reach Pro product has led to significant adoption among sellers, contributing to market share gains [12] Market Data and Key Metrics Changes - The North American secondary ticketing market has been positively impacted by the company's strategic investments, with the company now approximately four times larger than its nearest competitor based on GMS [11] - The implementation of federally mandated all-in pricing in the U.S. has had an estimated 10% one-time impact on the size of the North American secondary ticketing market [26] Company Strategy and Development Direction - The company aims to become the global destination for live entertainment ticketing by leveraging technology and customer focus to eliminate friction in the live event experience [10] - Direct issuance is seen as a transformative growth vector, allowing enterprise sellers to access the marketplace without exclusivity requirements [18] - The company is also pursuing advertising opportunities, including sponsored listings and partnerships with businesses like Booking.com to enhance customer experience [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for live events and the company's ability to navigate temporary market dynamics, such as the transition to all-in pricing [35] - The company plans to provide annual guidance for 2026 expectations in early 2026, focusing on long-term value creation [36] Other Important Information - The company successfully raised approximately $1 billion through capital markets activities, significantly improving its balance sheet and reducing leverage [37] - The company ended the quarter with $1.4 billion in cash and cash equivalents, with a net debt of $1.1 billion [38] Q&A Session Summary Question: Returns on investments in core resale market share and direct issuance - Management highlighted that investments in market share have yielded positive results, with significant share gains and a dominant position in the point of sale system [40][41] Question: Aligning marketing investments over the medium to long term - Management noted strong receptivity to marketing investments, particularly in the direct issuance business, which aims to enhance revenue for content owners [44][46] Question: Visibility on sponsored listing ad launch and Major League Baseball deal - Sponsored listings are expected to roll out in the second half of Q4, with MLB taking advantage of direct issuance for certain events [48][53] Question: Direct issuance market opportunities - Management sees diverse opportunities across various content types, including sports and live theater, emphasizing the non-competitive nature of their model with primary ticketing [55][56] Question: Impact of all-in pricing and World Cup expectations - Management confirmed that all-in pricing represents a 10% headwind, expected to last until May 2026, and expressed excitement about the World Cup's potential impact on resale [62][63]

Core Viewpoint - StubHub Holdings Inc. reported a wider-than-expected loss per share in its third-quarter earnings, leading to a significant decline in its stock price despite beating revenue expectations [1][3]. Financial Performance - The company reported a quarterly loss of $4.27 per share, which was worse than the analyst consensus estimate of $3.08 [1]. - Quarterly revenue reached $468 million, surpassing the consensus estimate of $451.8 million [2]. - Gross merchandise sales (GMS) totaled $2.4 billion, reflecting an 11% year-over-year increase. Excluding the impact of the Taylor Swift "Eras" Tour, GMS grew by 24% year-over-year [2]. Management Commentary - CEO Eric Baker highlighted the company's debut quarter as a public entity, emphasizing the strength and resilience of its global marketplace, double-digit GMS growth, market share expansion, and a strengthened balance sheet [2].

Q3 2025 Performance - Gross Merchandise Sales (GMS) reached $2.4 billion, an 11% year-over-year increase[16] - Excluding the impact of the Eras Tour, GMS growth would have been 24% year-over-year[16] - Revenue totaled $468 million, reflecting an 8% year-over-year growth[18] - Adjusted EBITDA was $67 million, a 21% increase year-over-year, with a 14% margin[19] Strategic Initiatives and Financial Position - Successfully completed an IPO and used the proceeds to pay down $750 million in debt[11] - The debt repayment is projected to save approximately $75 million in annual cash debt service costs[11, 46] - Net leverage decreased to 3.9x post-IPO[46] Market Opportunity and Scale - The company estimates a total addressable market of $194 billion today, with a future potential of $726 billion including adjacent categories[38] - Trailing twelve-month (TTM) GMS reached $9.4 billion[34] - The company has consistently maintained an approximately 20% service fee per transaction[32]

Core Insights - StubHub's shares fell 5% in after-hours trading following its first quarterly results post-IPO, indicating market reaction to financial performance [1] - The company reported an 8% increase in revenue year-over-year, reaching $468.1 million, surpassing the expected $452 million [4] Financial Performance - StubHub recorded a net loss of $1.33 billion, equating to a loss of $4.27 per share, significantly higher than the net loss of $45.9 million, or 15 cents per share, from the same period last year [2] - The substantial loss was attributed to a one-time stock-based compensation charge of $1.4 billion related to its IPO [2] - Gross merchandise sales (GMS) increased by 11% year-over-year to $2.43 billion; when excluding the impact of the previous year's Taylor Swift Eras Tour, GMS growth was 24% [2][3] Stock Performance - StubHub's stock closed at $18.82, reflecting a decline of approximately 20% from its IPO price of $23.50 [3]

Financial Performance - Gross Merchandise Sales (GMS) reached $2.4 billion, an 11% increase year-over-year, with a 24% growth excluding the impact of the Taylor Swift "Eras" Tour[5] - Revenue for the quarter was $468 million, up 8% year-over-year, representing 19% of GMS[5] - Net loss amounted to $1.3 billion, primarily due to a one-time stock-based compensation charge of $1.4 billion related to the IPO[5] - Adjusted EBITDA was $67 million, reflecting a 21% increase year-over-year and a 14% margin[5] - The company reported a basic net loss per share of $4.27 for the quarter[12] - For the three months ended September 30, 2025, the company reported a net loss of $1,294,609, compared to a net loss of $33,012 for the same period in 2024, representing a significant increase in losses[29] - Revenue for the three months ended September 30, 2025, was $468,113, an increase of 7.5% from $433,779 in the same period of 2024[29] - Adjusted EBITDA for the three months ended September 30, 2025, was $67,493, which is 14% of revenue, compared to 13% of revenue in the same period of 2024[29] IPO and Capital Structure - The company successfully completed its IPO, raising approximately $1 billion in gross proceeds and listing on the NYSE in September 2025[5] - StubHub reduced its debt by approximately $750 million, resulting in a net leverage ratio of 3.9x trailing twelve months Adjusted EBITDA[5] - Total liabilities decreased to $3,149,822 thousand as of September 30, 2025, from $3,715,843 thousand on December 31, 2024, showing a reduction of 15.2%[14] - Net leverage ratio improved to 3.9x as of September 30, 2025, compared to 6.7x as of December 31, 2024[38] - The principal amount of senior credit facilities was $1,685,640,000 as of September 30, 2025[38] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $1,392,458 thousand, up from $1,000,965 thousand at the end of 2024, reflecting a 39.1% increase[14] - The company reported a net cash provided by operating activities of $181,436 thousand for the nine months ended September 30, 2025, down from $410,935 thousand in 2024[16] - Cash flows from financing activities resulted in a net cash provided of $224,542 thousand for the nine months ended September 30, 2025, compared to a net cash used of $38,496 thousand in 2024[16] - For the three months ended September 30, 2025, net cash provided by operating activities was $3,795,000, compared to $19,320,000 in the previous quarter[37] - Free cash flow for the three months ended September 30, 2025, was $(4,600,000), a decrease from $9,716,000 in the previous quarter[37] - Total TTM free cash flow as of September 30, 2025, was $5,601,000, down from $20,803,000 in the previous quarter[37] Expenses and Costs - Total costs and expenses for the quarter were $1.8 billion, significantly impacted by the stock-based compensation charge[12] - The company incurred $1,405,248 in stock-based compensation expense during the three months ended September 30, 2025, compared to $1,426 in the same period of 2024[35] - Cost of revenue for the three months ended September 30, 2025, was $100,514, up from $79,562 in the same period of 2024[32] - Operations and support expenses for the three months ended September 30, 2025, were $22,508, compared to $15,584 in the same period of 2024[33] - Sales and marketing expenses for the three months ended September 30, 2025, were $281,136, an increase from $220,964 in the same period of 2024[34] - General and administrative expenses for the three months ended September 30, 2025, were $1,425,733, significantly higher than $99,355 in the same period of 2024[35] Assets and Deficits - Total assets increased to $5,600,780 thousand as of September 30, 2025, up from $5,093,585 thousand on December 31, 2024, representing a growth of 9.9%[14] - The company’s accumulated deficit increased to $(2,875,290) thousand as of September 30, 2025, compared to $(1,504,669) thousand at the end of 2024, indicating a growing financial challenge[14]

Core Insights - StubHub Holdings, Inc. reported a Gross Merchandise Sales (GMS) of $2.4 billion for Q3 2025, reflecting an 11% year-over-year increase [1] - Excluding the impact of the Taylor Swift "Eras Tour," GMS grew by 24% year-over-year [1] - The company's revenue reached $468 million, which is an 8% year-over-year increase and represents 19% of GMS [1] - StubHub experienced a net loss of $1 million during the quarter [1]

Core Insights - Baron Asset Fund's third-quarter 2025 investor letter indicates that US equities continued to rally, primarily driven by expectations of interest rate cuts by the Federal Reserve [1] - The fund experienced a decline of 4.23% in the third quarter, underperforming the Russell Midcap Growth Index, which returned 2.78%, and the Russell 3000 Index, which returned 8.18% [1] Company Analysis: StubHub Holdings, Inc. (NYSE:STUB) - StubHub Holdings, Inc. is highlighted as a leading ticket operating platform, with a one-month return of -0.87% and a market capitalization of $7.15 billion as of November 7, 2025 [2] - The company faced performance challenges following its September IPO, attributed to heavy investments aimed at expanding market share and developing primary market ticket sales capabilities [3] - StubHub's near-term results were impacted by difficult annual revenue comparisons, particularly following the success of Taylor Swift tour ticket sales last year [3] - Despite these challenges, there is optimism regarding StubHub's potential for revenue growth and profitability acceleration [3] Investment Sentiment - StubHub Holdings, Inc. is not among the 30 most popular stocks among hedge funds, with the company being viewed as having potential but overshadowed by certain AI stocks that are perceived to offer greater upside potential and lower downside risk [4]

Core Insights - Brown University disclosed a new equity position in StubHub, owning 2,062,425 shares valued at $34.73 million, which constitutes 20.54% of its $169.07 million U.S. equity holdings as of September 30, 2025 [1][2][9] Company Overview - StubHub is a leading technology company specializing in secondary ticket sales for live events, connecting buyers and sellers globally [5][8] - The company reported revenue of $1.80 billion and a net loss of $54.83 million for the twelve months ended June 30, 2025 [2][3] - As of November 4, 2025, StubHub's stock price was $17.12, with a market capitalization of $6.67 billion [3] Financial Performance - StubHub's revenue for the first half of 2025 reached $827.9 million, an increase from $803.5 million in 2024, indicating consistent revenue growth since 2022 [10] - The company reported a net loss of $76 million in the first half of 2025, compared to a loss of $24 million in the prior year, suggesting that losses are increasing [10] - StubHub had $2.4 billion in debt at the end of Q2, with $1.2 billion in cash and equivalents, highlighting a significant debt load [11] Investment Implications - Brown University's investment in StubHub is notable as it is one of only eight holdings in its portfolio, indicating a selective investment strategy [6] - The purchase marks Brown's initial stake in StubHub following its IPO on September 16, 2025, and has made StubHub the university's third-largest holding [9]

Core Insights - StubHub, co-founded in 2000, has transformed into a global ticketing leader, connecting fans to live events across more than 200 countries and territories [1] - The company is shifting from a resale model to direct ticket issuance, targeting a $153 billion market opportunity [3][6] - Analysts are optimistic about StubHub's growth potential, with Goldman Sachs setting a price target of $46, indicating over 100% upside [2][17] Company Overview - StubHub Holdings operates under the StubHub and Viagogo brands, serving as the world's leading second-hand ticket marketplace [1] - The company went public on September 17, 2025, raising approximately $800 million despite a rocky start, with shares initially down 6.8% on the first day [7][8] Financial Performance - In the first half of 2025, StubHub reported gross merchandise sales of $4.38 billion, up from $3.94 billion year-over-year, while total revenue increased by 3% to $827.9 million [10] - However, net losses widened significantly, with a loss of $111.8 million in H1 2025 compared to $50.2 million the previous year [11] - Q2 2025 saw a net loss of $75.9 million, reflecting higher operational costs and a slight revenue dip of 3% year-over-year [12] Market Trends - The online event ticketing market is projected to grow from $85.4 billion in 2025 to $102.8 billion by 2030, with a compound annual growth rate (CAGR) of 3.8% [4] - The demand for seamless access to live events continues to rise, despite increasing regulatory scrutiny [4][5] Analyst Ratings - Analysts have initiated coverage on STUB stock with a consensus "Strong Buy" rating, highlighting its potential in the direct ticketing market [21] - Price targets vary, with a consensus target of $27.80 suggesting a 34% upside, while Goldman Sachs' target of $46 implies a potential rally of 122% [22] Strategic Initiatives - StubHub's expansion into direct ticket issuance is seen as a critical growth driver, with the potential to reshape how fans access live entertainment [19][24] - The company aims to leverage AI-driven insights and enhance event management to improve ticket discovery and purchasing [6]

Core Viewpoint - StubHub Holdings (NYSE: STUB) is recommended as a buy due to its underappreciated growth potential in the secondary ticket marketplace [1] Company Analysis - StubHub is identified as a leading player in the secondary ticket marketplace, indicating a strong market position [1] - The investment approach emphasizes understanding core business economics, including competitive moat, unit economics, reinvestment runway, and management quality [1] - The focus is on long-term free cash flow generation and shareholder value creation, highlighting the importance of fundamental research [1] Investment Strategy - The investment strategy is centered around identifying businesses with the potential to scale and unlock significant terminal value over time [1] - There is a preference for sectors with strong secular tailwinds, suggesting a focus on industries poised for growth [1] - The analysis aims to provide insights that help investors focus on factors driving long-term equity value [1]