Vivid Seats(SEAT) - 2025 Q3 - Quarterly Results

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]