IPO and Stock-Based Compensation - The company completed its IPO on September 18, 2025, selling 34,042,553 shares at a public offering price of $23.50 per share, resulting in net proceeds of approximately $758.0 million after underwriting discounts and commissions of $42.0 million[198]. - The company recognized $1,400.7 million in stock-based compensation expense related to RSUs, stock options, and restricted stock in connection with the IPO[199]. - Stock-based compensation expense recognized as a result of the IPO was $1.405 billion for the three months ended September 30, 2025[221]. Revenue and Sales Performance - Revenue for the three months ended September 30, 2025, was $468.1 million, an increase of $34.3 million or 7.9% compared to $433.8 million in the same period of 2024[221]. - Revenue for the nine months ended September 30, 2025, was $1.296 billion, an increase of $58.8 million or 4.8% compared to $1.237 billion in the same period of 2024[222]. - Gross Merchandise Sales (GMS) grew by 11% year-over-year to $2,434.8 million for the three months ended September 30, 2025, driven by market share growth in North America and international markets[249]. - The number of buyers making two or more purchases grew 2.0x faster year-over-year compared to those making only one purchase, indicating strong repeat purchasing behavior[201]. Expenses and Costs - Cost of revenue (exclusive of depreciation and amortization) for the three months ended September 30, 2025, was $100.5 million, an increase of $20.9 million or 26.3% compared to $79.6 million in the same period of 2024[223]. - Cost of revenue (exclusive of depreciation and amortization) for the nine months ended September 30, 2025, was $238.1 million, an increase of $32.2 million or 15.6% compared to $205.9 million in the same period of 2024[224]. - Sales and marketing expenses for the three months ended September 30, 2025, were $281.1 million, an increase of $60.2 million or 27.2% compared to $221.0 million in the same period of 2024[228]. - General and administrative expenses for the three months ended September 30, 2025, were $1.426 billion, an increase of $1.326 billion or 1,335.0% compared to $99.4 million in the same period of 2024[230]. - Operations and support expenses for the three months ended September 30, 2025, were $22.5 million, an increase of $6.9 million or 44.4% compared to $15.6 million in the same period of 2024[225]. Net Loss and Cash Flow - Net loss for the three months ended September 30, 2025, was $1.295 billion, compared to a net loss of $33.0 million in the same period of 2024[221]. - The net loss for the three months ended September 30, 2025, was $1,294.6 million, a significant increase of 3,822% compared to the same period in 2024[249]. - Free cash flow for the three months ended September 30, 2025, was $(4.6) million, a decrease of 143% compared to the same period in 2024[249]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $181.4 million, down from $410.9 million in the same period of 2024[265]. - The decrease in free cash flow for the nine months ended September 30, 2025, was primarily due to changes in the timing of cash receipts and payments associated with ticket sales[266]. Financial Position and Debt - As of September 30, 2025, the company had cash and cash equivalents of $1,392.5 million, excluding $16.6 million of restricted cash[270]. - The company made an early principal payment of $750.0 million on the 2024 USD Term Loan, reducing the remaining principal amount to $1,154.2 million[271]. - As of September 30, 2025, the company had $1,685.6 million outstanding under its term loan Credit Facilities, with no amounts drawn on the Revolving Credit Facility[279]. - Total interest payments on outstanding debt for the three months ended September 30, 2025, were $39.6 million[265]. Adjusted EBITDA and Performance Metrics - Adjusted EBITDA increased by $11.7 million (21%) for the three months ended September 30, 2025, reaching $67.5 million[249]. - Adjusted EBITDA for the three months ended September 30, 2025, was $67.5 million, representing 14% of revenue, compared to $55.8 million (13% of revenue) in the same period of 2024[260]. - During the nine months ended September 30, 2025, Adjusted EBITDA decreased to $169.8 million from $194.3 million in the same period of 2024, with Adjusted EBITDA as a percentage of revenue dropping from 16% to 13%[260]. Interest and Currency Impact - Interest income increased by $1.9 million (16.9%) for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to higher cash and cash equivalent balances[234]. - Interest expense decreased by $12.2 million (25.6%) for the three months ended September 30, 2025, mainly due to a one-time reclassification of $18.4 million and lower variable interest rates[236]. - Foreign currency losses decreased by $18.4 million (94.2%) for the three months ended September 30, 2025, primarily due to the remeasurement of the Euro Term Loan obligation[238]. - A hypothetical 10% change in the euro to U.S. dollar exchange rate would have resulted in a $53.1 million change to foreign currency losses related to the 2024 Euro Term Loan[299]. - Currency exchange rate movements impact the remeasurement of net asset or liability positions of foreign operations[300].
StubHub Holdings(STUB) - 2025 Q3 - Quarterly Report