Core Viewpoint - RPM Capital Partners has initiated a new position in StubHub Holdings, acquiring 535,850 shares valued at $7.25 million, representing a significant investment in the company amidst a challenging IPO environment [2][3][10]. Company Overview - StubHub Holdings is a leading technology company specializing in secondary ticketing for live events, facilitating millions of ticket transactions annually through its digital platform [6][8]. - As of the latest report, StubHub's market capitalization stands at $5.58 billion, with a revenue of $1.83 billion and a net income of -$1.32 billion [5]. Financial Performance - In the latest quarter, StubHub reported $2.4 billion in gross merchandise sales, an 11% increase year over year, and $468 million in revenue, up 8% [11]. - Adjusted EBITDA rose by 21% to $67 million, despite a significant one-time stock-based compensation charge of $1.4 billion related to the IPO [11]. - The company's net leverage improved to 3.9 times adjusted EBITDA following a $750 million debt reduction, enhancing balance sheet flexibility [11]. Investment Implications - RPM Capital Partners' investment in StubHub, which constitutes 6.36% of its reported U.S. equity assets, indicates a strategic focus on companies with solid underlying marketplace economics despite market volatility [4][10]. - The addition of StubHub as a significant position alongside Semrush suggests a selective expansion strategy rather than a shift in investment style, contrasting with other managers reducing exposure to rate-sensitive assets [12].

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]