StubHub Q1 Earnings Signal Profit and Growth
StubHub Q1 earnings showed a swing to $48 million GAAP profit and revenue strength on May 13, prompting a sharp share rally and renewed focus on guidance.

KEY TAKEAWAYS
- Swung to $48 million GAAP net income from a prior-year loss, marking profit recovery.
- Revenue rose 12.0% to $446 million while GMS increased 7.0% to $2.2 billion.
- Adjusted EBITDA rose to $72 million, margin expanded to 16.0%, and free cash flow reached $291 million.
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StubHub Holdings reported a swing to GAAP profit and rising revenue for the quarter ended March 31, 2026. The company said on May 13 that disciplined execution in a healthy live-events market supported the results and underpinned reiterated guidance.
First-Quarter Financial Results and Operating Performance
StubHub Holdings (STUB stock) posted revenue of $446 million for the quarter, up 12% year-over-year, representing about 20% of gross merchandise sales (GMS). GMS totaled $2.2 billion, a 7% increase from the prior year.
The company swung to GAAP net income of $48 million from a $22 million loss a year earlier and recorded adjusted EBITDA of $72 million, a 16% margin and roughly a 50% increase from the year-ago quarter. These results mark a return to profitability and improved operating leverage.
Gross margin expanded to 85%, about 100 basis points higher year-over-year, while sales and marketing expenses fell to roughly half of revenue, improving by 500 basis points. The combination of higher gross margin and reduced marketing intensity contributed to the lift in operating profitability.
Liquidity, Deleveraging, and Guidance
Operating cash flow strengthened, rising 88% year-over-year to $298 million, while free cash flow increased 92% to $291 million. Cash and equivalents stood at $1.5 billion at quarter-end, with payments due to sellers totaling about $1 billion, supporting a robust liquidity position.
In May, the company made an additional $100 million debt payment, reducing net leverage to about 4.0 times from 4.5 times on a trailing 12-month adjusted EBITDA base of roughly $257 million. The quarter also saw the conversion of Series M, N, and O redeemable preferred shares into Class A common shares, lifting stockholders’ equity to about $1.6 billion.
Management reiterated full-year 2026 GMS guidance of $9.9 billion to $10.1 billion and adjusted EBITDA guidance of $400 million to $420 million, citing the positive first-quarter performance and a healthy operating environment.
The return to GAAP profit, wider margins, stronger cash flow, and early deleveraging indicate improving unit economics. Sustaining these trends will be key to translating operational gains into lasting financial leverage.





