StubHub Holdings Inc (NYSE:STUB) shares are moving higher on Thursday after the ticketing platform delivered better‑than‑expected first-quarter results, flipping from a loss last year to a solid profit. Here’s what you need to know.
- StubHub Holdings stock is charging ahead with explosive momentum. Why are STUB shares rallying?
What's Pushing StubHub Higher?
StubHub posted earnings of 6 cents per share, well above the 2 cent consensus. A year ago, the company was in the red, so the move back into positive territory is a meaningful shift. Revenue reached about $446 million, topping estimates and rising at a pace that outstripped the growth in ticket volume.
Gross merchandise sales climbed to roughly $2.2 billion, up 7% from last year, while revenue grew 12%. Adjusted EBITDA jumped to more than $72 million.
StubHub generated $48 billion in net income, a sharp reversal from the $22 million loss in the same quarter last year. Cash generation followed the same trend, with operating cash flow and free cash flow nearly doubling from a year ago.
The balance sheet also strengthened. StubHub ended the quarter with $1.5 billion in cash and continued to chip away at its debt load with another $100 million payment in May.
The results came in ahead of Wall Street expectations on both the top and bottom line, and the improvement was strong enough for Morgan Stanley to lift its price target to $8.75 while keeping an Equal‑weight rating. JPMorgan also maintained a Neutral rating and raised its price target to $11.
Guidance And New Initiatives
Management reaffirmed its full‑year outlook, calling for gross merchandise sales near $10 billion and adjusted EBITDA between $400 and $420 million.
StubHub highlighted two growth efforts that could add new revenue streams over time. The first is its open distribution strategy, which aims to work more directly with rights holders on ticket issuance. The second is an advertising push that leverages the platform's large audience of event‑seeking consumers.
STUB Shares Are Rising
STUB Price Action: Stubhub shares were up 18.22% at $8.89 at the time of publication on Thursday, according to Benzinga Pro.
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