StubHub Holdings, Inc. (NYSE:STUB) shares are trading lower Friday after the company reported worse-than-expected third-quarter earnings per share results. Multiple firms lowered their respective price targets on the stock.
What To Know: StubHub reported a loss of $4.27 per share, missing the consensus estimate of a $3.08 loss. In addition, the company reported sales of $468.00 million, beating the consensus estimate of $451.80 million.
According to the company, third-quarter results were heavily affected by a one-time $1.4 billion stock-based compensation charge related to its initial public offering, which drove the quarter's $1.3 billion net loss. StubHub highlighted $2.4 billion in Gross Merchandise Sales, up 11% year-over-year, and said revenue represented 19% of GMS.
StubHub also reported $67 million in adjusted EBITDA, up 21% year-over-year, and said it strengthened its balance sheet by using IPO proceeds to repay approximately $750 million in debt. The company announced a new multi-year partnership with Major League Baseball to distribute primary ticket inventory beginning in the 2026 season.
CEO Eric Baker said the company's debut quarter as a public company showed marketplace strength, adding that StubHub remains focused on expanding fan access and improving transparency in live event ticketing.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- B of A Securities analyst Justin Post downgrded Stubhub from a Buy rating to a Neutral rating and lowered the price target from $25 to $19.
- Guggenheim analyst Curry Baker maintained a Neutral rating and lowered the price target from $19 to $16.
- Evercore ISI Group analyst Mark Mahaney maintained a Outperform rating on Stubhub and lowered the price target from $29 to $27.
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STUB Price Action: At the time of writing, StubHub shares are trading 22.58% lower at $14.59, according to data from Benzinga Pro.
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