STUB (NYSE:STUB) Issues Earnings Results, Misses Expectations By $0.06 EPS

STUB (NYSE:STUB) announced its quarterly earnings results on Tuesday. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.06), FiscalAI reports. The firm had revenue of $501.95 million for the quarter. STUB had a negative net margin of 93.54% and a negative return on equity of 9.50%. The firm’s revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period in the prior year, the firm earned ($4.27) earnings per share.

Here are the key takeaways from STUB’s conference call:

• StubHub reported third-quarter GMS growth of 7% to $2.6 billion and adjusted EBITDA growth of 84% to $124 million. Adjusted EBITDA margin reached a public-company high of 25%.
• The company raised its full-year GMS growth outlook to 11%–13%, but kept its adjusted EBITDA outlook at $400 million–$420 million. Fourth-quarter results may vary with the timing of concert ticket on-sales and comparisons against last year’s World Cup and MLB playoffs.
• Operating efficiencies helped lower sales and marketing expense to 45% of revenue, down 9 percentage points year over year. StubHub also reported net leverage of 2.5x after debt repayments and an extension of loan maturities to October 2033.
• Management highlighted open distribution and sponsored advertising as longer-term growth opportunities, while emphasizing that it is still refining the products before scaling them. Advertising revenue is expected to be immaterial this year, in the tens of millions of dollars.

STUB Trading Down 3.7%

STUB opened at $5.63 on Wednesday. The company’s 50 day moving average is $5.87 and its 200 day moving average is $8.25. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.04 and a quick ratio of 1.04. STUB has a 12-month low of $5.22 and a 12-month high of $19.86.

Insider Buying and Selling

In other STUB news, insider Nayaab Islam sold 14,306 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $6.20, for a total value of $88,697.20. Following the transaction, the insider directly owned 7,996,986 shares in the company, valued at approximately $49,581,313.20. This trade represents a 0.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mark Streams sold 135,589 shares of STUB stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $6.39, for a total transaction of $866,413.71. Following the transaction, the insider owned 1,225,976 shares in the company, valued at $7,833,986.64. This represents a 9.96% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 991,338 shares of company stock valued at $6,692,030. 30.97% of the stock is owned by corporate insiders.

Institutional Trading of STUB

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Meeder Asset Management Inc. bought a new position in shares of STUB in the third quarter worth approximately $33,000. Royce & Associates LP bought a new stake in shares of STUB during the 3rd quarter valued at $144,000. Russell Investments Group Ltd. raised its position in shares of STUB by 80.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 32,163 shares of the company’s stock valued at $179,000 after purchasing an additional 14,301 shares during the period. Joel Isaacson & Co. LLC lifted its stake in shares of STUB by 9.3% during the 3rd quarter. Joel Isaacson & Co. LLC now owns 58,500 shares of the company’s stock valued at $326,000 after buying an additional 5,000 shares in the last quarter. Finally, Jefferies Financial Group Inc. purchased a new position in shares of STUB during the 3rd quarter valued at $1,672,000.

Key Headlines Impacting STUB

Here are the key news stories impacting STUB this week:

• Positive Sentiment: StubHub raised its GMS forecast and pointed to resilient consumer demand, signaling confidence in marketplace activity. Article: StubHub boosts GMS forecast as it points to resilient consumers
• Neutral Sentiment: The company announced a CFO transition, with succession effective January 2027; no further details in the reports indicate an immediate financial impact. Article: StubHub Announces CFO Succession Effective January 2027
• Negative Sentiment: Q3 adjusted earnings were $0.05 per share, below the $0.11 consensus, while revenue of $501.95 million also fell short of estimates near $524 million. Revenue nevertheless grew 7.2% year over year. The earnings and revenue misses weighed on sentiment despite the improved GMS outlook. Article: StubHub Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Bearish analyst coverage had already put pressure on shares ahead of the earnings report, adding to concerns following the results. Article: Why Is StubHub Stock Down?

Analyst Ratings Changes

A number of equities analysts have issued reports on STUB shares. Citigroup upgraded shares of STUB from a “neutral” rating to a “buy” rating and decreased their price objective for the company from $9.00 to $7.00 in a research report on Friday, September 18th. Bank of America cut STUB from a “neutral” rating to an “underperform” rating and cut their target price for the stock from $11.00 to $7.50 in a research note on Thursday, August 13th. Guggenheim cut their target price on STUB from $11.00 to $9.00 and set a “buy” rating on the stock in a research note on Friday, October 9th. TD Cowen reduced their price target on STUB from $16.00 to $12.00 and set a “buy” rating on the stock in a report on Friday, August 21st. Finally, Oppenheimer lowered their price target on STUB from $12.00 to $11.00 and set an “outperform” rating for the company in a research report on Thursday, August 13th. Six investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $10.17.

About STUB

StubHub Holdings, Inc. operates online marketplaces that connect buyers and sellers of tickets to live events, including sports, concerts, theater productions and other entertainment. Its platforms allow customers to browse listings, compare ticket options and complete purchases, while sellers can list tickets for sale. The company operates StubHub and viagogo, serving customers in the United States and international markets. Its business grew from StubHub, founded in 2000, and viagogo, which acquired StubHub from eBay in 2020.