StubHub started its life as a public firm with a modest decline on the New York Inventory Alternate, as its shares fell under the IPO value. The secondary ticketing firm’s shares opened at $25.35 and peaked at $26.34 earlier than ending the day at $22.00, 6.4% under the $23.50 preliminary public providing value set a day earlier.
A primary-day drop isn’t uncommon for corporations that go public. From 1980 to 2024, 16.5% of IPO shares had first-day losses, based on statistics compiled by the College of Florida’s Jay R. Ritter. However a far greater share of IPO shares fell on their first day of buying and selling lately. In 2023 and 2024, that determine rose to 53.7% and 34.7%, respectively.
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StubHub provided 34.04 million shares of Class A standard inventory. Previous to the providing on Wednesday (Sept. 17), the corporate had focused a value vary of $22.00 to $25.00 per share. Wednesday’s $22.00 closing value equates to a market capitalization of roughly $7.58 billion.
The corporate plans to make use of the IPO proceeds to pay down debt and fund working capital. As of June 30, 2025, StubHub had debt of $2.38 billion, $1.24 billion in money and money equivalents and a adverse working capital of $1.2 billion. Curiosity expense within the first half of 2025 totaled $86 million.
StubHub was based in 2000 by Eric Baker, who left the corporate earlier than it was acquired by eBay in 2007. Baker based viagogo in 2006 and constructed the corporate into a number one secondary ticketing market exterior of the U.S. Viagogo acquired StubHub in 2020, and each corporations now exist beneath the StubHub umbrella.
Buyers within the IPO had been shopping for into what’s often called a “managed firm.” Baker owns 100% of StubHub’s 3.64 million Class B frequent shares, and following Wednesday’s providing, he controls almost 88% of the voting energy. Every Class B share carries 100 votes per share to at least one vote per share for the Class A shares held by buyers. That offers Baker the power to manage outcomes of issues that require shareholder votes, together with the election of the board of administrators.
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StubHub reported a web lack of $76 million on income of $828 million, up 3%, within the first half of 2025. Gross merchandise gross sales — the overall worth paid by clients for tickets and achievement — was $4.4 billion, up 11% from the prior-year interval. Adjusted earnings earlier than taxes, curiosity, depreciation and amortization (EBITDA) was $102 million.
Income development was down markedly from 29.5% in 2024 and 31.9% in 2023. In an announcement, Kyle Stanford, director of enterprise capital analysis at PitchBook, mentioned StubHub’s “low income development fee highlights uncertainty within the client market, on which it relies upon. Client sentiment has fallen over the previous few months as inflation has picked up, including headwinds to resuming the expansion it noticed the yr earlier than.”
However StubHub sees favorable market circumstances forward and believes the overall addressable market, which incorporates major ticketing and secondary marketplaces, is value $194 billion internationally. It places the worth of the secondary market at $18 billion within the U.S. and $23 billion internationally. Main ticketing, the place StubHub had $100 million of gross merchandise gross sales in 2024, is value an estimated $132 billion globally. Moreover, StubHub believes $22 billion value of tickets go unsold annually.
