Why StubHub Stock Popped Today
Key Points
StubHub's sales and profits are growing along with its ticket base.
Management wants to partner with more content rights holders.
Shares of StubHub Holdings (NYSE: STUB) rose on Thursday after the ticket marketplace highlighted its improved profitability.
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People still love live events
StubHub's revenue climbed 12% year over year to $446 million in the first quarter.
Gross merchandise sales (GMS) -- the total dollar value of the transactions facilitated by its platform -- grew 7% to $2.2 billion.
"The live events and secondary ticketing markets remain healthy with strong consumer demand and a robust 2026 event calendar," CEO Eric Baker said during a conference call with analysts.
Cash profits are surging
Better still, StubHub is becoming significantly more profitable as it scales its operations. The company swung to a net profit of $48 million from a loss of $22.2 million in the year-ago quarter.
Additionally, StubHub's free cash flow surged 92% to $290.6 million, enabling it to pay off $100 million in debt.
More growth ahead
These robust results prompted StubHub to reaffirm its full-year financial targets.
Management sees GMS of $9.9 billion to $10.1 billion in 2026, up from $9.2 billion in 2025.
The company also projects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $400 million to $420 million, up from $232 million.
StubHub is working to expand the supply of tickets on its marketplace by enticing more content rights holders, such as sports teams and performing artists, to offer more inventory via its platform.
"Our focus remains on building the global destination for consumers to access live events, making it easier for fans to discover and access tickets anywhere in the world," Baker said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.