StubHub (STUB) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 GMS of $3.1 billion, up 34% year-over-year, and revenue of $573.1 million, up 33%, driven by strong demand for live events, especially the World Cup.

• Adjusted EBITDA nearly doubled to $105.7 million (18% margin), with margin expanding by approximately 600 basis points year-over-year.

• Net income for Q2 2026 was $14.6 million, a turnaround from a net loss of $53.8 million in Q2 2025.

• Strong cash flow generation, with Q2 free cash flow of $309.7 million and cash and equivalents of $1.7 billion as of June 30, 2026.

• Net leverage improved to 3.0x trailing 12-month adjusted EBITDA, down from 4.5x at year-end 2025, supported by $200 million in debt reduction year-to-date.

Financial highlights

• Revenue for Q2 2026 was $573.1 million, up 33% year-over-year, with GMS to revenue conversion at 19%.

• Gross margin was 82% in Q2 2026, slightly down from 83% in Q2 2025, temporarily compressed by World Cup-related costs.

• Adjusted EBITDA for Q2 2026 was $105.7 million (18% margin), up from $54.3 million (13% margin) in Q2 2025.

• Free cash flow for Q2 2026 was $309.7 million, with trailing twelve-month free cash flow at $597.6 million.

• Net income margin was 3% in Q2 2026, compared to -13% in Q2 2025.

Outlook and guidance

• Raised full-year 2026 GMS guidance to $10.1–$10.3 billion (10–12% growth), reflecting strong Q2 performance.

• Maintained full-year adjusted EBITDA guidance of $400–$420 million, including World Cup and regulatory costs.

• Expect margin expansion in the second half as event mix normalizes and efficiency gains persist.

• Management expects existing cash and cash equivalents to be sufficient for at least the next 12 months.