StubHub Holdings (STUB) Faces Class Action Over 143% Free Cash Flow Decline Post-IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Globenewswire
- Lawsuit Notification: Hagens Berman is notifying StubHub (STUB) investors of the January 23, 2026, lead plaintiff deadline in a securities class action alleging the company failed to disclose critical negative trends in its September 2025 IPO documents.
- Cash Flow Collapse: StubHub reported its first quarterly results as a public company in November 2025, revealing a staggering 143% drop in free cash flow to negative $4.6 million, primarily due to changes in vendor payment timing, severely impacting liquidity.
- Stock Price Plunge: Following the cash flow revelation, StubHub's stock price plummeted over 20% in a single day and has since traded as much as 56% below its IPO price of $23.50, indicating significant market concerns regarding the company's financial health.
- Transparency Issues: The lawsuit questions the transparency of StubHub's IPO registration statement, alleging that the company failed to disclose the significant impacts of vendor payment timing changes while promoting its financial health to potential investors, potentially leading to substantial investor losses.
Analyst Views on STUB
Wall Street analysts forecast STUB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STUB is 24.18 USD with a low forecast of 16.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 13.650
Low
16.00
Averages
24.18
High
45.00
Current: 13.650
Low
16.00
Averages
24.18
High
45.00
About STUB
StubHub Holdings, Inc. operates a global secondary ticketing marketplace for live events. It connects fans around the world with sellers who use its marketplace to reach fans and price tickets efficiently. It operates its global ticketing marketplace through two brands: StubHub in North America and viagogo internationally. Its marketplace enables sellers of all types, including individual fans, professional sellers and content rights holders. Its technology is built to handle events regardless of their size, location, category or venue and includes end-to-end workflows and services that streamline the purchase and sale experience for buyers and sellers. It leverages its centralized technology and operations to reach buyers and sellers across the globe, supporting 33 languages and accepting payments in 48 currencies. Its marketplace is built to offer global distribution anywhere there is demand for live events. It offers data intelligence to optimize outcomes for buyers and sellers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
