StubHub Reports $4.6M Negative Free Cash Flow Post-IPO, Shares Plunge 21%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Globenewswire
Updated: 3 hour ago0mins
- Cash Flow Crisis: StubHub reported a negative free cash flow of $4.6 million in Q3 2025, representing a 143% decline from the positive $10.6 million in the same period last year, indicating severe financial pressure post-IPO that could undermine investor confidence going forward.
- Misleading IPO Documents: The lawsuit alleges that StubHub failed to disclose changes in vendor payment timing during its September 2025 IPO, leading to misleading free cash flow reports, which could result in broader legal liabilities and a crisis of trust among investors.
- Stock Price Plunge: Following the earnings report on November 13, 2025, StubHub's stock price dropped from $18.82 to $14.87, a decline of approximately 21%, reflecting market concerns over the company's financial health and potentially impacting its future fundraising capabilities.
- Market Reaction: By November 24, 2025, StubHub's stock had fallen to $12.01, nearly 50% below the IPO price of $23.50, indicating a pessimistic sentiment among investors regarding the company's future prospects, which may lead to further capital outflows.
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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: 10.780
Low
16.00
Averages
24.18
High
45.00
Current: 10.780
Low
16.00
Averages
24.18
High
45.00
BMO Capital
Outperform
downgrade
$30 -> $22
2025-11-14
Reason
BMO Capital
Price Target
$30 -> $22
2025-11-14
downgrade
Outperform
Reason
BMO Capital lowered the firm's price target on StubHub to $22 from $30 but keeps an Outperform rating on the shares. The company's Q3 results topped estimates but the management anticipates softer Q4 revenue due to shifts in catalog sales and tougher comps, the analyst tells investors in a research note. BMO adds that it sees 2026 as a breakout year for StubHub given the World Cup, scaling its DI offering, advertising momentum, and a strong concert slate.
Oppenheimer
Jason Helfstein
Outperform
to
NULL
downgrade
$23 -> $20
2025-11-14
Reason
Oppenheimer
Jason Helfstein
Price Target
$23 -> $20
2025-11-14
downgrade
Outperform
to
NULL
Reason
Oppenheimer analyst Jason Helfstein lowered the firm's price target on StubHub to $20 from $23 and keeps an Outperform rating on the shares. Despite Q3 beat, the firm notes the company is not guiding Q4 outlook, which is being impacted by timing of concert sales, along with headwinds from all-in pricing and tough comparable sales from Taylor Swift/World Series. While Oppenheimer expects robust FY26 guidance on the Q4 call, there is no visible positive catalyst before then.
Evercore ISI
Mark Mahaney
Outperform
downgrade
$29 -> $27
2025-11-14
Reason
Evercore ISI
Mark Mahaney
Price Target
$29 -> $27
2025-11-14
downgrade
Outperform
Reason
Evercore ISI analyst Mark Mahaney lowered the firm's price target on StubHub to $27 from $29 and keeps an Outperform rating on the shares. StubHub's Q3 results were "a mixed bag" and the lack of Q4 guidance was "unexpected and contributed to a significant market reaction," the analyst tells investors. While calling management's decision to withhold Q4 guidance "disappointing," especially given the challenging comps ahead, the firm argues that StubHub's dominant position in the secondary ticketing market, combined with high-margin economics, remains attractive.
Wedbush
Outperform
to
NULL
downgrade
$25 -> $22
2025-11-14
Reason
Wedbush
Price Target
$25 -> $22
2025-11-14
downgrade
Outperform
to
NULL
Reason
Wedbush lowered the firm's price target on StubHub to $22 from $25 and keeps an Outperform rating on the shares. The firm notes StubHub delivered healthy results in its first quarter as a public company. That said, Wedbush is surprised by management's decision to not offer any guidance.
See All Ratings
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
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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.
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