The operating result beat the market’s bar, led by revenue. Revenue reached $573.1 million, roughly 15% above the published consensus of about $499.5 million, while adjusted EBITDA nearly doubled year over year to $105.7 million.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $573.1M | $430.3M | +33% (Income Statement) |
| Adjusted EBITDA | $105.7M | $54.3M | +95%; margin 18% vs 13% (Adjusted EBITDA reconciliation) |
| Net income attributable to common stockholders | $(0.04)M | $(75.9)M | Near breakeven vs loss (Income Statement) |
| Diluted EPS | $(0.00) | $(0.25) | Improved, but below published consensus of ~$0.07 (Income Statement) |
| Free cash flow | $309.7M | $9.7M | Strong increase (Free Cash Flow reconciliation) |
| Net leverage | 3.0x | 4.5x at Dec. 31, 2025 | Improved (Net Debt reconciliation) |
The headline earnings miss is real, but not a clean read on operating demand. Diluted EPS was approximately breakeven versus published expectations around $0.07, producing a miss despite the revenue beat. The gap was heavily influenced by $69.0 million of quarterly stock-based compensation, compared with $2.0 million a year earlier; that expense is excluded from adjusted EBITDA but remains in GAAP earnings. (Adjusted EBITDA reconciliation)
Cash generation and deleveraging were the strongest parts of the filing. Free cash flow reached $309.7 million in the quarter and $600.2 million year to date, while net leverage fell to 3.0x from 4.5x at year-end. The company also disclosed $200 million of year-to-date debt reduction, including a $100 million payment in July. (Free Cash Flow reconciliation; Net Debt reconciliation; Press release highlights)
The improvement was partly expected, so the surprise is magnitude rather than direction. StubHub had already reiterated full-year 2026 GMS guidance of $9.9 billion to $10.1 billion and adjusted EBITDA guidance of $400 million to $420 million after its first-quarter report. The second quarter therefore confirms the profitability and balance-sheet story; the genuine new information is how sharply revenue, free cash flow, and leverage improved, alongside the unexpectedly large stock-compensation burden.
Read the original 8-K on SEC EDGAR ↗