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Vivid Seats Inc

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Vivid Seats Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • Goodwill of 648.6M is 238% of equity (272M) - any impairment would wipe out book value entirely[Goodwill]
  • Gross profit TTM down 32% YoY despite 71% gross margin - severe demand destruction in ticketing[Gross Profit 1Y Growth]
  • Tangible book value is -565.6M with 405M debt at 1.49x D/E - balance sheet stress evident[Tangible Book Value]

Watch Triggers

  • Cash and Equivalents: Falls below 100MAt -30M FCF burn, sub-100M cash signals 3-year runway and potential dilutive raise
  • Goodwill: Any impairment charge announced648M goodwill vs 272M equity means even 42% write-down eliminates all equity
  • Gross Profit 1Y Growth: Returns to positive territoryWould signal demand stabilization and validate turnaround thesis

Bull Case

Trading at 0.12x P/S vs industry median 1.38x - 91% discount implies near-zero going concern value, turnaround creates asymmetric upside

P/S RatioEnterprise Value

71% gross margin preserved despite revenue decline shows pricing power intact; cost cuts could restore profitability quickly

Gross Margin TTMOperating Expense TTM

Bear Case

Goodwill at 238% of equity from acquisitions now faces impairment risk given -32% gross profit decline - write-down would trigger negative equity

GoodwillGross Profit 1Y Growth

Revenue shrinking -4.5% 3Y CAGR while competitors grow; market share loss in ticketing may be structural not cyclical

Total Revenue 3Y GrowthOperating Income TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Continued cash burn threatens liquidity within 18 months without turnaround or capital raise

1-3ymed
  • FCF of -30.4M TTM with only 145M cash
  • Operating loss of -35.5M TTM widening
  • 405M debt load with 24M interest expense
Cash runway ~4.8 years at current burnNet margin -24% vs industry median -1.3%Working capital already -114M

Valuation Context

Caveats

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