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Stubhub Holdings Inc

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Stubhub Holdings Inc AI Insights

Informational only. Not investment advice.
As of 2026-02-06

Snapshot

  • Goodwill of 2.7B is 159% of common equity - tangible book value is negative 1.9B, creating material impairment risk[Goodwill]
  • Operating loss of 1.2B TTM (-68% margin) on 1.8B revenue - burning 148% of gross profit on operating expenses[Operating Income TTM]
  • 80% gross margin TTM vs 65% industry median masks unsustainable cost structure - OpEx is 2.7B on 1.8B revenue[Gross Margin TTM]

Watch Triggers

  • Operating Expense TTM: Falls below 1.5B (from 2.7B)Would signal credible path to breakeven at current revenue levels
  • Cash and Equivalents: Falls below 800MWould indicate less than 12 months runway at current burn rate
  • Total Revenue TTM: Exceeds 2.5B with stable OpExOperating leverage could flip margins positive rapidly given 80% gross margin

Bull Case

80% gross margin TTM demonstrates pricing power - if OpEx rationalizes to 60% of revenue, operating margin could reach 20%

Gross Margin TTMOperating Expense TTM

1.4B cash with only 260M net debt provides 2+ years runway to restructure operations without dilution

Cash and EquivalentsNet Debt

Bear Case

Negative tangible book (-1.9B) and 1.3B annual losses mean equity could be wiped out in 12-18 months without turnaround

Tangible Book ValueNet Income TTM

ROIC of -32% TTM destroys shareholder value - 3.3B invested capital generating 1.2B operating losses annually

ROIC TTMInvested Capital

Bull vs Bear Balance

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

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Forward Thesis

Path to profitability requires 60%+ OpEx reduction or 3x revenue growth - neither appears imminent

1-3yhigh
  • OpEx of 2.7B TTM exceeds total revenue of 1.8B
  • Interest expense of 167M adds to cash burn
  • Recent 750M debt paydown reduces flexibility
Operating margin -68% TTM vs -4% industry medianFCF only 6M TTM despite 1.4B cash positionNet loss 1.3B TTM with no dividend capacity

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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