StubHub shares rose 4.1% to $8.54 at the latest close. The six-month filing shows a business growing quickly on the top line, but not keeping pace in operating profit: revenue rose 28.5% to $573.1 million, while operating income fell 24.7% to $19.5 million.
StubHub’s operating margin fell to 3.4% from 5.8%, and net income dropped to $14.6 million from $48.0 million. Diluted EPS landed at $0.00, down from $0.06.
The revenue increase was not mysterious. StubHub says it came from higher gross merchandise sales, driven mainly by more gross merchandise sales per transaction, along with higher fees charged to buyers and sellers.
"The overall increase in our revenue in the amount of $191.2 million for the six months ended June 30, 2026 as compared to the same period in 2025 was primarily attributable to growth in GMS, which was primarily due to an increase in GMS per transaction on our platform, and an increase of $31.0 million due to a higher average transaction fee rate we charge to buyers and sellers."
10-Q 2026-08-13
The filing therefore describes both more marketplace activity and a higher average transaction fee rate. It also shows why that growth did not translate cleanly into operating income: cost of revenue rose 23.9%, with payment processing costs up $39.7 million because of the transaction volume StubHub facilitated.
The stranger number is cash. Operating cash flow more than doubled to $620.3 million, while free-cash-flow margin declined 6.1 percentage points because investment spending consumed more revenue. The operating-cash-flow increase included a working-capital swing involving payments due to buyers and sellers, rather than coming from the operating-profit line.
"Net cash inflows from the change in net operating assets and liabilities of $480.2 million were primarily due to a $472.5 million increase in payments due to buyers and sellers driven by growth in GMS."
10-Q 2026-08-13
In plain English, StubHub’s cash balance grew to $1.7 billion as the platform processed more transactions and payments due to buyers and sellers increased. That is a real cash movement, but it is a different measure from the profit the business recorded. The filing does not say how much of the working-capital increase will persist.
Interest expense fell $46.8 million, primarily because StubHub repaid principal on its 2024 USD Term Loan. Stock compensation rose to $69.0 million from $31.0 million, a separate charge that does not represent cash paid in the period.
StubHub’s annual record adds some history to the tension. Revenue rose from 1.4B in 2023 to 1.8B in 2024, then slipped to 1.7B in 2025; operating margin moved from 18.5% to 7.8% and then -77.0%. The latest six months show renewed sales growth, while operating margin was 3.4%, down from 5.8% in the comparable period.
Source: StubHub Holdings, Inc. Form 10-Q filed August 13, 2026.