By Contributor,Michael M. Santiago,Trefis Team
Copyright forbes
NEW YORK, NEW YORK – SEPTEMBER 17: A Stubhub banner hangs at the New York Stock Exchange as the company prepares to ring the opening bell on September 17, 2025 in New York City. Stubhub founder and CEO Eric Baker rang the opening bell as the company celebrates its Initial Public Offering (IPO). (Photo by Michael M. Santiago/Getty Images)
Getty Images
If you’ve ever purchased a last-minute ticket for a sold-out concert or game, you’ve likely utilized StubHub (NYSE:STUB). The platform is now in the spotlight, following its IPO in September 2025.
The offering generated $800 million at $23.50 per share, valuing StubHub at approximately $8.6 billion. This is impressive for a company that began in 2000 as a peer-to-peer ticket exchange. However, the primary concern for investors is whether StubHub is a stock worth acquiring now or simply one to monitor. Currently, the stock is trading beneath its IPO price at $18.46.
Nonetheless, investing in a single stock involves risk. For those who prefer lower volatility compared to individual stocks, the Trefis High Quality Portfolio offers an alternative – it has outperformed the S&P 500 and produced returns exceeding 91% since its launch. Separately, see Flux Power Stock: Up 2x, Will The Surge Continue?
What the Numbers Say?
StubHub’s IPO documentation reveals both potential and risk:
Revenue (H1 2025): $827.9 million, a mere 3% year-over-year increase. Growth has noticeably slowed.
Net Loss (H1 2025): $111.8 million. This is a concerning indicator — StubHub is not yet profitable.
Operating Cash Flow: $117.6 million.
Free Cash Flow: $100+ million.
This combination is atypical. The company is losing money on paper while still generating actual cash. It’s not the usual “cash burn” IPO narrative, which provides StubHub with more maneuverability than many recently listed competitors. However, don’t anticipate dividends — management has communicated that earnings will be reinvested for growth.
MORE FOR YOU
Why Investors Are Watching?
What is attracting attention to StubHub? Three main factors:
IPO scrutiny. Newly listed companies are under close observation, and each quarter will be assessed for growth and performance.
Regulatory changes. The FTC’s prohibition on “junk fees” mandates all-inclusive pricing. While this benefits consumers, StubHub has cautioned that it may impact short-term revenues negatively.
Competition. Ticketmaster, SeatGeek, and Vivid Seats are all competing for market share. StubHub will need to demonstrate its ability to protect and grow its market position.
In addition to these, StubHub’s operations are vulnerable to economic fluctuations. Concerts, sports, and theatrical events are discretionary expenditures, and economic downturns could affect demand. Furthermore, trust in ticketing is delicate; fake listings, undisclosed fees, or counterfeit tickets can quickly erode credibility.
Where StubHub Could Deliver?
Despite the associated risks, StubHub has certain advantages working in its favor.
Industry growth. The secondary ticketing market is expected to grow by 8-11% annually through 2029, driven by robust demand for live events.
Experience economy. Consumers are increasingly valuing experiences over material goods — a trend from which StubHub stands to gain.
Global expansion. Markets in the Asia-Pacific region remain relatively underdeveloped, with increasing income levels and mobile technology adoption creating opportunities for growth.
Technology advantages. More effective pricing, fraud prevention, and improved ticket transfer processes can enhance trust and increase conversion rates.
Financial firepower. The funds from the IPO provide StubHub with the capital to lower debt, invest in technology, and aggressively scale its operations compared to when it was a private entity.
The Takeaway
StubHub is not a low-risk, stable investment. It represents a speculative risk associated with the future of live entertainment and the secondary ticket market. Its advantages — brand recognition, cash flow generation, and access to a growing industry — are countered by sluggish revenue growth, regulatory hurdles, and ongoing losses.
If you have faith in the long-term prospects of live events and StubHub’s capacity to adapt, it could present an attractive growth opportunity. Conversely, if you favor consistent earnings and reliable profitability, patience may be the wiser approach.
That being said, investing in a single stock inherently involves risks, and a diversified investment strategy might provide greater stability. You might consider the Trefis Reinforced Value (RV) Portfolio, which has surpassed its all-cap stocks benchmark (a mixture of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for its investors. What’s the reason for that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks has provided a responsive strategy to capitalize on favorable market conditions while mitigating losses during downturns, as detailed in RV Portfolio performance metrics.
Editorial StandardsReprints & Permissions
