StubHub Raked in $1.77B… Then Posted a Loss… So Of Course They're Going Public

Last week, I went to the Big Ten Basketball Tournament to cheer on my Illini. Great atmosphere, electric crowd, everything you’d want from a high-stakes college game. But you know what wasn’t fun? The moment I got to checkout on StubHub and saw my ticket price almost doubled thanks to their absurd fees. One second, I’m thinking, Hey, $100 isn’t too bad for a great seat!… and the next, I’m hit with fees that make me feel like I just financed a used Toyota.

And guess what? Turns out I’m not the only one handing over my lunch money to StubHub. The company just filed for an IPO under the ticker symbol “STUB”, and based on its numbers, it’s clear why they’re going public: fees = profits.

StubHub, the place where tickets go to magically become 30% more expensive, pulled in an unbelievable $1.77 billion in revenue last year, up 29.5% from 2023. But here’s the weird part: even with all that cash rolling in, StubHub somehow lost $2.8 million in 2024. Compare that to 2023, when it made $405 million in profit, and you have to wonder… where did all that extra money go? (Probably not toward making their fees smaller, that’s for sure.)

The company, which was founded in 2000, has had a wild ride in terms of ownership. eBay bought it in 2007 for $310 million, then in 2020, co-founder Eric Baker pulled the ultimate Uno Reverse Card and bought it back for $4.05 billion through his company Viagogo. 

Fast-forward to today, and StubHub is looking for fresh cash from investors… probably so it can keep fine-tuning its ability to charge you more while making it feel totally normal.

As we all know, StubHub isn’t the only platform out there making tickets magically more expensive. It’s up against SeatGeek (which has also been eyeing an IPO), Vivid Seats (already public), and of course, Live Nation/Ticketmaster, the Thanos of ticketing.

The advantage StubHub has is its brand power. When people think resale tickets, they think StubHub… kind of like how when you think overpriced burgers you think of Five Guys. That name recognition could give it an edge in the stock market.

StubHub’s IPO comes as the market for stock listings is heating up again, with companies like CoreWeave and Klarna also jumping in. The company plans to sell new shares to raise cash… some of which will go toward paying off $1.5 billion in debt. The rest? Let’s just say we’re all bracing for the day they introduce a convenience fee just for clicking “Buy Now.” Hopefully they don’t ask for a tip too.

Still, there are risks. Even though its revenue is climbing, that 2024 loss and internal financial reporting issues could scare off investors. And let’s not forget that live-event ticketing is an unpredictable business… one economic downturn, and suddenly people aren’t paying $500 to see Taylor Swift from the nosebleeds.

Stocks.News has positions in Live Nation and Vivid Seats mentioned in article.