StubHub stock surged nearly 20% in morning trading after posting first-quarter 2026 results that exceeded revenue expectations and marked a return to profitability.
Gross Merchandise Sales reached $2.2 billion, up 7% year-over-year. Revenue climbed 12% to $446 million, while net income came in at $48 million, compared to a net loss of $22.2 million a year earlier.
CEO Eric Baker said: "Our first quarter results reflect our disciplined execution in a healthy operating environment for live events and our resale marketplace."
Analysts raised price targets. Goldman Sachs lifted its target to $16 from $15, Evercore ISI to $15 from $14, and Morgan Stanley to $8.75 from $8.25.
Free cash flow nearly doubled to $290.6 million. The company ended the quarter with $1.5 billion in cash and made an additional $100 million debt payment in May.
The broader market was supportive, with the S&P 500, Dow Jones, and NASDAQ all rising, but StubHub's gain far outpaced these indices.
The profitability inflection, revenue beat, strong balance sheet, and analyst upgrades created buying pressure. Management expects more profitability in the second half due to major events like the World Cup.
