StubHub Holdings Inc. (STUB) reported a first-quarter profit of six cents per share, reversing a year-ago loss and beating analyst estimates as revenue climbed 12 percent.
"Trends in the live events and secondary ticketing markets remain healthy, with strong consumer demand and a robust event calendar this year," Chief Executive Eric Baker said, adding that the company sees an opportunity to build on its competitive position.
The ticket reseller posted revenue of $446 million, topping the consensus estimate of $425 million. The results compare to a loss of 12 cents per share in the same period a year ago.
Shares surged 20% to $9.06 in response to the report, marking the stock's largest single-day gain on record, according to Dow Jones Market Data. The company's performance and reiterated full-year guidance suggest a potential turnaround amid strong demand for live events.
StubHub, which collects fees on resold tickets for concerts and sporting events, has faced a string of quarterly losses. The first-quarter results were driven by a 7% rise in gross merchandise sales to $2.2 billion.
The company reiterated its full-year 2026 guidance for gross merchandise sales between $9.9 billion and $10.1 billion. It also projects adjusted Ebitda of $400 million to $420 million, with the Wall Street consensus at $409.6 million, according to FactSet.
Following the report, J.P. Morgan raised its price target on the stock to $11 from $10, while maintaining a Neutral rating. Morgan Stanley also lifted its target to $8.75 from $8.25, noting the upcoming FIFA World Cup could provide a "meaningful tailwind" for the secondary ticketing industry.
The strong quarter suggests management's strategy is gaining traction in a competitive market. Investors will watch the upcoming FIFA World Cup as a key test for demand and whether the company can maintain its growth trajectory through 2026.
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