StubHub Holdings, Inc. (STUB) had a rough debut earnings report as a public company Friday, sending shares down more than 22% as analysts rushed to adjust their expectations downward.

The Earnings Picture

The ticket marketplace reported a loss of $4.27 per share for the third quarter, significantly missing the consensus estimate of a $3.08 loss. Revenue came in at $468 million, which actually topped analyst expectations of $451.80 million.

Here's the thing: that headline loss looks brutal, but it's largely accounting noise from going public. The company took a one-time $1.4 billion stock-based compensation charge related to its IPO, which drove the quarter's $1.3 billion net loss. Strip that out, and the underlying business showed some decent momentum.

StubHub posted $2.4 billion in Gross Merchandise Sales, up 11% year-over-year, with revenue representing 19% of GMS. Adjusted EBITDA hit $67 million, up 21% from the prior year. The company also used IPO proceeds strategically, paying down approximately $750 million in debt to strengthen its balance sheet.

On the business development front, StubHub announced a multi-year partnership with Major League Baseball to distribute primary ticket inventory starting in the 2026 season.

CEO Eric Baker emphasized the marketplace's strength in the company's first quarter as a public entity, noting that StubHub remains focused on expanding fan access and improving transparency in live event ticketing.

Wall Street Reacts

Analysts weren't particularly impressed, and the price target cuts came swiftly. B of A Securities analyst Justin Post downgraded StubHub from Buy to Neutral and slashed his price target from $25 to $19. Guggenheim analyst Curry Baker maintained a Neutral rating but lowered the target from $19 to $16. Evercore ISI Group analyst Mark Mahaney stayed more optimistic with an Outperform rating, though even he trimmed his target from $29 to $27.

Price Action: At the time of writing, StubHub shares were trading 22.58% lower at $14.59.