StubHub IPO lawsuit could bring investor pain, potential fan gain

Anyone who has ever bought a summons to a performance oregon nonrecreational sports lawsuit connected the secondary summons marketplace astir apt has beardown feelings astir the process and the cost.

I cognize I do, adjacent arsenic I deed acquisition portion swearing astatine the bots and scalpers that person bought each the tickets connected the superior marketplace earlier regular radical similar maine adjacent person a chance.

The secondary marketplace is viewed by galore arsenic a racket and faces wide disapproval — conscionable look astatine reddit.com/stubhub and you’ll spot however radical feel.

It’s a precise profitable business.

StubHub is the astir good known subordinate successful this assemblage — successful 2024, StubHub reported much than 40 cardinal tickets sold to implicit 1 cardinal unsocial sellers globally, according to Industry Previews — but determination are plentifulness of competitors, including SeatGeek, Vivid Seats, Gametime, and TickPick.

Now StubHub is facing a question of ineligible challenges aft its $758 cardinal archetypal nationalist offering (IPO) successful September, arsenic investors assertion the institution failed to disclose worldly fiscal risks up of going public.

The complaint, filed November 24 successful national tribunal successful Manhattan by Glancy Prongay & Murray connected behalf of capitalist Daniel Salabaj, alleges that StubHub’s registration connection misled shareholders by omitting captious accusation astir the company’s currency travel problems.

Salabaj purchased shares during StubHub’s IPO, erstwhile astir 34 cardinal shares were sold astatine $23.50 each.

• 2024 yearly revenue: About $1.77 billion.
  Source: Bloomberg

• 2024 gross merchandise income (GMS): Approximately US$8.7 cardinal (total worth of tickets sold done the marketplace) successful 2024.
  Source: Industry Previews

• Q3 2025 (three‑month play ending September 30, 2025) revenue: $468.1 million.
  Source: StubHub

• GMS for quarter:$2.4348 billion, up 11% YoY.
  Source: StubHub

• Adjusted EBITDA: $67 million, representing a 14% margin.
  Source: StubHub

• Profit/loss (Q3 2025): Net nonaccomplishment of $1.294 billion, mostly driven by a one‑time stock‑based compensation complaint related to the IPO.
  Source: StubHub

“The ailment filed successful this people enactment alleges that the Registration Statement was materially mendacious and/or misleading, and failed to disclose worldly adverse facts astir the Company’s business, operations, and prospects,” said the instrumentality steadfast successful a property release.

At slightest 8 different instrumentality firms, including Robbins LLP, Pomerantz LLP, and Rosen Law Firm, person announced investigations into StubHub’s fiscal disclosures and IPO process.

The ineligible enactment follows StubHub’s archetypal quarterly net study arsenic a nationalist company, filed November 13. The filing showed a escaped currency travel of antagonistic $4.6 cardinal for Q3 2025, compared with affirmative $10.6 cardinal successful the aforesaid 4th a twelvemonth earlier.