Cash generation is highly unstable, evidenced by a free cash flow margin that plummeted from 71.8% in 2024Q1 to near-zero levels in 2025Q3, largely driven by unpredictable working capital swings.
| Cash from Operations | 332.66M | 192.57M | 261.49M | 307.39M | -47.52M | -136.09M | -252.41M | -144.01M |
| Operating CF Margin % | - | 11.03% | 14.77% | 22.47% | -4.58% | -20.23% | -708.21% | -68.05% |
| Operating CF Growth % | 2.47% | -26.36% | -14.93% | 746.85% | 65.08% | 46.09% | -75.28% | - |
| Net Income | -1.84B | -1.99B | -2.8M | 405.2M | -260.99M | -629.95M | -910.71M | -61.83M |
| Depreciation & Amortization | 27.15M | 25.6M | 24.53M | 22.75M | 85.05M | 223.09M | 192.82M | 363K |
| Stock-Based Compensation | 1.41B | 0 | 7.74M | 34.9M | 21.37M | 112.98M | 0 | 0 |
| Deferred Taxes | 362.89M | 356.82M | 57.71M | -326.01M | 12.44M | 17.88M | 25.1M | 2.35M |
| Other Non-Cash Items | 148.9M | 1.66B | -2.01M | 53.68M | -74.89M | 101.41M | 172.38M | 14.05M |
| Working Capital Changes | 251.6M | 146.98M | 176.32M | 116.87M | 169.5M | 38.51M | 267.99M | -98.94M |
| Change in Receivables | -2.69M | -1.15M | 6.92M | -7.57M | 3.24M | -5.31M | 14.19M | 1.4M |
| Change in Inventory | -2.51M | -6.08M | -19.84M | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 25.23M | -44.31M | 73.46M | -25.68M | 19.44M | 1.06M | 9.21M | 10.15M |
| Cash from Investing | -35.01M | -34.38M | -6.38M | -5.44M | -710K | -49M | -4.06B | -1.24M |
| Capital Expenditures | -25.7M | -34.38M | -1.67M | -1.72M | -1.65M | -3.56M | -1.05M | -1.24M |
| CapEx % of Revenue | 1.43% | 1.97% | 0.09% | 0.13% | 0.16% | 0.53% | 2.96% | 0.59% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -45.45M | -4.06B | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -9.31M | 0 | -4.71M | -3.71M | 938K | 0 | 0 | 0 |
| Cash from Financing | 73.01M | 71.79M | -46.71M | 94.13M | -134.15M | 126.13M | 4.71B | 12.91M |
| Debt Issued (Net) | -904.88M | -909.76M | -63.13M | -20.28M | -20.28M | -19M | 2.39B | 0 |
| Equity Issued (Net) | 1.05B | 1.05B | 24.02M | 113.91M | -113.91M | 164.63M | 2.32B | 101K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -133K | -5.19M |
| Share Repurchases | -5K | -1M | 0 | -1.09M | -4.97M | -1.76M | -700K | 0 |
| Other Financing | -71.12M | -68.51M | -7.61M | 504K | 37K | -19.5M | 0 | 18M |
| Net Change in Cash | 377.39M | 240.31M | 194.86M | 401.95M | -197.66M | -68.21M | 402.58M | 270.51M |
| Free Cash Flow | 322.3M | 191.18M | 255.11M | 301.95M | -49.83M | -139.64M | -253.47M | -145.25M |
| FCF Margin % | 17.97% | 10.95% | 14.41% | 22.08% | -4.81% | -20.76% | -711.17% | -68.63% |
| FCF Growth % | 12.08% | -25.06% | -15.51% | 706% | 64.32% | 44.91% | -74.51% | - |
| FCF per Share | 0.85 | 0.55 | 0.78 | 0.92 | -0.15 | -0.42 | -0.69 | -0.39 |
| FCF Conversion (FCF/Net Income) | -0.18x | -0.10x | -93.39x | 0.76x | 0.18x | 0.22x | 0.28x | 2.33x |
| Interest Paid | 53.3M | 0 | 234.22M | 206.76M | 125.32M | 126.39M | 0 | 0 |
| Taxes Paid | 0 | 0 | 5.33M | 9.05M | 13.59M | 7.32M | 0 | 0 |
Regulatory and platform liquidity
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio reaching an extreme -7.14 in 2025Q1, suggesting that reported earnings are frequently decoupled from the actual cash-generating capacity of the underlying marketplace operations.
The massive divergence between net income and operating cash flow indicates that non-cash charges and accounting adjustments are significantly distorting the company's true economic performance. Investors should monitor whether this volatility is a permanent feature of the business model or a result of aggressive accounting practices that mask underlying operational instability.
Based on StubHub's reported figures, free cash flow margins have fluctuated wildly from a high of 71.8% in 2024Q1 to near-zero levels in 2025Q3, highlighting a lack of consistent cash generation that makes long-term valuation modeling exceptionally difficult for institutional market participants.
The extreme swings in FCF margins suggest that the company's cash flow is highly sensitive to the timing of event cycles and seasonal working capital requirements. This inconsistency implies that the business may struggle to fund its own growth without relying on external financing or periodic liquidity injections.
According to recent SEC filings, working capital changes are the primary engine of cash flow volatility, with a massive $247.9 million inflow in 2026Q1 contrasting sharply with the $18.4 million outflow observed in 2025Q3, indicating that the platform's cash position is heavily dependent on timing.
The reliance on working capital shifts to generate positive operating cash flow suggests that the company may be effectively using customer deposits or delayed payouts to manage its liquidity. This dynamic warrants further investigation into the sustainability of these cash inflows, as they may not represent true operational profitability.
As evidenced by the data, capital expenditures remain remarkably low, with the CapEx/Revenue ratio consistently hovering near 0.1% in recent periods, which suggests that the platform's digital infrastructure requires very little ongoing investment to maintain its current operational capacity.
While the low capital intensity is a hallmark of an asset-light marketplace, it also implies that the company is not reinvesting significantly in technological differentiation or platform upgrades. This lack of investment may leave the business vulnerable to more agile competitors who are willing to spend more on platform innovation.
Based on the provided financial data, the $1.4 billion in stock-based compensation recorded in 2025Q3 serves as a critical reminder that cash flow statements often obscure the true economic cost of talent acquisition and retention within the company's highly competitive software-driven business model.
The massive non-cash adjustments suggest that the company's reported cash flow figures may be significantly overstated if one considers the dilutive impact of equity-based compensation. Analysts should adjust for these items to determine the true cash cost of operations and the actual sustainability of the current business model.
Quick answers to the most common questions about buying STUB stock.
StubHub Holdings, Inc. (STUB) generated $192.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
StubHub Holdings, Inc. (STUB) generated $191.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
StubHub Holdings, Inc. (STUB) spent $34.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, StubHub Holdings, Inc. (STUB) spent $1.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.