StubHub’s stock took a nosedive of over 10% on Thursday, following a problematic World Cup partnership. This led to a total loss for the company in its quarterly profits, leaving customers who had purchased tickets stuck outside stadiums, prompting numerous media reports and legal actions.
In its latest earnings statement released on Wednesday, the prominent ticket reseller announced a loss of $40,000 for the quarter ending June 30, translating to less than a cent per share. This is an improvement over the more significant loss of $75.9 million reported a year earlier.
Despite a revenue increase of 33%, reaching $573.1 million and surpassing analyst predictions of $513.3 million, expenses surged even more—by 37%—due to issues tied to World Cup ticket sales.
The upcoming 2026 FIFA World Cup, expected to be hosted in 16 cities, including 11 in the U.S., was believed to offer major profit potential for StubHub.
However, the company has faced a barrage of complaints from customers who had bought tickets months in advance, only to find themselves unable to enter the venues.
“As fellow fans, we completely get the disappointment when things go awry,” said CEO Eric Baker during a late Wednesday earnings call. “Our platform relies on fans actually attending events.”
Baker attributed the disappointing revenue to issues with FIFA’s mobile app, explaining that the app was specifically tailored for the tournament, which added complexity. As StubHub managed an influx of ticket orders for 75 matches over a two-week span, these complications became apparent.
He noted that most StubHub users had a smooth experience with their World Cup tickets but acknowledged that some fans were left wanting and needed refunds. “That’s simply not acceptable. We’re continuously striving to improve. Even a single refund is too many,” he stressed.
The company’s stock has now fallen nearly 60% since its initial public offering last September, when shares were priced at $23.50.
A Manhattan federal court lawsuit seeks class action status, claiming two California customers paid significant amounts for World Cup tickets, only for StubHub to cancel their orders at the last moment.
One complainant, Ruben Renteria from Los Angeles, spent $2,294 on tickets for the Mexico-South Korea match but discovered they were canceled only after traveling to Mexico. Another customer, Julia Rieker Mogul, found herself outside SoFi Stadium in Los Angeles without entry after purchasing tickets for the game against Switzerland.
In a separate incident, an 89-year-old man in San Diego had his hopes of attending a match dashed because StubHub failed to send tickets to his granddaughter, which he had already paid for.
According to the Wall Street Journal, StubHub’s challenges are broader than just the tournament, as over 50 customers have reported being denied entry to various events, despite having bought tickets. Many only got refunds after involving legal counsel and drawing media attention.
Frustrated fans have also lodged complaints related to ticketing issues surrounding the World Cup. An earlier article highlighted a lawsuit that accused FIFA of misleading fans into thinking that high-priced tickets would grant close access to the field, while the best seats were pre-allocated for corporate sponsors and VIPs.
Companies like Ticketmaster and StubHub have faced criticism in recent years for allegedly monopolizing the market, inflating ticket prices through hidden fees, and forcing consumers to pay exorbitant amounts for concerts and events. Both companies, however, have denied these claims.
