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EI

Eventbrite, Inc. (EB)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $72.8M, at the top of guidance and above S&P consensus ($71.7M). GAAP diluted EPS was -$0.02, better than S&P consensus (-$0.07). Adjusted EBITDA margin was 8.8%, materially above Q2 guidance (3–4%). Revenue beat and margin outperformance are near-term catalysts. (S&P Global)
  • Updated FY 2025 outlook: revenue lowered to $290–$296M (from $295–$310M prior) but Adjusted EBITDA margin raised to ~7% (from mid-single digits), reflecting mix (fewer tickets per creator) and sustained OpEx discipline. Mixed guidance (lower revenue, higher margin) likely tempers the beat.
  • Operational momentum: paid ticket trends improved sequentially; July paid creators were ~flat YoY and paid ticket volume was down ~1% YoY, supporting management’s confidence in returning to growth exiting 2025.
  • Balance sheet strengthened: new $60M Term Loan A (SOFR+250 bps) and repurchase of $125M of 2026 converts at $0.94 on the dollar; expected retirement of remaining 2025 converts in December. Liability management reduces risk and supports flexibility.

What Went Well and What Went Wrong

What Went Well

  • Top-line and margin execution: “Net revenue came in at $72.8M... and adjusted EBITDA margin of 8.8%, well above our expectations,” highlighting strong cost control and ads contribution.
  • Ads performance: Eventbrite Ads grew 50% YoY; management cited high-margin ads as a key driver of gross margin improvement vs Q1.
  • July inflection signals: “Paid creators... about flat in July, and paid ticket volume was down just 1% year over year,” reinforcing the recovery trajectory into H2.
  • Strategic product execution: launch of Lineup tool for music organizers; app relaunch improved conversion; expanding discovery and personalization to power marketplace flywheel.
  • Capital structure refinements: new $60M term loan and repurchase of a large portion of 2026 converts at a discount provide “greater liquidity and optionality.”

What Went Wrong

  • Year-over-year declines: net revenue down 14% YoY (largely from elimination of organizer fees); paid tickets down 7% YoY; gross profit down 18% YoY.
  • Tickets per creator lag: mix shift toward smaller creators led to “average tickets sold per creator... lower than we anticipated,” prompting FY revenue outlook cut.
  • GAAP profitability: net loss of $2.1M vs prior-year net income of $1.1M, which benefited from an $8.3M legal settlement gain in Q2’24, pressuring YoY comparisons.

Financial Results

P&L and Estimates Comparison

MetricQ4 2024Q1 2025Q2 2025
Net Revenue ($USD Millions)$76.5 $73.8 $72.8
Revenue Consensus Mean ($USD Millions)$76.2*$73.2*$71.7*
GAAP Diluted EPS ($USD)-$0.09 -$0.07 -$0.02
Primary EPS Consensus Mean ($USD)-$0.055*-$0.087*-$0.07*
Gross Margin %68.2% 67% 67%
Adjusted EBITDA Margin %9% 6.2% 8.8%

Values marked with * retrieved from S&P Global.

Q2 vs Estimates:

  • Revenue: $72.8M vs $71.7M consensus → beat (+$1.1M). (S&P Global)
  • EPS: -$0.02 vs -$0.07 consensus → beat (+$0.05). (S&P Global)

KPIs

KPIQ4 2024Q1 2025Q2 2025
Paid Tickets (Millions)21.639 19.585 19.684
Gross Ticket Sales ($USD Millions)$794.2 $774.9 $755.0

Balance Sheet Highlights

MetricDec 31, 2024Jun 30, 2025
Cash & Cash Equivalents ($USD Thousands)$416,531 $490,504
Restricted Cash ($USD Thousands)$48,000 $48,000
Long-term Debt ($USD Thousands)$210,938 $211,455
Total Stockholders’ Equity ($USD Thousands)$170,229 $177,197

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Revenue ($USD Millions)FY 2025$295–$310 $290–$296 Lowered
Adjusted EBITDA Margin %FY 2025Mid-single digits ~7% Raised
Net Revenue ($USD Millions)Q3 2025N/A$70–$73 Issued
Adjusted EBITDA Margin %Q3 2025N/A~7% Issued
Net Revenue ($USD Millions)Q2 2025$70–$73 Actual $72.8 Met Top End
Adjusted EBITDA Margin %Q2 20253–4% Actual 8.8% Raised vs Guide

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Ticketing recoveryExpect paid ticket growth in H2’25; sequential improvement noted. July paid creators ~flat YoY; paid tickets down ~1% YoY; continued improvement. Improving
Eventbrite AdsAds part of “Marketplace-related” revenue; growth continued. Ads +50% YoY; high-margin driver of GM and monetization. Strengthening
Product/appApp relaunch boosted conversion; tools like Timed Entry supporting creators. Launched Lineup; app home feed strong; more personalization. Positive execution
Mix/tickets per creatorNoted transition year after fee changes. Tickets per creator below plan; mix skew to smaller creators; revenue outlook cut. Near-term headwind
Capital structureRepurchased stock and reduced debt in 2024. $60M Term Loan A; $125M converts repurchased below par; retire 2025 converts in Dec. Balance sheet improved
Macro/regulatoryMacro factors cited in FLS (tariffs, trade controls, rates). Continued macro cautions in FLS. Ongoing backdrop

Management Commentary

  • “We delivered a strong second quarter, outperforming on the bottom line and continuing to improve our core ticketing trends... adjusted EBITDA margin of 8.8%, well above our expectations.” — Julia Hartz (CEO)
  • “Paid creators and paid ticket volume were very close to flat year over year in July... a powerful signal that our recovery is taking hold.” — Julia Hartz (CEO)
  • “We delivered on our outlook... net revenue at the top end... adjusted EBITDA margins significantly above expectations... reducing operating expenses is driving structural improvements.” — Anand Gandhi (CFO)
  • “We secured a new $60M term loan... and repurchased $125M of our 2026 converts below par at $0.94 on the dollar.” — Anand Gandhi (CFO)
  • Non-GAAP note: Adjusted EBITDA definition updated in Q2 to include significant non-recurring legal matters, net of insurance recoveries; Q2 addback was $0.737M.

Q&A Highlights

  • Drivers of July acceleration and sustainability: Management cited improving creator/consumer behavior, targeted acquisition of larger creators, and upselling ads; expects lagging indicator (tickets per creator) to pick up in H2.
  • Mix impact and competitive landscape: Mix skew towards smaller events caused fewer tickets per creator; competition stable with EB positioned in mid-market and strong discovery/marketplace flywheel.

Estimates Context

  • Q2 2025 vs consensus: Revenue $72.8M vs $71.7M consensus — bold beat; EPS -$0.02 vs -$0.07 consensus — bold beat. (S&P Global)
  • Estimate depth: Q2 2025 had 3 revenue and 2 EPS estimates, indicating modest analyst coverage; future quarters (Q3–Q4 2025) imply similar revenue cadence (~$71–$73M). (S&P Global)

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Q2 print was clean: revenue and EPS beat, with a significant margin beat vs guidance, supported by high-margin ads and OpEx discipline.
  • Guidance reset is mixed: lower FY revenue range reflects slower tickets-per-creator recovery; higher margin outlook indicates structural cost improvements — watch mix normalization in H2.
  • Near-term catalyst: evidence of July stabilization (paid creators ~flat; paid tickets ~-1% YoY) supports the return-to-growth narrative into year-end.
  • Ads as monetization lever: sustained YoY growth (+50%) and international expansion underpin margin resilience; continue to monitor ads adoption among larger creators.
  • Balance sheet action reduces risk: term loan adds liquidity; converts repurchase at discount lowers refinancing overhang — supportive for valuation multiples if recovery continues.
  • Non-GAAP policy update: Adjusted EBITDA now includes significant legal matters addback; incorporate this in model comparability and forward margin assessment.
  • Trading setup: Beat-and-raise-on-margin vs revenue trim may drive a two-way reaction; upside if H2 tickets-per-creator improves and Q3 hits guide, downside if mix persists longer than expected.

Source Documents

  • Q2 2025 press release, financials, and outlook
  • Q2 2025 earnings call transcript
  • Q2 2025 8-K (Item 2.02 and exhibits; non-GAAP details)
  • Q1 2025 press release and outlook
  • Q4 2024 press release and operating metrics