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EI

Eventbrite, Inc. (EB)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 net revenue was $71.7M, in line with outlook; Adjusted EBITDA of $8.4M delivered an 11.7% margin, materially above the ~7% margin outlook for the quarter .
  • Reported net income of $6.4M versus a loss of $(3.8)M YoY, aided by a $5.8M gain on partial extinguishment of 2026 convertible notes and structurally lower OpEx (down $12.6M YoY) .
  • FY25 guidance tightened to $290–$293M revenue and Adjusted EBITDA margin raised to ~8–9% (from ~7% previously); Q4 guidance set at $71.5–$74.5M revenue and 8–9% Adjusted EBITDA margin .
  • Management emphasized disciplined execution and marketplace stabilization; momentum in paid tickets, paid creators, and ads growth (+38% YoY) is a potential catalyst heading into 2026, when they expect a return to top-line growth and margin expansion .

What Went Well and What Went Wrong

What Went Well

  • “We once again achieved our revenue outlook and significantly outperformed our margin guidance in the third quarter” — CFO Anand Gandhi .
  • Eventbrite Ads revenue grew 38% YoY, contributing to sequential gross margin improvement, with management expecting modest continued improvement as Ads mix rises .
  • Paid tickets declined only 3% YoY (improving 400 bps vs Q2) and paid creators declined <1% YoY (also improving 400 bps vs Q2), marking the fourth consecutive quarter of improving trends .

What Went Wrong

  • Net revenue declined 8% YoY, driven in part by eliminating organizer fees; gross margin was down ~60 bps YoY per CFO color due to the high-margin fee elimination .
  • Mix shift toward smaller creators persisted and remains a modest headwind; average tickets per creator recovery has been slower than expected .
  • Q4 margin outlook (8–9%) implies sequential downtick from Q3’s 11.7% as the company rebalances OpEx to invest for growth while maintaining discipline .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Net Revenue ($USD Millions)$77.801 $73.833 $72.758 $71.743
Gross Margin (%)68% 67% 67% 68%
Net Income ($USD Millions)$(3.768) $(6.611) $(2.107) $6.369
Diluted EPS ($USD)$(0.04) $(0.07) $(0.02) $0.06
Adjusted EBITDA ($USD Millions)$5.337 $4.573 $6.431 $8.416
Adjusted EBITDA Margin (%)7% 6% 9% 11.7%

Notes:

  • CFO commentary cited gross margin at 67.9% for Q3 (vs. 68% in press materials), reflecting rounding and mix effects .

KPIs and Operating Metrics

KPIQ1 2025Q2 2025Q3 2025
Paid Tickets (Millions)19.585 19.684 19.071
Paid Creators (Thousands)N/A“over 168” 162
Eventbrite Ads Revenue Growth (YoY)+30% +50% +38%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Revenue ($USD Millions)FY 2025$295–$310 (Q1 guide) $290–$293 (Q3 update) Lowered
Adjusted EBITDA Margin (%)FY 2025“mid-single digit” (Q1 guide) ~8–9 (Q3 update) Raised
Net Revenue ($USD Millions)FY 2025$290–$296 (Q2 update) $290–$293 (Q3 update) Narrowed/Lowered
Adjusted EBITDA Margin (%)FY 2025~7 (Q2 update) ~8–9 (Q3 update) Raised
Net Revenue ($USD Millions)Q4 2025N/A$71.5–$74.5 New
Adjusted EBITDA Margin (%)Q4 2025N/A~8–9 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q2 2025)Previous Mentions (Q-1: Q1 2025)Current Period (Q3 2025)Trend
AI/Technology InitiativesFocus on structural OpEx improvements; Ads +50% YoY; rebuilding foundation App rebrand driving engagement; Ads +30% YoY Plan to integrate AI-powered recommendations across event creation; AI to improve marketing performance and listing conversion Accelerating investment in AI/Personalization
Product PerformancePaid tickets down 7% YoY, improving; margin above guide Paid tickets improving; margin at high end of guide Paid tickets down 3% YoY (+400 bps vs Q2), paid creators ~flat YoY; Ads +38% YoY; margin beat Stabilizing/improving
Tariffs/Macro/RegulatoryMacro risks acknowledged in FLS Macro risks acknowledged Discussion of ticketing industry scrutiny; EB positioning on transparency and fairness Neutral; positioning advantage
Mix Shift & Creator CohortsIndicated trends improving; prep for growth Emphasis on marketplace stabilization Mix shift to smaller creators is a modest headwind; expect growth in 2026 Headwind persists but moderating
Capital Structure & Liquidity$60M term loan; repurchased $125M converts N/ARetired portion of 2026 converts; plan to retire remaining converts; term loan maturing 2029 Deleveraging/Improving liquidity
Non-GAAP DefinitionAdded significant/non-recurring legal matters to Adjusted EBITDA (prospective from Q2) Prior definition (no legal matters) Prospective definition remains; reconciliations provided Consistent; definition refined since Q2

Management Commentary

  • CEO Julia Hartz: “Our third quarter results reflect our strengthened foundation… The work we’ve done this year positions us to scale our strengths and return to growth with a clear roadmap for 2026 that will drive both expansion and efficiency.”
  • CFO Anand Gandhi: “We once again achieved our revenue outlook and significantly outperformed our margin guidance… delivered meaningful improvement in paid ticket, paid event, and paid creator trends, as well as further structural reductions in operating expenses.”
  • Strategy for 2026: AI-powered recommendations in creator workflows, dynamic pricing for larger creators, personalization on the consumer side, and global/monetization expansion with localization and payments .
  • Marketplace positioning: Emphasis on transparency and fair pricing; goal to serve larger venues and high-volume creators with premium tools and independent marketplace advantages .

Q&A Highlights

  • Investment balance for growth: Management will keep OpEx disciplined while reallocating savings to high-return initiatives (e.g., performance marketing, product features), aiming to both maintain efficiency and fund growth .
  • AI’s influence on product velocity: Plans to leverage GenAI to improve marketing performance, listing quality and conversion, and consumer personalization; larger creators using Eventbrite Ads see >200% ROAS, which EB aims to enhance further .
  • Gross margin trajectory vs EBITDA margin guide: CFO expects modest sequential gross margin improvement as Ads mix rises; Q4 EBITDA margin guide lower (8–9%) reflects investment cadence even as unit economics improve .
  • Regulatory lens on ticketing ecosystem: EB reiterated commitment to transparency and fair pricing; sees potential competitive openings to move upmarket and serve larger venues .

Estimates Context

  • Revenue: Actual $71.743M versus S&P Global consensus $71.867M; essentially in line.*
  • EPS: Company reported diluted EPS $0.06; S&P “Primary EPS” actual 0.006 versus consensus −0.01, implying a significant beat.*
  • Note: S&P methodology differences (e.g., “Primary EPS”) can cause variations versus company-reported diluted EPS; Adjusted EBITDA is a non-GAAP measure not directly comparable to S&P’s EBITDA.
MetricQ3 2025 ConsensusQ3 2025 Actual
Revenue ($USD)$71.867M*$71.743M
Primary EPS ($USD)−$0.01*$0.006* / Company Diluted EPS: $0.06

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Margin execution beat: Q3 Adjusted EBITDA margin of 11.7% vs ~7% outlook reflects structural OpEx reductions and Ads mix benefits .
  • FY margin raised and revenue narrowed: FY25 margin outlook increased to ~8–9%; revenue narrowed to $290–$293M, signaling improved confidence in profitability while acknowledging near-term top-line constraints .
  • Stabilization continues: Fourth consecutive quarter of improving YoY trends in paid tickets and creators; mix shift to smaller creators remains a modest headwind near term .
  • Ads momentum: Ads growth (+38% YoY) is accretive to margins and expected to contribute more over time, supporting gross margin improvement .
  • Deleveraging path: Repurchase of $125M 2026 converts and clear timeline to retire remaining converts and 2025 notes positions balance sheet for 2026 .
  • 2026 roadmap: Management expects return to revenue growth by Q2’26 and margin expansion via AI-driven product improvements, upmarket creator tools, and consumer personalization .
  • Near-term trade setup: Q4 guide suggests modest margin downtick as investments ramp; watch for Ads mix progression, creator cohort retention, and pace of tickets-per-creator recovery to gauge estimate revisions .

Additional Data Cross-References

  • Q3 2025 Statement of Operations, EPS and shares: diluted EPS $0.06; diluted shares 98.587M .
  • Non-GAAP policy update: Adjusted EBITDA definition revised in Q2 2025 to include significant/non-recurring legal matters prospectively; reconciliation tables provided .
  • Gross margin discrepancy: Press materials show 68%; CFO cited 67.9% with sequential improvement driven by Ads .

Appendix: Prior Quarter Highlights (for Trend Context)

  • Q2 2025: Revenue $72.8M; Adjusted EBITDA $6.4M (9% margin); paid tickets 19.7M (−7% YoY); Ads +50% YoY; term loan $60M and repurchase of $125M 2026 converts .
  • Q1 2025: Revenue $73.8M; Adjusted EBITDA $4.6M (6% margin); paid tickets 19.6M (−8% YoY); Ads +30% YoY; app rebrand and marketplace stabilization messaging .