Vivid Seats NASDAQ: SEAT reported first-quarter fiscal 2026 results that management said landed at the high end or above prior guidance, driven by sequential gains in gross order value (GOV), adjusted EBITDA, and cash. Chief Executive Officer Larry Fey told investors the company began the year with “a clear focus and roadmap to enhance our market position and financial trajectory,” and said the sequential improvement supports confidence in returning to year-over-year growth in the second half of fiscal 2026.
App momentum and product changes
Fey emphasized that Vivid Seats is aligning product, pricing, and marketing around a “most rewarding ticketing company” positioning, including competitive pricing, a “lowest price guarantee,” and its rewards program. The company’s product work is focused on improving the core customer journey, including funnel efficiency and conversion.
Fey said Vivid Seats recently deployed an upgraded app checkout flow intended to accelerate the customer journey and improve conversion rates, with additional app and web enhancements planned for the second and third quarters.
In Q1 2026, Fey said app GOV increased 20% year-over-year, and app share of GOV exceeded 40% for the quarter. He added that app users tend to be more engaged and convert at higher rates while relying less on paid performance marketing channels. During the Q&A, Fey said the company’s ambition is for a majority of the business to come through the app, with a “realistic timetable” of reaching that on a run-rate basis “at some point in 2027.”
Asked about differences between app and web users, Fey said the largest distinction is frequency: the most frequent live event attendees are more likely to download and use the app, and those customers “over-index” toward sports due to recurring events.
Private label activity and competitive environment
Vivid Seats also highlighted activity in its private label channel. Fey said the company launched a “significant new private label partner” during the quarter and that performance was already exceeding expectations. He also said Vivid Seats extended an agreement with a “large existing private label customer.”
During the Q&A, Fey told RBC Capital Markets that the company’s expectation of returning to growth in the second half is influenced by lapping the loss of a large private label customer in July of the prior year, with July and August representing the “first true clean month” without that customer. He outlined two potential upside drivers for private label: adding new partners and improving partner performance by making marketplace product enhancements configurable and available to private label partners.
On industry competition, Fey told Morgan Stanley that moderation that began in Q4 from StubHub in paid search has continued, though it has been “somewhat counterbalanced” by aggressiveness from other players. He also noted a recent shift toward price testing and said the ecosystem remains competitive on pricing, “particularly in sports,” while the marketing landscape has stabilized.
First-quarter financial results and outlook
Chief Financial Officer Joe Thomas said Q1 performance came at or above the top end of guidance and included “meaningful sequential increases” in GOV and adjusted EBITDA versus Q4 2025.
- Marketplace GOV: $612 million, up from $581 million in Q4 2025 (a $31 million or 5.5% sequential increase).
- Consolidated revenue: $126 million, essentially flat versus $127 million in Q4 2025.
- Marketplace take rate: 15.9% versus 16.8% in Q4 2025, which Thomas said was primarily due to mix shift as private label revenue carries lower take rates. He said the company expects near-term take rates to remain around 16% on a consolidated basis.
- Adjusted EBITDA: $9.5 million, up from $1 million in Q4 2025. Thomas attributed the improvement to a “material reduction in operating costs” alongside a growing GOV and revenue base.
- Cash: Increased by more than $40 million in the quarter to $144 million, with Thomas citing improved profitability and seasonally strong working capital dynamics.
Thomas reaffirmed the company’s fiscal 2026 outlook, calling for marketplace GOV of $2.2 billion to $2.6 billion and adjusted EBITDA of $30 million to $40 million.
Industry demand, event calendar, and World Cup
Management discussed industry demand trends and the event calendar. Fey told Craig-Hallum that industry data suggested Q1 was up “a smidge” in the low single digits, starting strong in January and moderating into February and March. For Q2 to date, he said trends were roughly flat, noting Easter timing and that April improved with “a couple meaningful concert on sales” in the last two weeks. Fey also referenced increased tour cancellations and delays, including The Pussycat Dolls, Zayn Malik, and Post Malone, which he said could reflect mispricing or a cap on growth.
On the consumer environment, Fey told William Blair he did not see a clear demand shift tied to the Iran conflict or oil price moves. However, he said Vivid Seats has seen some weakness at “the lower end of the Vegas market,” adding that 2026 is expected to be more of a “blocking and tackling” year in Las Vegas as the company looks ahead to supply tailwinds in 2027 with the reopening of the Mirage.
Fey also discussed the World Cup as a potential tailwind, telling Maxim Group it has been meaningful and is tracking to expectations. He framed the opportunity as larger than a typical A-list concert tour but smaller than the Taylor Swift tour, and said the event is tracking to be “low to mid single digits as a percentage of full year GOV.”
Costs, AI initiatives, and other partnership updates
On expenses, Fey told Bank of America that cost reductions are “flowing through” without productivity losses, and he said deployment rates have increased alongside efficiency gains, aided in part by AI tools. Fey said the objective remains operating leverage, with expenses remaining steady on the G&A side even as the company returns to growth, though he noted some variable costs scale with transaction volume.
Thomas provided additional color on cash flow expectations, telling Maxim Group that capital expenditures may be “a little bit lower” than previously estimated. He cited net interest expense in the $20 million range, “CapEx software in the low to mid-teens,” and some taxes related to international operations. Thomas said that at adjusted EBITDA of $35 million to $40 million, the company would be cash flow positive before working capital, and reiterated management’s view that working capital will be a source of cash over the course of the year.
On artificial intelligence, Fey said Vivid Seats has begun running ads on ChatGPT and is working with “leading AI platforms.” He told RBC Capital Markets that, so far, AI has been more impactful in operational efficiency than in disrupting top-of-funnel customer acquisition, and he said the company has not seen indications of near-term “fully captive” transactions that would box out ticket marketplaces.
Fey also addressed the company’s partnership with United Airlines, telling Bank of America it has been “a nice tailwind” but not a “needle mover” for Q1 results.
Looking internationally, Fey told Canaccord that the company remains encouraged and is prioritizing “universal upgrades” that benefit both international markets and North America, while noting a roadmap of international-specific upgrades that may be addressed over coming quarters.
About Vivid Seats NASDAQ: SEAT
Vivid Seats, traded on NASDAQ under the ticker SEAT, operates an online ticket marketplace that connects buyers and sellers of live event tickets. The company specializes in facilitating purchases for sports games, concerts, theater productions and other entertainment experiences. Through its digital platform and mobile application, Vivid Seats offers real-time access to available tickets, transparent pricing and a 100% Buyer Guarantee, which ensures ticket authenticity and timely delivery.
Founded in 2001 and headquartered in Chicago, Illinois, Vivid Seats has grown from a regional reseller into one of North America's leading ticket marketplaces.
Further Reading
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