Vivid Seats Reports Second Quarter 2025 Results
Vivid Seats (NASDAQ: SEAT) reported challenging Q2 2025 results, with significant year-over-year declines across key metrics. The company's Marketplace GOV fell 31% to $685.5 million, while revenues decreased 28% to $143.6 million. The company recorded a substantial net loss of $263.3 million, compared to a $1.2 million loss in Q2 2024.
In response to industry headwinds and competitive pressures, Vivid Seats announced a $25 million annualized cost reduction program to be implemented by end of 2025. The company also disclosed plans for a 1-for-20 reverse stock split of its Class A and Class B common stock, effective August 5, 2025.
Management cited challenging industry conditions, including pressure on consumer spending and intense competition in performance marketing channels. The company has suspended providing financial guidance for 2025 but expects positive cash flow in Q3 2025.
Vivid Seats (NASDAQ: SEAT) ha riportato risultati difficili nel secondo trimestre del 2025, con cali significativi anno su anno in metriche chiave. Il Marketplace GOV è sceso del 31% a 685,5 milioni di dollari, mentre i ricavi sono diminuiti del 28% a 143,6 milioni di dollari. L'azienda ha registrato una consistente perdita netta di 263,3 milioni di dollari, rispetto a una perdita di 1,2 milioni di dollari nel Q2 2024.
In risposta alle difficoltà del settore e alla pressione competitiva, Vivid Seats ha annunciato un programma di riduzione dei costi annualizzato di 25 milioni di dollari da attuare entro la fine del 2025. L'azienda ha inoltre comunicato l'intenzione di effettuare un split azionario inverso 1-per-20 delle azioni ordinarie di classe A e B, con effetto dal 5 agosto 2025.
La direzione ha citato condizioni di mercato difficili, inclusa la pressione sulla spesa dei consumatori e una forte competizione nei canali di marketing performativo. L'azienda ha sospeso la pubblicazione delle previsioni finanziarie per il 2025, ma prevede un flusso di cassa positivo nel terzo trimestre del 2025.
Vivid Seats (NASDAQ: SEAT) reportó resultados difíciles en el segundo trimestre de 2025, con caídas significativas interanuales en métricas clave. El Marketplace GOV cayó un 31% hasta 685,5 millones de dólares, mientras que los ingresos disminuyeron un 28% hasta 143,6 millones de dólares. La compañía registró una considerable pérdida neta de 263,3 millones de dólares, en comparación con una pérdida de 1,2 millones en el Q2 de 2024.
En respuesta a los vientos en contra de la industria y la presión competitiva, Vivid Seats anunció un programa de reducción de costos anualizado de 25 millones de dólares que se implementará antes de finales de 2025. La empresa también reveló planes para un split inverso de acciones 1 por 20 de sus acciones comunes Clase A y Clase B, efectivo a partir del 5 de agosto de 2025.
La dirección mencionó condiciones difíciles en la industria, incluyendo presión en el gasto del consumidor y una intensa competencia en los canales de marketing de rendimiento. La compañía ha suspendido la provisión de guía financiera para 2025, pero espera flujo de caja positivo en el tercer trimestre de 2025.
Vivid Seats (NASDAQ: SEAT)는 2025년 2분기에 주요 지표 전반에서 전년 대비 큰 하락세를 보이며 어려운 실적을 보고했습니다. 회사의 Marketplace GOV는 31% 감소한 6억 8,550만 달러였고, 매출은 28% 감소한 1억 4,360만 달러를 기록했습니다. 2024년 2분기 120만 달러 손실과 비교해 2억 6,330만 달러의 대규모 순손실을 기록했습니다.
산업 역풍과 경쟁 압력에 대응하여 Vivid Seats는 2025년 말까지 시행할 연간 2,500만 달러 비용 절감 프로그램을 발표했습니다. 또한 2025년 8월 5일부터 발효되는 클래스 A 및 클래스 B 보통주 1대 20 액면병합 계획도 공개했습니다.
경영진은 소비자 지출 압박과 성과 마케팅 채널의 치열한 경쟁 등 어려운 산업 환경을 언급했습니다. 회사는 2025년 재무 가이던스 제공을 중단했으나 2025년 3분기에는 긍정적인 현금 흐름을 기대하고 있습니다.
Vivid Seats (NASDAQ : SEAT) a annoncé des résultats difficiles pour le deuxième trimestre 2025, avec des baisses significatives en glissement annuel sur les indicateurs clés. Le Marketplace GOV a chuté de 31 % à 685,5 millions de dollars, tandis que les revenus ont diminué de 28 % à 143,6 millions de dollars. La société a enregistré une perte nette importante de 263,3 millions de dollars, contre une perte de 1,2 million de dollars au T2 2024.
En réponse aux vents contraires du secteur et à la pression concurrentielle, Vivid Seats a annoncé un programme de réduction des coûts annualisé de 25 millions de dollars à mettre en œuvre d’ici fin 2025. La société a également dévoilé son projet de regroupement d’actions inversé au ratio de 1 pour 20 de ses actions ordinaires de classes A et B, effectif à partir du 5 août 2025.
La direction a évoqué des conditions sectorielles difficiles, notamment une pression sur les dépenses des consommateurs et une concurrence intense dans les canaux de marketing de performance. La société a suspendu la publication de ses prévisions financières pour 2025, mais prévoit un flux de trésorerie positif au troisième trimestre 2025.
Vivid Seats (NASDAQ: SEAT) meldete herausfordernde Ergebnisse für das 2. Quartal 2025 mit erheblichen Rückgängen im Jahresvergleich bei wichtigen Kennzahlen. Der Marketplace GOV sank um 31 % auf 685,5 Millionen US-Dollar, während die Umsätze um 28 % auf 143,6 Millionen US-Dollar zurückgingen. Das Unternehmen verzeichnete einen erheblichen Nettoverlust von 263,3 Millionen US-Dollar, verglichen mit einem Verlust von 1,2 Millionen US-Dollar im 2. Quartal 2024.
Als Reaktion auf Branchengegenwind und Wettbewerbsdruck kündigte Vivid Seats ein jährliches Kostensenkungsprogramm in Höhe von 25 Millionen US-Dollar an, das bis Ende 2025 umgesetzt werden soll. Zudem gab das Unternehmen Pläne für einen Aktienzusammenlegung im Verhältnis 1 zu 20 seiner Stammaktien der Klassen A und B bekannt, mit Wirkung zum 5. August 2025.
Das Management verwies auf herausfordernde Branchenbedingungen, darunter Druck auf die Verbraucherausgaben und starken Wettbewerb in Performance-Marketing-Kanälen. Das Unternehmen hat die Finanzprognose für 2025 ausgesetzt, erwartet jedoch einen positiven Cashflow im 3. Quartal 2025.
- Announced $25 million cost reduction program to improve operational efficiency
- Expects positive cash flow in Q3 2025
- Resale orders remained stable at 97 vs. 101 in Q2 2024
- Event cancellations decreased to 47,845 from 52,392 year-over-year
- Marketplace GOV declined 31% year-over-year to $685.5 million
- Revenue dropped 28% to $143.6 million
- Net loss increased significantly to $263.3 million from $1.2 million in Q2 2024
- Adjusted EBITDA fell 67% to $14.4 million from $44.2 million
- Marketplace orders decreased 30% to 2,173 from 3,097
- Suspended financial guidance for 2025
- Implementing 1-for-20 reverse stock split, indicating potential share price concerns
Insights
Vivid Seats faces severe deterioration in financial performance, with a substantial quarterly loss and significant revenue decline despite announcing cost-cutting measures.
Vivid Seats' Q2 2025 results reveal substantial business deterioration across all key metrics. The company reported a
The company's Adjusted EBITDA plummeted by
Management has announced a
Particularly concerning is management's withdrawal of full-year guidance for 2025, a sign of limited visibility and continued uncertainty. The planned 1-for-20 reverse stock split effective August 5 is typically a negative signal, as companies often implement such splits to maintain listing requirements or improve share price optics after significant declines.
While management cites "challenging industry backdrop" and "pressure on consumer spending" as key factors, the
Announces
CHICAGO, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Vivid Seats Inc. (NASDAQ: SEAT) (“Vivid Seats” or “we”), a leading marketplace that utilizes its technology platform to connect millions of buyers with thousands of ticket sellers across hundreds of thousands of events each year, today provided financial results for the second quarter ended June 30, 2025.
“We continued to navigate a challenging industry backdrop in the second quarter as we saw pressure on consumer spending coupled with continued competitive intensity in performance marketing channels,” said Stan Chia, Vivid Seats CEO. “Industry monthly volume trends have been unpredictable while competitive intensity persists near peak levels. While near-term growth is under pressure, we continue to view live events as an attractive long-term opportunity with durable supply and demand tailwinds. We have identified
Second Quarter 2025 Key Operational and Financial Metrics
- Marketplace GOV of
$685.5 million – down31% from$998.1 million in Q2 2024 - Revenues of
$143.6 million – down28% from$198.3 million in Q2 2024 - Net loss of
$263.3 million – down$262.1 million from net loss of$1.2 million in Q2 2024 - Adjusted EBITDA of
$14.4 million – down$29.8 million from$44.2 million in Q2 2024
“We intend to utilize a portion of the savings generated by our cost reduction program to be more competitive across key levers to stabilize top line as we look to 2026 and beyond,” said Lawrence Fey, Vivid Seats CFO. “We anticipate positive cash flow in the third quarter due to a combination of typical seasonality improvements and a belief that the degree of June’s industry volume softness was atypical.”
Key Business Metrics and Non-U.S. GAAP Financial Measure
We use the following metrics to evaluate our performance, identify trends, formulate financial projections, and make strategic decisions. We believe these metrics provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as management.
The following table summarizes our key business metrics and non-U.S. GAAP financial measure for the three and six months ended June 30, 2025 and 2024 (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Marketplace GOV(1) | $ | 685,488 | $ | 998,065 | $ | 1,505,847 | $ | 2,026,543 | |||||
| Marketplace orders(2) | 2,173 | 3,097 | 4,469 | 5,974 | |||||||||
| Resale orders(3) | 97 | 101 | 202 | 200 | |||||||||
| Adjusted EBITDA(4) | $ | 14,356 | $ | 44,178 | $ | 36,077 | $ | 83,096 | |||||
| (1) | Marketplace Gross Order Value (“Marketplace GOV”) represents the total transactional amount of Marketplace orders processed on our online platform during a period, inclusive of fees, exclusive of taxes and net of event cancellations. During the three and six months ended June 30, 2025, event cancellations negatively impacted our Marketplace GOV by | ||||||||||||
| (2) | Marketplace orders represent the total volume of Marketplace segment transactions processed on our online platform during a period, net of event cancellations. During the three and six months ended June 30, 2025, our Marketplace segment experienced 47,845 and 90,198 event cancellations, respectively, compared to 52,392 and 102,441 event cancellations during the three and six months ended June 30, 2024, respectively. | ||||||||||||
| (3) | Resale orders represent the total volume of Resale segment transactions processed on a given platform (including our own) during a period, net of event cancellations. During the three and six months ended June 30, 2025, our Resale segment experienced 1,276 and 2,161 event cancellations, respectively, compared to 1,211 and 2,083 event cancellations during the three and six months ended June 30, 2024, respectively. | ||||||||||||
| (4) | Adjusted EBITDA is a non-U.S. GAAP financial measure that we believe provides useful information to investors and others in understanding and evaluating our operating results and serves as a useful measure for making period-to-period comparisons of our business performance. See the “Adjusted EBITDA” section below for more information, including a reconciliation of adjusted EBITDA to net income (loss), its most directly comparable U.S. GAAP financial measure. | ||||||||||||
2025 Financial Outlook
Vivid Seats is not providing guidance for the year ending December 31, 2025 at this time.
Reverse Stock Split
As previously announced, our Board of Directors and stockholders have approved a 1-for-20 reverse stock split of our Class A and Class B common stock, effective at 5:00 p.m. Eastern Time today. Our Class A common stock will begin trading on the Nasdaq Global Select Market on a split-adjusted basis under the existing ticker symbol “SEAT” when the market opens on August 6, 2025.
Webcast Details
Vivid Seats will host a webcast at 8:30 a.m. Eastern Time today to discuss the second quarter 2025 financial results and business updates. Participants may access the live webcast and supplemental earnings presentation on the events page of the Vivid Seats Investor Relations website at https://investors.vividseats.com/events-and-presentations.
About Vivid Seats
Founded in 2001, Vivid Seats is a leading online ticket marketplace committed to becoming the ultimate partner for connecting fans to the live events, artists, and teams they love. Based on the belief that everyone should “Experience It Live,” the Chicago-based company provides exceptional value by providing one of the widest selections of events and tickets in North America and an industry leading Vivid Seats Rewards program where all fans earn on every purchase. Through its proprietary software and unique technology, Vivid Seats drives the consumer and business ecosystem for live event ticketing and enables the power of shared experiences to unite people. Vivid Seats has been recognized by Newsweek as one of America’s Best Companies for Customer Service in ticketing. Fans who want to have the best live experiences can start by downloading the Vivid Seats mobile app, going to vividseats.com, or calling 866-848-8499.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “can,” “continue,” “could,” “design,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “propose,” “seek,” “should,” “target,” “will,” and “would,” as well as similar expressions which predict or indicate future events and trends or which do not relate to historical matters, are intended to identify such forward-looking statements. The forward-looking statements in this press release relate to, without limitation: our future operating results and financial position; our expectations with respect to live event industry growth, concert supply, and our TAM and competitive positioning; our business strategy; the expected savings under our cost reduction program; and the plans and objectives of management for future operations. Forward-looking statements are not guarantees of future performance, conditions, or results, and are subject to risks, uncertainties, and assumptions that can be difficult to predict and/or are outside of our control. Therefore, actual results may differ materially from those contemplated by any forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: our ability to generate sufficient cash flows and/or raise additional capital when necessary or desirable; the supply and demand of live concert, sporting, and theater events; the impact of adverse economic conditions and other factors affecting discretionary consumer and corporate spending; our ability to maintain and develop our relationships with ticket buyers, sellers, and partners; our ability to compete in the ticketing industry; our ability to continue to maintain and improve our platform and to successfully develop new and improved solutions and enhancements; the impact of extraordinary events, including disease epidemics; our ability to identify suitable acquisition targets, to complete planned acquisitions, and to realize the expected benefits of completed acquisitions and other strategic investments; our ability to comply with applicable laws and regulations; the impact of unfavorable outcomes in legislation and legal proceedings; our ability to maintain the integrity of our information systems and infrastructure, and to identify, assess, and manage relevant cybersecurity risks; our ability to achieve the anticipated benefits of the reverse stock split of our common stock and/or our cost reduction program; and other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contacts:
Investors
Kate Africk
Kate.Africk@vividseats.com
Media
Julia Young
Julia.Young@vividseats.com
| VIVID SEATS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 153,007 | $ | 243,482 | ||||
| Restricted cash | 979 | 1,166 | ||||||
| Accounts receivable – net | 49,530 | 48,315 | ||||||
| Inventory – net | 32,621 | 19,601 | ||||||
| Prepaid expenses and other current assets | 28,796 | 32,607 | ||||||
| Total current assets | 264,933 | 345,171 | ||||||
| Property and equipment – net | 13,401 | 12,567 | ||||||
| Right-of-use assets – net | 11,396 | 12,008 | ||||||
| Intangible assets – net | 198,152 | 233,116 | ||||||
| Goodwill – net | 649,418 | 943,119 | ||||||
| Deferred tax assets – net | 1,260 | 77,967 | ||||||
| Investments | 6,674 | 6,929 | ||||||
| Other assets | 4,034 | 5,219 | ||||||
| Total assets | $ | 1,149,268 | $ | 1,636,096 | ||||
| Liabilities, redeemable noncontrolling interests, and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 204,241 | $ | 232,984 | ||||
| Accrued expenses and other current liabilities | 138,912 | 165,047 | ||||||
| Deferred revenue | 19,977 | 23,804 | ||||||
| Current maturities of long-term debt | 3,950 | 3,950 | ||||||
| Total current liabilities | 367,080 | 425,785 | ||||||
| Long-term debt – net | 384,998 | 384,960 | ||||||
| Long-term lease liabilities | 17,673 | 18,731 | ||||||
| TRA liability | 795 | 155,720 | ||||||
| Other liabilities | 32,563 | 36,865 | ||||||
| Total liabilities | 803,109 | 1,022,061 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests | 128,822 | 352,922 | ||||||
| Shareholders' equity: | ||||||||
| Class A common stock, issued and outstanding at June 30, 2025 and December 31, 2024, respectively | 14 | 14 | ||||||
| Class B common stock, outstanding at June 30, 2025 and December 31, 2024 | 8 | 8 | ||||||
| Additional paid-in capital | 1,384,399 | 1,267,710 | ||||||
| Treasury stock, at cost, 17,715,581 and 11,433,749 shares at June 30, 2025 and December 31, 2024, respectively | (91,705 | ) | (75,568 | ) | ||||
| Accumulated deficit | (1,075,788 | ) | (930,171 | ) | ||||
| Accumulated other comprehensive income (loss) | 409 | (880 | ) | |||||
| Total shareholders' equity | 217,337 | 261,113 | ||||||
| Total liabilities, redeemable noncontrolling interests, and shareholders' equity | $ | 1,149,268 | $ | 1,636,096 | ||||
| VIVID SEATS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenues | $ | 143,566 | $ | 198,316 | $ | 307,589 | $ | 389,168 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of revenues (exclusive of depreciation and amortization shown separately below) | 42,429 | 48,765 | 86,954 | 98,348 | |||||||||||
| Marketing and selling | 53,800 | 70,114 | 117,912 | 137,861 | |||||||||||
| General and administrative | 46,272 | 61,053 | 94,354 | 103,420 | |||||||||||
| Depreciation and amortization | 12,341 | 10,502 | 23,966 | 20,985 | |||||||||||
| Impairment charges | 320,449 | — | 320,449 | — | |||||||||||
| Total costs and expenses | 475,291 | 190,434 | 643,635 | 360,614 | |||||||||||
| Income (loss) from operations | (331,725 | ) | 7,882 | (336,046 | ) | 28,554 | |||||||||
| Interest expense – net | 5,634 | 5,324 | 11,299 | 10,406 | |||||||||||
| Other expense (income) – net | (150,197 | ) | 3,202 | (154,351 | ) | 5,784 | |||||||||
| Loss on extinguishment of debt | — | — | 801 | — | |||||||||||
| Income (loss) before income taxes | (187,162 | ) | (644 | ) | (193,795 | ) | 12,364 | ||||||||
| Income tax expense | 76,165 | 577 | 79,320 | 2,846 | |||||||||||
| Net income (loss) | (263,327 | ) | (1,221 | ) | (273,115 | ) | 9,518 | ||||||||
| Net income (loss) attributable to redeemable noncontrolling interests | (123,652 | ) | (160 | ) | (127,498 | ) | 4,505 | ||||||||
| Net income (loss) attributable to Class A common stockholders | $ | (139,675 | ) | $ | (1,061 | ) | $ | (145,617 | ) | $ | 5,013 | ||||
| VIVID SEATS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | (273,115 | ) | $ | 9,518 | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 23,966 | 20,985 | ||||||
| Amortization of leases | 720 | 843 | ||||||
| Amortization of deferred financing costs | 485 | 453 | ||||||
| Equity-based compensation | 22,403 | 27,600 | ||||||
| Change in fair value of Intermediate Warrants | (4,849 | ) | (1,761 | ) | ||||
| Loss on asset disposals | 196 | 122 | ||||||
| Change in fair value of derivative asset | 573 | 81 | ||||||
| Deferred income tax expense | 76,707 | 156 | ||||||
| Non-cash interest expense (income) – net | 334 | (291 | ) | |||||
| Foreign currency loss (gain) – net | (3,574 | ) | 5,798 | |||||
| Loss on extinguishment of debt | 801 | — | ||||||
| Adjustment of liabilities under TRA | (149,172 | ) | — | |||||
| Impairment charges | 320,449 | — | ||||||
| Write-off of 2024 Sponsorship Loan | 2,024 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable – net | (906 | ) | (10,644 | ) | ||||
| Inventory – net | (13,018 | ) | (9,245 | ) | ||||
| Prepaid expenses and other current assets | 3,613 | 2,541 | ||||||
| Accounts payable | (29,394 | ) | 10,084 | |||||
| Accrued expenses and other current liabilities | (28,104 | ) | (25,803 | ) | ||||
| Deferred revenue | (3,826 | ) | (4,505 | ) | ||||
| Long-term lease liabilities | (1,085 | ) | — | |||||
| Other assets and liabilities – net | 864 | (573 | ) | |||||
| Net cash provided by (used in) operating activities | (53,908 | ) | 25,359 | |||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (2,043 | ) | (378 | ) | ||||
| Purchases of personal seat licenses | (960 | ) | (737 | ) | ||||
| Investments in developed technology | (8,341 | ) | (9,433 | ) | ||||
| Purchases of seat images | (321 | ) | — | |||||
| Net cash used in investing activities | (11,665 | ) | (10,548 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments of 2022 First Lien Loan | — | (689 | ) | |||||
| Payments of Shoko Chukin Bank Loan | — | (2,655 | ) | |||||
| Proceeds from 2024 First Lien Loan | — | 125,500 | ||||||
| Repurchases of Class A common stock | (15,862 | ) | (20,069 | ) | ||||
| Payments of taxes related to net settlement of equity incentive awards | (1,742 | ) | (565 | ) | ||||
| Tax distributions to redeemable noncontrolling interests | (1,689 | ) | (6,414 | ) | ||||
| Payments of liabilities under TRA | (4,005 | ) | (77 | ) | ||||
| Payments of deferred financing costs and other debt-related expenses | (162 | ) | (315 | ) | ||||
| Payments of 2024 First Lien Loan | (76,986 | ) | — | |||||
| Proceeds from 2025 First Lien Loan | 76,986 | — | ||||||
| Payments of 2025 First Lien Loan | (983 | ) | — | |||||
| Payments toward Acquired Domain Name Obligation | (1,000 | ) | — | |||||
| Net cash provided by (used in) financing activities | (25,443 | ) | 94,716 | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 354 | (1,536 | ) | |||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (90,662 | ) | 107,991 | |||||
| Cash, cash equivalents, and restricted cash – beginning of period | 244,648 | 132,434 | ||||||
| Cash, cash equivalents, and restricted cash – end of period | $ | 153,986 | $ | 240,425 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid for interest | $ | 14,883 | $ | 16,108 | ||||
| Cash paid for income taxes | $ | 1,953 | $ | 3,285 | ||||
Adjusted EBITDA
We present adjusted EBITDA, which is a non-U.S. GAAP financial measure, because it is a key measure used by analysts, investors, and others to evaluate companies in our industry. Adjusted EBITDA is also used by management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting.
We believe adjusted EBITDA is a useful measure for understanding, evaluating, and highlighting trends in our operating results and for making period-to-period comparisons of our business performance because it excludes the impact of items that are outside of our control and/or not reflective of ongoing performance related directly to the operation of our business.
Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. Adjusted EBITDA does not reflect all amounts associated with our operating results as determined in accordance with U.S. GAAP and specifically excludes certain recurring costs such as income tax expense, interest expense – net, depreciation and amortization, sales tax liabilities, transaction costs, equity-based compensation, litigation, settlements, and related costs, change in fair value of warrants, loss on asset disposals, change in fair value of derivative asset, foreign currency loss (gain) – net, loss on extinguishment of debt, adjustment of liabilities under our Tax Receivable Agreement, impairment charges, and severance compensation. In addition, other companies may calculate adjusted EBITDA differently than we do, thereby limiting its usefulness as a comparative tool. We compensate for these limitations by providing specific information regarding the U.S. GAAP amounts that are excluded from our presentation of adjusted EBITDA.
The following table presents a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable U.S. GAAP financial measure, for the three and six months ended June 30, 2025 and 2024 (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net income (loss) | $ | (263,327 | ) | $ | (1,221 | ) | $ | (273,115 | ) | $ | 9,518 | ||||||
| Adjustments to reconcile net income (loss) to adjusted EBITDA: | |||||||||||||||||
| Income tax expense | 76,165 | 577 | 79,320 | 2,846 | |||||||||||||
| Interest expense – net | 5,634 | 5,324 | 11,299 | 10,406 | |||||||||||||
| Depreciation and amortization | 12,341 | 10,502 | 23,966 | 20,985 | |||||||||||||
| Sales tax liability(1) | 431 | 4,819 | (1,360 | ) | 2,088 | ||||||||||||
| Transaction costs(2) | 2,172 | 3,507 | 7,881 | 5,406 | |||||||||||||
| Equity-based compensation(3) | 11,652 | 19,112 | 22,403 | 27,600 | |||||||||||||
| Litigation, settlements, and related costs(4) | 352 | 4 | 705 | 7 | |||||||||||||
| Change in fair value of warrants(5) | (1,734 | ) | (1,301 | ) | (4,849 | ) | (1,761 | ) | |||||||||
| Loss on asset disposals(6) | 149 | 20 | 196 | 122 | |||||||||||||
| Change in fair value of derivative asset(7) | 223 | 43 | 573 | 81 | |||||||||||||
| Foreign currency loss (gain) – net(8) | (1,533 | ) | 2,792 | (3,574 | ) | 5,798 | |||||||||||
| Loss on extinguishment of debt(9) | — | — | 801 | — | |||||||||||||
| Adjustment of liabilities under TRA(10) | (149,172 | ) | — | (149,172 | ) | — | |||||||||||
| Impairment charges(11) | 320,449 | — | 320,449 | — | |||||||||||||
| Severance compensation(12) | 554 | — | 554 | — | |||||||||||||
| Adjusted EBITDA | $ | 14,356 | $ | 44,178 | $ | 36,077 | $ | 83,096 | |||||||||
| (1) | During the periods presented, we accrued for additional uncollected indirect tax liabilities in jurisdictions where we expect to remit payment to U.S. and foreign governmental tax authorities before all required amounts are collected from the customer. We also received abatements and recognized other reductions to the balance of the liability related to uncollected indirect taxes (including sales taxes). | ||||||||||||||||
| (2) | Consists of: (i) legal, accounting, tax, and other professional fees; (ii) personnel costs related to retention bonuses; (iii) integration costs; and (iv) other transaction-related expenses, none of which are considered indicative of our core operating performance. Costs in the three and six months ended June 30, 2025 primarily related to potential strategic transactions that were explored during the period, the refinancing of our first lien loan, repurchases of our Class A common stock, and various strategic investments. Costs in the three and six months ended June 30, 2024 primarily related to the refinancing of our first lien loan, repurchases of our Class A common stock, acquisitions, and various strategic investments. | ||||||||||||||||
| (3) | Costs in the three and six months ended June 30, 2025 primarily related to equity granted pursuant to our 2021 Incentive Award Plan (as amended, the “2021 Plan”), which is not considered indicative of our core operating performance. Costs in the three and six months ended June 30, 2024 primarily related to equity granted pursuant to the 2021 Plan and profits interests issued prior to the October 2021 transaction pursuant to which Horizon Acquisition Corporation merged with and into us (the “Merger Transaction”), neither of which are considered indicative of our core operating performance. | ||||||||||||||||
| (4) | Relates to external legal costs, settlement costs, and insurance recoveries, none of which are considered indicative of our core operating performance. | ||||||||||||||||
| (5) | Relates to the revaluation of warrants to purchase common units of Hoya Intermediate, LLC held by Hoya Topco, LLC following the Merger Transaction, which is not considered indicative of our core operating performance. | ||||||||||||||||
| (6) | Relates to disposals of fixed assets, which are not considered indicative of our core operating performance. | ||||||||||||||||
| (7) | Relates to the revaluation of derivatives recorded at fair value, which is not considered indicative of our core operating performance. | ||||||||||||||||
| (8) | Relates to net losses (gains) resulting from the impact of exchange rate changes on transactions denominated in non-functional currencies, which are not considered indicative of our core operating performance. | ||||||||||||||||
| (9) | Relates to losses incurred during the six months ended June 30, 2025 in connection with the extinguishment of our former first lien term loan, which are not considered indicative of our core operating performance. | ||||||||||||||||
| (10) | Relates to the remeasurement of the Tax Receivable Agreement liability, which is not considered indicative of our core operating performance. | ||||||||||||||||
| (11) | Relates to non-cash impairment charges related to our goodwill and certain indefinite-lived intangible assets triggered by the effects of recent declines in our financial performance, near-term outlook and Class A common stock price, among other factors, during the three and six months ended June 30, 2025. | ||||||||||||||||
| (12) | Relates to severance-related payments paid to terminated employees as a result of a reduction in employee headcount during the three and six months ended June 30, 2025. The reduction was part of our strategic cost reduction program and is not considered indicative of our core operating performance. | ||||||||||||||||
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