Vivid Seats (SEAT) Q2 Revenue Falls 28%

Key Points

• Revenue (GAAP) fell 28% to $143.6 million in Q2 2025, missing estimates.

• Net loss (GAAP) widened dramatically to $263.3 million for Q2 2025, driven by a $320.4 million GAAP impairment charge.

• Marketplace order volume and gross order value dropped over 30% compared to Q2 2024, reflecting acute demand and competitive pressures.

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Vivid Seats (NASDAQ:SEAT), an online ticket marketplace connecting fans with live events across the U.S. and abroad, reported Q2 2025 results on August 5, 2025. The most significant news was a steep decline in GAAP revenue and order volume, with a large net loss largely from a non-cash impairment. Revenue (GAAP) came in at $143.6 million for Q2 2025, nearly $8.5 million below analyst estimates, representing a 28% drop from Q2 2024. Adjusted EBITDA, a non-GAAP measure of earnings before interest, taxes, depreciation and amortization excluding one-time items, dropped from $44.2 million in Q2 2024 to $14.4 million. The company reported a GAAP net loss of $263.3 million for Q2 2025, driven by a $320.4 million GAAP impairment charge related to goodwill and intangible assets. Earnings per share (GAAP) matched analyst expectations at a loss of $0.03446. Overall, the quarter marked a sharp step down in fundamentals, amid tough competition and soft customer demand.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Current Focus

Vivid Seats operates a digital platform for buying and selling live event tickets. Its business model centers on connecting fans with tickets for concerts, sports, and theater, using its proprietary cloud-based technology to streamline transactions and enhance the user experience.

The company’s current focus areas include its technology platform, customer loyalty programs, and expanding strategic partnerships. Its platform supports features like personalized recommendations and loyalty rewards, while its Vivid Seats Rewards program aims to increase repeat purchases. Partnerships with large organizations are also seen as key to driving growth and brand awareness. These success factors are vital for standing out in a competitive ticket marketplace landscape and for supporting operational scale.

Quarter in Review: Key Developments and Financial Trends

The quarter was defined by a marked drop in GAAP revenue, with GAAP sales down 28% from $198.3 million in Q2 2024. Marketplace gross order value—a measure of the total ticket sales transacted on its platform—fell by 31% compared to Q2 2024, reflecting soft industry demand and increased competition. Marketplace orders, representing total tickets sold, dropped by nearly 30% compared to Q2 2024. Management identified heightened competition in digital marketing and weaker consumer demand as main contributors.

Profitability also deteriorated sharply, as Vivid Seats reported a GAAP net loss of $263.3 million. Adjusted EBITDA, which excludes one-time items, fell 67.4% from Q2 2024, and the business reported a net loss of $263.3 million (GAAP). The main factor in this loss was a $320.4 million goodwill and intangible asset impairment charge. This is a non-cash accounting entry reflecting a permanent reduction in the value of assets, often triggered by declining business performance and outlook. Marketing expenses (GAAP) also fell from $70.1 million in Q2 2024 to $53.8 million.

On the product front, the company continued to highlight its technology capabilities and proprietary seller resources, but did not announce major new launches this quarter. The Vivid Seats Rewards program, a customer loyalty initiative allowing fans to earn rewards on every purchase, continued but with limited new updates. A previously announced partnership with United Airlines is expected to launch in the second half of the year, but there was no financial impact from this or other new partnerships during the quarter.

The period included a significant new cost reduction initiative, targeting $25 million in annualized savings by the end of 2025. This is intended to right-size headcount and operational spending to better match the current order and revenue profile, and to gain flexibility to invest in select growth areas. Also this quarter, the company executed a 1-for-20 reverse stock split.

Looking Forward: Outlook and Investor Focus

Management did not provide financial guidance for fiscal 2025, continuing the suspension of formal forecasts. The absence of forward guidance reflects ongoing uncertainty, including unpredictability in monthly order trends and the effects of intense competition in performance marketing channels such as digital advertising and social media. Leadership reiterated plans to continue making select investments in technology, while remaining focused on operational discipline and cost reduction.

Positive cash flow in the third quarter was referenced as an expectation, based on typical seasonal patterns and internal views of June order softness as an outlier. However, a path to stabilization in volumes and revenues is not yet evident in available data. Investors may want to watch for updates on the impact of the United Airlines partnership, deeper engagement with the loyalty program, and the effectiveness of the new cost savings plan in upcoming periods.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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