Live Nation (LYV) Q3 2026 Earnings Call Transcript

DATE

Thursday, Nov. 5, 2026

CALL PARTICIPANTS

• President and Chief Executive Officer - Michael Rapino
• President and Chief Financial Officer - Joe Berchtold
• Investor Relations - Amy Yong

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TAKEAWAYS

• Revenue -- $10.1 billion, up 19% as record attendance across stadiums and amphitheaters drove global performance.
• Adjusted Operating Income -- $1.18 billion, a 14% increase reflecting growth across the Concerts, Ticketing, and Sponsorship segments.
• Fan Attendance -- 61 million, rising 19% for the quarter with international attendance growing 29% across all regions.
• Full-Year Attendance Guidance -- Nearly 180 million, representing an upgrade from previous estimates due to higher sell-through and lower cancellation rates.
• Venue Nation Attendance -- Over 75 million fans expected for the year, an increase of more than 15% year over year.
• Ticket Sales Volume -- 170 million tickets sold through late October, up 13% and exceeding the total for the full year of 2025.
• Fee-Bearing Ticket Volume -- 98 million, up 10% for the quarter with international markets contributing 75% of the growth.
• Ticketing Adjusted Operating Income Guidance -- High single-digit growth for the full year, supported by 23 million net new tickets from client additions.
• Concerts Segment Revenue -- $8.7 billion, up 20% driven by broad-based demand across all regions and large venue types.
• Sponsorship and Advertising Revenue -- $506 million, a 14% increase as international markets contributed 65% of the growth.
• Operating Cash Flow -- $2.1 billion year to date, up 45% compared to the previous year.
• Free Cash Flow - Adjusted -- $1.6 billion year to date, a 25% increase reflecting higher adjusted operating income conversion.
• Capital Expenditures -- $722 million year to date, on track for approximately $1.1 billion for the full year.
• Event-Related Deferred Revenue -- $3.8 billion, up 8% as demand for future shows remained high.
• September Amphitheater Performance -- Marked the largest month in company history for both attendance and show count.
• International Sponsorship -- Surpassed North America in operating income and adjusted operating income for the first time.
• Provision for Litigation -- $450 million recorded during the first nine months of the year for governmental investigations and litigation.
• Net Interest Expense -- Expected to be approximately $280 million for the full year.
• Income Tax Expense Guidance -- 15% to 20% of adjusted operating income for the year.
• Net Income Per Diluted Share -- $1.69, compared to $0.73 in the prior-year quarter.
• Primary Ticketing GTV -- Up double-digits for 2027 shows compared to the same point in the previous year.

SUMMARY

Live Nation Entertainment, Inc. (NYSE:LYV) reported record third-quarter results driven by an expansion of its international operations and continued demand for live events across all venue types. Management reported that international markets have now surpassed the United States in both concert attendance and sponsorship revenue, reflecting the global growth of the live music industry. The company indicated that it is on track to deliver record annual performance while sustaining double-digit growth in the coming years through investments in its Venue Nation portfolio and primary ticketing platform.

• Chief Executive Officer Rapino stated, "In a world of endless screens and AI-generated everything, the one thing that can't be replicated is being there."
• Management reported that international markets contributed 75% of fee-bearing ticket growth and 60% of total fan growth during the quarter.
• The company expects to open or acquire 10 large venues by the end of the year, which are projected to deliver a run-rate of nearly 8 million fans.
• Berchtold noted that stadium timing in North America was delayed compared to previous years to accommodate logistics for the World Cup.
• Fans increased their spending at large U.S. amphitheaters, with VIP revenue per ticket and upgrade purchases rising by double-digits.
• Ticketing growth was supported by substantial on-sales for 2027 tours, including artists such as Harry Styles, Bruno Mars, Oasis, and Metallica.

INDUSTRY GLOSSARY

• AOI: Adjusted Operating Income, a non-GAAP financial measure that excludes certain acquisition expenses, depreciation, and stock-based compensation.
• GTV: Gross Transaction Value, representing the total value of tickets sold including fees.
• Venue Nation: The business unit within Live Nation that manages and operates owned and third-party entertainment venues.
• Fee-Bearing Ticket: A ticket sold for which the company collects a service fee.
• Secondary Ticketing: The market for the resale of tickets initially sold in the primary market.
• Deferred Revenue: Cash collected from fans for future events that has not yet been recognized as revenue.

Full Conference Call Transcript

Operator: Good afternoon. My name is John, and I will be your conference operator today. At this time, I would like to welcome everyone to Live Nation's Third Quarter 2026 Earnings Call. I would now like to turn the call over to Ms. Yong. Thank you, Ms. Yong. You may begin your conference.

Amy Yong: Good afternoon, and welcome to the Live Nation Third Quarter 2026 Earnings Conference Call. Joining us today is our President and CEO, Michael Rapino; and our President and CFO, Joe Berchtold. We would like to remind you that this afternoon's call will contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ, including statements related to the company's anticipated financial performance, business prospects, new developments and similar matters. Please refer to Live Nation's SEC filings, including the risk factors and cautionary statements included in the company's most recent filings on Forms 10-K, 10-Q and 8-K for a description of risks and uncertainties that could impact the actual results.

Live Nation will also refer to some non-GAAP measures on this call. In accordance with the SEC Regulation G, Live Nation has provided definitions of these measures and a full reconciliation to the most comparable GAAP measures in our earnings release. The release reconciliation can be found under the Financial Information section on Live Nation's website. With that, we will now take your questions. Operator?

Operator: [Operator Instructions] And the first question comes from the line of David Karnovsky with JPMorgan.

David Karnovsky: Joe, I wanted to see if you could unpack the Q3 result a bit. It looks like fan count came in even higher than expected. So can you give some color on where you saw that added growth and how it flowed to concerts and ticketing AOI? And can you also just remind us of any preopening expense growth in the quarter?

Joe Berchtold: Thanks, David. Yes, great quarter for concerts with attendance of over 60 million. I think the first time we've had that level of attendance, up almost 20%. Both North America and international doing well. International, in particular, was up 29% in every one of the regions. So Latin America, Europe, Asia, all up at least 15%. So we're seeing consistently strong performance globally. In North America, we had a very good amphitheater, including September being our largest amphitheater month overall. And then globally, it was a very big stadium quarter. Stadiums drove over half of the global fan growth, up measurably in both North America and internationally.

North America, a chunk of that being the timing that we've talked about before, where the stadium timing this year was a bit later than it was in previous years, just given how we had to manage the logistics around the World Cup. So overall, excellent, and that obviously flowed through to the ticketing business. Ticketing business, 95% of their growth was from concerts. So certainly benefited from the great attendance that we had at our shows.

Operator: And the next question comes from the line of Stephen Laszczyk with Goldman Sachs.

Stephen Laszczyk: Joe and Michael, maybe just digging a bit deeper into the growth at Ticketmaster. It's come in a bit better than expectations over the course of this year. I think you're now calling out high single-digit AOI growth for the full year. Just would be curious if you could talk more about the strength you're seeing play out this year, the durability of those trends and then ultimately, how you would expect to close out the year for Ticketmaster.

Joe Berchtold: Sure. I'll get that started. So first of all, better than expected even in terms of the fan growth in our concert business, which we've now guided towards close to 180 million. So that obviously supports the Ticketmaster business. Ticketmaster has also continued to add a number of clients, particularly internationally, with over 20 million net new tickets so far this year. So that continues to perform well. We had flagged a year or so ago that we thought that there was likely to be some headwinds on the secondary side as we really continue to increase the enforcement on the concert secondary, which we expected to reduce that business.

And as we noted, we have some offsets with increased performance on the sports side. So we're not seeing that headwind for the year. So with that, we took up our guidance to now expect high single-digit AOI growth for the year. It's been great year-to-date. Q3 was very strong in part because we had a number of substantial onsales for shows next year, Harry Styles, Bruno Mars, Oasis, Metallica, all being substantial onsales in the third quarter. So that's already set us up now with some nice momentum heading into next year.

Operator: And the next question comes from the line of Brandon Ross with LightShed Partners.

Brandon Ross: First, I just wanted to get a clarification or follow-up on David's question and wanted to hone in on the impact of Venue Nation specifically on your concert numbers. There's a lot of moving pieces there. You're acquiring venues, preopening in others, but the O&O fans should be more profitable. How should investors think about how that all nets out at this point in time?

Joe Berchtold: Yes. As you said, Venue Nation is having a great year. We expect to have about 75 million fans attend our venues worldwide. So we're seeing solid growth from that, continued solid growth as well from third-party fans as we're looking at roughly 20 million fan growth overall. So I would say pretty comparable contribution to our overall fan growth from the year from both operated and non-operated fans. Clearly, the operated fans are higher profitability per fan, higher margin per fan.

When you look at the overall numbers, the couple of pieces you need to take into account with your math are one is the stadium fans because those are the highest-priced tickets will tend to be a lower margin. And then preopening costs that we've talked about, which is just as we're ramping up the venue side, these early years, this year and for the next couple of years, we're also ramping up preopening costs. So that's -- that all just needs to get put into the math.

And as we get into next week in our Investor Day, we'll lay out more for you guys, the ramp of what we expect in terms of the venue fans as well as the investment overall, including the preopening costs over the next few years.

Operator: And the next question comes from the line of Cameron Mansson-Perrone with Morgan Stanley.

Cameron Mansson-Perrone: To follow up on Venue Nation, you've acquired a handful of venues this year. Some of those like Milan, I believe, have closed. But could you give us an update on what's closed and what you're expecting in terms of the timing of acquisition closes across some of these markets like Prague, Paris, Santiago, Copenhagen, for example?

Michael Rapino: I think you all know we have an Investor Day next week. We're trying to get today to anything that you want kind of specific around the quarter. But we're going to take you through a great presentation next week and give you much more detail around Venue Nation, what rolls out, AI impact, all the good things you want to know about the next few years on what we're rolling out to build your model. So we'll see you there next week and give you those details.

Operator: And the next question comes from the line of Ian Moore with Bernstein Research.

Ian Moore: Just to hone in again on kind of the Venue Nation openings this year in the quarter. You've acquired and obviously opened organically a number of venues. I guess of the ones that are joined this year, still ramping, what's kind of been the biggest, I guess, surprise versus your expectations? And what's driving that? Is it more shows, more spend per fan, maybe sponsorship?

Joe Berchtold: I think the main thing that we've seen this year, both of our operated and third-party, is just the strength of the consumer, right? All year, we've been reading in the press about all the concerns about consumer spending, are they going to keep going to shows? Are they going to keep spending at shows? Will shows close? Will they go on sale well? And we are absolutely seeing continued strong consumer demand globally in all these venues. And you look at some of the amphitheaters we opened here in the U.S., had just about a full slate of shows, performed very well. Premium did well, continue to see strength there.

The few arenas we've acquired in Europe, all of them doing well. Sponsorship sales on the B2B side continuing to do well. So I wouldn't call out any one of them as being particular, but I would just note the continued strong dynamics on all of the venues.

Operator: And the next question comes from the line of Kutgun Maral with Evercore ISI.

Kutgun Maral: I had a follow-up on concerts where you had a really strong quarter. If I look at the first 9 months of the year, concerts AOI is up about 4%. So your outlook for double-digit growth implies that the fourth quarter loss narrows by at least $30 million or so versus last year, and I imagine it will narrow meaningfully more than that. I guess with fans now approaching 180 million for the year, that implies about 12% fan growth in Q4. Can you help unpack the main drivers of the implied AOI improvement a bit more for next quarter?

Joe Berchtold: Yes. I think we've said a number of things over the course of the year. I think we got into pretty good detail over the first couple of quarters explaining what was going on with the results for each of those quarters and how we saw the full year playing out. I think we've been consistent that we expected to see AOI growth for the full year in concerts hitting double digits, and we reiterated that today. So no change in that overall expectation. I laid out earlier some of the puts and takes that we have, very strong overall fan growth, strong in both venues we operate as well as third-party venues.

The margin and per fan economics can get impacted by what type of venue it is sometimes, but I think we've given you the pieces there. And then we've also given you the preopening costs. The last piece that I would note as being an impact is the marketing expense that gets written off for prepaid advertising at the end of the year. We noted here that through the third quarter, that was up double digits. So you can assume the very good news that our fourth quarter gets impacted by prepaid advertising for tours that are on sale and performing well for next year. So that's the best problem in the world to have.

Operator: And our final question comes from the line of Steven Cahall with Wells Fargo.

Steven Cahall: So just wanted to understand the upgrade to fan count growth. I think it's about 3% above what you'd guided to before. Is that upside from your expectation that you're all seeing in the second half? Or is it more that as you've gotten visibility into the year, you're more comfortable upgrading that? Just trying to understand how the business is performing versus your expectation as we roll into next year and if you feel like you have incremental momentum. And then just a housekeeping one. How do we think about the partner share of venue CapEx flowing through the cash flow statement in 2026?

Joe Berchtold: So on the upgrade to the expected attendance, I think it's -- number one thing is the shows are just consistently doing well. So our sell-through rate is higher this year than it was last year. Our cancellation rate is lower. At the start of the year, we probably would have been planning for those to be in line. So for those to outperform and at -- and our business, that can account for millions of incremental fans. I think we've ended up stronger on our stadium volume than we thought early in the year, given what we had to manage through with the World Cup here in the U.S.

Those would be your 2 largest factors that would have driven the increase. In terms of how we're managing all of the economics, why don't we save that one for Investor Day, so we can go through in more detail and make sure we're answering all of the questions on how the capital is being deployed, what pieces of it are ours versus partners, and what the implications that has for IRRs and rates that we're seeing every year.

Operator: Thank you. And that concludes the question-and-answer session, and that also concludes today's teleconference. We thank you for your participation. You may disconnect your lines at this time.

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