11 Best Quality Penny Stocks to Buy According to Hedge Funds

8. Vivid Seats Inc. (NASDAQ:SEAT)

Revenue CAGR in the last 5 years: 306.52%

Net profit margin: 1.22%

Number of Hedge Fund Holders: 19

​​​Vivid Seats Inc. (NASDAQ:SEAT) is an online ticket marketplace company that facilitates the buying and selling of tickets for several types of events, including sports, theater, and concerts. The business model consists of connecting fans with ticket sellers through its digital platform and offering additional advertising services and rewards programs to help further monetize its audience. SEAT’s competitive advantage is in its scale, reputation, and ability to ensure ticket authenticity and timely delivery.

In Q4 2024, Vivid Seats Inc. (NASDAQ:SEAT) delivered $200 million in revenue, representing a 1% YoY increase, while adjusted EBITDA was $33 million, down 5% YoY. For the full year 2024, the company achieved $776 million in revenues, up 9% YoY, and $151 million in adjusted EBITDA, representing a 7% increase YoY. SEAT maintained strong unit economics despite a muted market backdrop compared to the extraordinary years of 2022 and 2023.

Looking ahead to 2025, Vivid Seats Inc. (NASDAQ:SEAT) is focusing on several strategic initiatives, including international expansion with a European launch and new partnerships, such as one with United Airlines. The company’s loyalty program continues to show strong results, with enrolled members making repeat orders 2 to 3 times more frequently than non-enrolled customers and repeat orders reaching 61% of total orders. We believe the European expansion will position SEAT to continue its double-digit revenue growth momentum, which makes it one of the best quality penny stocks to consider.