Grandstand Limited

Q2 revenue was $37.8 million, down 5% year over year; adjusted EBITDA was $7.7 million versus $13.4 million a year ago; adjusted EBITDA margin was 20% versus 35% a year ago; gross margin was 84% versus 93% a year ago; adjusted net income was $2.5 million, or $0.05 per share, versus $13.4 million, or $0.37 per share, a year ago. Adjusted free cash flow was $9.6 million versus $8.2 million a year ago. Data revenue was $11.2 million, up 12% year over year, and marketing revenue was $26.5 million, down 10%. The company reiterated full-year revenue guidance of $165 million to $170 million and adjusted EBITDA guidance of $45 million to $60 million, and said it expects strong sequential revenue growth in the second half, $6.5 million of fixed-cost savings, and margins in the low 30s in 2027.

Kevin McCrystle framed the quarter as a transition toward a more diversified, higher-margin business, highlighting the restructuring, corporate rebrand, and Roll Card launch as key steps. He emphasized that Grandstand is becoming an “intelligence layer” across sports, gaming, and entertainment, with growing B2B data, partner solutions, and direct-to-consumer products. His tone was constructive and confident, with repeated comments that the business has stabilized and has a clearer growth path into 2027.

Elias Mark said results were in line with expectations and stressed that the business generated $9.6 million of adjusted free cash flow with 81% conversion from adjusted EBITDA over the first half of the year. He pointed to $3.2 million of restructuring costs, a reduced headcount of about 25%, and $13 million of annualized fixed-cost savings, while also noting total cash of $8.8 million, total liquidity of $33.3 million, and $122.3 million of interest-bearing liabilities. He reiterated the full-year revenue and adjusted EBITDA guide and said second-half margins should expand as seasonality and restructuring savings flow through, with low-30s margins expected in 2027.

Analysts focused on Roll Card, the durability of SEO, the outlook for North American marketing, prediction markets, and whether guidance was conservative or implied a stronger second half. Management said Roll Card was already included in guidance with only a modest initial ramp and described it as a multi-year opportunity based on interchange economics and existing audience reach. They also said marketing should be roughly flat in the second half, data should keep growing in the teens, and the main upside to guidance would come from a faster SEO recovery or stronger-than-expected growth in sports data B2B and North American marketing.