Sportradar Group AG

Second quarter revenue was EUR 378 million, up EUR 60 million or 19% year over year; adjusted EBITDA was EUR 76 million, up 19% year over year, for a 20% margin. Excluding FX, revenue growth would have been 21% constant currency. Betting Technology and Solutions revenue was EUR 314 million, up 21%, while Sports Content, Technology & Services revenue was EUR 64 million, up 9%. The company reported a net loss of EUR 4 million versus a profit of EUR 49 million a year ago, including EUR 9 million of unrecognized FX losses and EUR 11 million of restructuring costs. Free cash flow in the first half was EUR 103 million, up 23%, and free cash flow conversion was 73%. For full-year 2026, Sportradar now expects constant-currency revenue growth of 19% to 21% and adjusted EBITDA growth of 24% to 27%; at current FX rates, that implies reported revenue of EUR 1.518 billion to EUR 1.533 billion and adjusted EBITDA of EUR 360 million to EUR 368 million. Management said third quarter should be the strongest revenue growth quarter in the back half, but adjusted EBIT margin will be down year over year in Q3 because of IMG seasonality.

Carsten Koerl framed the quarter around Sportradar’s expanding strategic footprint in prediction markets and iGaming, while emphasizing continued strength in premium sports content monetization. He said the company is becoming a mission-critical provider at the intersection of sports betting and media, and reiterated confidence in durable revenue growth, operating leverage, and long-term shareholder value. His tone was constructive, but he acknowledged that timing delays in prediction-market deal execution and softer U.S. market trends pressured the full-year outlook.

Craig Felenstein highlighted EUR 378 million of revenue, EUR 76 million of adjusted EBITDA, and the 20% margin, noting 21% constant-currency growth excluding FX. He pointed to higher sports rights expense of EUR 138 million, personnel expense of EUR 77 million, purchase services of EUR 52 million, and other operating expenses of EUR 35 million, while saying cost efficiencies and IMG synergies supported margin expansion. He also stressed liquidity of EUR 251 million in cash with no debt, EUR 103 million of first-half free cash flow, and the amendment of the revolving credit facility to 2031 with a EUR 250 million size. On capital allocation, he said the company repurchased 20 million shares year to date for about $311 million and views buybacks as the best use of capital given the share-price disconnect.

Analysts focused on why guidance was cut, how much of that reflected U.S. market softness versus timing of prediction-market deals, and what that means for 2027 and beyond. Management said the U.S. market was broadly flat versus Q1, that prediction-market revenue was delayed by deal timing rather than demand, and that the back half should still improve but not require a major market shift to hit guidance. Questions also focused on prediction-market economics and legal risk; management said these deals typically have both fixed and variable components, should be accretive, and will be structured differently by partner, while saying it serves clients only where they are permitted to operate. On the short-seller allegations, management said the Audit Committee and legal counsel found the reports misleading and reiterated that Sportradar has compliance protections in place.