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    GENI
    Earnings call· Jun 2026(Q2 FY26)

    Genius Sports Q2 FY26 earnings call GENI

    Aug 6, 2026 Source

    Executive summary

    Genius Sports Q2 FY26 — Strong Legend Integration and Raised Guidance

    Genius Sports delivered a strong Q2 FY26, exceeding guidance across key financial metrics, driven by robust revenue growth and better-than-expected profitability. The integration of the Legend acquisition is progressing ahead of schedule, yielding early synergies and expanding the company's reach in prediction markets. Management is confident in its structural operating leverage and the long-term potential of its official data and audience platform, leading to raised full-year guidance.

    Highlights

    5

    • Revenue of $196 million, up 65% year-over-year, exceeded guidance by $11 million.

    • Adjusted EBITDA of $53 million significantly surpassed the $45 million guidance, with a 27% margin.

    • Quarter-end cash of $155 million was above the guided range of $140 million to $150 million.

    • Legend acquisition integration is ahead of schedule, with synergies already being realized.

    • Added 174 new customers to the Moment Engine in Q2, including major brands like McDonald's, YouTube TV, and DoorDash.

    Concerns

    4

    • Q2 is a seasonal low point for cash, with $41 million in debt financing costs impacting the quarter.

    • GAAP net loss of approximately $77 million due to one-time transaction costs and non-cash accounting for acquired intangibles.

    • NFL is not expected to greenlight prediction markets in the near future, and this is not included in 2026 guidance.

    • The cash flow statement shows a $579 million accounting use of cash for the Legend acquisition, which includes repayment of shareholder loans and settlement of incentive plans.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year Revenue
    $1.005 billion to $1.025 billion
    high materiality
    High
    Full-year Adjusted EBITDA
    $285 million to $295 million
    high materiality
    High
    Unlevered Free Cash Flow Conversion
    70%
    medium materiality
    High
    Levered Free Cash Flow Conversion
    50%
    medium materiality
    High
    Net Leverage
    approximately 2x
    medium materiality
    High
    Unlevered Free Cash Flow Conversion
    60%
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Betting
    The core betting business continues to progress, serving over 500 sportsbook brands. Over half of revenue comes from outside the United States. Growth is durable, not driven by win margins, and has exceeded 25% annually since 2023.
    Net revenue retention: consistent with annual rangeRevenue growth since 2023: over 25% each year
    		—28%——
    Media
    Media business growth was strengthened by the addition of Legend from May 1, as well as continued momentum from new brand and agency customers and strong demand from prediction market operators. The Moment Engine is driving significant customer acquisition.
    New customers (Moment Engine) in Q2: 174
    		—193%——

    Operational metrics

    24
    Revenue beat vs. guidance
    $11 million
    Q2 FY26

    Revenue beat in Q2 flowed through to an $8 million EBITDA beat.

    Adjusted EBITDA beat vs. guidance
    $8 million
    Q2 FY26

    Flowed through from the $11 million revenue beat.

    Group Revenue increase
    $77 millionYoY
    Q2 FY26

    Despite this increase, sales and marketing expenses were only up $3 million, demonstrating efficiency from Legend integration.

    Sales and Marketing Expenses increase
    $3 millionYoY
    Q2 FY26

    Despite a $77 million group revenue increase, indicating leverage from Legend's owned audience.

    Legend Audience Users
    180 million
    Q2 FY26

    Legend brings a durable owned audience, with two-thirds of users returning.

    Legend Customers Lifetime Value
    60%higher
    after first year

    Customers acquired through Legend carry around 60% higher lifetime value for operators after their first year.

    Moment Engine New Customers
    174
    Q2 FY26

    Added in Q2 alone, including major brands like McDonald's, YouTube TV, and DoorDash.

    CPM Efficiency (World Cup)
    3xvs planned
    World Cup

    One global consumer brand used GeniusIQ to activate campaigns, resulting in roughly 3x greater CPM efficiency than planned.

    Cost Per Click (World Cup)
    lowestof any campaign
    World Cup

    Achieved the lowest cost per click of any campaign run during the World Cup for a global consumer brand.

    Cash Balance
    $197 million
    Q1 FY26

    Cash balance at the end of Q1.

    Cash Balance
    $155 million
    Q2 FY26

    Cash balance at the end of Q2, above the guided range of $140 million to $150 million.

    Debt Financing Costs
    $41 million
    Q2 FY26

    Predominantly driven the change in cash from Q1 to Q2.

    Acquisition Use of Cash (Accounting Presentation)
    $579 million
    Q2 FY26

    Reflects the accounting presentation for the Legend acquisition, excluding repayment of shareholder loans, settlement of incentive plans, and cash acquired.

    Upfront Cash Consideration (Legend Acquisition)
    $800 million
    Q2 FY26

    Total upfront cash consideration paid for the Legend acquisition.

    GAAP Net Loss
    $77 million
    Q2 FY26

    Reflects accounting for the close of the Legend acquisition, including one-time transaction costs, acquisition financing, and non-cash accounting for acquired intangible assets.

    Full-year Revenue Increase (Guidance)
    $15 million
    FY26

    Increase to both revenue and EBITDA guidance for the full year.

    Full-year EBITDA Increase (Guidance)
    $15 million
    FY26

    Increase to both revenue and EBITDA guidance for the full year.

    Flow-through (Q2 beat to full-year guidance increase)
    100%
    FY26

    The $15 million increase to both revenue and EBITDA guidance implies a 100% flow-through from the Q2 beat.

    Q2 Revenue Beat Percentage
    11%
    Q2 FY26

    Q2 revenue beat guidance by 11%.

    Q2 EBITDA Beat Percentage
    8%
    Q2 FY26

    Q2 EBITDA beat guidance by 8%.

    Cash Balance Improvement
    over $100 millionvs Q2
    H2 FY26

    Expected progression towards year-end balance with over $100 million improvement from Q2.

    Q4 Margin Exit Rate
    35%200 bps improvement vs Q3
    Q4 FY26

    Implied Q4 margin exit rate, which is also the 2028 target, despite seasonal drag from rights costs.

    Moment Engine Agency Platform Penetration
    over 90%
    current

    The Moment Engine technology is deployed across over 90% of the platforms that agencies are using.

    Skeletal Tracking Points
    10,000vs 26 points for competitor
    current

    GeniusIQ's skeletal tracking technology captures 10,000 points on a human body 200 times a second, significantly more advanced than competitors.

    Deals & partnerships

    3
    LegendAcquisition of a demand layer business with a durable owned audience.$800 million upfront cash

    The acquisition closed in Q2 FY26. It brings approximately 180 million users, with two-thirds returning, and customers acquired through Legend show 60% higher LTV for operators.

    KalshiDirect commercial agreement for official data and customer acquisition.

    Agreement covers a wide range of content across Genius's data portfolio and utilizes Genius's media offering for customer acquisition.

    PolymarketDirect commercial agreement for official data and customer acquisition.

    Agreement covers a wide range of content across Genius's data portfolio and utilizes Genius's media offering for customer acquisition.

    Risks & headwinds

    3
    Customer-friendly sports resultsQ2 FY26

    low win margins for sportsbooks

    Mitigation: Genius's business model is built on contractual guarantees and volumes, not driven by win margins, providing protection from volatility.

    NFL green-lighting prediction marketsFY26

    not expected in the near future; not included in 2026 guidance

    Mitigation: The company has been conservative in its forecasts and has not included potential NFL prediction market revenue in its 2026 guidance.

    Customer acquisition battleongoing

    premium space elevated in price

    Mitigation: Through Legend, Genius Sports owns a leading customer acquisition platform, allowing it to reap rewards from the increased competition for customers.

    What to watch in Q3 FY26

    5

    Legend Synergy Realization

    next quarter
    CurrentAhead of schedule, with early results from cross-selling and audience integration.
    TargetContinued acceleration of synergies and financial impact.

    Why it matters

    The successful integration and realization of synergies from the Legend acquisition are crucial for achieving the company's long-term growth and profitability targets.

    Look, Legend started really, really well. We're super positive about it. And I think the synergies are coming through faster than we expected.

    Q&A highlights

    8

    What have been the key learnings from the Legend acquisition integration, and how do you see monetization and synergy evolving?

    The Legend integration has started very well, with synergies coming through faster than expected, as evidenced by recent deals with Kalshi and Polymarket. Teams are merging effectively, and product development is progressing satisfactorily, with technical crossover between product sets.

    “Look, Legend started really, really well. We're super positive about it. And I think the synergies are coming through faster than we expected. You can see that and we announced in the last couple of days, Kalshi deal, Polymarket deal. And it's really proving the thesis that we had when we went out and bought Legend that there would be immediate and significant synergies.”

    asked by Eric Sheridan · answered by Mark Locke

    2 min read5 chapters

    Detailed Narrative

    01

    Legend Acquisition and Synergies

    The Legend acquisition, completed in Q2, is delivering synergies faster than expected, contributing to the company's strong performance. Cross-selling across the combined customer base is underway, with prediction markets being a visible example. Audience data integration is complete, benefiting the fan graph and media customers, and Legend's properties are being used as media inventory, shifting spend from third-party platforms. The significant bulk of synergy opportunities remains ahead, but early results are promising.

    02

    Prediction Market Expansion

    Genius Sports is leveraging its position in prediction markets through three layers: data, market making, and audience. Direct commercial agreements have been signed with Kalshi and Polymarket, covering official data and customer acquisition. The NFL has formally stated that markets on sport require official settlement data and integrity, reinforcing Genius's infrastructure. The company is sourcing new customers for prediction market operators in significant volume, with acquisition dollars flowing to Genius's combined media offering.

    03

    Moment Engine and Media Growth

    The Moment Engine, launched in March, continues to drive media business growth, adding 174 new customers in Q2, including major brands. The World Cup served as a successful test case, demonstrating 3x greater CPM efficiency and the lowest cost per click for a global consumer brand. GeniusIQ, which turns official data into higher-value products, is a direct driver of margin improvement. The company expects to bring Moment Engine capabilities to NFL-related media activations, unlocking further long-term growth.

    04

    Financial Performance and Outlook

    Genius Sports reported 65% overall revenue growth and 54% Adjusted EBITDA growth, with a 27% margin, exceeding guidance. The margin improvement is attributed to organic growth, GeniusIQ automation, and early synergy capture. The company expects cash generation to accelerate in the second half, projecting 70% unlevered free cash flow conversion and 50% levered free cash flow conversion. Capitalized software costs are flattening, providing a structural tailwind to cash conversion.

    05

    Data and AI Advantage

    Genius Sports positions itself as the operating system of modern sports, owning official data, technology, and audience. In an AI-driven world, the value of its data and owned, returning first-party audience is increasing. The company's unique view of sports fans, derived from its data layer, allows brands to reach the right fans at the right moment with targeted messages, moving beyond impressions to delivering measurable outcomes.

    AI-generated summary of the company’s earnings call. Not investment advice.