Quantify revenue mix from black legal markets, if operators can get data without direct relationship, and thoughts on licensed gray market operators.

Sportradar does not work with black market operators. For gray markets, they have a solid compliance structure and only work with licensed operators. Exposure is low to mid-single digits (up to 12-13%) of total revenues. Data and odds business and MTS are the primary exposed segments. “Overall, it is between low single digit to a mid-double-digit -- sorry, it's a low to mid-single-digit number. So to 12%, 13%. That's the range which we have, and we are drilling this down from our operational business.”

Details on prediction market ramp, which constituents (FCM, DCM, market makers) are most important, and expected activity in H2.

Green light from NHL, UFC, MLS, MLB. Different needs for exchanges (ultra low latency data/video) and market makers (prediction models). Already have fan engagement tools. Business model similar to OSB (fixed fee + revenue share with minimum guarantee). Confident in soon announcing news. NBA also considering prediction markets. “We are very confident that we will see very soon some bigger news and announcements around this. We think that the NBA is also thinking about prediction markets and how to enter.”

What have interactions been like with league partners and regulators since the reports came out?

Overwhelming support from partners, clients, industry, and commissioners. In frequent contact with regulators, explaining the situation. “The feedback so far is overwhelming to me. I get a lot of support from all sides, our partners, our clients, the industry some commissioners. And from a regulatory perspective, we are in contact with some regulators on a very frequent based.”

SRAD

Sportradar (SRAD) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· Apr 28, 2026

Source: earnings call transcript

Executive summary

Sportradar Q1 FY26 — Strong Revenue Growth Despite Headwinds, Reaffirms Full-Year Outlook

Sportradar delivered solid Q1 FY26 revenue growth, driven by strong IMG content adoption and cross-selling, despite significant FX headwinds and player-friendly outcomes impacting managed trading services. The company reaffirmed its full-year guidance, anticipating accelerating momentum from prediction markets and continued IMG synergies, while also initiating a cost-efficiency program and expanding its share repurchase authorization to address current valuation.

Highlights

Q1 revenues of EUR 347 million, an 11% increase year-over-year (16% constant currency).
Adjusted EBITDA of EUR 66 million, up 12% year-over-year, translating to a 19% margin.
Free cash flow of $44 million, up 38% year-over-year, with conversion expanding to 67%.
Repurchased $90 million worth of shares in Q1, with an additional $250 million enhanced open market repurchase program approved.
Strong uptake of IMG content, with over 75% of core betting clients now consuming it, and anticipation of exceeding 25% synergy target.

Concerns

Net loss of $6 million in Q1 versus a profit of $24 million a year ago, primarily due to unrecognized foreign currency losses of $9 million.
Managed Betting Services revenue was down slightly due to player-friendly outcomes, notably in European soccer.
Sports Content, Technology and Services products revenue decreased 4% year-on-year, predominantly driven by reduced spending on marketing campaigns.
U.S. revenue growth was 4% reported, impacted by foreign currency headwinds and timing of marketing campaigns (would have been 17% constant currency).
Recent self-interested reports published by known short sellers driving down stock price.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 constant currency revenue growth	23% to 25% high materiality	FY26	High
Full-year 2026 reported revenue	$1.56 billion and $1.58 billion high materiality	FY26	High
Full-year 2026 constant currency adjusted EBITDA growth	34% to 37% high materiality	FY26	High
Full-year 2026 reported adjusted EBITDA	$390 million to $400 million high materiality	FY26	High
Full-year 2026 adjusted EBITDA margin expansion	200 to 225 basis points high materiality	FY26	High
Full-year 2026 free cash flow conversion rate	above last year's rate of 56% medium materiality	FY26	High
IMG revenue synergies	exceeding the 25% synergy target medium materiality	ongoing	High
Matches streamed	over 700,000 low materiality	FY26	High
Prediction market revenue	some of that this year medium materiality	FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Betting Technology and Solutions Driven by strong uptake of IMG content and continued growth in streaming, betting engagement, odds, and live data products, despite slower growth from U.S. sportsbooks. Betting and Gaming Content revenue growth: 20%	$288 million	15%	—	—
Managed Betting Services Increased turnover was offset by unfavorable sporting outcomes, notably in European soccer, expected to normalize over the year. Turnover growth: 24%	down slightly	—	—	—
Sports Content, Technology and Services Predominantly driven by reduced spending on marketing campaigns and foreign currency headwinds, partially offset by media upsells and increased integrity services contributions.	$59 million	-4%	—	—
Rest of World Geographically broad-based growth.	—	14%	—	—
U.S. Headwinds from foreign currency movements and timing of marketing campaigns significantly impacted reported revenue. Constant currency growth: 17%	—	4%	—	—

SRAD operating KPIs by quarter

SRAD operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Change vs prior quarter
Customer net retention rate	109% Sportradar generated revenues of EUR 369 million, an increase of EUR 62 million or 20% compared with the fourth quarter a year ago as we continue to outperform market growth by deepening our client relationships through cross-selling and upselling as demonstrated by our customer net retention rate of 109%, which excludes the contributions from IMG. Source: earnings call transcript	108% Looking at the first quarter, Sport Radar generated revenues of $347 million, an increase of $35 million or 11% compared with the first quarter of 2025, driven by the strong uptake of IMG content, and the continued cross-sell and upsell of our products and solutions to existing clients as demonstrated by our customer net retention rate of 108%. Source: earnings call transcript	-1 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline	Details
PlayRadar	launch	already live across Latin America, including Brazil; remainder of the year for European markets (U.K., Greece, Sweden, Denmark) and several U.S. states and Canada

Deals & partnerships

Hard Rock Bet Partnership expansion to include official content from the PGA Tour and Europe.

Expanded partnership to include official content from the PGA Tour and Europe.

Carsten Koerl (CEO) Personal share purchase. $10 million

CEO intends to personally purchase $10 million worth of shares when the trading window opens, reflecting confidence in the company's long-term value.

Risks & headwinds

Short-seller reports recent

driving down our company's stock price

Mitigation:Company rejects allegations, filed 6-K on compliance, expanded share repurchase, CEO personal share purchase.

Player-friendly outcomes in Managed Trading Services Q1 FY26

impacted revenues in the quarter

Mitigation:Expect trading margins to normalize over time given diversity of clients and sports coverage.

Reduced spending on marketing campaigns Q1 FY26

Sports Content, Technology and Services products delivered revenues of $59 million a decrease of 4% year-on-year

Mitigation:Expected to see spend return in Q2/Q3 for World Cup; ads business in healthy shape.

Foreign currency headwinds Q1 FY26 and Q2 FY26

significantly impacted U.S. reported revenue (4% reported vs 17% constant currency), unrecognized foreign currency losses of $9 million

Mitigation:FX impact should mostly take itself out after Q2 FY26.

Moderating U.S. market growth Q1 FY26 and ongoing

slower growth from U.S. sports books

Mitigation:Offset by prediction market opportunities and IMG synergies.

What to watch in Q2 FY26

Prediction market agreements

soon

Current active commercial discussion

Target announcement of agreements

Why it matters

Securing agreements with prediction market players is crucial for expanding TAM and driving new revenue streams in the back half of the year.

While we expect to announce agreements soon, we are being deliberate in our discussions to ensure we maximize economics given the value we will bring to this ecosystem.

Find out whether SRAD delivers this. Inve re-checks your case every morning.

Q&A highlights

Why was Marketing Services down, was it structural or timing, and what gives confidence in full-year guidance reiteration despite a soft start?

Marketing Services is choppy, impacted by operator pullback and saving spend for World Cup. Ads business is healthy. Confidence in guidance comes from expected Marketing Services growth, continued IMG success, and prediction market revenue opportunity in H2.

“When you look at the marketing spend line for the full year, we still expect it to deliver really nice growth. Our ads business is in really healthy shape and we know the value that we bring to our Sportsbook partners and our gaming partners, and we see a significant opportunity to grow this line moving forward.”

asked by Ryan Sigdahl · answered by Craig Felenstein

2 min read 7 chapters

Detailed narrative

Response to Short-Seller Reports

Sportradar strongly rejected recent short-seller allegations, emphasizing its robust compliance framework, regulatory licenses across jurisdictions, and 25-year commitment to integrity and transparency. The company filed a 6-K detailing its strong compliance and KYC framework, and CEO Carsten Koerl announced a personal share purchase of $10 million to demonstrate confidence in the business.

IMG Integration and Synergies

The integration of IMG content is progressing strongly, with over 75% of core betting clients, including all Tier 1 operators, now consuming IMG content. Nearly 60% of clients who were not previous IMG customers are now purchasing the content, leading the company to anticipate exceeding its 25% revenue synergy target.

Prediction Markets Opportunity

Sportradar views prediction markets as a significant opportunity to expand the U.S. TAM, attracting new demographics and increasing engagement. The company is in active commercial discussions with various prediction market players (exchanges, market makers, brokers) for official data and products related to MLB, NHL, MLS, and UFC, expecting announcements soon.

PlayRadar Launch and iGaming Expansion

Sportradar launched PlayRadar, a dedicated iGaming brand, leveraging its sports data expertise to offer hybrid products. It is already live in Latin America (including Brazil) and plans to launch in several European markets (U.K., Greece, Sweden, Denmark) and U.S. states/Canada over the remainder of the year.

Capital Allocation and Share Repurchase

The company maintains a strong liquidity position with $322 million in cash and no debt. Given the perceived undervaluation, the Board approved an additional $250 million enhanced open market repurchase program, expected to be completed within approximately 3 months, bringing total repurchases since inception to $228 million.

Cost Efficiencies and AI Implementation

Sportradar is focused on cost efficiencies, initiating steps expected to result in $13 million to $18 million in restructuring charges, aiming for additional operating leverage. AI is being deployed across engineering (20% lead time reduction), operations (automatizing sports), finance, and legal to accelerate processes and improve efficiency.

Managed Trading Services (MTS) Performance

MTS turnover increased 24% in Q1, but revenues were impacted by player-friendly outcomes, particularly in European soccer. Management expects trading margins to normalize and MTS to remain a core growth driver, with historical growth rates anticipated to continue.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.