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    SRAD
    Earnings call· Mar 2026(Q1 FY26)

    Sportradar Group AG Q1 FY26 earnings call SRAD

    Apr 28, 2026 Source

    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

    5

    • 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

    5

    • 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

    9
    CategoryTargetConfidence
    Full-year 2026 constant currency revenue growth
    23% to 25%
    high materiality
    High
    Full-year 2026 reported revenue
    $1.56 billion and $1.58 billion
    high materiality
    High
    Full-year 2026 constant currency adjusted EBITDA growth
    34% to 37%
    high materiality
    High
    Full-year 2026 reported adjusted EBITDA
    $390 million to $400 million
    high materiality
    High
    Full-year 2026 adjusted EBITDA margin expansion
    200 to 225 basis points
    high materiality
    High
    Full-year 2026 free cash flow conversion rate
    above last year's rate of 56%
    medium materiality
    High
    IMG revenue synergies
    exceeding the 25% synergy target
    medium materiality
    High
    Matches streamed
    over 700,000
    low materiality
    High
    Prediction market revenue
    some of that this year
    medium materiality
    Medium

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    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 million15%——
    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%——

    Operational metrics

    21
    Revenue
    $347 million11% YoY
    Q1 FY26

    Driven by strong uptake of IMG content and continued cross-sell and upsell.

    Adjusted EBITDA
    $66 million12% YoY
    Q1 FY26

    Delivered slight margin expansion due to cost efficiencies and stable sports rights portfolio.

    Net loss
    $6 millionvs profit of $24 million in Q1 FY25
    Q1 FY26

    Primarily due to unrecognized foreign currency losses of $9 million.

    Cash and cash equivalents
    $322 milliondeclined $44 million from end of FY25
    Q1 FY26 end

    Strong liquidity position with no debt outstanding.

    Free cash flow conversion rate
    67%vs 54% a year ago
    Q1 FY26

    Expanded conversion of EBITDA into free cash flow.

    Share repurchases executed
    $90 milliontotal $228 million since inception
    Q1 FY26

    Part of an expanded $1 billion share repurchase program.

    Enhanced open market repurchase program
    $250 million
    Q2 FY26

    Approved under the previously authorized $1 billion program.

    Sports rights expense (adjusted)
    $122 million18% YoY
    Q1 FY26

    Due primarily to the addition of IMG. Major rights deals are locked in long term.

    Adjusted personnel expenses
    $84 million5% YoY
    Q1 FY26

    Driven by IMG headcount, with slower growth across existing workforce.

    Adjusted purchase services
    $46 million5% YoY
    Q1 FY26

    Primarily due to IMG and higher cloud spending.

    Adjusted other operating expenses
    $28 million16% YoY
    Q1 FY26

    Increase predominantly driven by costs related to IMG.

    Restructuring charges
    $13 million to $18 million
    remainder of FY26

    Expected to drive additional operating leverage and optimize organizational structure.

    Customer net retention rate
    108%
    Q1 FY26

    Excludes IMG content utilization by existing customers, includes FX headwinds.

    Matches streamed
    over 525,000
    FY25

    Globally.

    Core betting clients consuming IMG content
    over 75%
    Q1 FY26

    Includes all Tier 1 operators.

    Former non-IMG customers purchasing IMG content
    nearly 60%
    Q1 FY26

    Demonstrates cross-selling success.

    Managed Trading Services (MTS) turnover
    up 24%
    Q1 FY26

    Despite revenue impact from player-friendly outcomes.

    Revenue exposure to gray markets
    low to mid-single digits
    Q1 FY26

    Based on a bottoms-up approach, excluding U.S. revenues and large global providers.

    AI lead time reduction for engineering
    20%
    Q1 FY26

    Achieved by setting KPIs for engineers using AI.

    FX impact on Q1 revenue growth
    5 percentage points11% reported vs 16% constant currency
    Q1 FY26

    Foreign currency headwinds, particularly from USD relative to EUR.

    FX impact on Q1 net loss
    $9 million
    Q1 FY26

    Unrecognized foreign currency losses, primarily associated with USD-denominated sports rights.

    Product announcements

    1
    ProductTypeDetails
    PlayRadarlaunch

    Deals & partnerships

    2
    Hard Rock BetPartnership 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

    5
    Short-seller reportsrecent

    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 ServicesQ1 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 campaignsQ1 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 headwindsQ1 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 growthQ1 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

    5

    Prediction market agreements

    soon
    Currentactive commercial discussion
    Targetannouncement 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.

    Q&A highlights

    6

    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 read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

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