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    SRAD
    Earnings call· Jun 2026(Q2 FY26)

    Sportradar Group AG Q2 FY26 earnings call SRAD

    Aug 3, 2026 Source

    Executive summary

    Sportradar Q2 FY26 — Strong Revenue Growth and Share Repurchases Amidst Guidance Revision

    Sportradar delivered robust Q2 FY26 results with strong revenue and adjusted EBITDA growth, alongside aggressive share repurchases. However, the company revised its full-year guidance downward, citing U.S. market moderation, tax headwinds in some regions, and delays in finalizing prediction market deals. Management remains confident in its strategic initiatives, particularly prediction markets and iGaming, to drive long-term growth and shareholder value.

    Highlights

    5

    • Company revenues increased 19% year-over-year to EUR 378 million (21% constant currency).

    • Adjusted EBITDA increased 19% year-on-year to EUR 76 million, achieving a 20% margin.

    • Repurchased $422 million or 26 million shares under the $1 billion share repurchase program, including $190 million (13 million shares) since May.

    • Free cash flow for H1 FY26 was EUR 103 million, up 23% year-on-year, with a conversion rate of 73%.

    • Managed Trading Services turnover on a trailing 12-month basis reached $56 billion, up 26% compared to the prior period.

    Concerns

    4

    • Full-year 2026 guidance was updated due to moderation in U.S. market growth, increased tax regulation in certain Rest of the World territories, and delayed timing of prediction market deals.

    • The company reported a net loss of EUR 4 million for the quarter, compared to a profit of EUR 49 million in Q2 FY25, primarily due to unrecognized foreign currency losses of EUR 9 million.

    • Adjusted other operating expenses increased 42% year-on-year to EUR 35 million, driven by Brazil operations and legal expenses.

    • Adjusted personnel expenses were down 4% year-on-year to EUR 77 million, partly due to reduced bonus accrual.

    Guidance & targets

    11
    CategoryTargetConfidence
    Full-year 2026 Constant Currency Revenue Growth
    19% to 21%
    high materiality
    Medium
    Full-year 2026 Reported Revenue
    EUR 1.518 billion to EUR 1.533 billion
    high materiality
    Medium
    Full-year 2026 Constant Currency Adjusted EBITDA Growth
    24% to 27%
    high materiality
    Medium
    Full-year 2026 Reported Adjusted EBITDA
    EUR 360 million to EUR 368 million
    high materiality
    Medium
    Back Half 2026 Revenue Growth
    Strongest growth in Q3
    medium materiality
    High
    Back Half 2026 Adjusted EBITDA Margin Growth
    Acceleration
    medium materiality
    High
    Q3 2026 Adjusted EBIT Margins
    Down year-on-year
    medium materiality
    High
    Full-year 2026 Free Cash Flow Conversion
    Above 56%
    medium materiality
    High
    Enhanced Share Repurchase Program Completion
    Early next month
    medium materiality
    High
    Prediction Market Revenue Upside
    Tens of millions
    medium materiality
    Medium
    Prediction Market Revenue Upside
    Significantly higher
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Betting Technology and Solutions
    Growth driven by continued cross-sell and upsell of products, strong uptake of IMG content, and demand for streaming, betting engagement, odds, and live data products. Managed Betting Services saw increased revenue from higher turnover (World Cup, NBA playoffs) offset by lower Platform business.
    Betting and Gaming Content Revenue Growth: 27% YoYManaged Betting Services Revenue: In line YoY
    		EUR 314 million21%——
    Sports Content, Technology & Services
    Driven by growth in Marketing and Media Services due to increased spend from Media and Technology customers, and affiliate marketing for prediction market exchanges and sportsbooks. Partially offset by reduction in sports performance revenues due to foreign currency headwinds.
    		EUR 64 million9%——
    Rest of World
    Geographically broad-based growth, despite some impacts from increased tax regulation.
    		—20%——
    U.S.
    Growth negatively impacted by foreign currency headwinds, particularly the U.S. dollar relative to the euro. Slower growth from traditional U.S. sportsbooks noted.
    Constant Currency Revenue Growth: 22%
    		—16%——

    Operational metrics

    21
    Revenue
    EUR 378 millionUp 19% YoY
    Q2 FY26

    Driven by cross-sell/upsell and IMG content uptake.

    Adjusted EBITDA
    EUR 76 millionUp 19% YoY
    Q2 FY26

    Enabled by revenue growth, stable sports rights, and cost efficiencies.

    Adjusted EBITDA Margin
    20%
    Q2 FY26

    Achieved through revenue growth and cost management.

    Net Loss
    EUR 4 millionVs. profit of EUR 49 million YoY
    Q2 FY26

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

    Unrecognized Foreign Currency Losses
    EUR 9 millionVs. gain of EUR 54 million YoY
    Q2 FY26

    Primarily associated with U.S. dollar-denominated sports rights.

    Restructuring Costs
    EUR 11 million
    Q2 FY26

    Related to efficiency initiatives announced last quarter.

    Cash and Cash Equivalents
    EUR 251 millionDeclined EUR 114 million since year-end 2025
    Q2 FY26 end

    Strong free cash flow generation offset by accelerated share repurchases.

    Net Debt
    EUR 0
    Q2 FY26 end

    Company remains in a very strong liquidity position.

    Free Cash Flow Conversion
    73%Vs. 68% YoY
    H1 FY26

    Demonstrates conversion of EBITDA into free cash flow, despite a nonroutine legal settlement payment.

    Share Repurchases (since inception)
    $422 million
    Through last week

    Taking advantage of market volatility and perceived value in shares.

    Share Repurchases (since May)
    $190 million
    Since beginning of May

    Under the enhanced program, expected to complete early next month.

    Share Repurchases (Year-to-date)
    $311 million
    YTD

    Represents 17% of free float at the beginning of the year.

    Sports Rights Expense
    EUR 138 millionUp 30% YoY
    Q2 FY26

    Primarily due to the addition of IMG content, which has higher value matches in Q2 and Q3.

    Adjusted Personnel Expenses
    EUR 77 millionDown 4% YoY
    Q2 FY26

    Benefits from cost efficiency initiatives and reduced bonus accrual, despite IMG headcount inclusion.

    Adjusted Purchase Services
    EUR 52 millionUp 20% YoY
    Q2 FY26

    Primarily due to inclusion of IMG and higher cloud costs.

    Adjusted Other Operating Expenses
    EUR 35 millionUp 42% YoY
    Q2 FY26

    Predominantly driven by costs related to Brazil operations and legal expenses for adjacent market growth.

    Managed Trading Services Turnover
    $56 billionUp 26% YoY
    TTM

    Benefited from major U.S. sports playoffs and World Cup group stages.

    IMG ARENA Revenue Synergy Target
    Exceed 25%
    Ongoing

    Company remains on track to exceed the previously communicated target.

    World Cup Turnover (Group Stage)
    $2.5 billion
    Q2 FY26

    Very encouraging from a growth perspective, with a significant chunk from LatAm and North America.

    World Cup Final Turnover
    Record-breaking
    Q3 FY26

    Highest turnover match, super profitable due to 0-0 draw after 90 minutes.

    Revenue Breakdown (Fixed vs. Variable)
    2/3 fixed, 1/3 variable
    Ongoing

    This breakdown may shift slightly with prediction markets.

    Product announcements

    5
    ProductTypeDetails
    Player and micro marketslaunch
    4Sight Streaminglaunch
    Premium Golf Servicelaunch
    Live Match Tracker Regionalizationexpansion
    Playradar iGaming Businesslaunch

    Deals & partnerships

    4
    WimbledonMultiyear expansion to provide exclusive data and audiovisual betting rights.Multiyear

    Strengthens and allows for further innovation across the premium mass portfolio, spanning 3 of the 4 Grand Slams.

    KalshiMultiyear global agreement as an official sports data and solution provider.Multiyear

    Sportradar will deliver a broad portfolio of premium sports content and services across major sports including MLB, ATP, NHL, MLS, and UFC. Services include real-time data ops, fan engagement solutions, customer acquisition services, and integrity services.

    Polymarket (in coordination with TDI for ATP tour)Multiyear agreement for streaming and data services.Multiyear

    Sportradar will provide Polymarket in the U.S. with exclusive streaming of ATP matches, nonexclusive real-time data for settlement, fan engagement solutions, customer acquisition services, and integrity services.

    Revolving Credit Facility lendersAmendment to revolving credit facility, extending maturity and upsizing capacity.EUR 250 millionExtended to 2031

    Maturity extended to 2031 and facility upsized to EUR 250 million.

    Risks & headwinds

    5
    Moderation in U.S. market growthQ2 FY26 and expected for H2 FY26

    Contributed to full-year guidance revision.

    Mitigation: Execution on strategic initiatives like prediction markets and iGaming; expectation for slight market improvement in H2 FY26.

    Increased tax regulation in certain Rest of World territoriesQ2 FY26

    Contributed to full-year guidance revision; UK saw tax rate increase shy of 100% YoY; Brazil also saw non-beneficial gaming and country taxes.

    Mitigation: Clients optimizing cost structures; no major obstacles indicated for FY27; exploring new market opportunities like Japan.

    Delayed timing of executing prediction market dealsQ2 FY26

    Delayed revenue recognition, contributing to full-year guidance revision.

    Mitigation: Deals are now being finalized, with significant ramp-up expected in FY27 and FY28; active conversations for additional commercial deals.

    Unrecognized foreign currency lossesQ2 FY26

    EUR 9 million loss in Q2 FY26, impacting net income.

    Mitigation: Not explicitly stated, but management notes it was primarily associated with U.S. dollar-denominated sports rights.

    State-level legal challenges to prediction markets in the U.S.Ongoing

    Discussion of pushback from state AGs (e.g., New York).

    Mitigation: Sportradar operates where allowed and provides services to clients where they are allowed to use them; will continue to serve clients as jurisdictions permit operations.

    What to watch in Q3 FY26

    5

    Prediction Market Deal Progress

    Coming months
    CurrentMultiyear agreements with Kalshi and Polymarket signed.
    TargetAdditional commercial deals entered into.

    Why it matters

    Further expansion of prediction market ecosystem is a key growth pillar and expected to drive significant revenue upside in FY27/FY28.

    Looking ahead, we continue to have active conversations across the prediction markets ecosystem and anticipate entering into additional commercial deals in the coming months⏳.

    Q&A highlights

    7

    Can you dissect the guidance revision, including puts and takes for the back half of the year, and discuss catalysts for 2027?

    The guidance revision was primarily due to prediction market deals taking longer to finalize than expected, delaying revenue, and the advertising market recovery not fully offsetting the Q1 shortfall. Softness in the U.S. market also contributed. For 2027, fundamentals remain strong, with expectations for continued outperformance, margin expansion, and free cash flow generation.

    “The challenge is, is that the prediction market deals having got some time to come to completion. So just because we were ready for them to go at the end of the first quarter call, the reality is it took a little while for that to happen.”

    asked by Eric Handler · answered by Craig Felenstein

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Initiatives & Market Expansion

    Sportradar is actively expanding its addressable market by capitalizing on prediction markets and rolling out its iGaming business, Playradar. The company has secured multiyear global agreements with key players like Kalshi and Polymarket, providing premium sports data, fan engagement, and integrity services. Playradar, a natural extension of the core business, aims to create differentiated entertainment experiences by seamlessly connecting sports betting and iGaming, leveraging existing content and distribution to enhance player lifetime value.

    02

    IMG ARENA Integration & Product Innovation

    The integration of IMG ARENA rights continues to progress well, with the company on track to exceed its previously communicated revenue synergy target of 25%. Sportradar is expanding its premium product offering by launching player and micro markets, 4Sight Streaming for major tennis tournaments, and a premium golf service for the PGA. Key renewals, such as the multiyear expansion for Wimbledon data and audiovisual betting rights, underscore the company's ability to monetize premium content.

    03

    Operational Efficiency & AI Adoption

    Sportradar is focused on driving increased operating leverage and cost efficiencies across its business. This includes streamlining operations, which has resulted in significant annualized savings, and leveraging AI to automate workflows, enhance coding and data collection, and accelerate product innovation. These efforts are expected to deliver cost savings and enhance margins while maintaining a commitment to product innovation.

    04

    Shareholder Returns & Capital Allocation

    The company is actively returning capital to shareholders through an enhanced open market share repurchase program. Since inception, Sportradar has repurchased $422 million or 26 million shares, including $190 million or 13 million shares since May 2026. Management views the continued disconnect between share price and fundamental business strength as a compelling use of capital, reinforcing its commitment to long-term shareholder value.

    05

    Market Dynamics & Guidance Revision

    Despite strong Q2 performance, Sportradar updated its full-year guidance for 2026. This revision reflects a moderation in U.S. market growth, increased tax and regulatory headwinds🌐 in certain Rest of the World territories (notably the UK and Brazil), and delays in the timing of📎 executing prediction market deals. While these factors impact short-term expectations, the company maintains confidence in its long-term ability to drive growth and margin expansion.

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