Q2 2026 Sportradar Group AG Earnings Call Transcript
Key Points
- Revenue grew 19% year-over-year in Q2 2026, driven by strong betting and gaming content, including IMG ARENA monetization.
- Adjusted EBITDA margin reached 20%, with adjusted EBITDA up 19% year-over-year, reflecting cost efficiencies and operating leverage.
- Secured multiyear agreements with prediction market leaders Kalshi and Polymarket, expanding addressable market and future revenue streams.
- Launched Playradar, an iGaming business, with regulatory certifications in multiple jurisdictions and a unique 24/7 live experience integrating sports betting and casino games.
- Strong free cash flow generation of EUR103 million in H1 2026, with conversion improving to 73% (excluding a legal settlement), and no debt outstanding.
- Accelerated share repurchases, buying back $311 million year-to-date (17% of free float), reflecting confidence in the business.
- Renewed and expanded premium rights, including Wimbledon, and launched innovative products like 4Sight Streaming and player/micro markets for major sports.
- Managed Trading Services scaled to $56 billion in trailing 12-month turnover, up 26%, benefiting from World Cup and NBA playoffs.
- Affiliate Marketing delivered its strongest month on record in June, driven by demand from North American sportsbooks and prediction market exchanges.
- Cost efficiency initiatives, including AI adoption, reduced personnel expenses by 4% year-over-year despite IMG headcount inclusion.
- Updated full-year 2026 guidance to constant currency revenue growth of 19%-21% (down from prior), citing US market moderation and tax/regulatory headwinds.
- US market growth remains flat, with no significant state openings and increased competition from prediction markets impacting traditional sportsbooks.
- Prediction market deals took longer to finalize than expected, delaying revenue contribution to the second half of 2026.
- Net loss of EUR4 million in Q2 2026, versus a profit of EUR49 million a year ago, due to foreign currency losses and restructuring costs.
- Sports rights expense increased 30% year-over-year, driven by IMG content, with seasonality expected to pressure Q3 adjusted EBITDA margins.
- Rest of World revenue impacted by increased tax regulation in markets like the UK and Brazil, creating client cost pressures.
- Foreign currency headwinds, particularly USD/EUR, negatively impacted reported revenue growth (19% reported vs. 21% constant currency).
- Adjusted other operating expenses rose 42% year-over-year, driven by Brazil operations and legal costs related to adjacent market growth.
- The company faces legal and regulatory uncertainties in the prediction market space, with potential state-level challenges (e.g., New York) that could impact operations.
- Despite strong Q2, the company expects only a slight improvement in US market trends for the back half, with no significant acceleration anticipated.
Hello, everyone. Thank you for joining us, and welcome to the Sportradar Second Quarter 2026 Earnings Call. (Operator Instructions) I will now hand the conference over to Jim Bombassei, Senior Vice President, Investor Relations and Corporate Finance. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining us for Sportradar's Earnings Call for the Second Quarter of 2026. Please note that the slides we will reference during the presentation can be accessed via the webcast on our website at investors.sportradar.com and will be posted on our website at the conclusion of this call.
A replay of today's call will also be available on our website. After our prepared remarks, we'll open up the call to questions from analysts and investors. In the interest of time, please limit yourself to one question and one follow-up. Please note that some of the information you will hear during our discussion today will consist of forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
