Genius Sports Ltd

Genius Sports Limited is a B2B sports data, technology, and broadcasting company. Despite negative investor reactions to a sizable acquisition, management expects this move to significantly accelerate its media business and expand its data assets. The Fund is maintaining its position in Genius Sports Limited and plans to reassess after the acquisition closes later this quarter, indicating confidence in the company's long-term growth potential.

Genius Sports (GENI), a leading global provider of sports data, technology, and media solutions to sportsbooks, sports leagues, and brands, has monopolies on data rights across several sports leagues and is rapidly diversifying its business. The company recently reported in-line Q2 results with revenue and EBITDA matching expectations, while raising its 2025 outlook 4% ahead on revenue consensus and 7.5% ahead on EBITDA, implying 26% growth and ~21% margins by year-end. The new guidance would drive a record 47% 'Rule of 40' score and implies significant accelerating momentum in the Media segment (~60% growth implied in 2H 2025). Shares remain at a ~5x EV/EBITDA multiple discount versus direct peer Sportsradar Group despite identical growth and margin profiles, offering ~70% upside if GENI plays catch-up.

Genius Sports Limited (GENI) continues to execute as expected with several favorable developments, including the NFL extending its data rights deal with GENI to 2029 and securing an exclusive data rights deal with the NCAA through 2032. These agreements provide visibility into data costs and pave the way for future incremental revenues at attractive margins. With the legalization of sports betting in Brazil and growth in in-game betting, GENI is positioned for healthy revenue growth. The company targets a 30% EBITDA margin by 2030, with expected EBITDA growth at a ~30% CAGR, making it a strong investment relative to peers trading at higher valuations.

Genius Sports Limited is executing as expected and should continue to post high teens topline growth and EBITDA margin expansion on the back of the secular growth in online sports betting. Shares trade at an ~35% discount to Sportsrader, with the two operating in an emerging duopoly of sports betting data provision that is increasingly becoming appreciated by investors.