Q2 2026 Genius Sports Ltd Earnings Call Transcript
Key Points
- Genius Sports Ltd (GENI) beat guidance on all key metrics, with Q2 revenue of $196 million (up 65% YoY) and adjusted EBITDA of $53 million, exceeding the $45 million guided.
- The Legend acquisition is delivering synergies ahead of schedule, with cross-selling already underway and prediction market deals with Kalshi and Polymarket signed post-quarter.
- The Moment Engine gained 174 new advertisers in Q2, including major brands like McDonald's, YouTube TV, and DoorDash, with strong results during the World Cup.
- Genius Sports Ltd (GENI) raised full-year guidance to $1.005-$1.025 billion in revenue and $285-$295 million in adjusted EBITDA, reflecting strong operating leverage.
- The company's owned audience of ~180 million users from Legend is driving higher customer lifetime value and reducing reliance on third-party traffic, with sales and marketing costs up only $3 million despite $77 million revenue growth.
- Prediction markets are becoming a significant growth driver, with direct agreements with Kalshi and Polymarket and a structural rise in revenue expected.
- GeniusIQ automation is improving core economics, with capitalized software costs flattening and expected to decline as a percentage of revenue, supporting future cash flow conversion.
- Genius Sports Ltd (GENI) reported a GAAP net loss of approximately $77 million, impacted by one-time transaction costs and non-cash accounting for acquired intangibles.
- Q2 cash balance of $155 million was below Q1's $197 million, primarily due to $41 million in debt financing costs and other one-time transaction-related impacts.
- The company faces potential risks from decelerating OSB handle growth, as noted by a competitor, though management downplays the impact due to its diversified model.
- The NFL has not greenlit prediction markets, and Genius Sports Ltd (GENI) has not included any potential NFL-related prediction market revenue in its 2026 guidance, limiting near-term upside.
- Integration of Legend is still in early stages, with most of the synergy opportunity ahead, and the company does not break out Legend's financials separately, making it harder to assess performance.
- The company's leverage is expected to be approximately 2x net leverage by year-end, with debt repayment and interest costs reducing cash flow conversion to 50% levered in H2.
Thank you for joining us and welcome to Genius Sports second quarter 2026 earnings results.
After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Genius Sports. Please go ahead.
Good morning and thank you for joining. Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecasts. We assume no responsibility for updating forward-looking statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our annual report on Form 20-F filed with the SEC on March 17, 2026.
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