Grandstand Ltd (NAS:GRSD)

Q2 2026 Grandstand Ltd Earnings Call Transcript

Aug 13, 2026 / 08:30 PM GMT

Release Date Price: $1.91 (+1.06%)

Transcript

Key Points

Positve

Grandstand Ltd (GRSD) reported Q2 2026 revenue of $37.8 million and adjusted EBITDA of $7.7 million, in line with expectations.
Adjusted free cash flow was strong at $9.6 million, with a 81% conversion rate of adjusted EBITDA over the first half of the year.
Sports Data Services revenue grew 12% year-over-year, with B2B (OpticOdds) growing over 50% and now making up the majority of data revenue.
The company launched Rolecard, a new fintech product with a potential $50-$100 million revenue opportunity over five years, leveraging its existing audience and partnerships.
The restructuring is substantially complete, with $13 million in annualized fixed cost savings expected to drive margin expansion in the second half of 2026 and into 2027.
North American marketing revenue grew 63% year-over-year, and non-SEO marketing now accounts for 67% of the marketing business, showing successful diversification.
OpticOdds is gaining traction in AI, being the 11th most invoked connector on Perplexity, with daily API volumes climbing.
The company reiterated its full-year guidance, expecting strong sequential revenue growth in the second half due to seasonality and cost savings.
Grandstand Partners, the partner audience monetization platform, grew over 100% year-over-year.
The company is leveraging AI to improve operational efficiency, reducing management layers and automating repetitive processes.

Negative

Total marketing revenue declined 10% year-over-year to $26.5 million, driven by a drop in SEO revenue.
Adjusted EBITDA margin fell to 20% from 35% in the year-ago period, due to higher cost of sales and a mix shift in marketing revenue.
SEO performance remains weak, with a slight decline from Q1 to Q2 and a larger year-over-year decline, partly due to regulatory headwinds in markets like the UK.
Adjusted net income dropped to $2.5 million from $13.4 million in the prior year, impacted by lower EBITDA, higher interest costs, and unfavorable FX comparisons.
The company incurred $3.2 million in restructuring costs, with $2.1 million still to be settled in Q3.
The launch of Rolecard is expected to have lower margins initially, and the company assumes only a modest contribution to revenue in 2026.
Marketing revenue is expected to be roughly flat in the second half, with a slight decline for the full year, indicating continued challenges in that segment.
The company's total revenue declined 5% year-over-year in Q2, reflecting the ongoing weakness in marketing.
Interest-bearing liabilities remain high at $122.3 million, with additional deferred consideration of $26.5 million.
The company's guidance implies a need for a recovery in SEO to reach the top end of the revenue range, which is uncertain.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

GRSD.OQ - Grandstand Ltd
Q2 2026 Grandstand Ltd Earnings Call
Aug 13, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings and welcome to the Groundstand Limited Second Quarter Earnings Conference Call.

At this time, all participants are in a listen-only mode.

A question-and-answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad.

As a reminder, this conference is being recorded.

I would now like to turn the conference over to Peter McGough, Investor Relations. Please go ahead, sir.

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Unidentified_2 [2]
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