Sportradar Group AG (SRAD) Earnings
Sportradar Group AG is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $0.10. SRAD has beaten EPS estimates in 3 of its last 12 reported quarters (average surprise -89.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 3, 2026 | $0.07 | $-0.01 | -114.1% | $431M | -1.0% |
| Apr 28, 2026 | $0.06 | $-0.02 | -133.3% | $400M | -4.2% |
| Mar 3, 2026 | $0.10 | $0.01 | -90.0% | $429M | +17.6% |
| Nov 5, 2025 | $0.10 | $0.08 | -20.0% | $342M | -7.4% |
| Mar 19, 2025 | $0.04 | $-0.00 | -109.4% | $318M | +4.5% |
| Nov 7, 2024 | $0.03 | $0.11 | +279.3% | $280M | -4.5% |
| Aug 13, 2024 | $-0.00 | $-0.00 | -99.6% | $299M | +15.2% |
| May 15, 2024 | $0.05 | $-0.00 | -104.1% | $286M | +6.3% |
| Mar 20, 2024 | $0.04 | $0.08 | +95.1% | $278M | +2.5% |
| Nov 1, 2023 | $0.01 | $0.01 | -1.6% | $212M | -20.9% |
| Mar 15, 2023 | $0.04 | $-0.11 | -375.0% | $222M | -0.9% |
| Nov 16, 2022 | $0.03 | $0.04 | +36.6% | $175M | +4.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 3, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- IMG Arena Integration & Rights Portfolio Progress * On track to exceed the previously communicated 25% revenue synergy target from the IMG Arena acquisition, with strong progress on revenue synergies, key rights expansion, and next-gen product ramp-up * Secured a multi-year exclusive data and audiovisual betting rights extension for Wimbledon, strengthening the premium tennis portfolio that now covers three of four Grand Slams * Completed successful full seasons of partnerships with MLB and NHL, delivering strong results and demonstrating continued customer adoption of Sportradar's betting solutions * Expanded the premium PGA golf service rollout, including live match trackers, live streaming, and advanced in-play betting markets; launched new live match tracker visualization for additional leagues including MLS and UFC - New Growth Initiatives * Prediction Markets: This is a natural high-potential adjacency that expands addressable market by opening new U.S. states, attracting new players, and increasing engagement. Sportradar will power key ecosystem participants including exchanges, market makers, and brokers. Closed two multi-year deals with Calci and Put-In-Market in Q2, with active ongoing conversations and additional deals expected in the coming months. Deals include full-suite offerings: real-time data for settlement, fan engagement tools, customer acquisition services, and integrity services * PlayRadar iGaming: A natural extension of the core business that leverages existing customer overlap between sports betting and iGaming to create seamless crossover experiences that increase player lifetime value. Products include 24/7 combined live sports viewing and iGaming experiences, and gamified historical sports content. Secured regulatory certification across multiple jurisdictions in South America, Europe, and Canada, with plans to expand into additional major European markets and several U.S. states in H2 2026. Built organically using existing internal resources - Operational Efficiency & Capital Allocation * Continued executing cost efficiency initiatives to streamline operations, with AI leveraged to automate workflows, enhance coding and data collection, and accelerate product innovation. Realized annualized cost savings, with adjusted personnel expenses down 4% year-over-year in Q2 despite adding IMG Arena headcount * Accelerated share repurchases under the $1 billion total authorization: repurchased $140 million in Q2 2026, $422 million total as of the call, in response to what management sees as a disconnect between the share price and the company's fundamental value * Strong balance sheet and free cash flow generation: H1 2026 free cash flow was $103 million, up 23% year-over-year, with 73% free cash flow conversion (up from 68% year-over-year). Amended the revolving credit facility to extend maturity to 2031, upsize to $250 million, and reduce borrowing/commitment fees; ended Q2 with $251 million in cash and no outstanding debt
Guidance
- Full-year 2026 constant currency revenue growth guidance was revised downward to 19-21%, translating to $1.518 billion to $1.533 billion in reported revenue at current foreign exchange rates - The downward revision reflects three key factors: delayed timing of prediction market deal closures that pushes some revenue into future periods, ongoing softness in underlying U.S. regulated sports betting market growth, and a failure of advertising market growth to offset the Q1 revenue shortfall, despite advertising returning to expected growth rates in Q2 - Management expects a strong second half of 2026 driven by IMG synergy realization, new prediction market revenue contribution, and global customer renewals, with guidance assuming slight improvement in U.S. market trends in H2 - Prediction market revenue upside is expected to be in the tens of millions of dollars for 2026, with significantly larger contributions in 2027 and 2028 as the segment ramps up - Long-term fundamental business drivers remain unchanged, with management expecting Sportradar to continue outperforming the broader market, delivering margin expansion and strong free cash flow growth in 2027 and beyond - Management reaffirms the long-term growth and margin expansion tenets laid out at the prior Investor Day, with prediction markets adding incremental upside to the original outlook
Segment performance
Total company Q2 2026 revenue was $378 million, a 19% year-over-year increase. 1. Betting Technology and Solutions: Total revenue of $314 million, an increase of 21% year-over-year, accounting for 83.07% of total Q2 revenue. Within this segment: Betting and gaming content revenue grew 27% year-over-year driven by IMG content upselling and strong client demand for streaming, data, odds and engagement products. Managed betting services revenue was flat year-over-year: higher managed trading services revenue from higher turnover (driven by World Cup group stages and NBA playoffs) was offset by lower platform business revenue. 2. Sports Content, Technology and Services: Total revenue of $64 million, an increase of 9% year-over-year, accounting for 16.93% of total Q2 revenue. Growth was driven by increased marketing and media services spending from media/technology clients and affiliate marketing growth from prediction market exchanges and sportsbook customer acquisition campaigns. This growth was partially offset by reduced sports performance revenue due to foreign currency headwinds. Geographically, rest-of-world revenue grew 20% year-over-year, while U.S. revenue grew 16% year-over-year on a reported basis (22% on a constant currency basis, impacted by foreign currency headwinds). Adjusted EBITDA for the quarter was $76 million, up 19% year-over-year, with an adjusted EBITDA margin of 20%.
Risks & headwinds
- Short-term headwinds include ongoing softness in U.S. regulated sports betting growth, and short-term tax and regulatory headwinds in key global markets including the UK (a near-100% iGaming tax increase in April 2026 that pressured client cost structures) and Brazil - Foreign currency volatility creates headwinds for reported results, with unrecognized foreign currency losses on U.S. dollar denominated sports rights contributing to a Q2 2026 net loss - Prediction market growth faces legal and regulatory uncertainty in the U.S., including ongoing state-level legal challenges to the current federal operating framework that could impact client operations and revenue timelines - Long-term fixed sports rights contracts create fixed cost leverage that can lead to margin degradation during periods of shorter-term revenue softness - The iGaming business is in an early growth stage, with full uptake and market penetration still uncertain, requiring time to scale distribution and product-market fit
Analyst Q&A
Q: What drove the full-year guidance revision, and what is the outlook for 2027 fundamentals? /
A: While prediction market deals and advertising market growth have materialized as expected, prediction market deals took longer to complete than initially anticipated, pushing some revenue out of 2026. Advertising returned to expected growth in Q2 but did not make up the Q1 revenue shortfall, and ongoing soft U.S. market growth also contributed to the downward revision. All core business fundamentals, including strong client relationships, high-quality content, and prediction market upside, remain unchanged for 2027, and management expects to continue outperforming the market and delivering margin expansion and free cash flow growth.
Q: Have slowing U.S. sports betting growth and fixed-cost long-term rights deals changed the strategy of signing long-term league rights contracts? /
A: There is no change to the long-term rights strategy. Sportradar maintains a healthy mix of Tier 1 long-term rights and long-tail content, and all Tier 1 rights are margin positive. Existing long-term rights actually enable the company to capitalize on new adjacent growth opportunities like prediction markets, which expand the total addressable market for existing content. All new deals are still required to meet target margin and leverage requirements, and management continues to execute on this strategy disciplined, as demonstrated by recent long-term renewals like Wimbledon.
Q: What is the level of cannibalization of traditional online sports betting (OSB) from prediction markets, and what is the current M&A strategy? /
A: Per client feedback, cannibalization of OSB by prediction markets is very limited. Prediction markets primarily operate in U.S. states where OSB is not yet legal, so they grow the overall market rather than diverting volume from existing OSB. Management is not actively targeting M&A in affiliate marketing, and is only focused on accretive M&A opportunities primarily in the iGaming space. Given the perceived disconnect between the company's fundamental value and current share price, management sees share repurchases as the best use of capital right now.
Q: Could state-level legal challenges impact U.S. prediction market revenue for Sportradar? /
A: Sportradar only provides services to clients in jurisdictions where those clients are legally permitted to operate. Management cannot predict the outcome of ongoing lawsuits or regulatory challenges, but will continue to serve clients as long as they are authorized to operate in their respective jurisdictions.