Genius Sports raised its full-year 2026 revenue guidance to between $1.005 billion and $1.025 billion on 6 August, after second-quarter revenue rose 64.7% to $195.5 million, $10.5 million ahead of the $185 million the company had guided to.
It is the second consecutive quarter the sports data and technology supplier has lifted its outlook. The previous full-year range was $990 million to $1.010 billion. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) guidance rose to $285 million to $295 million from $270 million to $280 million, an implied full-year margin of 28.6% against 27.5% under the earlier range.
Adjusted EBITDA for the quarter was $52.6 million, up 54% year on year and above the $45 million guided. The adjusted EBITDA margin was 26.9%, down 190 basis points year on year and 258 basis points above the level implied by the quarterly guidance.
Media revenue almost triples on Legend
Media Technology, Content and Services revenue rose 192.8% to $78.2 million, with Legend consolidated from 1 May. Genius Sports closed the acquisition of the digital sports and gaming media network at the start of May in a transaction valued at up to $1.2 billion.
Betting Technology, Content and Services, the division that supplies data and content to sportsbooks, rose 27.5% to $117.4 million. Genius Sports attributed the increase to price rises at contract renewal and renegotiation, wider value-add services and new service lines. A full-year outturn above $1 billion would place the company among the largest B2B suppliers in the sector by revenue.
Sales and marketing costs rose by $3 million in the quarter against $77 million of additional revenue. Legend brings an owned audience of roughly 180 million users, which Genius Sports says cuts its dependence on third-party traffic.
Net loss widens on transaction costs
Group net loss reached $76.7 million, $22.8 million wider than a year earlier and equal to a loss of $0.28 per share against $0.21 in the same quarter of 2025. Gross profit grew by $54.9 million. Interest expense, acquisition-related items and a less favourable foreign-currency comparison increased the loss below the operating line.
The adjusted EBITDA figure excludes $28.9 million of transaction-related costs, $25.2 million of stock-based compensation and $15.5 million of acquisition-related employee payments, alongside depreciation, amortisation and interest.
Cash stood at $155.1 million at 30 June, down from $280.6 million at the end of 2025. Chief financial officer Bryan Castellani tied part of the decline to one-off costs on the Legend deal, including $41 million in debt financing.
“Q2 is always our seasonal low point for cash,” Castellani said.
Excluding one-time transaction effects, he said, underlying operating cash flow for the quarter would have been close to breakeven.
Advertising platform and prediction markets
Genius Sports added 174 advertisers to its Moment Engine platform during the quarter, including McDonald’s, YouTube TV and DoorDash, and pointed to the World Cup as a source of demand.
After the quarter closed, the company signed agreements with prediction market operators Kalshi and Polymarket. Both face regulatory resistance in parts of Europe: Spain blocked the two platforms in May over licensing.
Third-quarter target implies a step up in margin
Genius Sports guided to about $260 million of third-quarter revenue and $85 million of adjusted EBITDA, a 32.7% margin. It expects more than $100 million of total cash flow in the second half, including about $145 million of unlevered free cash flow, and is targeting a year-end cash balance of around $260 million.
“We continue to realise the benefits of the infrastructure we’ve spent years building,” said founder and chief executive officer Mark Locke.
Shares traded at $8.65 in pre-market dealing on the day of the results, up 3.84%, against a 52-week high of $13.73.
The third-quarter margin target would be the highest Genius Sports has posted this year, and the year-end cash goal requires it to add roughly $105 million to the 30 June balance. Legend has contributed two months of trading so far. The third quarter is the first full period for the combined business, and the first read on whether media and advertising revenue holds outside a World Cup summer.
Source: Genius Sports
