Sportradar Reports 24% Q3 Revenue Growth, Maintains 2026 Guidance

Sportradar Gr (NASDAQ: SRAD ) reported third-quarter financial results on Tuesday. The transcript from the company's third-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

View the webcast at Summary Sportradar Gr reported a revenue increase of 24% year over year, driven by strong performance in betting and gaming content as well as media services. The company successfully integrated IMG Arena, surpassing their 25% revenue synergy target, and expanded its product portfolio with offerings like premium golf and MMA content. Sportradar Gr is experiencing growth in prediction markets, establishing itself as a leading solution partner with exchanges, market makers, and brokers, and seeing contributions from partnerships with entities like the NBA.

The sale of Atrium Sports for $170 million will strengthen the company's balance sheet, focusing on core growth areas like betting, gaming, and media. Despite regulatory uncertainties in Brazil, the company remains committed to the market, emphasizing the importance of a well-regulated framework. The company maintains its guidance for 2026, expecting constant-currency revenue growth of 19-21% and adjusted EBITDA growth of 24-27%, despite regulatory uncertainties. Sportradar Gr is actively repurchasing shares, reflecting confidence in its business and growth trajectory.

The company is launching Playradar iGaming in Q1 2027, leveraging sports content for immersive gaming experiences, but expects gradual growth in this new venture. Full Transcript OPERATOR After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again.

I will now hand the conference over to Jim Bombasi, Senior Vice President, Investor Relations and Corporate Finance. Please go ahead. Jim Bombasi (Senior Vice President, Investor Relations and Corporate Finance) Thank you, operator. Hello everyone, and thank you for joining us for Sportradar Gr's earnings call for the third quarter of 2026.

Please note that the slides we will reference during this presentation can be accessed via the webcast on our website at investors.sportradar.com and will be posted on our website at the conclusion of this call. A replay of today's call will also be available on our website. After our prepared remarks, we will open up the call to questions from analysts and investors. In the interest of time, please limit yourself to one question and one follow-up.

Please note that some of the information you will hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in our annual report on Form 20-F and Form 6-K filed with the SEC along with the associated earnings release. We assume no obligation to update any forward-looking statements or information.

We speak as of the respective dates. Also, during today's call, we will present IFRS and non-IFRS financial measures and operating metrics. Additional disclosures regarding these measures and metrics, including a reconciliation of IFRS to non-IFRS measures, are included in the earnings release, supplemental slides, and our filings with the SEC, each of which is posted to our investor relations website. We may also discuss certain forward-looking non-IFRS financial measures that cannot be reconciled to the most directly comparable IFRS financial measure without unreasonable efforts.

Joining me today are Carsten Koerl, our CEO, and Craig Felenstein, our CFO. And now I'll turn the call over to Carsten. Carsten Koerl (Chief Executive Officer) Good morning everyone and thank you for joining us. Before I get into the results, I want to touch on how our industry is evolving and what it means for Sportradar Gr.

Sport has never been more valuable nor fragmented in terms of how fans engage and consume it. A fan today might watch a game on a broadcast network or streaming platform, check stats with an AI assistant, place a bet with a sportsbook, or trade a contract with a prediction market. Every one of those experiences depends on a critical element: official, real-time and reliable data, and the technology that turns it into the insights that engage sport fans. As the sports ecosystem expands into new channels and ways to consume sport, competitive intensity is increasing, driving greater demand for what Sportradar Gr provides.

We have seen this dynamic in sports betting for years and we are now seeing it play out in prediction markets. At the same time, our media and technology clients are increasingly looking to us to help them engage fans in new and innovative ways. Sportradar Gr will realize outsized benefits from these trends. Given our unmatched position, which is the result of three things that are very hard to replicate — our scale in official data rights, the breadth of our product suite, and our industry-leading technology and AI capabilities — this quarter is a clear example of that position at work.

With that, I want to highlight a number of key takeaways for the quarter. First, we delivered strong growth on revenue, adjusted EBITDA and free cash flow. Fueled by momentum across our business, IMG Arena continues to meaningfully contribute to our betting gaming business and, one year in, we have successfully integrated and monetized the largest sport rights portfolio acquisition in our space. Second, this is the first quarter we saw the benefits of the extension of our flywheel in prediction markets with exchanges.

While it took some time to strike deals with leading prediction market players, we have now established Sportradar Gr as the leading sports data and technology solution partner for the sports prediction market ecosystem. We continue to expand our exchange relationships and have signed up market makers and brokers, and the NBA recently authorized prediction markets requiring the use of official data. These partnerships are already starting to contribute to our results and we expect that contribution to grow as trading volumes increase and as we add more partners. Third, demand for our official data, visualizations and AI-enabled technology is growing beyond betting.

With an expanding media, technology and iGaming client base, and force, we are sharpening our focus on the business that will drive our growth. Last month we announced the sale of Atrium Sports for $170 million, which represents a premium multiple, and the proceeds will further strengthen our balance sheet and support our capital allocation priorities. Let's cover each of this in more detail. Our third quarter results demonstrate strength across the business.

Total company revenues increased 24% year over year as we benefit from strong performance in betting and gaming content as well as our marketing and media services. We delivered an adjusted EBITDA margin of 28% and generated significant free cash flow. Results benefited from continued strong execution and monetization of IMG Arena rights as well as from our prediction markets. It has now been one year since we acquired IMG Arena, the largest content acquisition in our industry, and our teams have done an excellent job integrating these rights into our flywheel.

As a result, the portfolio is performing ahead of our original revenue synergy target expectation of 25%. The integration has expanded our product portfolio. We added IMG Arena's premium golf and MMA products and made them available across our entire client base. These products combine extensive live streaming and advanced visualizations into a single offering.

We have also used IMG content to expand our next-gen offerings, rolling out play and micro markets for live streaming and virtual live match records. Across the Tennis Grand Slams, we have secured key renewals, including EuroLeague Basketball this quarter, and these rights are creating new opportunities beyond betting, including in iGaming. In terms of underlying market dynamics, in the U.S., market growth improved in the third quarter, while the rest of the world generally saw continued strong growth.

Touching on developments in Brazil for a moment, we've been a long-term partner to some of the leading Brazilian federations and operators, and that commitment hasn't changed. The provisional measure signed in September remains in effect while Congress considers it, and the Supreme Court is reviewing the industry requests for an injunction, with a public hearing set for today. We are following both processes closely and staying in close contact with our partners, clients and stakeholders in the market. Our experience across regulated markets globally is that a well-regulated framework is the best way to protect fans, bettors and sport.

Turning to prediction markets, we see prediction markets as a meaningful expansion of the global sports ecosystem. They are bringing in new participants, new formats and new demand for sports content, and they are doing it alongside regulated sports betting, not replacing it. Just as we did in online sports betting, we are powering every layer of this market: exchanges, market makers and brokers. Polymarket now uses our full suite of prediction market services across 20 leagues, including the NBA, ATP Tour, MLB, NHL and the Bundesliga.

In a matter of months, that relationship has grown from a single sport into an end-to-end partnership. Kalshi is using our solutions across official data, ops, integrity services, fan engagement and customer acquisition. Novig has become our third leading exchange partner, and we recently signed our first broker agreement with Robinhood. We have also signed agreements with a number of market makers who are looking for our real-time data to optimize their performance and trade sport event contracts with greater speed.

The opportunity in prediction markets goes beyond data. The rapid expansion of prediction markets is increasing competitive intensity, and our clients are investing heavily to acquire niche users, and that is driving growth in our marketing and media services. Businesses entering the prediction markets require minimal incremental investment. We are using the same rights, the same technology and the same teams that already power our betting business.

Our agreements are structured so that we participate as volumes grow. We are still in the early innings, and we have an active pipeline across exchanges, brokers and market makers globally. We expect prediction markets to become an increasingly meaningful contributor to our growth going forward. Moving to our media business, we see demand for sports data and our AI-enabled technology solutions continuing to grow beyond betting, driven by an expanding base of media and technology customers seeking to leverage our capabilities.

One of the drivers is AI. As fans increasingly turn to AI assistants and large language models for sports information — from live scores to player stats and game recaps — these platforms need accurate, real-time official data to deliver reliable answers. Sportradar Gr has long-standing relationships with many of the world's largest technology companies, and our data powers sports experiences across a number of the leading AI platforms today. Turning to our Playradar iGaming business, we continue to make great progress leveraging our unparalleled video streaming portfolio and our unique live betting capabilities.

We are creating immersive data and video experiences these players can watch and engage with live sports 24/7 through live betting, casino-style games and community jackpots. This engagement will help extend our player journey for sportsbook. As we get set to launch our 24/7 destination early next year, we continue to build momentum, including having secured additional iGaming regulatory certifications and additional tier 1 clients. We also took steps this past quarter to streamline our operations as we focus on our core betting, gaming and media businesses.

Last month we announced the sale of Atrium Sports, the coaching and scouting business of Synergy Sports, to Teamworks Innovations for US$170 million. This represents an accretive double-digit EBITDA multiple relative to Sportradar Gr's market valuation. The divestiture of this non-core asset streamlines our business as we focus on our key growth priorities. We are retaining key technology assets and capabilities that are already integrated into our business, including automated sports production cameras, automated graphics solutions, certain computer vision capabilities and competition management products.

These will continue to support growth and innovation going forward. The proceeds from this sale will further strengthen our balance sheet and support our capital allocation priorities, as we continue to repurchase shares and take advantage of the volatility in the market as well as the value we see in our shares. In closing, this quarter's outstanding performance was underscored by our position as the critical technology partner powering sports betting, media and now prediction markets.

Our scale in official sports data rights, the breadth of our product suite and our industry-leading technology capabilities make us mission-critical in betting, and we are now able to leverage this position in prediction markets. Entering the space requires minimal investment and produces high incremental margins. We see continued opportunity ahead as we provide increasing value to our sportsbook, media and marketing clients, capitalize on prediction markets and invest in iGaming. This will enable us to deliver robust growth in the months and years ahead.

Thank you. I will now hand the call over to Greg who will discuss our financial results in greater detail. Craig Felenstein (Chief Financial Officer) Thanks, Carsten, and thank you everyone for joining us this morning. Sportradar Gr's strong third quarter results further demonstrate the growing demand for our best-in-class product suite, diversified content portfolio, and cutting-edge technology and services solutions.

This is true for existing customers across our unmatched global distribution network who are taking more and more of our products and services, and also true for new entrants who recognize the value of what we have built and the appeal it will have for their clients and partners. The sports media and betting industries are rapidly evolving, giving fans more ways than ever to engage with and experience the sports they love.

Sportradar Gr is ideally positioned to take advantage of these compelling new growth opportunities by leveraging the robust platform and content portfolio we have already built and through new products and offerings we can quickly develop given our deep experience and advanced technological capabilities. Turning to our third quarter results, Sportradar Gr generated revenues of 363 million, an increase of 70 million, or 24%, compared with the third quarter of 2025. Growth was driven by strong demand across our product portfolio, including continued strong uptake of IMG content and diverse new prediction market opportunities.

The rapid evolution of prediction markets has further expanded our addressable market and once again reinforces the value of Sportradar Gr's premium data content and technology offerings. Turning to our individual product groupings, growth was driven by our betting technology and solutions products, with revenue of 297 million increasing 27% versus the third quarter a year ago.

This growth was due to a 37% increase in betting and gaming content revenues, reflecting strong demand for our streaming and betting engagement products as well as odds and live data products, most notably from additional contributions related to our IMG acquisition and growing demand from prediction markets. We are very much in the early innings of monetizing prediction markets and see significant additional growth opportunities as these markets continue to expand, as we deepen the partnerships we have already established, and as we broaden our reach across all facets of the ecosystem.

Managed betting services revenues declined 3% versus the same quarter a year ago as strong turnover growth at managed trading services was more than offset primarily by lower trading margins due to unfavorable UEFA and European soccer outcomes in late August and early September.

Moving to our other product group, Sports Content, Technology and Services delivered revenues of 66 million, an increase of 11% year on year, driven by growth in marketing and media services as we benefited from increased spend from media and technology customers as well as increased affiliate marketing spending as prediction market exchanges and sportsbook customers ramped up their customer acquisition campaigns. Geographically, our revenue growth in the quarter was broad-based with US revenue up 47% and rest-of-world revenue up 17% year on year.

US revenues expanded to 27% of our revenue mix as we capitalized on the growing demand for our breadth of content and innovative product solutions, including new opportunities across the US prediction market ecosystem. The strong revenue growth across our product portfolio translated into significant adjusted EBITDA growth in the third quarter, with adjusted EBITDA of 102 million, up 21% year on year. We also delivered strong adjusted EBITDA margins of 28.2% during the quarter as we continue to be diligent across our cost infrastructure as revenues expand.