Genius Sports posts wider Q2 loss but lifts FY guidance after revenue surge

Q2 and H1 results

Genius Sports reported a second-quarter net loss of $76.7m, widening 42.2% year-on-year, even as quarterly revenue jumped 64.7% to $195.5m. The first-half loss reached $132.2m, up 112.7%, while H1 revenue climbed about 46% to roughly $383.5m.

Betting technology, content and services brought in $117.4m in Q2, up 27.5%, and $263.6m in H1, up 30.6%. Media technology, content and services was the faster-growing segment, with Q2 revenue up 192.8% to $78.2m and H1 revenue up 96.6% to $119.9m. Adjusted EBITDA rose 54% to $52.6m in Q2 and 42% to $76.6m in H1.

The cost of the Legend deal

The wider losses stem largely from the $1.2bn acquisition of sports media group Legend, which closed in May. Genius booked $28.9m in non-recurring transaction-related expenses, $13.8m in net interest costs tied to loan financing and an $8m loss from the fair value remeasurement of contingent consideration. Despite this, Q2 gross profit surged 617.7% to $63.8m, with a loss from operations of $55.6m; H1 gross profit rose 142.9% to $107.1m, while the operating loss narrowed 2.4% to $98.7m.

Guidance, prediction markets and outlook

Management raised the full-year adjusted EBITDA forecast to between $285m and $295m, up from the previous $270m-$280m range, and expects group revenue of $1.005bn-$1.025bn. CEO Mark Locke said: 'Prediction markets are opening an entirely new avenue for growth', citing continued demand for official data and audience. Genius recently signed agreements with Polymarket and Kalshi, the two largest prediction market platforms globally; it will supply exclusive live sports streaming, official data and integrity services to Polymarket, while Kalshi will focus on integrity monitoring and information sharing. Integration of Legend and the rollout of the GeniusIQ AI product across European football were flagged as near-term priorities. On the NYSE, shares traded at $8.48 after the previous close of $8.30.