Genius Sports (NYSE:GENI) Issues Earnings Results

Genius Sports (NYSE:GENI) released its quarterly earnings data on Thursday. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.21), FiscalAI reports. Genius Sports had a negative net margin of 22.99% and a negative return on equity of 23.58%. The firm had revenue of $195.50 million for the quarter, compared to the consensus estimate of $184.43 million. During the same quarter in the prior year, the firm earned ($0.21) EPS. The company’s revenue was up 64.7% compared to the same quarter last year.

Here are the key takeaways from Genius Sports’ conference call:

• Q2 exceeded guidance across key metrics: revenue rose 65% year over year to $196 million, adjusted EBITDA increased 54% to $53 million, and quarter-end cash of $155 million topped expectations.
• Management raised full-year guidance to $1.005–$1.025 billion of revenue and $285–$295 million of adjusted EBITDA, citing operating leverage, GeniusIQ automation, prediction-market growth, and early Legend synergies.
• The Legend acquisition is reportedly generating synergies ahead of schedule, including cross-selling, use of Legend-owned media inventory, and direct agreements with prediction-market platforms Kalshi and Polymarket.
• Genius added 174 Moment Engine advertisers in Q2, including McDonald’s, YouTube TV, and DoorDash, while management expects further expansion through NFL-related activations and increasing demand for live-sports advertising.
• The company ended Q2 with a $77 million GAAP net loss and $825 million of acquisition debt; although management expects approximately $145 million of unlevered free cash flow in the second half, interest and debt repayment will reduce levered cash-flow conversion to about 50%.

Genius Sports Price Performance

Shares of GENI stock traded down $0.20 during trading hours on Friday, reaching $7.62. The company had a trading volume of 9,279,801 shares, compared to its average volume of 7,187,120. Genius Sports has a 12 month low of $3.83 and a 12 month high of $13.73. The business has a fifty day simple moving average of $6.57 and a 200-day simple moving average of $5.97. The company has a market cap of $1.88 billion, a price-to-earnings ratio of -11.21 and a beta of 1.90.

Genius Sports News Summary

Here are the key news stories impacting Genius Sports this week:

• Positive Sentiment: Revenue and outlook beat expectations: Second-quarter revenue rose 64.7% year over year to $195.5 million, exceeding the $184.4 million consensus estimate. Genius Sports also raised its full-year revenue outlook to approximately $1 billion, reinforcing expectations for continued growth. Genius Sports raises revenue guidance after strong Q2
• Positive Sentiment: Expansion into prediction markets: Partnerships with Kalshi and Polymarket will allow Genius Sports to provide official sports data, media capabilities, and integrity services. The deals could open an additional growth channel beyond traditional sportsbook customers. Genius Sports enters prediction markets with Polymarket and Kalshi partnerships
• Positive Sentiment: Media and advertising opportunity: Management is using real-time sports data to help advertisers adjust campaigns during live games, signaling a shift toward higher-value media and advertising services. Genius Sports’ media surge shows shift beyond sportsbook data
• Positive Sentiment: Analyst support strengthened: BTIG raised its price target to $10 from $9 and maintained a “buy” rating, while Oppenheimer increased its target to $12 from $10 and upgraded the stock to “outperform.”
• Neutral Sentiment: Wells Fargo reaffirmed its “equal weight” rating and set an $8 price target, indicating limited near-term upside in its base case.
• Negative Sentiment: Profitability remains a concern: Genius Sports reported a quarterly loss of $0.28 per share, substantially worse than the $0.07 loss analysts expected and wider than the $0.21 loss a year earlier. The company continues to report negative net margins and return on equity. Genius Sports Limited reports Q2 loss and tops revenue estimates

Institutional Investors Weigh In On Genius Sports

Several institutional investors have recently bought and sold shares of GENI. UMB Bank n.a. purchased a new stake in Genius Sports in the 4th quarter valued at $63,000. Osaic Holdings Inc. boosted its holdings in Genius Sports by 72.6% during the 2nd quarter. Osaic Holdings Inc. now owns 10,645 shares of the company’s stock worth $111,000 after acquiring an additional 4,477 shares during the last quarter. Orion Porfolio Solutions LLC purchased a new position in Genius Sports during the 2nd quarter worth $112,000. California State Teachers Retirement System purchased a new position in Genius Sports during the 2nd quarter worth $144,000. Finally, Mackenzie Financial Corp bought a new stake in shares of Genius Sports in the 3rd quarter worth $173,000. Institutional investors own 81.91% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on GENI shares. Freedom Capital upgraded Genius Sports to a “strong-buy” rating in a report on Monday, July 20th. Needham & Company LLC boosted their price target on shares of Genius Sports from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Friday. BTIG Research upped their price objective on shares of Genius Sports from $9.00 to $10.00 and gave the stock a “buy” rating in a report on Thursday. Oppenheimer raised their price objective on shares of Genius Sports from $10.00 to $12.00 and gave the company an “outperform” rating in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Genius Sports in a report on Monday, May 11th. They set a “buy” rating and a $10.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Genius Sports has an average rating of “Moderate Buy” and an average target price of $11.44.

About Genius Sports

Genius Sports is a global sports technology company that specializes in collecting, analyzing and distributing real-time sports data and video streams. The firm provides official data feeds, live video streaming solutions and digital engagement tools to sports leagues, federations, broadcasters and betting operators. By integrating data directly from sporting events through its network of field officials and proprietary technology, Genius Sports ensures accuracy and integrity for partners who rely on up-to-the-second information.

The company’s product suite includes a cloud-based platform for data capture and distribution, an integrity services offering designed to identify and mitigate match-fixing risks, and a suite of commercial products that power odds creation, in-game betting markets and fan engagement experiences.