Genius Sports (NYSE:GENI) reported second-quarter revenue of $196 million, up 65% from a year earlier and above its prior outlook, as growth in betting and media was bolstered by the May 1 addition of Legend.
Adjusted EBITDA totaled $53 million, up 54% year over year and ahead of the company’s $45 million guidance. The resulting 27% adjusted EBITDA margin was more than 250 basis points above the margin implied by its outlook, according to Chief Financial Officer Bryan Castellani.
Betting and media growth
Betting revenue grew 28% year over year during the quarter, while media revenue, which includes Legend from May 1, rose 193% as reported. Castellani said both the legacy Genius business and Legend Media produced organic growth of more than 20%.
Locke said Genius serves more than 500 sportsbook brands in regulated markets and generates more than half of its revenue outside the United States. He said the betting business continued to grow despite customer-friendly sporting results that can pressure sportsbook win margins, because Genius’ revenue model relies on contractual guarantees and volumes rather than game outcomes.
The company also cited momentum in media from new brands and agencies, increased spending and demand from prediction-market operators. Locke said Genius added 174 Moment Engine customers in the second quarter, following roughly 70 customer wins since the product’s March launch. New customers included McDonald’s, YouTube TV and DoorDash.
During the World Cup, Genius used its data and GeniusIQ technology to support real-time advertising activations around events including goals, penalties and video-assistant-referee decisions. Locke said one global consumer brand achieved roughly three times greater CPM efficiency than planned and its lowest cost per click of any campaign it ran during the tournament.
The company expects to extend Moment Engine capabilities to NFL-related media activations this season. Locke said the advertising technology is deployed across more than 90% of the platforms used by agencies.
Legend integration and prediction markets
Management said the Legend acquisition is generating synergies faster than initially expected. Legend adds an owned audience of roughly 118 million users, about two-thirds of whom return to the platform, according to Locke. He said operators’ customers acquired through Legend carry about 60% higher lifetime value after their first year.
Group revenue rose $77 million year over year while sales and marketing expense increased by $3 million. Locke said the difference reflects the company’s ownership of its audience rather than a model reliant on continually purchasing third-party traffic.
Genius said it has completed the first phase of audience-data integration, benefiting its Fan Graph product, and has begun using Legend properties as media inventory. The company also said cross-selling across the combined customer base has begun.
Prediction markets were a notable source of activity during the quarter. Genius said it generated meaningful revenue from the category in the second quarter and, after quarter-end, signed direct commercial agreements with Kalshi and Polymarket covering official data and customer acquisition.
Locke said Genius can serve prediction markets through several channels: official data and settlement services, pricing models and market-making services, and customer acquisition through its media platform. He characterized Kalshi and Polymarket as potential large-tier operators for Genius, with deal structures that include fixed minimums and upside.
However, management emphasized that its 2026 guidance does not assume that the NFL will permit prediction markets. Locke said the company does not expect that to occur in the near term or during the current season.
Cash flow, leverage and outlook
Genius ended the quarter with $155 million in cash, above its prior $140 million to $150 million range but down from $197 million at the end of the first quarter. Castellani said the quarterly decline was driven predominantly by $41 million of debt-financing costs associated with the Legend transaction. Excluding certain one-time transaction-related impacts, underlying operating cash flow would have been roughly break-even, he said.
The company reported a GAAP net loss of approximately $77 million. Castellani attributed the result to acquisition-related transaction costs, financing and non-cash accounting for acquired intangible assets.
Genius’ only debt is an $825 million term loan used to fund the Legend acquisition, Castellani said. The company has no revolver drawn or other borrowings. It expects to exit 2026 at approximately two times net leverage.
For the second half, Genius expects approximately $145 million of unlevered free cash flow, representing 70% conversion of about $210 million in adjusted EBITDA. After roughly $30 million of interest and $10 million of debt repayment, management expects 50% levered cash-flow conversion. Castellani said capitalized software costs are flattening in the high-teens to low-$20 million range per quarter.
The company raised its full-year outlook to:
- Revenue: $1.005 billion to $1.025 billion
- Adjusted EBITDA: $285 million to $295 million
- Adjusted EBITDA margin: Approximately 29%
Castellani said the higher outlook reflects continued underlying business momentum, Legend integration, new deals and partnerships, the ramp of GeniusIQ automation and early contributions from prediction-market revenue. Management said it expects the combined business’s earnings power to become more evident in 2027 as it works toward its 2028 targets.
About Genius Sports (NYSE:GENI)
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.
