Press Release: Genius Sports Reports 31% Revenue Growth and 21% Adjusted EBITDA Growth; Raises 2026 Guidance, Targeting 28% Adjusted EBITDA Margin Following Legend Acquisition

Dow Jones05-07
   --  Following the close of the Legend acquisition, 2026 Group Revenue and 
      Adjusted EBITDA guidance increased to $990 million to $1.01 billion and 
      $270 to 280 million, respectively 
   --  Full Year 2026 Group Adjusted EBITDA Margin target increased from 23% 
      to 28% 
   --  Group Revenue of $188.0m, representing 31% growth year-over-year 
LONDON & NEW YORK--(BUSINESS WIRE)--May 07, 2026-- 

Genius Sports Limited (NYSE:GENI) ("Genius Sports," "Genius" or the "Group"), the operating system of modern sport, today announced financial results for its fiscal first quarter ended March 31, 2026.

"Our first quarter results underscore the durability and visibility of our business model, with strong revenue growth across both Betting and Media driven by long-term contracts, expanding customer relationships, and delivery of new products across the global sports and betting ecosystem," said Mark Locke, Genius Sports Founder and CEO. "With the acquisition of Legend now complete, we are expanding our platform deeper into fan engagement and participation, creating new opportunities across sports, media and iGaming. The combination strengthens our long-term growth profile, enhances monetization across our ecosystem, and is expected to drive meaningful margin expansion and cash flow over time."

 
$ in thousands             Q126         Q125              % 
----------------------   --------      -------      -------------- 
Group Revenue             187,952      143,991        30.5% 
   Betting Technology, 
    Content & Services    146,213      109,708        33.3% 
   Media Technology, 
    Content & Services     41,739       34,283        21.7% 
Group Net Loss            (55,470)      (8,198)     (576.6%) 
Group Adjusted EBITDA      23,982       19,775        21.3% 
Group Adjusted EBITDA 
 Margin                      12.8%        13.7%        (90  bps) 
 

Q1 2026 Financial Highlights

   --  Group Revenue: Group revenue increased $44.0 million year-over-year to 
      $188.0 million. 
 
          --  Betting Technology, Content & Services: Revenue increased 33% 
             year-over-year to $146.2 million, driven primarily by growth in 
             business with existing customers as a result of price increases on 
             contract renewals and renegotiations, expansion of value-add 
             services, growth and expansion in existing markets, and new 
             service offerings. 
 
          --  Media Technology, Content & Services: Revenue increased 22% 
             year-over-year to $41.7 million, driven by an increase in sales of 
             products built on GeniusIQ technology and the launch of our Moment 
             Engine. 
 
 
 
   --  Group Net Loss: Group net loss was ($55.5 million) in the first quarter 
      ended March 31, 2026, representing a $47.3 million increase compared to 
      the ($8.2 million) loss in the first quarter ended March 31, 2025. This 
      primarily reflects foreign currency movements, stock-based compensation, 
      and one-time Legend transaction expenses. 
 
   --  Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was $24.0 
      million in the quarter, representing a 21% increase compared to the $19.8 
      million reported in the first quarter ended March 31, 2025. Group 
      Adjusted EBITDA Margin of 12.8% reflects the timing of growth investments, 
      with full-year guidance implying meaningful margin expansion in the 
      second half of 2026. 

Q1 2026 Business Highlights

   --  Delivered a record-breaking March Madness in our first year as the 
      NCAA's exclusive official data provider, driving increased in-play 
      betting, strong operator performance, best-in-class uptime, and enhanced 
      betting integrity 
 
   --  Integrated the Moment Engine with partners spanning agencies, 
      broadcasters, SSPs, and demand platforms, including Publicis Sports, 
      DIRECTV Advertising, Equativ, FreeWheel, Index Exchange, Magnite, OpenX, 
      PubMatic, and The Weather Company 
 
   --  Partnered with WPP Media to pioneer holistic sports media advertising 
      intelligence and launch WPP Brand Sports Momentum Score, a new 
      intelligence tool that identifies the right sports, audiences, and 
      moments to invest in to drive year-round engagement and ROI 
 
   --  Announced new partnership with Magnite, embedding official live sports 
      moments into scaled programmatic infrastructure 
 
   --  Entered into a wide-ranging integrity, technology and AI partnership 
      with the Pac-12 to power authorized betting, moment-based advertising, 
      and performance analysis 
 
   --  Launched BetVision for Tennis in partnership with Infront to enhance 
      live betting experiences 
 
   --  Launched exclusive augmented advertising platform with NBC Sports 
      Regional Networks, unlocking real-time AI-powered contextual advertising 
      on NBA broadcasts 
 
   --  After the reporting period: 
 
          --  Announced the close of the acquisition of Legend on May 1, 2026 
 
 
          --  Struck a landmark technology and AI partnership with Liga MX, 
             powering a suite of dynamic advertising, enhanced broadcast, 
             officiating and performance solutions to drive the future of 
             Mexican soccer 
 
 

Financial Outlook

With the acquisition of Legend, Genius Sports expects to generate Group Revenue of $990 million to $1.01 billion and Group Adjusted EBITDA of $270 to $280 million in the full year of 2026. This is raised from prior full year 2026 Group Revenue guidance of $810 to $820 million and Group Adjusted EBITDA guidance of $180 to $190 million. This implies a Group Adjusted EBITDA Margin of approximately 28% at the midpoint, raised from the prior estimate of approximately 23%.

In the fiscal second quarter ending June 30, 2026, Genius Sports also expects to generate Group Revenue and Adjusted EBITDA of approximately $185 million and $45 million, respectively, which includes the combination of the two companies beginning May 1, 2026.

Financial Statements & Reconciliation Tables

 
                        Genius Sports Limited 
           Condensed Consolidated Statements of Operations 
                             (Unaudited) 
        (Amounts in thousands, except share and per share data) 
 
                                     Three Months Ended March 31, 
                                   -------------------------------- 
                                         2026             2025 
                                   ----------------   ------------- 
Revenue                            $        187,952   $     143,991 
Cost of revenue                             144,628         108,789 
                                       ------------    ------------ 
Gross profit                                 43,324          35,202 
                                       ------------    ------------ 
Operating expenses: 
Sales and marketing                          13,669          11,413 
Research and development                     11,402           8,946 
General and administrative                   53,915          34,535 
Transaction expenses                          7,503             732 
                                       ------------    ------------ 
Total operating expenses                     86,489          55,626 
                                       ------------    ------------ 
Loss from operations                        (43,165)        (20,424) 
                                       ------------    ------------ 
Interest (expense) income, net                 (928)            437 
Loss on disposal of assets                      (73)            (12) 
Impairment of equity method 
 investment                                  (1,735)             -- 
(Loss) gain on foreign currency              (9,697)         12,249 
                                       ------------    ------------ 
Total other (expense) income                (12,433)         12,674 
                                       ------------    ------------ 
Loss before income taxes                    (55,598)         (7,750) 
                                       ------------    ------------ 
Income tax benefit (expense)                     85            (542) 
Gain from equity method 
 investment                                      43              94 
                                       ------------    ------------ 
Net loss                           $        (55,470)  $      (8,198) 
                                       ============    ============ 
Loss per share attributable to 
common stockholders: 
  Basic and diluted                $          (0.21)  $       (0.03) 
Weighted average common stock 
outstanding: 
  Basic and diluted                     269,373,708     248,432,320 
 
 
                        Genius Sports Limited 
                Condensed Consolidated Balance Sheets 
        (Amounts in thousands, except share and per share data) 
 
                                       (Unaudited) 
                                        March 31,     December 31, 
                                       -----------   -------------- 
                                          2026            2025 
                                       -----------   -------------- 
ASSETS 
Current assets: 
Cash and cash equivalents              $   197,444   $      280,559 
Accounts receivable, net                   109,896          130,340 
Contract assets                             53,439           57,358 
Prepaid expenses                            64,527           66,150 
Other current assets                        11,927           15,276 
                                        ----------       ---------- 
Total current assets                       437,233          549,683 
                                        ----------       ---------- 
Property and equipment, net                 34,825           32,322 
Intangible assets, net                     143,028          144,203 
Operating lease right-of-use assets         28,090           28,321 
Goodwill                                   338,049          338,049 
Deferred tax asset                           1,696            1,643 
Investments                                 30,943           32,585 
Other assets                                 3,804            3,481 
                                        ----------       ---------- 
Total assets                           $ 1,017,668   $    1,130,287 
                                        ==========       ========== 
LIABILITIES AND SHAREHOLDERS' EQUITY 
Current liabilities: 
Accounts payable                       $    61,250   $      112,246 
Accrued expenses                           112,916          118,017 
Deferred revenue                            74,602           97,098 
Operating lease liabilities, current         5,011            5,024 
Other current liabilities                   20,178           20,498 
                                        ----------       ---------- 
Total current liabilities                  273,957          352,883 
                                        ----------       ---------- 
Deferred tax liability                       6,787            7,186 
Operating lease liabilities, 
 non-current                                25,539           25,471 
Other liabilities                           16,286           20,272 
                                        ----------       ---------- 
Total liabilities                          322,569          405,812 
                                        ----------       ---------- 
Shareholders' equity 
Common stock, $0.01 par value, 
 unlimited shares authorized, 
 261,644,124 shares issued and 
 257,538,176 shares outstanding at 
 March 31, 2026; unlimited shares 
 authorized, 250,412,239 shares 
 issued and 246,306,291 shares 
 outstanding at December 31, 2025            2,616            2,504 
B Shares, $0.0001 par value, 
 22,500,000 shares authorized, 
 10,000,000 shares issued and 
 outstanding at March 31, 2026; 
 22,500,000 shares authorized, 
 10,000,000 shares issued and 
 outstanding at December 31, 2025                1                1 
Additional paid-in capital               2,010,131        1,992,257 
Treasury stock, at cost, 4,105,948 
 shares at March 31, 2026 and 
 December 31, 2025                         (17,653)         (17,653) 
Accumulated deficit                     (1,254,578)      (1,199,108) 
Accumulated other comprehensive loss       (45,418)         (53,526) 
                                        ----------       ---------- 
Total shareholders' equity                 695,099          724,475 
                                        ----------       ---------- 
Total liabilities and shareholders' 
 equity                                $ 1,017,668   $    1,130,287 
                                        ==========       ========== 
 
 
                         Genius Sports Limited 
            Condensed Consolidated Statements of Cash Flows 
                              (Unaudited) 
                         (Amounts in thousands) 
 
                                      Three Months Ended March 31, 
                                   ---------------------------------- 
                                         2026                2025 
                                   ----------------      ------------ 
Cash Flows from operating 
activities: 
  Net loss                         $        (55,470)     $     (8,198) 
Adjustments to reconcile net 
loss to net cash used in 
operating activities: 
  Depreciation and amortization              20,980            16,396 
  Loss on disposal of assets                     73                12 
  Stock-based compensation                   21,258            12,835 
  Non-cash consideration, net               (15,133)               -- 
  Non-cash interest expense, net                938                -- 
  Non-cash lease expense                      1,531               839 
  Amortization of contract costs                339               362 
  Deferred income taxes                        (452)             (174) 
  Provision for expected credit 
   losses                                       747                95 
  Gain from equity method 
   investment                                   (43)              (94) 
  Impairment of equity method 
  investment                                  1,735                -- 
  Loss (gain) on foreign currency 
   remeasurement                              9,338           (12,382) 
Changes in operating assets and 
liabilities 
  Accounts receivable                        21,369             3,802 
  Contract assets                             3,919            (1,015) 
  Prepaid expenses                           16,848            (9,998) 
  Other current assets                        3,081              (642) 
  Other assets                                 (394)           (1,038) 
  Accounts payable                          (50,996)            3,302 
  Accrued expenses                           (8,372)          (12,361) 
  Deferred revenue                          (27,715)          (15,193) 
  Other current liabilities                  (8,653)           (6,549) 
  Operating lease liabilities                (1,341)             (797) 
                                       ------------       ----------- 
Net cash used in operating 
 activities                                 (66,413)          (30,798) 
Cash flows from investing 
activities: 
  Purchases of property and 
   equipment                                 (5,338)           (4,124) 
  Capitalization of internally 
   developed software costs                 (12,275)          (13,349) 
  Distributions from equity 
   method investments                         3,521             2,498 
  Purchases of intangible assets                (84)               -- 
                                       ------------       ----------- 
Net cash used in investing 
 activities                                 (14,176)          (14,975) 
Cash flows from financing 
activities: 
  Proceeds from issuance of 
   common shares, net of equity 
   issuance costs                                --           144,000 
  Repayment of loans and mortgage                --                (5) 
                                       ------------       ----------- 
Net cash provided by financing 
 activities                                      --           143,995 
  Effect of exchange rate changes 
   on cash and cash equivalents              (2,526)            2,201 
                                       ------------       ----------- 
Net (decrease) increase in cash, 
 cash equivalents and restricted 
 cash                                       (83,115)          100,423 
  Cash, cash equivalents and 
   restricted cash at beginning 
   of period                                280,559           135,239 
                                       ------------       ----------- 
  Cash, cash equivalents and 
   restricted cash at end of 
   period                          $        197,444      $    235,662 
                                       ============       =========== 
Supplemental disclosure of cash 
activities: 
  Cash paid during the period for 
   interest                        $          1,216      $        644 
  Cash (received) paid during the 
   period for income taxes         $           (984)     $        919 
Supplemental disclosure of 
noncash investing and financing 
activities: 
  Cash-settled withholding tax on 
   stock--based compensation       $          3,272      $         -- 
 
 
                        Genius Sports Limited 
       Reconciliation of U.S. GAAP Net loss to Adjusted EBITDA 
                             (Unaudited) 
                        (Amounts in thousands) 
 
                                            Three Months Ended 
                                             2026           2025 
                                        --------------   ---------- 
                                          (dollars, in thousands) 
Net loss                                $      (55,470)  $   (8,198) 
Adjusted for: 
   Net, interest expense (income)                  928         (437) 
   Income tax (benefit) expense                    (85)         542 
   Amortization of acquired 
    intangibles (1)                              2,725        2,182 
   Other depreciation and amortization 
    (2)                                         18,594       14,576 
   Stock-based compensation (3)                 30,904       17,312 
   Transaction expenses                          7,503          732 
   Litigation and related costs (4)              6,037        3,368 
   Impairment of equity method 
   investment                                    1,735           -- 
   Loss (gain) on foreign currency               9,697      (12,249) 
   Other (5)                                     1,414        1,947 
                                            ----------    --------- 
Adjusted EBITDA                         $       23,982   $   19,775 
                                            ==========    ========= 
 
 
________________ 
(1)    Includes amortization of intangible assets generated through business 
       acquisitions (inclusive of amortization for marketing products, 
       acquired technology, and historical data rights related to the 
       acquisition of a majority interest in Genius in 2018). 
(2)    Includes depreciation of Genius' property and equipment, amortization 
       of contract costs, and amortization of internally developed software 
       and other intangible assets. Excludes amortization of intangible assets 
       generated through business acquisitions. 
(3)    Includes stock options, equity-settled restricted share units, 
       cash-settled restricted share units and equity-settled 
       performance-based restricted share units granted to employees and 
       directors (including related employer payroll taxes) and 
       equity-classified non-employee awards issued to suppliers. 
(4)    Includes litigation and related costs incurred by Genius relating to 
       discrete and non-routine legal proceedings that are not part of the 
       normal operations of Genius' business. For the three months ended 
       March 31, 2026, legal proceedings included Sportscastr litigation, dMY 
       litigation, and Volleystation litigation (as described in Note 16 -- 
       Commitments and Contingencies). For the three months ended 
       March 31, 2025, legal proceedings included Sportscastr litigation and 
       dMY litigation. All other legal proceedings are expensed as part of our 
       on-going operations and included in general and administrative 
       expenses. 
(5)    Includes severance costs, non-recurring compensation payments, tax 
       penalties, gain/loss on disposal of assets, professional fees for 
       finance transformation project, and expenses incurred related to 
       earn-out payments on historical acquisitions. 
 

Webcast and Conference Call Details

Genius Sports management will host a conference call and webcast today at 8:00AM ET to discuss the Group's first quarter results.

The live conference call and webcast may be accessed on the Genius Sports investor relations website at investors.geniussports.com along with Genius' earnings press release and related materials. A replay of the webcast will be available on the website within 24 hours after the call.

About Genius Sports

Genius Sports is the official data, technology and broadcast partner that powers the global sports, betting and media ecosystem. As the operating system of modern sport, our technology is used in over 150 countries worldwide, creating highly immersive products that enrich fan experiences across the entire sports industry.

We are the trusted partner to over 1,000 organizations across the sports ecosystem, including many of the world's largest leagues, teams, sportsbooks, brands, advertising agencies and broadcasters, such as the NFL, English Premier League, NCAA, DraftKings, FanDuel, bet365, Coca-Cola, EA Sports, Publicis, WPP, CBS, NBC and ESPN.

Genius Sports is uniquely positioned through AI, computer vision and big data to power the future of sports fan experiences. From delivering augmented broadcasts and enhanced highlights, to automated officiating tools, immersive betting solutions and personalized marketing activations, we connect the entire sports value chain from the rights holder all the way through to the fan.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures not presented in accordance with U.S. GAAP.

We present Group adjusted EBITDA, Group adjusted EBITDA margin and Free Cash Flow, non-GAAP performance measures, to supplement our results presented in accordance with U.S. GAAP. Group Adjusted EBITDA is defined as earnings before interest, income tax, depreciation and amortization and other items that are unusual or not related to Genius' revenue-generating operations, including but not limited to stock-based compensation expense (including related employer payroll taxes), litigation and related costs, transaction expenses and gain or loss on foreign currency. Group adjusted EBITDA margin is defined as Group adjusted EBITDA as a percentage of Group Revenue. Free Cash Flow is defined as Group adjusted EBITDA less capitalization of internally developed software costs, purchases of property and equipment, changes in net working capital, and taxes.

Group Adjusted EBITDA, Group Adjusted EBITDA margin and Free Cash Flow are used by management to evaluate Genius' core operating performance on a comparable basis and to make strategic decisions. Genius believes these measures are useful to investors for the same reasons as well as in evaluating Genius' operating performance against competitors, which commonly disclose similar performance measures. However, Genius' calculation of Group Adjusted EBITDA, Group Adjusted EBITDA margin and Free Cash Flow may not be comparable to other similarly titled performance measures of other companies. These measures are not intended to be a substitute for any US GAAP financial measure.

We do not provide a reconciliation of non-GAAP measures on a forward-looking basis because we are unable to forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items are difficult to predict and estimate and are primarily dependent on future events. The impact of these items could be significant to our projections.

Important Cautionary Note About Combined Financial Information and Projections

The projected financial information for the combined company is based on management's estimates, assumptions and projections and has not been prepared in conformance with the applicable requirements of Regulation S-X relating to pro forma financial information, and the required pro forma adjustments have not been applied and are not reflected therein. This information is provided for illustrative purposes only and should not be considered in isolation from, or as a substitute for, the historical financial statements of Genius Sports.

Our independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this press release and, accordingly, have not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this press release. The assumptions and estimates underlying the projected information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projected information. Various factors could cause actual future results to differ materially from those currently estimated by management, including, but not limited to, the risks described below and in Genius' filings with the U.S. Securities and Exchange Commission. Accordingly, there can be no assurance that our actual results will not differ materially from those presented in the projected information. Inclusion of the projected information in this press release should not be regarded as a representation by any person that the results contained in the projected information will be achieved.

Forward-Looking Statements

This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements, including but not limited to statements relating to the results of the combined company, the benefits from the acquisition of Legend (the "Transaction") and our updated financial outlook. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as "expects," "intends," "plans," "believes," "anticipates," "estimates," and variations of such words and similar expressions are intended to identify such forward looking statements. Although we believe that the forward-looking statements contained in this press release are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: the outcome of any legal proceedings related to the Transaction or otherwise, including the risk of shareholder litigation in connection with the Transaction, including resulting expense; the ability of the combined company to successfully manage legal, tax and regulatory risks relating to the Transaction; difficulties and delays in integrating Legend's business into that of Genius' business; failing to fully realize anticipated cost savings and other anticipated benefits of the Transaction when expected or at all; business disruptions from the Transaction that will harm the combined company's business, including current plans and operations; potential adverse reactions or changes to business relationships resulting from the completion of the Transaction; the ability of the combined company to retain and hire key personnel; the diversion of management's attention from ongoing business operations; uncertainty as to the long-term value of the ordinary shares of Genius following the Transaction, including the dilution caused by Genius' issuance of additional shares as earn-out consideration; the continued availability of capital and financing following the Transaction; the effects of global economic, political, market, and social events or other conditions; risks related to our reliance on relationships with sports organizations and the potential loss of such relationships or failure to renew or expand existing relationships; fraud, corruption or negligence related to sports events, or by our employees or contracted statisticians; risks related to changes in domestic and foreign laws and regulations or their interpretation; compliance with applicable data protection and privacy laws; pending litigation and investigations; the failure to protect or enforce our proprietary and intellectual property rights; claims for intellectual property infringement; our reliance on information technology; elevated interest rates and inflationary pressures, including fluctuating foreign currency and exchange rates; risks related to domestic and international political and macroeconomic uncertainty; our share repurchase program; and other factors included under the heading "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2025.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although we believe that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements contained in this press release, or the documents or communications to which we refer readers in this press release, to reflect any change in our expectations with respect to such statements or any change in events, conditions or circumstances upon which any statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507731693/en/

 
    CONTACT:    Media 

Tony Marlow, Chief Marketing Officer

+1 (917) 767-9826

tony.marlow@geniussports.com

Investors

Brandon Bukstel, Investor Relations Manager

+1 (954)-554-7932

brandon.bukstel@geniussports.com

 
 

(END) Dow Jones Newswires

May 07, 2026 07:02 ET (11:02 GMT)

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