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Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 4:30 p.m. ET Senior VP of Investor Relations and Capital Markets - Peter McGough Co-Founder and Chief Executive Officer - Kevin McCrystle Chief Financial Officer - Elias Mark Operator: Greetings, and welcome to the Grandstand Limited Second Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Peter McGough, Investor Relations. Please go ahead, sir. Peter McGough: Hello, everyone, and welcome to Grandstand's Second Quarter 2026 Results Call. I am Peter McGough, Senior VP of Investor Relations and Capital Markets, and I'm joined by Kevin McCrystle, Co-Founder and Chief Executive Officer; and Elias Mark, Chief Financial Officer. This call is being webcast live through the Investor Relations section of our website at granstand.com/investors, and a downloadable version of this press release is available there as well. A webcast replay will be available on the website after the conclusion of this call. You may also contact Investor Relations support by e-mailing [email protected]. I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided, consists of forward-looking statements as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some important factors that could cause such differences are discussed in the Risk Factors section of Grandstand's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made, and the company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. During the call, there will also be a discussion of non-IFRS financial measures. A description of these non-IFRS financial measures is included in the press release issued this afternoon and reconciliations of these non-IFRS financial measures to their most directly comparable IFRS measures are also in the press release, which is available in the Investors tab of our website. I'll now turn the call over to Kevin. Kevin McCrystle: Good afternoon, everyone, and thank you for joining our 2026 second quarter conference call. We have quite a bit to share with you today, including our second quarter results and outlook for the full year as well as our recent corporate rebranding and the introduction earlier this week of our new roll card product. Elias will follow with a review of the second quarter financial results in detail before we open it up for questions. Looking at our operating performance in the second quarter, revenue of $37.8 million and adjusted EBITDA of $7.7 million were in line with our expectations. We also generated nearly $10 million in adjusted free cash flow, which is a positive indication on the health of our business and our ability to generate attractive levels of cash flow. The restructuring we announced in May is now substantially complete with the bulk of the associated costs incurred in the second quarter. Cost savings from the restructure will benefit margins in the second half of the year, underpinning our full year guidance, which we reiterated today. Looking a little further out, we will exit 2026 with a significantly higher adjusted EBITDA and free cash flow run rate and an expanded margin profile for the business. The second half margin profile will carry forward into 2027. Our business has grown and diversified significantly since our IPO, and our recent rebrand reflects these changes. Grandstand captures where the business is today and importantly, where we will continue to invest and grow. We have established our position as the intelligence layer at the heart of the sports and gaming ecosystem. Our portfolio of data, technology, content and audience solutions help power informed decisions across sports, gaming and entertainment, serving both consumers and partners. Our consumer brands have built trust with each of their unique audiences developed over more than 20 years and will continue to reach millions of users under the Grandstand umbrella. We started as a U.K. gaming comparison hub and over time, added products targeting new global audiences around sports betting, fantasy sports and Las Vegas. Now in addition to recommending the best places for users to play online, we are developing more of our own products to directly service the problems users face in the market, thus deepening the relationship with each user. The data, technology and advertising tools we developed initially for consumer audiences have significant application for partners in the wider sports, gaming and entertainment ecosystem. Today, we have multiple partner solutions across 5 core areas: sports data, which includes real-time off data, line movement, injuries and sports content, namely via optic OS. Advertising with our ad tech and commercial solutions connecting operators to consumers; Partner audience monetization through Grand Sam Partners, a technology and commercial support platform that provides media companies, apps, communities and influencers with the infrastructure to monetize their audiences at scale. Entertainment and ticketing solutions through Spotlight Vegas and now fintech with the recent launch of Roll Card, which I will come back to soon. Clearly laying out our partner solutions helps us discover more B2B opportunities. We will continue to report based on sports data services and marketing. Sports Data Services revenue grew 12% year-over-year in Q2 with B2B continuing to be the accelerating growth driver. Sports Data revenue is on track for growth in the teens this year with significantly higher growth coming from our B2B Opti OS solution. B2B now makes up the majority of revenue for the Sports Data Services business and is pacing to grow well in excess of 50% this year compared to last year. Optic Ops is the intelligence layer, powering informed decisions in sports, processing more than 1 million requests per second. New B2B data deals in Q2 were led by quant and market-making partners who value the speed of our data. 40% of our new deals were international partners, and we continue to see success upselling existing clients. OpticOdds is also rapidly becoming the sports data layer for consumer AI. Perplexity went fully live into production in early July. OpticOdds is the 11th most invoked connector in Perplexity ahead of massive enterprises like Gmail, Google, Drive, Slack, Notion and Snowflake. API daily volume requests are still climbing by the day, all before the natural catalyst of the NFL season. Q2 total marketing revenue was down 10% year-over-year to $26.5 million, driven from declines in SEO revenue, but we saw strong growth in North America and from our partner audience monetization platform, Grandam Partners. Our marketing business has dramatically diversified from a year ago with non-SEO marketing revenue now accounting for 67% of our marketing business. While gross margins for our non-SEO channels are lower, the OpEx requirements tied to these revenues are also much lower than for organic SEO. The restructure heavily targeted fixed costs in the marketing business, which will result in improved margins going forward. As we move into the second half of the year, we see a clear path to returning the marketing business to growth for the 2027 full year. I also want to highlight that even at the lower marketing revenue run rates, our marketing operations continue to generate attractive levels of cash flow. Now we can finally talk about Roll Card, our new fintech solution. It's a purpose-built FDIC-insured high-limit debit card for sports betting, casino and prediction markets. Payments and money movement remain a high friction point in gaming for both consumers and operators. Card has been designed as a high-limit, low-friction debit card built with a betting consumer in mind. The revenue model is based on interchange generated from dollars deposited into sportsbooks, casinos and prediction markets. Gold card customers are in cash back and qualifying deposits. The underlying deposits that drive handle and trading volume are in the tens of billions of dollars, a low single-digit market share for gaming, betting and trading deposits forecast a $50 million to $100 million revenue opportunity in the next 5 years. The majority of handle and trading is concentrated into a smaller cohort of players that actively bet across multiple platforms. Gold card was designed to serve that cohort of players. The value proposition for the cardholder is simple, safe, private, high-limit, low-friction debit card to manage the funding of their betting and trading strategies. The cardholders will be incentivized with cashback program and other premium benefits that we will introduce to enhance cardholder experience and loyalty. card is backed by Grand Sam's sports, gaming and entertainment audience. That existing audience relationship provides Gold card direct reach to high-intent customers from the start. In addition, our existing relationships with prediction markets, online operators and land-based operators will expedite the go-to-market motion. The Well card payments platform is a clear example of Grant Sand developing value-added solutions as a fintech intelligence layer for payments and sports, gaming and entertainment, creating a deeper connection between both consumers and partners. Looking forward, the balance of 2026 is setting up for a typical seasonal pickup as we move into the North American sports season, which will drive revenue growth. We will also benefit in the second half of this year from a restructure related to fixed cost savings, which will drive margin improvement. The restructure wasn't just about resetting our cost structure. It was an intentional shift to layer AI at the core of how we operate and then build teams around it. The AI-enabled restructure has allowed us to reduce management layers and empower more nimble teams. Repetitive processes have been and continue to be automated, while work velocity is increasing. We are continuing to innovate in how we utilize the AI tools available. We are now rolling out Momento, our context layer that sits underneath our tools and gives them the company's memory. The benefit compounds the more we use it by remembering relevant knowledge across the business. We're also moving to multi-agent harness to provide access to the best models while keeping token costs in check. Grandstand is now positioned to sell more of our own product suite directly to our audience, including Rollcard, OSgem, Rotowire and Spotlight in addition to our performance-based advertising. Keeping our audience within our own ecosystem allows us to deepen engagement while increasing revenue opportunities. Enterprise data growth and a diversified marketing business are positioning Grandstand for a return to revenue and adjusted EBITDA growth as we move through 2026 and into 2027. With that, I will turn the call over to Elias for a review of our second quarter financial results and further detail on our guidance for the year. Elias Mark: Thank you, Kevin. Second quarter revenue of $37.8 million and adjusted EBITDA of $7.7 million were in line with expectations. Adjusted free cash flow was $9.6 million. The operating dynamics for the first quarter were carried forward into the second quarter and total revenue was down 5% year-over-year with lower marketing revenue offsetting continued strong growth in data services. Data revenue of $11.2 million grew 12% year-over-year, entirely driven by strong growth in enterprise sales. Data revenue was 30% of total revenue in the quarter, and the majority of data revenue was enterprise revenue. Marketing revenue of $26.5 million declined by 10%. Strong growth in partner audience monetization and in North America, including from prediction markets, was offset by declining revenue from organic search and for markets outside of North America. Adjusted EBITDA in the second quarter was $7.7 million. Adjusted EBITDA margin was 20% and gross margin was 84% in the quarter compared to 35% and 93% in the year ago period. The lower margin reflects the higher cost of sales and marketing expenses associated with the diversified marketing business, partly offset by lower people costs. We have executed on the previously announced restructure plan. As a result, we entered the third quarter with a reduced headcount of approximately 25%, and we'll see $13 million of lower fixed costs on an annualized basis, driving margin expansion moving forward. We incurred $3.2 million of restructuring costs, of which $1.1 million was settled during the first quarter -- for the second quarter and $2.1 million will be settled during the third quarter. Adjusted net income was $2.5 million and adjusted net income per share was $0.05 compared to $13.4 million and $0.37 in the year ago period. The decline reflects the lower adjusted EBITDA and higher interest expense in the quarter and unrealized foreign exchange gains positively affecting the year ago period. Adjusted free cash flow was $9.6 million compared to $8.2 million in the year ago period. Cash conversion in the quarter was unusually high because of working capital timing differences following the first quarter where it was unusually low. Over the first 6 months of the year, 81% of adjusted EBITDA was converted to adjusted free cash flow. Whereas timing differences can affect a single quarter, we expect that our low CapEx business model will continue supporting such cash conversion in the 70% to 80% range, allowing us to both delever and continue investing in product innovation. At the end of the second quarter, we had total cash of $8.8 million and total liquidity of $33.3 million, inclusive of undrawn credit facilities of $24.5 million. During the second quarter, we continued to delever by prepaying $10.4 million of solving deferred consideration, achieving a 10% annualized discount and by repaying $2.8 million on our term loan. This was financed by free cash flow generation and an $8 million drawdown on the credit facility revolver. At the end of the quarter, we had $122.3 million of interest-bearing liabilities and $26.5 million of remaining deferred consideration. Finally, on our guidance. We are reiterating our outlook for the full year to be in the range of $165 million to $170 million and adjusted EBITDA to be in the range of $45 million to $60 million. The implied margin reflects the mix shift in marketing revenue, roll card launch expenses and modest revenue and fixed cost savings from the restructure benefiting the second half of the year. We expect positive seasonality in the second half of the year to drive strong sequential revenue growth. Paired with $6.5 million of fixed cost savings from the restructure, this will drive margin expansion and significantly higher adjusted EBITDA and adjusted free cash flow in the second half of the year. We expect that trajectory to carry forward into 2027 and drive strong year-over-year adjusted EBITDA growth with expanded margins in the low 30s. And with that, we will turn it over for questions. Operator: [Operator Instructions] The first question we have comes from Jeff Statinael of Stifel. Jeffrey Stantial: Why don't we start with the new product launches. That's where we've been getting the most questions since you announced it and including tonight. Kevin, can you just maybe talk to the decision internally to expand sort of a bit further outside what I would call your kind of historical swim lane with payments and maybe how you think about your right to win in the competitive environment in that space? Kevin McCrystle: Yes, sure, Jeff. I mean, first off, payments are the biggest friction in U.S. gaming, and it's a space we've been eyeing since PASPA. We've been doing this in this space for 20 years and have a deep understanding of the issues users and operators face. And as we continue to build out our audience, want to find more ways to provide value to them directly rather than just referring to operators. It's a large space. As I mentioned there, $50 million to $100 million upside, margins in the mid-30s. -- we have the audience that we can sell into, which is really helpful to give us a launch pad for the business. We have partnerships in the ecosystem with operators and everybody else we need to work with. We have all the pieces we need to run this business already as we've been developing our owned and operated audience, our partner audience, our ad tech and various pieces, we can use that to sell into roll card. So we think that's going to give us a great advantage. Jeffrey Stantial: That's great. And then for our follow-up, maybe switching gears over to the guidance. It looks like the midpoint implies about 5% revenue growth in the back half versus flat in Q1 and down 5% in the second quarter. Elias, you called out a few tailwinds in the prepared remarks, but maybe can you just rank order for us some of the growth drivers as you see it that bridge you back into the mid-single-digit range? And I think I caught this, but is it fair to assume sort of growth improve sequentially through Q3 into Q4 and continue into 2027? Elias Mark: Yes. As we enter the third and in particular, the fourth quarter, we have some seasonality coming into play that will help us reverse the trend in our marketing business where we've seen a decline. We think the marketing business over the second half of the year will be roughly flat, and we see the data business continue growing in the teens. So that's kind of the components on the revenue side. Jeffrey Stantial: And just to be clear, did anything change with your assumptions on Roll card in the back half and for the revenue guidance? Elias Mark: No, Roll card was included in our original guidance. We do assume a modest start to the ramp of this year. It's a bit of trial and error in the beginning. So it does include a small contribution for Grandstand, but that was baked into our guidance and nothing has changed since launch a couple of days ago. Operator: The next question we have comes from Barry Jonas of Truist Securities. Barry Jonas: I wanted to dig further into roll card. Kevin, is there a way to help think about the long-term market opportunity for the card and I guess, the payment platform in general as a whole? Kevin McCrystle: Yes. So the primary way we make money is on interchange on deposits into operators. And that is a very large market of deposits into operators. So taking a reasonably small, say, 1% to 2% interchange fee on that and taking a reasonably small market share is alone a pretty big opportunity there. We are not going to scale this immediately into that $50 million, $100 million, that's going to take years to do. But we think on a 5-year time line, it could get quite large. Expect something like 80% to 85% gross margins prior to marketing on that business. There are additional ways we can monetize besides interchange, but that's kind of more medium term. Right now, we're focused on that piece of the business. Barry Jonas: Great. And then I just wanted to dig in a little into Oddsjam. I think we've seen a proliferation of competitive tools, potentially AI-driven. Maybe just talk about how you plan to keep Oddsjam's current positioning and where you sort of sit in terms of the product development and how you'll sort of compete with up-and-coming competitors. Kevin McCrystle: Yes. There are certainly plenty of start-ups, whipping up kind of worst versions of Odds jam with AI and pricing it lower. We are still competitive with that. We're building new core features to increase more of a moat for start-ups. The most important thing we've been focused on this year is rebuilding our social distribution engine since the end of the earn-out. And I think we're in a much better place now for NFL and expect that to stabilize. But an important piece of Oddsjam, and I think it's the same for Rotowire is to understand how we report. We report by revenue type, not by brand. And so there's a lot of additional value coming from Rotowire and Oddsjam. We're seeing very strong growth in North American marketing and decent piece of that is supported by RotoWire and Oddsjam, which goes under the marketing revenue. Additionally, Oddsjam is a key support driver for roll cards. So there's multiple ways for us to win with Oddsjam, not only with the data, which also flows into optic odds, but there's a marketing opportunity on top of that, the roll card support, and we are -- I don't want to get into the features themselves, but developing a much deeper feature set, which would be very challenging for new products to compete with. Operator: The next question we have comes from David Bain of B. Riley Securities. David Bain: And we're with Texas Capital, but that's fine. It's been helpful. But maybe first, could you take a step back and share longer-term margin expectations for the marketing business and the levers within that number, including maybe some bifurcation of SEO versus non-SEO? So any kind of detail would be helpful. Kevin McCrystle: Yes. I think it's helpful to start in H2. We expect from Q2 through to the rest of H2 to roughly double the contribution from the marketing business. A significant portion of our restructure was tied to fixed costs related to the marketing and SEO business, which will help the margins of that business. into the end of the year and then a run rate going into next year. So the margins will expand this year. We don't have a year or 2 for that to happen. Elias Mark: If we look at the mix shift within the marketing business, about 2/3 of the business at run rate is from sources other than of the business is very diversified as it is. And the expectation is to have contribution margins moving forward in the 40s from the business, which compares to contribution margins on the data side in the mid-60s. Just on the EBITDA side, if we look at blended EBITDA margins in totality, we're guiding towards low 30s for the second half of the year, and that's where we see the business performing coming into 2027 as well. The data side of the business will continue to scale in '27 with very high incremental margins. The marketing business, we expect to have a very modest growth but positive growth in '27, and that should have a neutral margin effect. And the balance there is roll card, which will have much lower margins in the scaling. David Bain: Awesome. Very helpful. And then could you provide a Google SEO action update, if there is one, just specifically related to the offshore Sam in the international markets and just other overall negatives that's been taking place for the SEO, maybe action from their end or yours as well, any outcomes or visible upcoming relief from that standpoint? Kevin McCrystle: Yes. SPA is getting better. Google has seemingly done a better job of dealing with that. That said, the overall SEO positioning is roughly unchanged. There's a slight decline from Q1 to Q2. That's just normal seasonal trends. Obviously, a larger decline year-over-year. The regulatory environment in a handful of the countries where we have predominantly SEO-focused businesses have not been helpful. U.K. is an example of that, where we're seeing CPAs down about 15%. But we are seeing some positives there. In the North American business, the marketing is up pretty substantially, and that is -- also includes SEO. So it's not down everywhere. That's for sure. But in terms of the future, SEO is certainly not going away. We are really focused on diversifying away from SEO. So we're less impacted by whatever the future of Google is. This includes many channels, but ultimately building direct user relationships that allow us to sell subscriptions, fintech, tickets, et cetera, to those audiences and also cross-sell into affiliate platforms. I mentioned I mentioned the subscription business that we have revenue associated with those as well. Rotowire, in particular, has been doing very well with SEO. And that goes into the marketing business, but it's from Rotowire. Operator: The next question we have comes from David Katz of Jefferies. David Katz: I think I wanted to keep going down that same vein, Kevin, maybe just left off and talk about the non-SEO sort of portion of the business and the marketing piece of the business. You said doing very well. Can you maybe take us just a little bit further and give us a long-term aspirational any qualitative sizing or sense of where you think that can go since it seems to still be growing pretty well. Kevin McCrystle: Yes. As we referenced, the non-SEO is now about 2/3 of the marketing business. It's the same channels we've talked about before, some mix of CRM, paid and social, but Grand Sam Partners is also a big piece of this. That's our partner audience monetization platform, which provides technology, commercial tools and whatnot to external media companies and help them monetize their audience at scale. That's up over 100% year-over-year and is roughly the same proportion of SEO to non-SEO as our overall marketing business. We're also doing more advertising deals. So I think brand exposure rather than just performance deals. We are diversifying globally, but a lot of that impact we're seeing now is in North America. And with that, the North American business is -- North American marketing business is going strong. North American marketing is up 63% year-over-year and marketing is about 57% of our total North American business. And this is partly brands and partners, which I mentioned. Prediction markets are starting to ramp acquisitions. So we have a new partner in the market to work with. And in the U.S., it's -- a lot of it's sports. So World Cup was helpful in Q2, but that was roughly as expected. We will see some larger NDCs at a slightly lower value per NDC with that, but rev share will also pick up long term with that. SEO is still holding up there in North America. But there's a very significant run rate for the marketing business. Everybody asks us when is sports data going to be larger than marketing. And the answer is probably not for a little while. On a contribution basis in a few years, that seems possible or likely. But until revenue, the marketing business is going to keep growing. We've talked for a long time about diversifying, but we have a diversified marketing business now with 2/3 of it being non-SEO. It can grow very substantially from where it's at today. David Katz: Understood. Appreciate all of that. With respect to prediction markets, it's obviously almost impossible to have a call and not spend some reasonable amount of time on that. Can you just help us think about the size level and the proportion that, that can bring, given how quickly that's growing and what your avenues of engagement are there? Kevin McCrystle: Yes. We've historically primarily talked about prediction market in terms of our data business, and that is still going strong. As I mentioned earlier, a lot of these market makers and quant funds are now entering the space and utilizing our data. We are, though, doing more on the marketing side than we were previously. It's really useful to have another player in the market that needs traffic and users, and we're happy to supply that. Brand is not cannibalized by these prediction markets. It's really the opposite. They're providing an additional participant in the market looking for users. And it seems like it's going to push the rest of the market to be a little more aggressive in the NFL season in terms of acquisition. So we think it will be helpful all around. Hard to say right now in terms of the size of the prediction market as I think when we talk Q3, we'll have a better frame on that. This is the first NFL season with a full push there. Operator: [Operator Instructions] The next question we have comes from Chad Beynon of Macquarie. Chad Beynon: Just with respect to the guide and holding that in relation to the in-line second quarter, I think you've said marketing should be roughly flat for the year. Sports up in the teens. But can you kind of help us think about what would get you to the low or high end, particularly of that revenue guide given that we have about 5 months left in the year? Elias Mark: Yes. So to clarify, we expect the marketing business to be roughly flat in H2 as it was down in H1, it will be marginally down for the full year. If we look at the range of guidance, what would really push us towards the top of the range would be a recovery in SEO that would go through very quickly. The data side of our business is a little bit easier to forecast and it would have less of volatility in expectations. Kevin McCrystle: The primary growth drivers right now are the sports data, B2B, the enterprise sales and North American marketing. So those are the 2 pieces. They're both growing at a pretty good pace right now. So if they grow a little bit faster, that's what would get us to the top of the range. Chad Beynon: Great. And then on North America, maybe a 2-parter here. There has been another player that's kind of climbing the ranks in terms of market share, some slight shifts there on the podium. So wondering how your diversification looks amongst customers? And then secondly, with respect to Alberta, any comments in terms of if it's been a successful customer acquisition period up there? Kevin McCrystle: I'll take your Alberta question first. That launched in Q3, so not in these Q2 figures. It has been a reasonably successful launch. I think our market share is about what it normally is in these things. It is not the biggest province and it's not a really spiky launch. It's going to be a flatter, more prolonged launch, but we are doing reasonably well in Alberta. So I feel good about that. In terms of your first question, I guess you're a little vague in terms of the new market participant. What are you referring to exactly? Chad Beynon: Just with respect to Fanatics recent move in iGaming share. Kevin McCrystle: In iGaming, Yes. Look, iGaming for us is pretty stable. Chad Beynon: For sports betting, actually for both, actually, it's probably better to phrase it that way. Kevin McCrystle: Yes. As I mentioned earlier, I think having additional players beyond the traditional OSB partners in the market is pushing everybody to be more aggressive in terms of their acquisition, and we benefit from that. We are working closely with them with Fanatics, and I expect that to go well. In terms of the iGaming side, that's pretty consistent, not too much moving sharply there in terms of sports betting. I think we're lined up nicely for the fall with our North American marketing business being the key driver within our marketing business, that is primarily sports-based or very heavily sports based. And so we do see more seasonal trends on the U.S. calendar rather than the historical -- when we were more international casino, it was a slightly different trend line there. So we expect a strong September moving to NFL. Operator: The next question we have comes from Mike Hickey of StoneX. Michael Hickey: Maybe just the first one, Kevin, on your data business continues to be a real window of strength here for you guys. Can you talk about your product pipeline for the sports data business and what new products or capabilities you're most excited about? Kevin McCrystle: Yes. Excited about all of the sports data B2B, to be frank. But we -- as noted, with the creation markets, the market makers, there's a new buyer of data. International is still going strong. A year ago, that was 0 of the business, and now it's 40% of new sales. And we're increasingly upselling a lot of existing clients as we slowly build out new feature set within Opti. We did talk in Q1 about non-sports data entering. That went live pretty recently. So we'll need to take a couple of months to kind of see what comes there. But we plan to continue building more products on top of Optiq to power more of what operators need from us. We started as this kind of trading risk management and can move on to power more of the -- what they need to power their entire sports book. Michael Hickey: You guys, it's nice to see you hit consensus numbers this quarter. Obviously, it's -- you've gone through a challenging environment to give guidance and you've restructured your business. It looks like SEO is stable somewhat here, that is growing nicely. Do you feel like, Elias, you've sort of reached a point now where your business is stable enough that you have greater confidence in your forward guidance or your ability to forecast growth? Elias Mark: Yes. Our internal feeling is that we have [Audio Gap] stable place. I don't know that's going to be a primary growth driver for us going forward. I think it will be a nice business. The U.K. is still a market that there's a lot of operators. So if you look at the total market size, the offshore is eating into it. There's a handful of operators that are exiting the market, but there's still a lot of operators that all have an appetite for traffic that we can help offer them. So I think it's going to be a nice cash cow business for a long time, but probably not a primary growth driver. I say the same for international in general, whereas a lot of these other international markets are more SEO dependent than we are in North America. And again, that's something that we are evolving as well, but we're ahead of pace in North America with the diversification. Operator: At this stage, there are no further questions on the conference. I will now hand back to Kevin McCrystal for closing comments. Please go ahead, sir. Kevin McCrystle: Thanks, everybody. Obviously, it's not too long ago, I took over as CEO, setting in nicely, moving one step at a time. The initial priority was the restructure and related team changes. Next, we wanted to reset the corporate identity, which we've done, finally are able to launch roll card. We're extremely focused on granular execution across all projects and tightly managing our cash flow. We feel really good about where the business is now. Things have stabilized. There's a lot of growth prospects on the horizon. So thank you very much, and look forward to chatting next time. Thank you. Operator: Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. 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This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Grandstand Ltd (NASDAQ:GRSD) reported Q2 2026 revenue of $37.8 million and adjusted EBITDA of $7.7 million, in line with expectations. Adjusted free cash flow was strong at $9.6 million, with a 81% conversion rate of adjusted EBITDA over the first half of the year. Sports Data Services revenue grew 12% year-over-year, with B2B (OpticOdds) growing over 50% and now making up the majority of data revenue. The company launched Rolecard, a new fintech product with a potential $50-$100 million revenue opportunity over five years, leveraging its existing audience and partnerships. The restructuring is substantially complete, with $13 million in annualized fixed cost savings expected to drive margin expansion in the second half of 2026 and into 2027. North American marketing revenue grew 63% year-over-year, and non-SEO marketing now accounts for 67% of the marketing business, showing successful diversification. OpticOdds is gaining traction in AI, being the 11th most invoked connector on Perplexity, with daily API volumes climbing. The company reiterated its full-year guidance, expecting strong sequential revenue growth in the second half due to seasonality and cost savings. Grandstand Partners, the partner audience monetization platform, grew over 100% year-over-year. The company is leveraging AI to improve operational efficiency, reducing management layers and automating repetitive processes. Total marketing revenue declined 10% year-over-year to $26.5 million, driven by a drop in SEO revenue. Adjusted EBITDA margin fell to 20% from 35% in the year-ago period, due to higher cost of sales and a mix shift in marketing revenue. SEO performance remains weak, with a slight decline from Q1 to Q2 and a larger year-over-year decline, partly due to regulatory headwinds in markets like the UK. Adjusted net income dropped to $2.5 million from $13.4 million in the prior year, impacted by lower EBITDA, higher interest costs, and unfavorable FX comparisons. The company incurred $3.2 million in restructuring costs, with $2.1 million still to be settled in Q3. The launch of Rolecard is expected to have lower margins initially, and the company assumes only a modest contribution to revenue in 2026. Marketing revenue is expected to be roughly flat in the second half, with a slight decline for the full year, indicating continued challenges in that segment. The company's total revenue declined 5% year-over-year in Q2, reflecting the ongoing weakness in marketing. Interest-bearing liabilities remain high at $122.3 million, with additional deferred consideration of $26.5 million. The company's guidance implies a need for a recovery in SEO to reach the top end of the revenue range, which is uncertain. Warning! GuruFocus has detected 5 Warning Signs with GRSD. Is GRSD fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk about the decision to expand into payments with the new RollCard product and how you think about your right to win in that competitive environment? A: Kevin McChrystal, Co-Founder and CEO: Payments are the biggest friction in US gaming, a space we've been eyeing since PASPA. With 20 years of experience, we have a deep understanding of user and operator issues. The market opportunity is $50 million to $100 million with mid-30s margins. We have the audience to sell into, partnerships with operators, and all the pieces needed to run the business, giving us a great advantage. Q: Can you help us think about the long-term market opportunity for RollCard and the payment platform as a whole? A: Kevin McChrystal, Co-Founder and CEO: The primary revenue model is interchange on deposits into operators. Taking a small 1% to 2% interchange fee with a modest market share represents a large opportunity. We won't scale immediately to the $50-$100 million target; it will take years. We expect 80% to 85% gross margins prior to marketing. Additional monetization avenues exist but are more medium-term. Q: What are the longer-term margin expectations for the marketing business and the levers within that number, including the bifurcation of SEO versus non-SEO? A: Kevin McChrystal, Co-Founder and CEO: We expect to roughly double the contribution from the marketing business from Q2 through the rest of H2. The restructure targeted fixed costs in marketing and SEO, which will expand margins into year-end and into next year. Elias Mark, CFO, added that about two-thirds of the marketing business is now non-SEO, with expected contribution margins in the 40s, compared to mid-60s on the data side. Q: Can you provide an update on Google SEO actions related to offshore spam and other negatives, and any visible upcoming relief? A: Kevin McChrystal, Co-Founder and CEO: Spam is getting better as Google has done a better job dealing with it, but overall SEO positioning is roughly unchanged with a slight seasonal decline from Q1 to Q2. The regulatory environment in some countries, like the UK where CPA is down 15%, hasn't helped. However, North American marketing is up substantially, including SEO. We are focused on diversifying away from SEO to reduce dependence on Google, building direct user relationships for subscriptions, fintech, and tickets. Q: Can you talk about the non-SEO portion of the marketing business and give us a sense of where you think it can go long-term? A: Kevin McChrystal, Co-Founder and CEO: Non-SEO is now about two-thirds of the marketing business, including CRM, paid, social, and Grandstand Partners, which is up over 100% year-over-year. North American marketing is up 63% year-over-year and represents 57% of our total North American business. We're also doing more brand advertising deals. The marketing business can grow very substantially from where it is today, and on a contribution basis, it's possible it could be larger than sports data in a few years. Q: Can you help us think about the size and proportion that prediction markets can bring given how quickly they're growing? A: Kevin McChrystal, Co-Founder and CEO: Prediction markets are going strong on the data side, with market makers and quant funds entering the space. We're doing more on the marketing side as they need traffic and users. Grandstand is not cannibalized by prediction markets; they provide an additional participant looking for users and push the rest of the market to be more aggressive in acquisition. We'll have a better frame on the size when we discuss Q3, as this is the first NFL season with a full push. Q: With respect to the guidance, what would get you to the low or high end of the revenue range given the inline second quarter? A: Elias Mark, CFO: We expect marketing to be roughly flat in H2 and marginally down for the full year. A recovery in SEO would push us towards the top of the range. Kevin McChrystal added that the primary growth drivers are sports data B2B enterprise sales and North American marketing; if those grow a bit faster, that would get us to the top of the range. Q: How does your diversification look amongst customers given shifts in market share, and has Alberta been a successful customer acquisition period? A: Kevin McChrystal, Co-Founder and CEO: Alberta launched in Q3 and has been reasonably successful with market share about normal. It's a flatter, more prolonged launch. Regarding Fanatics' recent move in iGaming and sports betting share, having additional players beyond traditional OSB partners pushes everyone to be more aggressive in acquisition, which benefits us. We're working closely with Fanatics and expect that to go well. iGaming is pretty consistent, and we're lined up nicely for the fall with North American marketing as the key driver. Q: Can you talk about the product pipeline for the sports data business and what new products or capabilities you're most excited about? A: Kevin McChrystal, Co-Founder and CEO: We're excited about all of sports data B2B. With prediction markets and market makers, there's a new buyer of data. International is now 40% of new sales, up from zero a year ago. We're upselling existing clients with new features within OpticOdds. Non-sports data went live recently, and we plan to continue building more products on top of OpticOdds to power more of what operators need, potentially the entire sportsbook. Q: Do you feel you've reached a point where your business is stable enough that you have greater confidence in your forward guidance or ability to forecast growth? A: Elias Mark, CFO: Our internal feeling is that we have reached a point of stability. The restructuring is substantially complete, and we have clear visibility into the cost savings and the growth drivers in the data and North American marketing businesses. This gives us greater confidence in our ability to execute on the guidance for the second half and into 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management completed a significant corporate rebranding to Grandstand, positioning the company as the 'intelligence layer' across sports, gaming, and entertainment rather than just a comparison hub. The Sports Data Services segment is shifting toward a B2B-heavy model, with enterprise revenue now comprising the majority of the segment and pacing for over 50% year-over-year growth. Marketing revenue declines were primarily driven by organic SEO headwinds and regulatory challenges in international markets like the U.K., where affiliate commission payouts (CPAs) in the U.K. declined by approximately 15%. A major operational restructure reduced headcount by 25% and flattened management layers, intentionally shifting the company toward an AI-core operating model to increase work velocity. The business has successfully diversified its marketing mix, with non-SEO channels now accounting for 67% of marketing revenue, reducing dependency on Google search algorithms. Management highlighted OpticOdds' integration as a top-tier connector for consumer AI platforms like Perplexity, signaling a new growth vector in the AI data ecosystem. Full-year guidance assumes a typical seasonal pickup in North American sports, which management expects will return the marketing business to roughly flat performance in the second half. The completed restructure is expected to deliver $13 million in annualized fixed cost savings, with $6.5 million benefiting the second half of 2026 to drive margin expansion. Management targets a return to total revenue and adjusted EBITDA growth in 2027, with blended EBITDA margins expected to reach the low 30s. The newly launched Roll Card fintech product is projected as a $50 million to $100 million revenue opportunity over a five-year horizon, leveraging interchange fees from gaming deposits. Cash conversion is expected to remain in the 70% to 80% range, supporting a dual strategy of deleveraging and reinvesting in product innovation. Incurred $3.2 million in restructuring costs during the quarter, with the bulk of the operational changes now substantially complete. Achieved a 10% annualized discount by prepaying $10.4 million of deferred consideration related to the The company prepaid $10.4 million of deferred consideration, achieving a 10% annualized discount.. The company utilized $8 million from its credit facility to manage working capital and debt repayment, ending the quarter with $33.3 million in total liquidity. Management flagged the emergence of prediction markets as a new catalyst for both data sales and marketing acquisition, particularly heading into the NFL season. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Kevin McCrystle explained that payments are the 'biggest friction' in U.S. gaming and the card targets high-intent users already within Grandstand's audience ecosystem. The revenue model focuses on 1% to 2% interchange fees on deposits, with expected gross margins in the 80% to 85% range prior to marketing costs. Elias Mark clarified that while non-SEO channels have higher cost-of-sales, they require significantly lower OpEx than organic SEO. Management expects marketing contribution margins in the 40s, compared to mid-60s for the data business, resulting in a blended EBITDA margin in the low 30s for 2027. Management is building a 'deeper feature set' to create a moat against low-cost AI competitors and has rebuilt its social distribution engine following the end of an earn-out period. Oddsjam now serves as a critical support driver for the new Roll Card product and feeds data into the B2B OpticOdds platform. The entry of new players is viewed as a positive catalyst that forces existing operators to be more aggressive in customer acquisition, benefiting Grandstand's marketing business. Prediction markets are providing a new cohort of buyers for high-speed data, specifically market makers and quant funds.

2026 Second Quarter and Recent Highlights Revenue of $37.8 million in line with expectations Net loss of $4.6 million and Adjusted net income of $2.5 million Adjusted EBITDA of $7.7 million in line with expectations Operating cash flow of $1.8 million inclusive of $7.6 million in Odds Holdings deferred consideration payments Adjusted free cash flow of $9.6 million May 2026 restructuring supports expanded margins in second half of the year 2026 full year guidance: Revenue of $165 to $170 million and Adjusted EBITDA of $45 to $50 million Rebrand to Grandstand Launch of Rollcard marks consumer Fintech entry CHARLOTTE, N.C., August 13, 2026--(BUSINESS WIRE)--Grandstand Limited (Nasdaq: GRSD) (formerly known as Gambling.com Group Limited) (the "Company"), the intelligence layer powering informed decisions for consumers and partners across sports, gaming and entertainment, today reported financial results for the second quarter ended June 30, 2026. The Company also reiterated its 2026 full-year guidance. Kevin McCrystle, Chief Executive Officer and Co-Founder of Grandstand Limited, commented, "Second quarter revenue of $37.8 million and Adjusted EBITDA of $7.7 million were in line with our expectations. Sports data services revenue rose 12% year-over-year, with our B2B OpticOdds solution growing at a significantly higher rate. Enterprise revenue accounted for a majority of sports data revenue in the second quarter and will continue to be a primary driver of top-line growth for our business. Within our marketing business, non-SEO revenue accounts for two-thirds of revenue, and this diversification gives us increasing visibility for a return to full-year marketing revenue growth next year. Importantly, we generated nearly $10 million in Adjusted free cash flow in the second quarter illustrating the health of our business. "Our business is significantly more diversified than at any other time in our 20-year history and Grandstand today is established as the intelligence layer at the heart of the sports and gaming ecosystem. This is exemplified by the recent launch of Rollcard, which provides us with another product to directly engage with consumers, further deepening our relationship with our audience. Our AI transformation, consistent strong enterprise data growth, audience engagement initiatives, and diversified marketing business position Grandstand to return to top-line growth and increase cash flow in the second half of 2026 and into next year." Elias Mark, Chief Financial Officer of Grandstand Limited, added, "Our operating results in the second half of 2026 will benefit from fixed cost savings related to the restructuring announced in May and the seasonally stronger sports calendar. As a result, and as reflected in our reiterated full-year guidance, we expect to drive quarterly sequential revenue growth and significantly improved Adjusted EBITDA with expanded margins in the second half of the year. We expect the higher Adjusted EBITDA and free cash flow in the second half of the year will carry forward into 2027." Three Months Ended June 30, 2026 Results Compared to Three Months Ended June 30, 2025 Revenue of $37.8 million decreased by 5% year-over-year as growth in data revenue was offset by lower marketing revenue. Revenue from data services grew 12% year-over-year to $11.2 million, driven by strong growth in enterprise data services, which represented a majority of data revenue. Revenue from marketing services decreased 10% year-over-year to $26.5 million, as lower revenue from organic search channels was partially offset by strong revenue growth from partner and paid channels. Total recurring revenue, including subscription revenue and revenue share arrangements was approximately 50% of total revenue. Gross profit decreased 14% year-over-year to $31.8 million. Cost of sales increased 119% year-over-year to $5.9 million, primarily reflecting costs associated with the Company’s strategy to diversify traffic sources in the marketing business. Operating expenses of $29.8 million excluding restructuring costs of $3.2 million, in the current period, were in line with the prior year-period when excluding fair value movements, as lower people costs were offset by higher external marketing and technology expenses. Net loss attributable to shareholders was $4.6 million, or $0.13 per share, compared to net loss attributable to shareholders of $13.4 million, or $0.38 per share, in the year-ago period. Adjusted net income was $2.5 million, or $0.05 per share, compared to adjusted net income of $13.4 million, or $0.37 per share, in the year-ago period reflecting lower Adjusted EBITDA and higher interest expenses in the current period and the benefit of $4.4 million in finance income related to foreign exchange movements in the year-ago period. Adjusted EBITDA was $7.7 million and Adjusted EBITDA margin was 20% compared to Adjusted EBITDA of $13.7 million and an Adjusted EBITDA margin of 35% in the prior-year period. The Adjusted EBITDA margin for the second quarter of 2026 reflects the impact of higher cost of sales and marketing expenses related to traffic diversification strategies. Cash flow from operations was $1.8 million compared to cash flow from operations of $9.4 million in the year-ago period and included deferred consideration payments of $7.6 million, transaction bonus payments of $0.4 million, and restructuring costs of $1.1 million. Adjusted free cash flow was $9.6 million compared to $8.2 million in the year-ago period, reflecting positive working capital movements from timing differences in the second quarter of 2026. As of June 30, 2026, the Company had total cash of $8.8 million and had borrowings of $122.3 million under the Wells Fargo Credit Facility. During the second quarter, the Company drew $8.0 million on the credit facility revolver and pre-paid deferred consideration of $10.4 million in relation to the Odds Holdings Acquisition. The Company repaid $2.8 million on its outstanding term loan during the second quarter and settled $2.9 million of interest expense. The Company did not repurchase any shares in the second quarter and continues to have $14.4 million remaining under the current share buyback authorization. 2026 Outlook The Company reiterated its expectations for 2026 full-year revenue of $165 to $170 million and Adjusted EBITDA of $45 to $50 million. The guidance assumes: Year-over-year revenue growth driven by data services with enterprise sports data services continuing to see the fastest growth. Quarterly sequential revenue and Adjusted EBITDA growth in the second half of the year. The full year implied Adjusted EBITDA margin reflects the impact of the mix shift in marketing revenue partially offset by fixed cost savings of approximately $6.5 million in the second half of the year from the restructure announced in May. Initial Rollcard revenue and expenses for the last five months of the year. An average Euro to USD exchange rate of 1.16 for the year. Conference Call Details To access, please dial in approximately 10 minutes before the start of the call. An archived webcast of the conference call will also be available in the News & Events section of the Company’s website at grandstand.com/investors. Information contained on the Company’s website is not incorporated into this press release. About Grandstand Limited Founded in 2006, Grandstand (Nasdaq: GRSD) is the intelligence layer powering informed decisions for consumers and partners across sports, gaming and entertainment. Grandstand’s brands include OddsJam, OpticOdds, RotoWire, Gambling.com, Casinos.com and Rollcard. Its partner solutions span sports data, advertising, audience monetization, entertainment and tickets and fintech. Use of Non-IFRS Measures This press release contains certain non-IFRS financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Free Cash Flow and related ratios. See "Supplemental Information - Non-IFRS Financial Measures" and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers. Cautionary Note Concerning Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future events. All statements other than statements of historical facts contained in this press release, including statements relating to the continued growth in our sports data services business, including OpticOdds, and the size of the sports data services market, the continued growth in our enterprise revenue, our expected quarterly sequential revenue growth and higher Adjusted EBITDA with expanded margins, the expected cost savings and other benefits from the restructuring announced in May 2026, our ability to generate substantial adjusted free cash flow, whether the marketing business will grow, the successful launch and growth of Rollcard, the continued benefits of AI transformation in our business, the success of our audience engagement initiatives, the continued diversification of traffic sources and our marketing business, our ability to develop innovative new products, and our 2026 outlook, are all forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," "could," "will," "would," "ongoing," "future" or the negative of these terms or other similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, contingencies, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance, or achievements to be materially and/or significantly different from any future results, performance or achievements expressed or implied by the forward-looking statement. Important factors that could cause actual results to differ materially from our expectations are discussed under "Item 3. Key Information - Risk Factors" in our annual report filed on Form 20-F for the year ended December 31, 2025 with the U.S. Securities and Exchange Commission (the "SEC") on March 19, 2026, and our other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. We disclaim any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law. Consolidated Statements of Comprehensive (Loss) Income (Unaudited)(USD in thousands, except per share amounts) The following table details the consolidated statements of comprehensive (loss) income for the three and six months ended June 30, 2026 and 2025 in the Company's reporting currency and constant currency. Earnings Per Share Below is a reconciliation of basic and diluted earnings per share as presented in the Consolidated Statement of Comprehensive Income for the period specified, stated in USD thousands, except per share amounts (unaudited): Disaggregated Revenue Revenue is disaggregated based on how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. Marketing Performance marketing. Performance marketing revenue consists of (i) Cost Per Acquisition ("CPA") revenue from arrangements where we are paid exclusively by a single cash payment for each referred player, (ii) revenue share arrangements where we are paid exclusively by a share of the customer’s net gambling revenue ("NGR") from the referred players, (iii) hybrid revenue from arrangements where we are paid by both a CPA commission and a revenue share commission from the referred players and (iv) ticketing revenue from fees and commissions from ticket reservations for recreational and leisure events. Within performance marketing arrangements, the Company considers each referred player and each ticket reservation to represent a separate performance obligation. The performance obligation of referral arrangements is satisfied at the point in time when the referral is accepted by the relevant online gambling operator. Revenue share fees for each referred player are considered variable consideration and are only recognized to the extent it is probable that no significant reversal of cumulative revenue recognized for the referral will occur when the ultimate fees are known. CPA fees for each referred player are recognized when earned upon acceptance of the referral by the online gambling operator. Fees generated by each customer during a particular month are typically paid to us within 30-45 days after the invoice date. The Company acts as an agent in ticketing arrangements as it does not control the underlying event. The revenue is recognized on a net basis, calculated as the proceeds collected from a customer less the cost of the ticket sold. Ticketing revenue is recognized at a point in time when the sale is made as the Company’s performance obligation is to facilitate and process the transaction and issue the ticket. Advertising and other. Advertising, media and other revenue includes revenue from arrangements not based on the referred players and includes advertising on our platform and onboarding fees. Revenue is recognized on a straight-line basis over the term of the contract. Data Subscription. Data revenue consists of consumer and enterprise subscription revenue from data, data analytics and data syndication services. For subscription revenue, the Company considers each subscription to be a separate performance obligation. The Company satisfies its performance obligation, and revenue from these services is recognized, on a straight-line basis over the subscription period. The Company records deferred revenue upon execution of subscriptions when the subscription plan requires upfront payment. The Company presents revenue as disaggregated by market based on the location of end user as follows: The Company presents disaggregated revenue by monetization type as follows: The Company also tracks its revenues based on the product type from which it is derived. Revenue disaggregated by product type was as follows: Presentation of revenue by product type was adjusted to consistently reflect changes in revenue classification. It resulted in a reclassification from Other to Sports of $528 for the six months ended June 30, 2026. Supplemental Information Rounding We have made rounding adjustments to some of the figures included in the discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes thereto. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them. Non-IFRS Financial Measures Management uses both IFRS and non-IFRS financial measures in analyzing and assessing the overall performance of the business and for making operational decisions. Adjusted Net Income and Adjusted Net Income Per Share Adjusted net income is a non-IFRS financial measure defined as net income attributable to shareholders adjusted to exclude the effect of non-recurring items, significant non-cash items, unwinding of deferred consideration, employees’ bonuses related to acquisition, deferred revenue fair value adjustment, share-based payment and related expense, acquisition related costs, amortization expenses related to acquired businesses and assets, restructuring costs and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Adjusted net income per diluted share is a non-IFRS financial measure defined as Adjusted net income attributable to shareholders divided by the diluted weighted average number of ordinary shares outstanding. We believe Adjusted net income and Adjusted net income per diluted share are useful to our management as a measure of comparative performance from period to period as these measures remove gain on early settlement of deferred consideration, the unwinding of deferred consideration, employees’ bonuses related to acquisition, deferred revenue fair value adjustment, share-based payment and related expense, restructuring costs and other expenses associated with our restructuring, acquisition related costs, amortization expenses related to acquired businesses and assets, and all other items associated with our acquisitions, during the limited period where these items are incurred. The unwinding of deferred consideration for the three months ended June 30, 2026 is associated with the unwinding of the discount applied to the valuation of the deferred consideration for the OddsJam Acquisition during the three months ended June 30, 2026. While we use Adjusted net income and Adjusted net income per share as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted net income and Adjusted net income per share are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted net income and Adjusted net income per share is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted net income and Adjusted net income per share as compared to IFRS results are that Adjusted net income and Adjusted net income per share as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted net income and Adjusted net income per share may exclude financial information that some investors may consider important in evaluating our performance. The following tables reconcile Adjusted net income and Adjusted net income per share, diluted from net income for the period attributable to the shareholders and net income per share attributed to shareholders, diluted as presented in the Consolidated Statements of Comprehensive (Loss) Income and for the periods specified (unaudited): EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin EBITDA is a non-IFRS financial measure defined as earnings excluding interest, income tax (charge) credit, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, employees’ bonuses related to acquisition, deferred revenue fair value adjustment, restructuring costs, foreign exchange gains (losses), fair value movement on contingent consideration, gain on early settlement of deferred consideration, unwinding of deferred consideration and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue. We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management team as a measure of comparative operating performance from period to period as those measures remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events. While we use Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance. Below is a reconciliation to EBITDA and Adjusted EBITDA from net (loss) income attributable to shareholders for the period as presented in the Consolidated Statements of Comprehensive (Loss) Income for the period specified (unaudited): Below is the Adjusted EBITDA Margin calculation for the period specified stated in the Company's reporting currency and constant currency (unaudited): In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward-looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items. Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow is a non-IFRS liquidity financial measure defined as cash flow from operating activities adjusted for cash flows related to acquisitions less capital expenditures. Capital expenditures for Free Cash Flow are defined as the acquisition of property and equipment, and capitalized research and development costs, and excludes cash flows related to acquisitions accounted for as business combinations and asset acquisitions. Adjusted Free Cash Flow is a non-IFRS liquidity financial measure defined as Free Cash Flow adjusted to exclude the effect of certain non recurring payments. We believe Free Cash Flow and Adjusted Free Cash Flow are useful to our management team as measures of financial performance as they measure our ability to generate additional cash from our operations. While we use Free Cash Flow and Adjusted Free Cash Flow as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow and Adjusted Free Cash Flow are substitutes for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow and Adjusted Free Cash Flow are not intended to be considered in isolation or as substitutes for any measures prepared in accordance with IFRS. The primary limitation associated with the use of Free Cash Flow and Adjusted Free Cash Flow as compared to IFRS metrics is that Free Cash Flow and Adjusted Free Cash Flow do not represent residual cash flows available for discretionary expenditures because these measures do not deduct the payments required for debt payments and other obligations or payments made for acquisitions. Free Cash Flow and Adjusted Free Cash Flow as we define them also may not be comparable to similarly titled measures used by other companies in our industry. Below is a reconciliation to Free Cash Flow and Adjusted Free Cash Flow from cash flows generated by operating activities as presented in the Consolidated Statements of Cash Flows for the period specified (unaudited): View source version on businesswire.com: https://www.businesswire.com/news/home/20260813261024/en/ Contacts For further information, please contact:Investors:Peter McGough, Grandstand, [email protected] Richard Land, Alliance Advisors, [email protected] Media:Christine Doh, Grandstand; [email protected]

Playtika Holding (PLTK) came out with quarterly earnings of $0.15 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this mobile game developer would post earnings of $0.07 per share when it actually produced earnings of $0.04, delivering a surprise of -42.86%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Playtika, which belongs to the Zacks Gaming industry, posted revenues of $731.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.48%. This compares to year-ago revenues of $696 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Playtika shares have lost about 1.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While Playtika has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Playtika was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $680.45 million in revenues for the coming quarter and $0.46 on $2.81 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Grandstand Limited (GRSD), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -110.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Grandstand Limited's revenues are expected to be $37.5 million, down 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Playtika Holding Corp. (PLTK) : Free Stock Analysis Report Grandstand Limited (GRSD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is transitioning the entire organization to an AI-first operating model, moving from AI-assisted workflows to making AI the foundational layer for product, marketing, and sales. The 13% growth in sports data services was driven by enterprise offerings catching up to consumer data sets, with the B2B OpticOdds business serving as a primary catalyst. Marketing revenue declined 5% due to persistent search engine ranking challenges and modestly worse-than-expected regulatory impacts in the U.K. and Finland. The company is aggressively diversifying away from organic search, with non-SEO revenue exceeding 50% of marketing revenue for the second consecutive quarter. A strategic restructuring will reduce the workforce by approximately 25% to create a flatter organization optimized for AI-driven productivity and faster product shipping. Revenue share performance was negatively impacted by unfavorable sports outcomes during the quarter, leading to a lower hold percentage relative to deposits. Full-year 2026 guidance assumes a faster-than-expected shift away from SEO channels, resulting in a $5 million reduction in revenue expectations and a $5 million increase in cost of sales. The restructuring is expected to generate $13 million in annualized savings, with approximately half realized in 2026 starting in Q3 and the full amount in 2027. Management expects significant sequential growth in revenue, adjusted EBITDA, and free cash flow in the second half of 2026 as cost savings and traffic diversification scale. Strategic focus for capital allocation is prioritized toward deleveraging the balance sheet rather than share buybacks in the near term. The company plans to launch a partnership with Perplexity before the end of Q2 to serve as the odds data provider across their AI product suite. A one-time restructuring expense of approximately $2.5 million is anticipated to implement the workforce reduction. Gross profit margin declined to 85% from 94% year-over-year, reflecting the higher cost of sales associated with non-SEO traffic diversification. The company is evaluating a potential rebrand to better reflect its evolution beyond the Gambling.com domain into a broader data and technology enterprise. Increased subscription costs from higher AI usage are partially offsetting the labor savings gained through automation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that Lifetime Values (LTVs) are trending downward in the U.K. due to regulation and SEO shifts, though operator demand for traffic remains robust. Early Q2 data shows 'green shoots' in SEO traffic for the flagship Gambling.com brand, though this potential upside is not yet factored into guidance. Management argues there is more risk in moving too slowly than too fast, emphasizing that AI allows smaller teams to maintain high-quality 'craft' while accelerating production. The restructure targets all business areas, not just development, to enable a flatter structure where senior leadership focuses directly on building automations. Growth is being driven by international expansion, with international partners up 178% year-over-year and 86% of customers now using API integrations. New integrations into enterprise tools like Claude and Perplexity are intended to make the data product 'stickier' by placing it where customers already work. CRM initiatives offer high margins due to low COGS, while paid media carries significant external costs, resulting in a blended margin that is lower than legacy SEO but more resilient. EBITDA margins are expected to return to the 30% range in the second half of the year as the new cost structure aligns with the revenue mix.