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Image source: The Motley Fool. Monday, Aug. 3, 2026 at 8:30 a.m. ET Senior Vice President, Investor Relations and Corporate Finance - James Bombassei Chief Executive Officer - Carsten Koerl Chief Financial Officer - Craig Felenstein Operator: Hello, everyone. Thank you for joining us, and welcome to the Sportradar Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Jim Bombassei, Senior Vice President, Investor Relations and Corporate Finance. Please go ahead. James Bombassei: Thank you, operator. Hello, everyone, and thank you for joining us for Sportradar's Earnings Call for the Second Quarter of 2026. Please note that the slides we will reference during the presentation can be accessed via the webcast on our website at investors.sportradar.com and will be posted on our website at the conclusion of this call. A replay of today's call will also be available on our website. After our prepared remarks, we'll open up the call to questions from analysts and investors. In the interest of time, please limit yourself to one question and one follow-up. Please note that some of the information you will hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in our annual report on Form 20-F and Form 6-K filed with the SEC, along with the associated earnings release. We assume no obligation to update any forward-looking statements or information, which speak as of their respective dates. Also during today's call, we will present IFRS and non-IFRS financial measures and operating metrics. Additional disclosures regarding these measures and metrics including a reconciliation of IFRS to non-IFRS measures are included in the earnings release, supplemental slides in our filings with the SEC, each of which is posted to our Investor Relations website. We may also discuss certain forward-looking non-IFRS financial measures that cannot be reconciled to the most directly comparable IFRS financial measure without unreasonable efforts. Joining me today are Carsten Koerl, our CEO; and Craig Felenstein, our CFO. And now I'll turn the call over to Carsten. Carsten Koerl: Good morning, everyone, and thank you for joining us. Today, I will discuss our second quarter results and operations, including our continued success monetizing IMG ARENA content as well as our product innovation across key sports. I will also discuss the progress we are making against our key strategic priorities as we capitalize on prediction markets and continue to roll out of iGaming. Sportradar is a mission-critical provider position at the intersection of sports betting and media industries. We are executing on a number of strategic initiatives that we are expanding our addressable market and will ensure our long-term success. This will enable us to drive durable and profitable growth along with substantial cash flow. Now turning to our second quarter results. Today, company revenues increased 19% year-over-year as we benefit from strong performance in betting and gaming content, including continued strong progress monetizing IMG ARENA rights. We delivered an adjusted EBITDA margin of 20% and generated significant free cash flow. We also accelerated our returned capital to shareholders through our $250 million enhanced open market share repurchase program. During the second quarter, we repurchased approximately $140 million worth of shares. Since inception, we repurchased $422 million or 26 million shares through last week under the $1 billion share repurchase program, as we take advantage of the volatility in the market as well as the value we see in our shares. In terms of the underlying market dynamics, we are continuing to see moderation in the U.S. market growth given no significant state openings and the growth in prediction markets as well as some impacts in certain Rest of the World territories due to increased tax regulation. While we continue to have confidence in our long-term ability to drive growth as we execute on our strategic initiatives, we are updating our full year guidance to reflect some of these trends, which Craig will discuss in more detail. Turning to our operating highlights. We continue to make great progress integrating our IMG ARENA rights portfolio, including capitalizing on revenue synergies, expanding key rights and ramping up our next-gen products. Demand across the global client base continue to be strong, and we remain on track to exceed our previously communicated revenue synergy target of 25%. We also continued to expand our premium product offering, launching player and micro markets as well as 4Sight Streaming for Roland-Garros and the upcoming U.S. Open. In addition, we expand the rollout of our premium golf service for the PGA, including live match tracker, live streaming and advanced in-play betting markets, which will enable operators to offer rich in-play golf experiences. We also brought our new live match tracker regionalization to additional sports league, including the MLS and the UFC. During the quarter, we secured a multiyear expansion to provide exclusive data and audiovisual betting rights for Wimbledon. This renewal strengthened and allows for further innovation across our premium tennis portfolio which spans three of the Grand Slams. In addition, we recently completed NBA and NHL season further demonstrated our ability to maximize the value of our premium sports rights. Both partnerships delivered strong full season results, reflecting continued customer adoption of our betting products and solutions across our customer base. This continued strong progress underscores our ability to monetize rights across our large global client base and broad products to deliver significant accretive revenue growth. Switching to Managed Trading Services. We continue to scale the business with strong Q2 turnover to benefit from major U.S. sports playoffs as well as the World Cup group stages. We manage approximately $56 billion of turnover on behalf of our clients on a trailing 12-month base, which is up 26% compared to the prior period. Moving on to our Marketing Services. Affiliate Marketing delivered its strongest months on record in June. We saw strong demand from North America sports books clients as well as from our clients, including prediction market exchanges. We have been actively working with operators such as Kalshi, Polymarket and Novig among others. In terms of our growth pillars, we continue to expand our pipeline and upsell and cross-sell our content and product portfolio. At the same time, we are investing in capitalizing on exciting adjacent opportunities. One of these significant opportunities is in predictions markets. With our premium content, global scale and unmatched product portfolio and capabilities, predictions market is a natural adjacency. It expands the U.S. TAM by opening up new states, attracting new players and increasing engagement with sports. Similar to our position in online sports betting, we will power key players in the prediction market ecosystem, including exchanges, market makers and brokers. To this end, in June, we announced a multiyear global agreement as an official sports data and solution provider for Kalshi. Under this agreement, Sportradar will deliver a broad portfolio of premium sports and content and services across major sports, including MLB, ATP, NHL, MLS and UFC, amongst others. We will provide Kalshi our real-time data ops to help them to ensure timely settlements, fan engagement solutions designed to drive deeper engagement, customer acquisition service to help them to acquire high-value sports fans and our industry-leading integrity services. As we also recently entered into a multiyear agreement with Polymarket in coordination with TDI for the ATP tour. As part of the deal, we are providing Polymarket in the U.S. with streaming of ATP matches on an exclusive basis, along with a nonexclusive base, our real-time data and odds for settlement, fan engagement solutions, customer acquisition services and integrity services. Notably, we have the ability to enter into agreements with Kalshi and Polymarket key partners, including brokers and market makers. Overall, we are excited to partner in what is an emerging fast-growing segment of the sports market and believe this demonstrates Sportradar's unique value proposition within our industry. Looking ahead, we continue to have active conversations across the prediction markets ecosystem and anticipate entering into additional commercial deals in the coming months. Now turning to Playradar, our newly established iGaming business. This is a natural extension of our core business. The vast majority of our customers operate across both sports betting and iGaming. While these businesses have traditionally been managed separately, operators are increasingly focused on driving greater crossover between the two. That's because a player who engages in both sports betting and iGaming can generate up to 5x the lifetime value of a sports betting-only player. We are creating differentiated entertainment experiences that seamlessly connect sports betting and iGaming. One example is our 24/7 live experience, where players can watch live sport events in a multiplayer setting while simultaneously engaging with complementary casino games or making real-time predictions on a live match. We are also gamifying historical sports content, starting with ATP, which will allow consumers to participate in a fast-paced gaming experience built around historic points from some of the world's greatest tennis matches. We have secured iGaming regulatory certification across multiple jurisdictions in South America, Europe and Canada, and we expect to expand into additional major European markets and several U.S. states throughout the remainder of the year. Importantly, we are doing all of this organically and efficiently using existing resources. More broadly, we continue to focus on driving increased operating leverage across our business. Last quarter, we announced steps to further streamline our operation and drive cost efficiencies, which will result in significant annualized savings. A key enabler of this effort is the increasing usage of AI across the business. We are leveraging AI to automate workflows, enhance coding and data collection and accelerate product innovation. We will continue to look for ways to deliver cost savings and further enhance our margins while maintaining our commitment to innovate across the product portfolio. In closing, we believe the progress we are making on our strategic initiatives as well as our premium content and broad product suite will enable us to continue to deliver durable revenue growth. We are confident in our ability to capitalize on the expanding addressable market for our products and solutions, including the prediction markets and in iGaming. This growth, combined with expanding operating leverage and strong cash flow generation positions us to deliver long-term shareholder value in the months and years ahead. Thank you. I will now hand over the call to Craig, who will discuss our financial results in greater detail. Craig Felenstein: Thanks, Carsten, and thank you, everyone, for joining us this morning. Over the last 2.5 decades, Sportradar has built unmatched global scale across the sports, media and betting industries, continually creating additional value for our clients and partners. The strong growth we delivered in the second quarter once again demonstrates the power of that platform as the demand for our robust content portfolio, diversified product suite and leading technology and services solutions continues to expand. Not only is it generating sustained results today, but as markets evolve and grow and the new opportunities arise such as prediction markets, we are uniquely positioned to capitalize. The fundamentals of our business remain strong. And while there are a few headwinds impacting our short-term results, we remain poised to deliver sustained revenue growth, consistent margin expansion and increasing cash flow generation in the years ahead. Turning to the second quarter results. Sportradar generated revenues of EUR 378 million, an increase of EUR 60 million or 19% compared with the second quarter of 2025, driven by the continued cross-sell and upsell of products and solutions to existing clients, including the strong uptake of IMG content. Additionally, we've begun to just stretch the surface on the prediction market opportunity, which had limited impact in the quarter, but which is poised to accelerate growth in the back half of the year as we further expand our addressable market. The revenue growth in the quarter was negatively impacted by the slower growth from traditional U.S. sports books as well as the impact of foreign currency headwinds, particularly from the U.S. dollar relative to the euro. Excluding the impact of FX movements, revenue growth in the second quarter would have been 21% on a constant currency basis. Turning to our individual product groupings. Growth was driven by our Betting Technology and Solutions' products, with revenue of EUR 314 million, increasing 21% versus the second quarter a year ago. This growth was due to a 27% increase in betting and gaming content revenues as we continue to see strong demand for both streaming and betting engagement products as well as odds and live data products, most notably from the upselling of IMG content across our global client base, and integrating it further into our diverse product suite. Managed Betting Services revenues were in line with the same quarter a year ago as increased revenue in and Managed Trading Services from higher turnover as we benefited from the World Cup and NBA playoffs, and strong margins was offset by lower revenues in our Platform business. Moving to our other product group, Sports Content, Technology & Services delivered revenues of EUR 64 million, an increase of 9% year-on-year, driven by growth in Marketing and Media Services as we benefited from increased spend from Media and Technology customers as well as increased affiliate marketing spending as prediction market exchanges and sports book customers ramped up their customer acquisition campaigns. Partially offsetting this growth were a reduction in sports performance revenues, primarily as a result of foreign currency headwinds. The growth in the quarter was once again geographically broad-based, with Rest of World revenue increasing 20%, while U.S. revenue was up 16% on a reported basis. Headwinds from foreign currency movements continue to impact U.S. reported revenue, which would have increased approximately 22% on a constant currency basis. Turning to adjusted EBITDA. The revenue growth, combined with our stable sports rights portfolio and our continued focus on cost efficiencies, including synergies related to IMG in areas such as engineering, scouting, AB production and personnel, enabled us to deliver another quarter of margin expansion as adjusted EBITDA increased to EUR 76 million, up 19% year-on-year. Looking at the individual cost buckets, I will be speaking to adjusted expenses to provide a breakdown of the expenses that impact adjusted EBITDA. We have detailed in the earnings release and the financial section of the earnings presentation, the bridge from IFRS amounts. This past quarter, sports rights expense increased 30% year-on-year to EUR 138 million, due primarily to the addition of IMG content, which, from a seasonality perspective, has a higher value of matches in the second and third quarters, giving the tennis, golf and soccer calendar. As we have said previously, our major rights deals are locked in long term. So we have significant visibility on sports rights costs moving forward, giving us confidence in our ability to drive operating leverage as we capitalize on the value of our high-demand sports portfolio, and the premium products we have developed for our global customer base. Adjusted personnel expenses were EUR 77 million in the quarter, down 4% year-on-year despite the inclusion of IMG headcount as we begin to realize the benefits of a cost efficiency initiative that we announced last quarter and from a reduced bonus accrual versus a year ago. Overall, we have further streamlined our operating structure, better aligning resources with our strategic priorities, and going forward, we will continue to capitalize on efficiencies while focusing resources on the most profitable growth opportunities. Adjusted purchase services were EUR 52 million, up 20% year-on-year, primarily due to the inclusion of IMG as well as higher cloud costs. Adjusted other operating expenses of EUR 35 million in the quarter were up 42% year-on-year, with the increase predominantly driven by costs related to our Brazil operations and legal expenses due in part to supporting adjacent market growth opportunities. Overall, we continue to focus on delivering meaningful margin expansion over the long term, given the inherent scale we have in our business and our long-term cost visibility, including the benefits of sports rights being amortized on a straight-line basis. Looking at the full P&L. We generated a net loss for the quarter of EUR 4 million versus a profit of EUR 49 million in the second quarter a year ago, as our operating growth year-on-year was offset predominantly by unrecognized foreign currency losses of EUR $9 million, primarily associated with our U.S. dollar-denominated sports rights versus a gain of EUR 54 million in the same period a year ago. Additionally, we recognized restructuring costs of EUR 11 million related to the efficiency initiatives we mentioned earlier. Turning to the balance sheet. During the quarter, we successfully amended our revolving credit facility, extending the maturity to 2031 and upsizing the facility to EUR 250 million while significantly reducing borrowing and commitment fees. Overall, Sportradar remains a very strong liquidity position, closing the quarter with EUR 251 million in cash and cash equivalents and no debt outstanding. In the first half of the year, the company generated free cash flow of EUR 103 million, an increase of 23% from the same period a year ago, and we continue to convert more of each dollar of EBITDA into free cash flow as demonstrated by free cash flow conversion of 73% versus 68% a year ago, despite a nonroutine legal settlement payment during the quarter. Looking forward, we continue to anticipate strong free cash flow growth for the full year and excluding the legal payment, expect free cash flow conversion above last year's rate of 56%. Cash and cash equivalents declined EUR 114 million since year-end 2025 as the strong free cash flow generation was more than offset by accelerated share repurchases. Last quarter, the Board approved a $250 million enhanced open market repurchase program under the broader $1 billion share repurchase program, reflecting our conviction in our business, our durable growth trajectory, and the value creation opportunities we see ahead. Since the beginning of May, we have already repurchased over 13 million shares for approximately $190 million under the plan, and we expect completion of the enhance program early next month. Year-to-date, we have already repurchased 20 million shares for approximately $311 million which is 17% of our free float at the beginning of the year. Given the continued disconnect between the share price and the fundamental strength of our business, we believe that this is a continued compelling use of capital. Turning to our expectations for the year. There are a variety of opportunities for the remainder of the year that we anticipate will accelerate growth in the second half, including further capitalization of IMG synergies, expansion of our addressable market through the prediction market ecosystem and a variety of global customer renewals. Despite these opportunities, given the recent underlying U.S. market trends, short-term tax and regulatory headwinds in the industry, as well as the timing of executing on prediction market deals, we are updating our short-term expectations. For the full year 2026, we now anticipate constant currency revenue growth of 19% to 21%, which at current FX rates is expected to be between EUR 1.518 billion and EUR 1.533 billion reported. We expect to drive operating leverage on this revenue growth with adjusted EBITDA growth of 24% to 27% on a constant currency basis, which at current FX rates is expected to be EUR 360 million to EUR 368 million reported. For the back half of the year, we expect the strongest revenue growth to occur in the third quarter given the timing of sporting events and the inclusion of IMG content. We also expect an acceleration of adjusted EBITDA margin growth. However, given the seasonality of IMG content, we anticipate adjusted EBIT margins will be down in Q3 year-on-year. Overall, the fundamentals of our business remain strong as the global scale we have built and the investments we have made in content, technology and products is delivering sustained revenue growth. With markets continuing to expand and new opportunities arising, our diverse platform and sustained focus on innovation will deliver increasing value to our customers and partners. At the same time, we are becoming even more efficient with our cost structure, which should enable us to deliver significant margin expansion and further ramp free cash flow, building shareholder value in the months and years ahead. Thank you for your time this morning. And now Carsten and I will be happy to answer any questions you may have. Operator: [Operator Instructions] Your first question comes from Eric Handler with ROTH Capital. Eric Handler: I wonder if you could dissect sort of your guidance revision, if you don't mind, talk about [indiscernible] the puts and takes that went into the revision and is there any -- your view towards the back half of the year? Was there any change to how you're looking at the back half of the year? And then also, how should we think about some of the catalysts as we think ahead a little bit to 2027? Carsten Koerl: Sure. Thanks, Eric, and thanks for the question. So when you think about the guidance that we updated for the year, after the first quarter call, we indicated that we were keeping our guidance the same despite some softness in the first quarter, predominantly because we saw some good upside coming from prediction markets, and we saw a return of the advertising market in the back half of the year. The reality is those things have happened, right? So we have been able to construct some prediction market deals, and the advertising market for us continues to be strong. The challenge is, that the prediction market deals having got some time to come to completion. So just because we were ready for them to go at the end of the first quarter call, the reality is it took a little while for that to happen. So as a result, the timing of that delayed some of those revenues and as such, lowered our expectations for the year, even though we're going to have a really strong second half, partially because of prediction markets. Similarly, on the advertising side, you look at the growth that we delivered in the second quarter, the business is back to growing the way we expect it to grow. However, we're not making up the shortfall that we delivered in the first quarter. So those are really the two implications. And then you layer on some softness that we're continuing to see in the underlying U.S. market. And those are the three, I would say, primary drivers for why we decided to bring our guidance down for the full year. When you think to the fundamentals of the business and what's going to happen in 2027, all the fundamentals of the business remain exactly the same. When you think about the relationships that we have with our customers, when you think about the upside that you're going to see from prediction markets, when you see the quality of the content and the quality of the products and services that we deliver, we will continue to outperform the market in 2027, and we'll continue to deliver on that margin expansion and free cash flow generation that we talked about. Operator: Your next question comes from Chad Beynon with Macquarie Capital. Chad Beynon: Craig, I was wondering if we could just go into the U.S. market trends just a little bit more. That answer was really helpful. But just trying to get a sense of if the trends were decelerating as we kind of worked our way through the second quarter and then maybe what the World Cup benefit was. I think, Carsten, you said group stage was positive. So from a U.S. standpoint, did that also come in slightly below your original expectations? Craig Felenstein: Sure. So I'll let Carsten talk a little bit more about the World Cup. When you think about the U.S. market, it really didn't change very much from what we saw in the first quarter. If anything, I would say, pretty flatlined in terms of its growth. But you got to remember, it depends on ultimately where -- which sports are ultimately driving things and the time line along that side of things. But what I will say is when you think about our guidance for the rest of the year, we're not expecting a significant acceleration for the remainder of the year, but we would expect the market to improve slightly in order to get to the guidance numbers that we laid out there today. Carsten Koerl: Good. And Carsten here for the World Cup. We saw 2.5 billion turnover and 350 million tickets, a little bit more, which is very encouraging from a growth perspective, but also from the number of tickets and diversity. We saw a big chunk of it coming from LatAm and North America, which was very encouraging for us. Looking now to the results. At the group stage, we had a couple of surprises, but we had also a lot of favorites winning. So we're speaking here about quarter 2. In quarter 3, the final is in quarter 3, as we all know. The final was for us record-breaking. It was a match with the highest turnover, and it was super profitable because it was a draw, 0-0 after 90 minutes. So that comes in quarter 3. Looking into quarter 2, what was besides the World Cup, which was very positive, a bit of negative thing was the Knicks. Well, for a Knicks fan, it was not negative. But from a betting perspective, the Knicks have been a clear favorite. So that was in quarter 2 that explains the MTS results. Chad Beynon: Great. And as a follow-up, just asking about the Playradar uptake. In the presentation, you spoke about the Q3 and Q4 opportunities, certainly some very big markets there. Can you maybe just talk about discussions or expectations if this has changed in the back half of the year? Or it's kind of a wait and see given the infancy of the product? Carsten Koerl: Well, the product is on a very early stage of its life cycle, but we will present end of September in Lisbon at the SBC when, by the way, together with Michael Jordan on stage, Playradar, and we will launch this in a bigger style. So the core idea here is our ePlayer is at the moment, present on roughly around about 400 bookmaker brands and sites, generating hundreds of millions of impressions. So we want to mix with the ePlayer, the live content, which we have, and we have the rights for it and create together with Playradar this excitement on the iGaming space. So there is always a correlation between the live sport and what you can play in the iGaming space. We believe that's a sweet spot. We believe nobody has the ability to do it because we are sitting on the rights, we have the distribution. And now we are ramping up and developing a very good performing iGaming portfolio for those solutions. The 24/7 channel, which I just mentioned, is really filled 24/7 with live video content where you have parallel opportunity to place iGaming or to place some matches in iGaming. So that's the main concept. We can do this live. We can do this prerecorded, and that's the first wave of rollout, which you will see. But it's on the very beginning of the life cycle. So it needs a bit of time that we can distribute this. Operator: Your next question comes from Ryan Sigdahl with Craig-Hallum Capital Group. Ryan Sigdahl: I appreciate the visibility by locking in long-term deals with your Tier 1 leagues over the past few years for rights. That works when things are going well and there's growth. But I guess, given the high decremental leverage we see in the guidance revision today, those fixed cost rights deals, so that makes sense. But does that volatility and the slowing of regulated sports betting growth in the U.S. and I guess, globally, does that change your internal strategy to potentially shorten these renewal deals so they can better match industry volumes, dynamic revenue expectations, et cetera, with kind of what you're paying the league and sharing that profitability with the league? Craig Felenstein: Sure. Thanks, Ryan, for the question. So I don't think our strategy is changing here at all. The reality is we have a really nice mix of content that we have strong partnerships with major Tier 1 sports leagues. We also have a really long tail of content that ultimately drives a significant amount of revenue and a significant amount of margin. We are margin positive on all of our Tier 1 rights. The challenge that you get when you have a little bit of a softer quarter is ultimately, you do see some margin degradation. That said, when you think about what's going on in the space today, you're seeing a market that's expanding, right? So what was happening in the first half of the year is you didn't see any revenue really from the prediction market side of the house. Well, now when you look to the second half of the year, you're going to have the ability to deliver on the existing OSB market, but also take advantage of what I would say is an expanding opportunity with prediction markets, all which is addressing or increasing your addressable market. So having the rights that we have is enabling us to capitalize on those markets, and we look forward to driving significant margin expansion, both in prediction markets and traditional OSB markets. Carsten Koerl: Maybe, Ryan, I'll add here. Looking to the prediction markets, it took us quite a while to negotiate these deals with the leagues and with the players in the space. We have these deals now in place, and we add more and more. So there is a delay here, but there is absolutely not a change in our strategy. Wimbledon is a statement for this. Roland Garros is a statement for this clear strategy that we built this around the major tennis rights that we built the products around this, and we are very bullish on this, but we execute this very disciplined. So we are looking in each and every deal, the deal must contribute our target margin, the deal must leverage. So that's something which we do since many years, and there is not a change in this. The delay with the prediction markets, like I explained, is not only in our hands, so we had to wait also partly for some of our league partners that we get this approved. Ryan Sigdahl: Yes, makes sense. And you definitely want to get those first deals, right, since those will be precedent for other prediction market deals. So even if there is a little bit of a transitory timing difference there. All right. My second question, just curious for an update. I know there was a lot of short report allegations earlier this year. Any updates you can provide whether it be regulatory, business or otherwise? Carsten Koerl: Well, with respect to the short seller reports, which are published or had been published in April, our Audit Committee with the assistance of our legal counsel, Paul Hastings, reviewed the allegations in the publications, and they determined that the short seller reports present a misleading narrative and that Sportradar has had in place rigorous compliance framework and contractual protections to seek and ensure that the products which are used by our customers are in compliance with the applicable laws. So that's the first thing. The second thing for the regulators, we received various regulatory approvals in the last couple of weeks for both the betting and the iGaming space all over the place in the U.S., but also in the rest of the world. And for the third one, the largest and most renowned sports organizations like, for example, Wimbledon or the German DFB, which is the Cup organization, gave us their rights. So that shows you that on every level, we have a high respect in the market, and we did our job and the Audit Committee did the job in a diligent way. Operator: Your next question comes from Clark Lampen with BTIG. Joseph Spiezio: This is Joe on for Clark. From a high level, I was hoping if you could help us better understand the economics or maybe the deal structure that you have in place with Kalshi. Is it a fixed fee, minimum guarantee, maybe like a combination of the two? And then just second to that, do you believe that the deal is a good template for how other agreements with different PM operators would be structured? Craig Felenstein: Sure. Thanks for the question. Listen, we're not going to get too specific on the deals themselves, but you can assume that the deals that we're doing with the prediction markets, especially the ones that we've done thus far, have a fixed fee component and a variable fee component, which allows us to capture the upside as the market expands. And each of these deals will be very different with every exchange, with every market maker, with every broker depending on ultimately what they're looking to achieve and ultimately, what we're looking to achieve. But as Carsten mentioned early on, the key for us when we do these deals is to make sure that they're accretive to the deals that we would have done historically with our OSBs. We want to make sure that the economics make sense for us and for our prediction market partners, but also for our existing OSB and lead partners. So that all goes into it. We are very much, I would say, locking down diverse deals. It's not just for one aspect of our business. We're getting involved with data and odds. We're getting involved with fan engagement tools. We're getting involved with marketing services. So they're very robust deals, and they have a very wide range of revenue opportunities. Operator: Your next question comes from Trey Bowers with Wells Fargo. Unknown Analyst: This is Zach on for Trey. Just piggybacking on an earlier question on the prediction market deals. If I heard you correctly, you said it called out that it took a bit longer to get the deals done than initial expectations. Does this imply a bigger benefit to '27 and maybe '28? And how should we think about layering in some of the prediction markets upside to the guidepost you put around '27 and beyond at your Investor Day? Carsten Koerl: Of course, it implies that '27 and '28, we will see a ramp-up here. It was for us in '26, a lot of work to negotiate the deals, but also to convince our league partners that they're going into this. We are still in progress here with a couple of them. But we are very optimistic that we found the right framework. I think very important is that we have a transaction possibility with the exchanges by itself, Kalshi and Polymarket, but that we can also create new innovative products for market makers. Here, latency is key and center. Deep data is key and center. That gives new revenue opportunities. For this year, regarded that the upside is in the tens of millions. For next year, of course, this is significantly higher. Of course, this all depends also on the legal framework and the compliance in this sector, which is, as we all know, very fluent. But that's, at the moment, our best assumption. Craig Felenstein: Let me just add. At Investor Day, which is a little over 1.5 years ago, we laid out what I would say is the tenets for the revenue growth and the margin expansion and free cash flow generation that we expected over the next several years. One of the big drivers of that expansion was going to be continued market strength across the globe. And we are continuing to see that. It's just shifting a little bit, right? So previously, it was all about OSBs. And now you're seeing the OSBs plus the prediction market opportunity. So from our perspective, what we are focused on is we're focused on having the best content. We're focused on having the most diverse product suite, and we're having the best services that ultimately we can sell to whoever wants to see them and have us outperform the market. We want to continue to take share, and we've been doing that. When you look at the revenue growth we delivered in 2025 and you look at the revenue growth we're delivering this year, the continued outperformance of the market, I think, is a testament to what has been built here and provides the opportunity for us to continue to do that moving forward. Unknown Analyst: Got you. I appreciate the color. And just for my follow-up, just on some of your comments about moderating U.S. market growth. Could you give us a sense of just within the market, the fixed versus variable component of your contracts? And what should we expect given some of these comments on moderating growth? Should we expect less upside from the variable component? Or how -- maybe just give us a breakdown of what you guys expect from the fixed versus variable side of your contracts? Craig Felenstein: Sure. When you think about the breakdown of our revenues between fixed and variable, well, about 2/3 of our contracts are fixed and about the other 1/3 is variable. Now that may shift a little bit here with prediction markets. But for the most part, you can assume that those are the right percentages. The fixed side of the business, there's a certain number of contracts that come up every single year, and we would expect to see similar type increases that we've seen historically when those contracts come up because we continue to deliver value for our customers and our clients. When you think about the variable side, that is going to have some up and downs depending on what's going on with the market. I think overall, we feel like the market is still in a relatively good place when you look at prediction markets and the base market together. In the first half, that was more just focused on what was done on the OSB side of the house. I think to look at one of those without the other is a little shortsighted. So from an overall perspective, we expect the variable side and fixed side to both continue to expand nicely. Operator: Your next question comes from Jordan Bender with Citizens. Jordan Bender: Craig, I think in your prepared remarks , you talked about next year, you should see outperformance in the U.S. market. And I think historically, you've used similar language. I just want to kind of double-click on that. Is that our estimates? Or is that kind of industry estimates? How should we think about you outperforming estimates in the U.S. next year? Craig Felenstein: Yes, I wouldn't necessarily focus on just the U.S., although I do believe that to be the case. When we talk about our outperformance, our outperformance has really been across the globe when you think about the revenue growth that we've delivered versus what the market is delivering overall. And that is speaking back to the products and services, back to the content we have, back to the client relationships that we've built for 20-plus years. We've spent so much time with our clients over so many decades that we ultimately know what they're looking for and what can ultimately drive value for them, and we ultimately grow faster if we're driving value for them. And that really is the focus for us and why we think we'll continue to outperform. And you're seeing that now with some of the deals that we're starting to do on the prediction market side as well. Jordan Bender: Okay. Perfect. And then just on the follow-up, going back to last quarter, you had baked in some future prediction market revenue opportunities, what is now the Kalshi deal. From here on out, how should we think about any incremental prediction market deals that you guys announced within your guidance for this year? Craig Felenstein: So when you think about the deals that we've done, we really think we're just starting to scratch the surface of what the prediction markets can offer. So from a guidance perspective, the deal that we have with Kalshi is pretty much locked in. Obviously, that still is dependent on the NBA agreement as part of that deal, and that's such a big driver for us in the fourth quarter. And that getting done is embedded in our guidance for this year. If that did not get done, that would certainly have an impact. But we think better the downside, there's actually significant much upside to the overall prediction of market revenues that we have in our forecast today. Can we do deals with other exchanges? Can we do deals with the market makers? Can we do deal with the brokers? Can we do deeper deals even with Kalshi and Polymarket? So there's a myriad of opportunities moving forward with regards to prediction markets. the value that you're seeing in there today is based off of what we know is the hotter today. Operator: Your next question comes from Barry Jonas with Truist Securities. Barry Jonas: Just curious like how much cannibalization do you believe OSB is seeing from the prediction markets right now in the U.S.? Carsten Koerl: According to our clients, there is very limited cannibalization. That's what the clients are telling us. You're going to have to have a look where is the distribution in California, Texas, Florida, places where OSB can't be in. You're going to have to look to the regulation and you're going to have to look to the taxes. But from a cannibalization aspect, there is very little cannibalization in there. That's what our clients are telling us. Barry Jonas: Got it. Okay. And then just as a follow-up, how are you thinking about M&A here? Are there specific areas you would be interested in? Is affiliate marketing one of them? Carsten Koerl: No, not specifically affiliate marketing. So we think we are very strong with our own tech stack. You will see various partnerships. But from an M&A perspective, that is not the area where we are deeply looking into. But we keep our eyes very open, everything which is around iGaming is very exciting and interesting. So we think there is a huge growth opportunity in there. But we also think that our shares and our stock provides the best opportunity and that is materializing in the share repurchase program. Craig Felenstein: And Barry, when you think about M&A, the lens that we use, we obviously want to make sure that when you think about the base business that we have here today and the revenue growth that we're generating, the margin expansion that we plan on delivering and the free cash flow generation ahead, any M&A transaction that we look at has to be accretive to those items. So it's very hard to find something that can do that. And as Carsten mentioned, when you see the disconnect between what we believe is the value we're creating here at the company and the stock price today, there's no better use of our resources than to buy back shares at this point. Operator: Your next question comes from Jeff Stantial with Stifel. Jeffrey Stantial: I just wanted to circle back and follow up on -- I think it was Chad's question from earlier and confirm I heard right. Craig, did you say that the back half guidance does assume that sort of market-wide trends get a little bit better in the back half? And then as a corollary to that, are you exploring or is there any opportunity with the renewals that are coming up to sort of shift what economics are priced on and maybe move away from handle and more towards GGR or NGR, just given some of the structural tailwinds in the U.S? Craig Felenstein: Sure. Thanks, Jeff. Listen, I don't think we're looking for anything significant to change in the U.S. market. Yes, we're assuming that the market does get a little bit better in the U.S., but there's a variety of variability that can happen, whether it be more deals in the prediction market and that market expanding, it could be whether handle and GGR expands a little bit. So there's a variety of ways for the U.S. market to improve in the back half of the year. So I would not expect a significant change to have to happen for us to hit our guidance numbers. What I would say with regards to how we do our contracts, we believe that there's still significant upside to the U.S. market. So for us, being able to tap into the variable nature of this market is a positive for us over the long term. Yes, the short term has a little bit of choppiness to it. But over the long term, given the value that we're creating, both for our customers and for our league partners, we want to be able to capture some of that value as we move forward here. So I don't see a significant change in the contracts. Not to mention, a significant amount of those contracts are already locked in for the long term. So there's -- it's a little bit difficult to change them in the short term as well. Jeffrey Stantial: That's great. And then for a follow-up, I wanted to continue this threat of sort of initial prediction markets economics. I recognize that you can't give any deal specifics, but I'm curious, if you just look at and use the Kalshi deal as a sort of template for others and look at the breadth of products and services that you're providing, is it your expectation that sort of your all-in take rate will be similar, better or worse than a comparable dollar of volume in traditional OSB? Craig Felenstein: Sure. The first thing I'll say, thanks for the question, is that every one of these deals is different, just like every one of our deals with all of our OSB partners is different. You talk to your client, understand what matters to them, see if you can satisfy that need and then ultimately drive value for yourself over time. And that value for ourselves has to be incrementally positive. So when you think about an OSB deal, I wouldn't agree to a deal on the prediction markets that would give me a lower take rate than I'm doing on the OSB side of the house that wouldn't make sense from a business perspective. So all in all, we expect these prediction market deals to be positive for us, but we will again tailor them and tailor all deals moving forward to what is best for our clients and ultimately what's best for us in the long term. Operator: Your next question comes from Mike Hickey with StoneX. Michael Hickey: I guess just the first question on prediction market opportunity. Market making is a significant piece of that you're monetizing it today. But I guess, beyond just selling data and models to market makers, do you think you could eventually participate directly in market making similar to how you build your MTS business for traditional sports books? Carsten Koerl: Mike, Carsten here. So you are spot on with these opportunities. At the moment, we do not monetize really significant with market makers. What they first need is latency, lowest latency. And traditional feeds for online sports betting, they always have a settlement in the clearing time. Prediction markets and market makers don't need this because they are active on both sides. So latency is key and center. Deep data and the technical abilities is key and center. Now as a sample for the U.S. Open, we will cooperate there with the tracking partner, and they know within 0.2 milliseconds is that ball in or out. That is gold for market makers. Putting that into a special feed, which is optimized for the lowest latency is definitely a very high value for them. That's the first thing. This feed is ready, and we roll it out, with the U.S. open, but also with the start of the NBA season. That helps us now to leverage these technical abilities, which we have and the league partnerships with the deep data. The second thing, the deep data for the modeling that is highly interesting. So you know that we built the foundation model. And the foundation model begins to predict what happens in the next 3, 4, 5, 6 seconds. And if you can predict this with a high accuracy based on all the tracking information which is there, that enables also market makers to distribute the risk spread much better than they can do it at the moment. So that's a highly attractive area, and there is a lot of things which we can optimize. Michael Hickey: I guess the next one is on the tax -- regulatory tax impact. I think you mentioned Rest of World business may have been influenced by that. I think I heard that. And so just sort of curious if you could flush that out. And then maybe specifically on U.K., they've obviously digested or digesting a big increase in April on iGaming. Obviously, that's a significant market for you. Wondering how that's sort of impacting your business and how we should think about '27 when you have the tax increase on the OSB side? Carsten Koerl: So within this year, tax regimes have been not really very beneficial from the point of our clients. The U.K., we saw a tax rate of shy of 100% from 1 year to another, which is a hurdle for our clients, and we saw problems here for the clients. And they're trying to optimize their cost structure, of course. We saw the same thing in Brazil on both sides, the gaming taxes, but also the taxes within the country. So both of them are not really beneficial for our clients. Looking now into next year, we do not have any indications worldwide that we see something like we saw it this year. There is a tightening of the tax regimes globally. Our clients, I think, get along with this very well. There are some bigger market opportunities. Japan might be a good opportunity, but there might be a couple of other opportunities around the globe here. So looking into it from now, from the perspective today, we don't see any major obstacles in '27, but U.K. and Brazil in this year have been not really beneficial. From the iGaming, it's much too early for us. We are in that start-up phase, we are believing that we are diving here in a deep blue ocean with that connects between what we have as inventory and iPlayer and the distribution of the client side and matching this together with an iGaming experience, that's unique. Nobody in the world has this. So this is not something where we see a lot of tax sensitivities. We see more the technical skills, how to connect sports betting with iGaming in this space. Operator: Your next question comes from Bernie McTernan with Needham. Bernard McTernan: Wondering on the -- in the U.S. weakness, was there any like maybe weaker volumes with the MLB because of crowding out from the World Cup? Or is that really a broad market comment on the weakness? Craig Felenstein: It's a broad market -- a broad comment on the weakness in the overall margin. The MLB volumes continue to be strong for us. I can't speak to the -- obviously, the entire market, but overall, the MLB having a nice year so far. Bernard McTernan: Okay. Understood. And just to double click on prediction markets again. I just wanted to ask some specificity, if there's really any change in the exit rate that you expect for prediction markets, exit rate for year-end now versus 3 years ago -- or sorry, versus 3 months ago? Craig Felenstein: Well, I think the opportunity overall from prediction markets continues to be something that we're really excited about. And I think if you asked us 3 months ago, what this could be for us, I think our expectations would be a little bit lower than they are today. Given all the inbound interest that we've seen from across the ecosystem, whether it be the exchanges, whether it be the brokers or whether it be the market makers. Certainly, obviously, we now expect more growth year-on-year in '27 versus '26 because some of these deals got done a little bit later. But that's really just a timing issue. More importantly, the overall opportunity, I think, is really, really exciting, just because of the value of the content that we have and the value of the products and services that we deliver. Operator: Your next question comes from Jason Bazinet with Citi. Jason Bazinet: I just had a question on the U.S. prediction markets. They somewhat famously sort of got around the state-by-state regime, by going through at the federal level. But there seems to be some pushback now among state AGs, I think New York comes to mind. Is that something that you anticipate if the judge does an injunction or something like that? Is that something that you anticipate impacting prediction market revenues in the U.S., these state-level legal challenges? Craig Felenstein: So from our perspective, Jason, obviously, we operate where we are supposed to operate, and we provide our services to our clients where they're allowed to use those services. I can't speak to what's going to happen with ultimately, all these lawsuits or injunctions. From our perspective, we are going to serve our clients the way we serve our clients. And as long as they're allowed to operate in jurisdictions, we'll continue to do so. James Bombassei: Operator, that ends our call. I'll turn it back to you for final comments. Thank you, everyone. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Sportradar Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sportradar Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Sportradar Group. The Motley Fool recommends the following options: short August 2026 $17.50 calls on Sportradar Group. The Motley Fool has a disclosure policy. Sportradar (SRAD) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

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. Revenue growth of 19% was driven by strong monetization of the IMG ARENA rights portfolio and continued demand for betting and gaming content. Management noted a moderation in traditional U.S. market growth due to a lack of new state openings and increased tax regulations in certain international territories like the U.K. and Brazil. The company is strategically expanding its addressable market by positioning itself as a mission-critical provider for the emerging prediction market ecosystem, including exchanges and market makers. Operational efficiency initiatives, including the increased use of AI for automated workflows and data collection, resulted in a 4% year-over-year decrease in adjusted personnel expenses. The integration of IMG content is on track to exceed the previously communicated revenue synergy target of 25% as the portfolio is upsold across the global client base. Strategic capital allocation focused on an enhanced share repurchase program, with $422 million returned to shareholders since inception to capitalize on perceived market undervaluation. Full-year 2026 guidance was revised downward to reflect the delayed timing of prediction market deal completions and the lack of recovery from Q1 advertising shortfalls. The company expects an acceleration in the second half of the year driven by prediction market deals, including a multiyear global agreement with Kalshi and a partnership with Polymarket. Playradar, the new iGaming business, is expected to expand into major European markets and several U.S. states throughout the remainder of the year to capture higher lifetime value from crossover players. Management anticipates significant margin expansion and free cash flow growth in 2027 as prediction market revenues ramp up and the company leverages its fixed-cost sports rights portfolio. Guidance for the third quarter assumes the strongest revenue growth of the year due to the seasonality of IMG content and major sporting events like the World Cup final. Unrecognized foreign currency losses of EUR 9 million, primarily related to U.S. dollar-denominated sports rights, impacted the net loss for the quarter. Restructuring costs of EUR 11 million were recognized during the quarter as part of the company's initiative to streamline operations and drive cost efficiencies. Management addressed previous short-seller allegations, stating that an internal audit committee review found the reports presented a misleading narrative and confirmed rigorous compliance frameworks. A nonroutine legal settlement payment occurred during the quarter, though the company still expects full-year free cash flow conversion to exceed the 56% rate seen in the prior year. Management explained that while prediction market deals and advertising recovery are happening, the timing of deal completions took longer than anticipated, pushing revenue into later periods. The revision also accounts for continued softness in the underlying traditional U.S. sportsbook market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Deals typically include a mix of fixed fees and variable components to capture upside as the market expands. Management emphasized that these deals are structured to be accretive and maintain take rates comparable to or better than traditional online sports betting (OSB) contracts. Sportradar is launching ultra-low latency data feeds specifically for market makers, where 0.2-millisecond data advantages on events like tennis ball tracking are highly valuable. The company is leveraging its AI foundation models to provide predictive modeling that helps market makers manage risk spreads more accurately. Management stated that feedback from clients suggests very limited cannibalization, as prediction markets often attract users in states where traditional OSB is not yet legal, such as California and Texas. Significant tax hikes in the U.K. and Brazil have pressured client margins, leading operators to optimize their cost structures. Management does not currently foresee similar major tax obstacles emerging in 2027 based on current global indicators.

This article first appeared on GuruFocus. Revenue: EUR378 million, up 19% year-over-year (21% on a constant currency basis). Betting Technology and Solutions Revenue: EUR314 million, up 21% year-over-year. Betting and Gaming Content Revenue: Increased 27% year-over-year. Sports Content, Technology & Services Revenue: EUR64 million, up 9% year-over-year. US Revenue: Up 16% on a reported basis (approximately 22% on a constant currency basis). Rest of World Revenue: Up 20% year-over-year. Adjusted EBITDA: EUR76 million, up 19% year-over-year. Adjusted EBITDA Margin: 20%. Net Loss: EUR4 million, versus a profit of EUR49 million in the second quarter of 2025. Free Cash Flow: EUR103 million in the first half of the year, up 23% from the same period a year ago. Free Cash Flow Conversion: 73% versus 68% a year ago. Cash and Cash Equivalents: EUR251 million, with no debt outstanding. Share Repurchases: Approximately $140 million worth of shares repurchased in Q2; $422 million or 26 million shares repurchased since inception. Managed Trading Services Turnover: Approximately $56 billion on a trailing 12-month basis, up 26% compared to the prior period. Full-Year 2026 Guidance: Constant currency revenue growth of 19% to 21% (EUR1.518 billion to EUR1.533 billion reported); adjusted EBITDA growth of 24% to 27% on a constant currency basis (EUR360 million to EUR368 million reported). Warning! GuruFocus has detected 4 Warning Signs with SRAD. Is SRAD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 19% year-over-year in Q2 2026, driven by strong betting and gaming content, including IMG ARENA monetization. Adjusted EBITDA margin reached 20%, with adjusted EBITDA up 19% year-over-year, reflecting cost efficiencies and operating leverage. Secured multiyear agreements with prediction market leaders Kalshi and Polymarket, expanding addressable market and future revenue streams. Launched Playradar, an iGaming business, with regulatory certifications in multiple jurisdictions and a unique 24/7 live experience integrating sports betting and casino games. Strong free cash flow generation of EUR103 million in H1 2026, with conversion improving to 73% (excluding a legal settlement), and no debt outstanding. Accelerated share repurchases, buying back $311 million year-to-date (17% of free float), reflecting confidence in the business. Renewed and expanded premium rights, including Wimbledon, and launched innovative products like 4Sight Streaming and player/micro markets for major sports. Managed Trading Services scaled to $56 billion in trailing 12-month turnover, up 26%, benefiting from World Cup and NBA playoffs. Affiliate Marketing delivered its strongest month on record in June, driven by demand from North American sportsbooks and prediction market exchanges. Cost efficiency initiatives, including AI adoption, reduced personnel expenses by 4% year-over-year despite IMG headcount inclusion. Updated full-year 2026 guidance to constant currency revenue growth of 19%-21% (down from prior), citing US market moderation and tax/regulatory headwinds. US market growth remains flat, with no significant state openings and increased competition from prediction markets impacting traditional sportsbooks. Prediction market deals took longer to finalize than expected, delaying revenue contribution to the second half of 2026. Net loss of EUR4 million in Q2 2026, versus a profit of EUR49 million a year ago, due to foreign currency losses and restructuring costs. Sports rights expense increased 30% year-over-year, driven by IMG content, with seasonality expected to pressure Q3 adjusted EBITDA margins. Rest of World revenue impacted by increased tax regulation in markets like the UK and Brazil, creating client cost pressures. Foreign currency headwinds, particularly USD/EUR, negatively impacted reported revenue growth (19% reported vs. 21% constant currency). Adjusted other operating expenses rose 42% year-over-year, driven by Brazil operations and legal costs related to adjacent market growth. The company faces legal and regulatory uncertainties in the prediction market space, with potential state-level challenges (e.g., New York) that could impact operations. Despite strong Q2, the company expects only a slight improvement in US market trends for the back half, with no significant acceleration anticipated. Q: Can you dissect the guidance revision, including the puts and takes, and discuss any changes to your view of the back half of the year and catalysts for 2027? A: Carsten Koerl (CEO) explained that the guidance revision was driven by three primary factors: the timing of prediction market deals taking longer to complete than initially expected, the advertising market not fully making up its first-quarter shortfall despite strong Q2 growth, and continued softness in the underlying US market. He emphasized that the fundamentals for 2027 remain unchanged, citing strong customer relationships, prediction market upside, and the quality of content and products, which will continue to drive outperformance and margin expansion. Q: How should we think about the economics or deal structure with Polymarket, and is it a good template for future prediction market agreements? A: Craig Felenstein (CFO) stated that while they won't get into specific deal details, the prediction market deals include both a fixed fee and a variable fee component to capture upside as the market expands. He noted that each deal will be tailored to the specific partner (exchange, market maker, or broker) and emphasized that the key is ensuring the deals are accretive to their traditional OSB agreements, covering a wide range of services from data and odds to fan engagement and marketing. Q: Does the delay in prediction market deals imply a bigger benefit for 2027 and 2028, and how should we layer this into the Investor Day guidance? A: Carsten Koerl (CEO) confirmed that the ramp-up will be significant in 2027 and 2028, as 2026 was largely spent negotiating deals and convincing league partners. He highlighted the unique opportunity to create innovative products for market makers, where low latency and deep data are crucial. For 2026, the upside is in the tens of millions, but next year it is expected to be significantly higher, subject to the evolving legal and compliance framework. Craig Felenstein (CFO) added that the shift from OSB-only growth to OSB plus prediction markets is a key driver for their long-term revenue and margin expansion targets. Q: Can you provide an update on the short seller allegations from earlier this year and any regulatory or business impacts? A: Carsten Koerl (CEO) stated that the Audit Committee, with legal counsel Paul Hastings, reviewed the allegations and determined the reports presented a misleading narrative. He confirmed that Sportradar has a rigorous compliance framework and contractual protections in place. He also highlighted recent regulatory approvals in the US and globally, as well as securing rights with major organizations like Wimbledon and the German DFB, which he said demonstrates the market's high respect for the company. Q: How much cannibalization is OSB seeing from prediction markets in the US, and what are your thoughts on M&A? A: Carsten Koerl (CEO) noted that according to their clients, there is very limited cannibalization, as prediction markets are primarily distributed in states where OSB is not available, like California, Texas, and Florida. On M&A, he stated they are not specifically looking at affiliate marketing, but are keeping an eye on the iGaming space. However, he emphasized that the current share repurchase program represents the best use of capital given the disconnect between the share price and the company's intrinsic value. Q: Can you elaborate on the US market trends, whether they decelerated through Q2, and the impact of the World Cup? A: Craig Felenstein (CFO) said the US market trends were relatively flatlined compared to Q1, with no significant acceleration expected for the remainder of the year, though a slight improvement is assumed to hit guidance. Carsten Koerl (CEO) added that the World Cup group stage was very positive, with 2.5 billion in turnover and over 350 million tickets, driven by LatAm and North America. However, the Q2 results were negatively impacted by the New York Knicks, a clear favorite, winning their series, which affected Managed Trading Services profitability. Q: Can you provide an update on the Playradar iGaming rollout and its expectations for the back half of the year? A: Carsten Koerl (CEO) described Playradar as being in the very early stages of its life cycle, with a major launch planned at the SBC conference in Lisbon in late September, where he will appear on stage with Michael Jordan. The core concept is to combine their live sports content rights with iGaming experiences, creating a 24/7 live channel where players can watch events and engage with casino games or make real-time predictions. He noted that while the product is present on around 400 bookmaker brands, it will take time to distribute and scale. Q: Given the high decremental leverage from fixed-cost rights deals, does the slowing growth change your strategy on long-term league renewals? A: Craig Felenstein (CFO) stated that the strategy is not changing, as they have a strong mix of Tier 1 and long-tail content, and they are margin-positive on all Tier 1 rights. He emphasized that the market is expanding with prediction markets, and having these rights enables them to capitalize on that growth. Carsten Koerl (CEO) added that the delay in prediction market deals was partly due to waiting for league partners, but there is no change in their disciplined approach to ensuring each deal contributes to target margins. Q: What is the breakdown of fixed versus variable components in your contracts, and how should we think about the upside from the variable side given moderating US growth? A: Craig Felenstein (CFO) explained that approximately two-thirds of their contracts are fixed and one-third are variable, though this may shift slightly with prediction markets. The fixed side is expected to see similar increases as contracts renew, given the value they deliver. The variable side will have ups and downs depending on market conditions, but overall, they expect both sides to expand nicely, especially when considering the combined OSB and prediction market opportunity. Q: Can you elaborate on the tax and regulatory headwinds impacting the Rest of World business, particularly in the UK and Brazil, and the outlook for 2027? A: Carsten Koerl (CEO) noted that the UK saw a significant tax increase of nearly 100% year-over-year, creating hurdles for clients, and Brazil also faced higher gaming and in-country taxes. However, looking ahead to 2027, he stated there are no indications of similar major obstacles globally, and For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Sportradar Group AG? Here are five stocks we like better. Strong Q2 performance: Revenue rose 19% to EUR 378 million and adjusted EBITDA increased 19% to EUR 76 million, driven by robust demand for betting content, streaming, live data and engagement products. However, Sportradar posted a EUR 4 million net loss due largely to foreign-exchange losses and restructuring costs. New growth opportunities: IMG ARENA integration continued to support content growth, while agreements with Kalshi and Polymarket position prediction markets as a potential revenue channel expected to contribute tens of millions of euros this year and more in 2027–2028. Outlook reduced: Sportradar lowered its 2026 guidance to 19%–21% constant-currency revenue growth and EUR 360 million–EUR 368 million of adjusted EBITDA, citing slower U.S. sportsbook growth, international regulatory and tax pressures, and delays in prediction-market deals. Sportradar Rides the Sports Betting Trend From Behind the Curtain Sportradar Group (NASDAQ:SRAD) reported second-quarter revenue growth of 19% as demand for its betting content, streaming, data and engagement products remained strong, while the company lowered its full-year outlook to reflect slower traditional U.S. sportsbook growth, regulatory and tax headwinds in some international markets, and timing delays for prediction-market agreements. Revenue for the quarter totaled EUR 378 million, up EUR 60 million from the prior-year period. On a constant-currency basis, revenue would have increased 21%, according to CFO Craig Felenstein. Adjusted EBITDA rose 19% to EUR 76 million, producing a 20% margin. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Genius Sports Scores an 18-Month High on NFL Deal The company posted a net loss of EUR 4 million, compared with net income of EUR 49 million a year earlier. Felenstein said operating growth was offset largely by EUR 9 million in unrecognized foreign-exchange losses related primarily to U.S. dollar-denominated sports rights, compared with a EUR 54 million gain in the prior-year quarter. Sportradar also recorded EUR 11 million in restructuring costs tied to efficiency initiatives. Betting technology and solutions revenue increased 21% to EUR 314 million, driven by a 27% increase in betting and gaming content revenue. Felenstein attributed the growth to demand for streaming, betting-engagement products, odds and live data, including continued upselling of IMG ARENA content across Sportradar’s global customer base. → MarketBeat Week in Review – 07/27- 07/31 Is Sportradar Group A Growth Stock To Bet On In 2023? CEO Carsten Koerl said the company remains on track to exceed its previously stated 25% revenue-synergy target from IMG ARENA rights. Sportradar expanded its premium offering during the quarter with player and micro markets, courtside streaming for Roland-Garros and the upcoming U.S. Open, and a broader PGA golf service that includes live match tracking, streaming and in-play betting markets. The company also extended its multi-year agreement to provide exclusive data and audiovisual betting rights for Wimbledon. Koerl said the renewal adds to Sportradar’s premium tennis portfolio, which includes rights across three of the four Grand Slam tournaments. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Managed Trading Services handled approximately EUR 56 billion of turnover for clients over the trailing 12 months, up 26% from the prior period. Koerl said turnover benefited from major U.S. sports playoffs and World Cup group-stage activity. Managed betting services revenue was flat year over year, as higher Managed Trading Services revenue was offset by lower platform-business revenue. Sportradar highlighted prediction markets as a significant adjacent opportunity and said it has begun supplying products and services to exchanges, brokers and market makers. The company signed a multi-year agreement with Kalshi to provide premium sports content and services across sports including MLB, ATP, NHL, MLS and UFC. Under the Kalshi relationship, Sportradar will provide real-time data operations for settlement, fan-engagement tools, customer-acquisition services and integrity services. It also entered a multi-year agreement with Polymarket, coordinated with Tennis Data Innovations, to provide exclusive U.S. ATP streaming as well as non-exclusive data, odds, engagement, acquisition and integrity services. Felenstein said prediction-market deals took longer to complete than the company expected earlier in the year, pushing some anticipated revenue into later periods. He said the agreements generally include both fixed and variable fee components, though deal structures vary by customer and product. The company expects prediction markets to provide revenue upside in the “tens of millions” of euros this year, with a larger contribution expected in 2027 and 2028. Koerl said Sportradar is developing low-latency data feeds and deeper data products aimed at market makers, beginning with the U.S. Open and the upcoming NBA season. He said low latency, tracking data and predictive models can help market makers manage risk. The company is also expanding Playradar, its iGaming business, which is intended to link live sports content with casino-style gaming and real-time predictions. Koerl said Sportradar has secured iGaming regulatory certifications in jurisdictions across South America, Europe and Canada, and expects to enter additional European markets and several U.S. states during the rest of the year. Koerl said Playradar is in an early stage and will receive a broader launch at the SBC event in Lisbon in late September. The offering includes a 24/7 live-content channel designed to let users watch sports while participating in related iGaming activities. Sportradar continues to pursue operating efficiencies, including greater use of artificial intelligence in workflow automation, coding, data collection and product development. Adjusted personnel expense fell 4% to EUR 77 million despite the addition of IMG headcount, aided by cost-efficiency actions and lower bonus accruals. Sports-rights expense rose 30% to EUR 138 million, primarily due to the addition of IMG content and the seasonal concentration of tennis, golf and soccer events in the second and third quarters. Purchase-services expense increased 20% to EUR 52 million, while other operating expenses rose 42% to EUR 35 million, mainly due to Brazil operations and legal costs associated partly with adjacent-market opportunities. For 2026, Sportradar now expects constant-currency revenue growth of 19% to 21%, translating at current exchange rates to reported revenue of EUR 1.518 billion to EUR 1.533 billion. It expects adjusted EBITDA growth of 24% to 27% on a constant-currency basis, or EUR 360 million to EUR 368 million on a reported basis. Felenstein said the company expects its strongest revenue growth in the third quarter because of the sports calendar and IMG content. However, he said adjusted EBITDA margin is expected to decline year over year in the third quarter because of IMG seasonality, before the company resumes broader operating-leverage progress. The company ended the quarter with EUR 251 million of cash and cash equivalents and no debt outstanding. First-half free cash flow increased 23% to EUR 103 million, while free-cash-flow conversion improved to 73% from 68% a year earlier. Sportradar also accelerated share repurchases. The company said it repurchased approximately $140 million of shares during the second quarter and had repurchased approximately EUR 422 million, or 26 million shares, through the prior week under its $1 billion authorization. Felenstein said the enhanced $250 million open-market repurchase program is expected to be completed early next month. Sportradar Group is a global leader in digital sports data and content, delivering real-time statistics, analytics and sports betting solutions to clients across the gaming, media and sports federation sectors. The company aggregates and processes live data from more than 800,000 sporting events each year, providing feeds for pre-match and in-play odds, visualization tools and managed trading services. Its products also include integrity services, which monitor betting markets for irregularities and help sports organizations safeguard competition outcomes. Founded in 2001 and headquartered in St. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sportradar Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second Quarter 2026 Highlights Revenue increased 19% to €378 million Loss for the period of €4 million, 0.9% as a percentage of revenue with increased operating results offset by unrealized foreign currency losses Adjusted EBITDA1 increased 19% to €76 million and Adjusted EBITDA margin1 expanded to 20.2% Net cash from operating activities increased 20% to €117 million and Free cash flow1 increased 14% to €59 million Repurchased $140 million of shares during the quarter under the share repurchase plan Upsized revolving credit facility to €250 million, lowering fees and extending maturity to 2031 Entered into strategic partnerships with leading prediction market exchanges, expanding total addressable market ST. GALLEN, Switzerland, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Sportradar Group AG (Nasdaq: SRAD) (“Sportradar” or the “Company”), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its second quarter ended June 30, 2026. Carsten Koerl, Chief Executive Officer of Sportradar, said: "Sportradar’s second-quarter financial growth, along with the progress we delivered across a variety of key strategic initiatives, reflects our mission-critical role at the center of the global sports ecosystem. Strong demand for our premium content, data and technology solutions, including increased monetization of our IMG ARENA rights portfolio, drove double-digit growth while deepening our relationships across our unparalleled global distribution network. We also further expanded our addressable market, entering into strategic partnerships with key prediction market participants that will enable us to capitalize on this fast-growing ecosystem. As we benefit from new avenues of growth, we remain focused on innovating across our core product suite to drive additional value for our partners, and clients as well as our shareholders." SECOND QUARTER 2026 RESULTS Revenue SECOND QUARTER 2026 FINANCIAL RESULTS Revenue Total revenue for the second quarter was €378 million, up €60 million, or 19% year-over-year, driven by 21% growth in Betting Technology & Solutions and 9% growth in Sports Content, Technology & Services. Betting Technology & Solutions revenues of €314 million were up 21% year-over-year primarily driven by a 27% increase in Betting & Gaming Content reflecting contributions related to the acquisition of IMG ARENA and new customer uptake of the Company's products and services. Revenue growth was partially offset by moderating U.S. market growth and unfavorable foreign currency movements. Managed Betting Services revenues were in line with the prior year as higher Managed Trading Services revenues due to higher turnover and trading margins were offset by lower platform revenues. Sports Content, Technology & Services revenues of €64 million increased 9% year-over-year primarily driven by a 16% increase in Marketing & Media Services due to contributions from new and existing media and technology customers, as well as increased affiliate marketing spending, partially offset by decreased revenue from our Sports Performance business principally due to foreign currency movements. The Company generated strong revenue growth globally with Rest of World up 20% and the United States up 16%. Foreign currency movements, particularly due to the U.S. dollar relative to the euro, continue to negatively impact earnings. As a percentage of total Company revenues, United States revenue represented 27% of total Company revenue in the second quarter as compared to 28% in the prior year quarter with customer uptake of our premium content and solutions partially offset by slower market growth and foreign currency fluctuations. Loss for the period Loss for the period was €4 million, down €53 million, compared to a profit of €49 million in the same quarter a year ago, as the Company's strong operating results were more than offset primarily by a foreign currency loss of €9 million versus a gain of €54 million in the same period a year ago. This was due principally to unrealized currency fluctuations mainly associated with U.S. dollar-denominated sports rights. The second quarter of 2026 also included severance costs related to cost efficiency initiatives and lower income taxes. Adjusted EBITDA Second quarter Adjusted EBITDA was €76 million, up €12 million, or 19%, compared to €64 million in the same quarter in 2025. The increase was largely driven by the 19% revenue growth as well as lower adjusted personnel costs, partially offset by the inclusion of costs related to IMG ARENA, most notably sport rights. Business Highlights Announced a multi-year global agreement with Kalshi, positioning Sportradar as an official data and solutions provider for the world’s largest prediction market. The partnership includes Sportradar’s premium data, odds, fan engagement, customer acquisition and integrity services for a number of major sports properties. It also enables Sportradar to enter into agreements directly with Kalshi’s partners, including market makers and brokers. Entered into a multi-year agreement with Polymarket, in coordination with Tennis Data Innovations (TDI), to provide exclusive ATP Tour streaming rights, along with official data, live odds, fan engagement, customer acquisition and integrity solutions. Signed a multi-year extension with The All England Club for exclusive global distribution of official data and audiovisual betting rights for The Wimbledon Championships. Originally secured through the IMG ARENA acquisition, the renewal strengthens Sportradar’s premium tennis portfolio and supports enhanced in-play betting and fan engagement offerings. Expanded Playradar, Sportradar’s iGaming offering that seamlessly connects sports betting and iGaming. Launching 24/7 Live Experience as well as historical sports games. Secured key regulatory licenses and certifications across South America, Europe, and Canada, with further expansion planned in major European markets and several U.S. states. 1 Non-IFRS measure. See the sections captioned “Non-IFRS Financial Measures and Operating Metric” and “IFRS to Non-IFRS reconciliations” for more details. Balance Sheet and Liquidity The Company’s cash and cash equivalents were €251 million as of June 30, 2026, as compared with €365 million as of December 31, 2025. Net cash generated from operating activities for the six-months ended June 30, 2026 of €226 million was partially offset by net cash used in investing activities of €122 million, primarily from payments related to sport rights licenses, and by net cash used in financing activities of €222 million. Financing activities included €217 million in share repurchases. Free cash flow for the six-months ended June 30, 2026 was €103 million, an increase of €19 million, or 23%, from €84 million in the same period in 2025. On April 30, 2026, the Company amended its existing €220 million revolving credit facility by, among other things, increasing total commitments to €250 million and extending the maturity date to May 20, 2031, while significantly reducing undrawn and drawn borrowing fees. Including the undrawn credit facility, the Company had total liquidity of €501 million as of June 30, 2026, as compared to €585 million as of December 31, 2025, and no debt outstanding. 2026 Full Year Financial Outlook Sportradar is providing an updated fiscal 2026 outlook as follows: Revenue growth on a constant currency1 basis of 19% to 21%. When factoring in current foreign currency rates, revenues are expected to grow to a range of €1,518 to €1,533 million Adjusted EBITDA growth on a constant currency basis of 24% to 27%. When factoring in current foreign currency rates, Adjusted EBITDA is expected to grow to a range of €360 to €368 million Adjusted EBITDA margin expansion of approximately 70 to 100 basis points on a reported basis Free cash flow conversion1 rate is expected to exceed the 2025 level of 56%, excluding the impact of non-routine litigation costs Share Repurchase Plan In March 2024, the Company's Board of Directors approved a $200 million share repurchase plan. Subsequently, the Board of Directors approved a $100 million increase to the plan in October 2025 and another $700 million increase in February 2026, bringing the total authorized share repurchase plan to $1 billion. In addition, under this authorized plan, in April 2026 the Company announced it entered into an enhanced open market share repurchase program, to purchase up to $250 million of shares. As of July 31, 2026, the Company has repurchased 26 million shares for $422 million under the plan since inception, including $311 million in 2026. Conference Call and Webcast Information Sportradar will host a conference call to discuss the second quarter 2026 results today, August 3, 2026 at 8:30 a.m. Eastern Time. Those wishing to participate via webcast should access the earnings call through Sportradar’s Investor Relations website. An archived webcast with the accompanying slides will be available at the Company’s Investor Relations website for one year after the conclusion of the live event. About Sportradar Sportradar Group AG (Nasdaq: SRAD), founded in 2001, is a leading global sports technology company creating immersive experiences for sports fans and bettors. Positioned at the intersection of the sports media and betting/gaming industries, Sportradar provides betting and iGaming operators, media and technology companies, prediction market partners and sports federations with a best-in-class range of solutions to help grow their businesses. Trusted by the world’s leading global sports organizations including the ATP, NBA and WNBA, NHL, MLB, MLS, PGA TOUR, UEFA, FIFA, CONMEBOL, AFC, and the Bundesliga, and global clients including Flutter, DraftKings, Google, Microsoft, Kalshi and Polymarket, Sportradar covers more than a million events annually across all major sports. Sportradar is not just redefining the sports fan experience, it also safeguards sports through its Integrity Services division and advocacy for an integrity-driven environment for all involved. For more information about Sportradar, please visit www.sportradar.com 1 Non-IFRS measure or Operating Metric. See the sections captioned “Non-IFRS Financial Measures and Operating Metric” and “IFRS to Non-IFRS reconciliations” for more details. CONTACT: Investor Relations:Jim [email protected] Media:Sandra [email protected] Non-IFRS Financial Measures and Operating Metric We have provided in this press release financial information that has not been prepared in accordance with IFRS, including Adjusted EBITDA, Adjusted EBITDA margin, Constant Currency metrics, Adjusted purchased services, Adjusted personnel expenses, Adjusted other operating expenses, Free cash flow, and Free cash flow conversion, as well as our operating metric, Customer Net Retention Rate. We use these non-IFRS financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to IFRS measures, in evaluating our ongoing operational performance. We believe that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-IFRS financial measures to investors. Non-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. Investors are encouraged to review the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures provided in the financial statement tables included below in this press release. “Adjusted EBITDA” represents earnings for the period adjusted for finance income and finance costs, income tax expense or benefit, depreciation and amortization (excluding amortization of capitalized sport rights licenses), foreign currency gains or losses, and other items that are non-recurring or not related to the Company’s revenue-generating operations, including share-based compensation, restructuring costs, non-routine litigation costs, secondary offering costs, and certain transaction-related costs.License fees relating to sport rights are a key component of how we generate revenue and one of our main operating expenses. Only licenses that meet the recognition criteria of IAS 38 are capitalized. The primary distinction for whether a license is capitalized or not capitalized is the contracted length of the applicable license. Therefore, the type of license we enter into can have a significant impact on our results of operations depending on whether we are able to capitalize the relevant license. As such, our presentation of Adjusted EBITDA reflects the full costs of our sport rights licenses. Management believes that, by including amortization of sport rights in its calculation of Adjusted EBITDA, the result is a financial metric that is both more meaningful and comparable for management and our investors while also being more indicative of our ongoing operating performance.We present Adjusted EBITDA because management believes that some items excluded are non-recurring in nature and this information is relevant in evaluating the results relative to other entities that operate in the same industry. Management believes Adjusted EBITDA is useful to investors for evaluating Sportradar’s operating performance against competitors, which commonly disclose similar performance measures. However, Sportradar’s calculation of Adjusted EBITDA may not be comparable to other similarly titled performance measures of other companies. Adjusted EBITDA is not intended to be a substitute for any IFRS financial measure.Items excluded from Adjusted EBITDA include significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for, profit for the period, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. We compensate for these limitations by relying primarily on our IFRS results and using Adjusted EBITDA only as a supplemental measure. “Adjusted EBITDA margin” is the ratio of Adjusted EBITDA to revenue.The Company is unable to provide a reconciliation of Adjusted EBITDA to profit (loss) for the period, or Adjusted EBITDA margin to Profit (loss) for the period as a percentage of revenue (in each case, the most directly comparable IFRS financial measure) on a forward-looking basis without unreasonable effort because items that impact these IFRS financial measures are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, foreign exchange gains and losses. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results. "Constant Currency" information compares results between periods as if exchange rates had remained constant. As the impact of exchange rate fluctuations can be highly variable, we believe these metrics, unaffected by exchange rate variability, provide meaningful insights to investors into our operational performance and underlying business trends.The Company is unable to provide a reconciliation of constant currency measures to their comparable IFRS measures on a forward-looking basis without unreasonable effort because future exchange-rate movements that impact these measures are not within the Company’s control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results. We present Adjusted purchased services, Adjusted personnel expenses, and Adjusted other operating expenses (together, "Non-IFRS expenses") because management utilizes these financial measures to manage its business on a day-to-day basis and believes that they are the most relevant measures of expenses. Management believes these adjusted expense measures provide expanded insight to assess revenue and cost performance, in addition to the standard IFRS-based financial measures. Management believes these adjusted expense measures are useful to investors for evaluating Sportradar’s operating performance against competitors. However, Sportradar’s calculation of adjusted expense measures may not be comparable to other similarly titled performance measures of other companies. These adjusted expense measures are not intended to be a substitute for any IFRS financial measure. “Adjusted purchased services” represents purchased services less capitalized external development costs and certain transaction-related costs. “Adjusted personnel expenses” represents personnel expenses less share-based compensation awarded to employees, restructuring costs, and capitalized personnel compensation. “Adjusted other operating expenses” represents other operating expenses plus impairment loss on trade receivables, less non-routine litigation, share-based compensation awarded to third parties, secondary offering costs, and certain transaction-related costs. We consider Free cash flow and Free cash flow conversion to be liquidity measures that provide useful information to management and investors about the amount of cash generated by the business after the purchase of property and equipment, the purchase of intangible assets and payment of lease liabilities, which can then be used, among other things, to invest in our business and make strategic acquisitions, as well as our ability to convert our earnings to cash. A limitation of the utility of Free cash flow and Free cash flow conversion as measures of liquidity is that they do not represent the total increase or decrease in our cash balance for the year. “Free cash flow” represents net cash from operating activities adjusted for payments for lease liabilities, acquisition of property and equipment, and acquisition of intangible assets. “Free cash flow conversion” represents Free cash flow as a percentage of Adjusted EBITDA. The Company is unable to provide a reconciliation of Free cash flow to net cash from operating activities or Free cash flow conversion to net cash from operating activities as a percentage of profit (loss) for the period (in each case, the most directly comparable IFRS financial measure) on a forward-looking basis without unreasonable effort because items that impact these IFRS financial measures are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, changes in working capital, the timing of customer payments, the timing and amount of tax payments, and other items that are non-recurring or unusual. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results. In addition, we define the following operating metric as follows: “Customer Net Retention Rate” is calculated for a given period by starting with the reported Trailing Twelve Month revenue from our top 200 customers as of twelve months prior to such period end, or prior period revenue. We then calculate the reported trailing twelve-month revenue from the same customer cohort as of the current period end, or current period revenue. Current period revenue includes any upsells and is net of contraction and attrition over the trailing twelve months but excludes revenue from new customers in the current period. We then divide the total current period revenue by the total prior period revenue to arrive at our Net Retention Rate. Safe Harbor for Forward-Looking Statements Certain statements in this press release may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, 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, including, without limitation, statements regarding future financial or operating performance, planned activities and objectives, anticipated growth resulting therefrom, market opportunities, strategies and other expectations, and our guidance and outlook, including expected performance for the full year 2026, as well as statements regarding our share repurchase plan. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “projects”, “continue,” “contemplate,” “confident,” “possible” or similar words. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: economic downturns and political and market conditions beyond our control, including uncertainty and instability resulting from catastrophic events such as acts of war or terrorism and foreign exchange rate fluctuations; dependence on our strategic relationships with our sports league partners; effect of social responsibility concerns and public opinion on responsible gaming, gambling by minors, match-fixing or other illegal gambling schemes on our reputation; potential adverse changes in public and consumer tastes and preferences and industry trends; potential changes in competitive landscape, including new market entrants or disintermediation; potential inability to anticipate and adopt new technology and products; potential errors, failures or bugs in our products; inability to protect our systems and data from continually evolving cybersecurity risks, security breaches or other technological risks; potential interruptions and failures in our systems or infrastructure; our ability to comply with governmental laws, rules, regulations, and other legal obligations, related to data privacy, protection and security; ability to comply with the variety of unsettled and developing U.S. and foreign laws on sports betting; risks associated with artificial intelligence and machine-learning technologies; failure to recruit, retain and develop qualified personnel; changes in the legal and regulatory status of real money gambling and betting legislation on us and our customers; our inability to maintain or obtain regulatory compliance in the jurisdictions in which we conduct our business; our ability to obtain, maintain, protect, enforce and defend our intellectual property rights; our ability to obtain and maintain sufficient data rights from major sports leagues, including exclusive rights; our ability to successfully remediate any material weaknesses identified in our internal control over financial reporting; seasonality and volatility; difficulties in our ability to evaluate, complete and integrate acquisitions successfully; inability to secure additional financing in a timely manner, or at all, to meet our long-term future capital needs; publication of research reports, including by short sellers, or speculation in the press or the investment community, about us; and other risk factors set forth in the section titled “Risk Factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2025, and other documents filed with or furnished to the SEC, accessible on the SEC’s website at www.sec.gov and on our website at https://investors.sportradar.com. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. One should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. SPORTRADAR GROUP AGCONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME(Unaudited) SPORTRADAR GROUP AGCONSOLIDATED STATEMENTS OF FINANCIAL POSITION(Unaudited) 1 - Certain prior-year balance sheet amounts have been adjusted to reflect measurement period adjustments, in accordance with IFRS 3, related to the acquisition of IMG Arena. SPORTRADAR GROUP AGCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Additional disclosures related to sport rights expenses The following table shows the composition of sport rights expenses (unaudited): IFRS to Non-IFRS Reconciliations The following table reconciles Adjusted EBITDA to the most directly comparable IFRS financial performance measure, which is (Loss) profit for the period (unaudited), and Adjusted EBITDA margin to the most directly comparable IFRS financial performance measure, which is (Loss) profit for the period (unaudited) as a percentage of revenue: The most directly comparable IFRS measure of Free cash flow is Net cash from operating activities, and the most directly comparable IFRS measure of Free cash flow conversion is Net cash from operating activities conversion, which is measured as Net cash from operating activities as a percentage of (Loss) profit for the period. Calculations for these measures are disclosed below (unaudited): The following tables show reconciliations of IFRS expenses included in (Loss) profit for the period to expenses included in Adjusted EBITDA (unaudited):

The market expects Sportradar Group AG (SRAD) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 3. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -64.7%. Revenues are expected to be $444.86 million, up 23.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.19% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Sportradar Group, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -9.09%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that Sportradar Group will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Sportradar Group would post earnings of $0.06 per share when it actually produced a loss of -$0.02, delivering a surprise of -133.33%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Sportradar Group doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Reddit Inc. (RDDT), another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $0.99 for the quarter ended June 2026. This estimate points to a year-over-year change of +120%. Revenues for the quarter are expected to be $744.94 million, up 49.1% from the year-ago quarter. The consensus EPS estimate for Reddit Inc. has been revised 0.1% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -3.93%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Reddit Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Sportradar Group AG (SRAD) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sportradar Group AG recently faced short-seller allegations of aiding illegal gambling operations, alongside first-quarter 2026 results showing €346.52 million in sales and a €6.29 million net loss. At the same time, the company expanded its €220.00 million revolving credit facility to €250.00 million and completed a US$228.00 million share buyback, while appointing a new Chief Operating Officer to oversee commercial and group operations. We’ll now consider how these allegations and legal investigations might influence Sportradar’s previously bullish investment narrative built around data-driven sports betting growth. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. The core case for owning Sportradar is that regulated sports betting and media clients keep paying for high quality data, trading tools and content. The short seller allegations and related legal investigations now sit squarely alongside competition and rights renewal as key risks, with potential impact on client relationships and future contracts. In the near term, the most important catalyst is whether Sportradar can sustain customer demand and pricing while addressing these compliance concerns. Among recent announcements, the expansion of Sportradar’s revolving credit facility from €220.00 million to €250.00 million stands out. It gives the company additional liquidity headroom as it manages higher scrutiny, funds ongoing investment in data and betting products, and absorbs periods of earnings volatility, such as the Q1 2026 net loss, which all feed directly into how credible the growth story looks against rising legal and regulatory risk. Yet behind the appeal of a growing sports data business, the unresolved allegations and potential securities litigation are issues investors should be aware of... Read the full narrative on Sportradar Group (it's free!) Sportradar Group's narrative projects €2.0 billion revenue and €284.1 million earnings by 2029. This requires 14.9% yearly revenue growth and about a €214 million earnings increase from €69.8 million today. Uncover how Sportradar Group's forecasts yield a $21.38 fair value, a 67% upside to its current price. Compared with consensus, the lowest analysts already assumed slower progress, with revenue growing about 9.4% a year and earnings reaching roughly €260.0 million, even before considering legal and regulatory uncertainty tied to the latest allegations. Explore 4 other fair value estimates on Sportradar Group - why the stock might be worth just $21.38! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Sportradar Group research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free Sportradar Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sportradar Group's overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 33 best rare earth metal stocks of the very few that mine this essential strategic resource. Capitalize on the AI infrastructure supercycle with our selection of the 38 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SRAD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, May 6, 2026 at 8:30 a.m. ET Chief Executive Officer — Carsten Koerl Chief Financial Officer — Craig Felenstein Head of Investor Relations — James Bombassei James Bombassei: Thank you, operator. Hello, everyone, and thank you for joining us for Sportradar's earnings call for the first quarter of 2026. Please note that the slides we will reference during this presentation can be accessed via the webcast on our website at investors.sportradar.com and will be posted on our website at the conclusion of this call. A replay of today's call will also be available on our website. After our prepared remarks, we will open the call to questions from analysts and investors. In the interest of time, please limit yourself to one question and one follow-up. Please note that some of the information you will hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, to the risk factors discussed in our annual report on Form 20-F and Form 6-K filed with the SEC, along with the associated earnings release. We assume no obligation to update any forward-looking statements or information, which speak as of their respective dates. Also during today's call, we will present IFRS and non-IFRS financial measures and operating metrics. Additional disclosures regarding these measures and metrics, including a reconciliation of IFRS to non-IFRS measures are included in the earnings release, supplemental slides and our filings with the SEC, each of which is posted to our Investor Relations website. We may also discuss certain forward-looking non-IFRS financial measures that cannot be reconciled to the most directly comparable IFRS financial measure without unreasonable efforts. Joining me today are Carsten Koerl, our CEO; and Craig Felenstein, our CFO. And now I'll turn the call over to Carsten. Carsten Koerl: Good morning, everyone, and thanks for joining us. Today, I will discuss our Q1 results and operations, which reflect our premier position as a scaled leader in the expanding global sports data ecosystem. I will also highlight the accelerating business momentum we anticipate over the course of this year. The appointment of Sameer Deen as COO, the enhanced open market repurchase program and reaffirming of our '26 full year financial outlook. This reflects the great confidence we have in our business model, the integrity of our people and operations and our company's very bright prospectus for profitable growth and outsized value creation. Before we get into the results, I want to address directly the recent self-interested reports published by known short sellers with the intent of driving down our company's stock price. For more than 4 years as a public company and over the past 2.5 decades before that, we have built Sportradar to give bookmakers and fans the tools they need to engage with and wager safely on their favorite sports markets. To be clear, Sportradar and I reject the unfounded and misinformed allegations contained in the reports. As the global leader in sports technology, trusted by leagues, operators and regulators around the world, we place integrity, transparency, professionalism at the heart of everything we do. For 25 years, Sportradar has maintained regulatory licenses in jurisdictions around the world. In order to maintain the respect and trust of our stakeholders and ensure the long-term vitality of our industry, we continue to conduct our business in a manner consistent with the highest standards. Unfortunately, these actors strive on misinformation and repackaging historical allegations to drive down company stock prices at the expense of long-term focused investors. The company takes very seriously our obligation to our stakeholders. To be clear, the company maintains a robust compliance framework with oversight from the Board of Directors that is designed to assist the company and its officers to navigating the complex business and regulatory landscape. This morning, we filed a 6-K that speaks to our strong compliance and KYC framework, and we encourage investors to read it for additional details. Given our strong conviction in the long-term value of our business, during quarter 1, we repurchased approximately $90 million worth of shares, bringing our total repurchases since inception of the program through last week to approximately $228 million. Also this morning, we announced that we have entered into a $250 million enhanced open market repurchase program to be executed under our previously authorized $1 billion share repurchase program. I believe the company's current valuation does not reflect the strength of our business and our long-term prospects, and I'm confident in the path we are on. Accordingly, I intend to personally purchase $10 million worth of shares in Sportradar when our trading window opens. Before turning to our results, I want to take a moment to welcome Sameer Deen, who will be joining Sportradar as Chief Operating Officer on May 18. Sameer brings extensive experience across sports betting, gaming and digital media, including most recently from his time at Entain, where he served as Chief Commercial Officer. The executive leadership team and I look forward to partnering with Sameer, who will be instrumental in driving our commercial efforts and optimizing our operations. Now turning to our first quarter results. Sportradar delivered Q1 revenues of EUR 347 million, an 11% increase year-over-year. This was driven by strong performance in betting and gaming content, including continued strong progress monetizing IMG ARENA rights. We generated adjusted EBITDA of EUR 66 million, which translated to a margin of 19%. From a bottom line perspective, we continue to drive strong free cash flow as we expanded cash conversion to 67% in the quarter. In terms of our competitive position, we are the sports technology leader, covering over 1 million matches annually. The unique breadth of our offering powers more data and os generation enables us to stream more videos than our peers and helps grow our MTS trading liquidity. It is this scale and expertise as well as the depth of our global client base that is enabling us to make great progress integrating the IMG rights portfolio and capitalizing on revenue synergies. Demand across our global client base has been strong with more than 75% of our core betting clients now consuming IMG content, including all Tier 1 operators. Of our clients who were previously not customers of IMG, nearly 60% are now purchasing IMG content from us. Our partnership expansion with Hard Rock Bet to include official content from the PGA TOUR and UFC is a clear example for this. We are excited to continue unlocking incremental value through cross-selling, giving our tremendous operating leverage as we capitalize on our existing infrastructure and capabilities. From a product perspective, we have integrated IMG content into our core product suite and are now integrating it into our next-gen offerings for both Golf and Tennis Grand Slams. The continued strong progress and rapid integration underscore our ability to monetize sport rights across our larger global client base and product suite to deliver significant accretive revenue growth. Our increased sports coverage, combined with our product innovation and the deeper engagement this foster is helping to boost our streaming activities. Last year, we streamed over 525,000 matches globally. And in '26, we anticipate to stream over 700,000 across our global footprint. Switching to our managed trading services. We continue to scale the business with turnover up 24% in the quarter. While turnover was strong, our revenues in the quarter were impacted by player-friendly outcomes. Trading margins should normalize over the time, given the diversity of our clients and sports coverage on the platform. And we expect the business will continue to be a core growth driver for us going forward. Turning into iGaming. We recently launched Playradar, our dedicated iGaming brand, which will serve us as a natural extension for our core business. Playradar capitalizes on our unique position as well as our sports data expertise to offer hybrid products that blend the sports betting and iGaming experiences. We are doing this organically and cost effectively using existing resources. We are already live across Latin America, including Brazil, and over the remainder of the year, anticipate launching in a number of European markets, including the U.K., Greece, Sweden and Denmark, as well as several U.S. states and Canada. Now touching on the prediction markets in light of the evolving environment and moderating U.S. market growth, we see prediction markets as a significant opportunity where Sportradar is uniquely positioned to lead given our premium content, global scale and unmatched product portfolio. Prediction markets expands the U.S. TAM by opening up new states, attracting new demographies and increasing engagement with sports. Similar to our position in online sports betting, we will power key players in the prediction market ecosystem. Sportradar prediction service will provide our exclusive data products and services to exchanges, market makers and brokers. For Sportradar, this opportunity diversifies our customer base, expands our SAM and promotes a shift to live engagement, all of which should drive higher revenue over time. We are in an active commercial discussion with a number of prediction market players for the use of official data and products related to MLB, NHL, MLS and UFC amongst other global leagues and competitions. While we expect to announce agreements soon, we are being deliberate in our discussions to ensure we maximize economics given the value we will bring to this ecosystem. Now turning to the remainder of the year. We see a number of drivers for our business. The FIFA World Cup in June is expected to generate significant betting turnover, which should contribute to our MTS business. With our new visualization and with operators expecting to take advantage of the event to launch marketing campaigns, this should also contribute to our performance. Additionally, as we progress through the year, we believe we will increasingly benefit from prediction markets as we enter into agreements with exchanges, market makers and brokers. All of this contributes to confidence in our full year's guidance and increasing momentum in our business over the course of the year. In closing, Sportradar is well positioned to take advantage of an evolving sports market and has momentum heading into the rest of the year. We are uniquely positioned to benefit from both online sports betting and prediction markets by leveraging our long-term rights agreements and unmatched product portfolio. We will continue to drive innovation across our business, uphold the highest levels of integrity and transparency while delivering increasing value to our clients, our partners and our shareholders. The underlying fundamentals of the business remains strong, and we are confident in our growth strategy and the opportunities ahead. Thank you. I will now hand over the call to Craig, who will discuss our financial results in greater detail. Craig Felenstein: Thanks, Carsten, and thank you, everyone, for joining us this morning. We are a week earlier than originally anticipated as we wanted to discuss our financial and operating results as soon as possible so we can better capitalize on the opportunity provided by the company's current share price. Importantly, our focus remains the same, delivering durable and consistent revenue growth while leveraging a stable and predictable cost base so we can deliver significant multiyear margin expansion and what ultimately matters most, free cash flow generation. The value we are creating for our sports, media, technology and betting partners continues to translate into significant top line growth. And while there were some headwinds during the quarter, which I will discuss in a moment, full year expectations remain unchanged as our expanded best-in-class content and product suite is further resonating across our existing leading global distribution network and new platform opportunities. Looking at the first quarter, Sportradar generated revenues of $347 million, an increase of $35 million or 11% compared with the first quarter of 2025, driven by the strong uptake of IMG content and the continued cross-sell and upsell of our products and solutions to existing clients as demonstrated by our customer net retention rate of 108%. It is important to note the NRR growth excludes the utilization of IMG content by existing customers, but does include the impact of foreign currency headwinds, particularly from the U.S. dollar relative to the euro. Overall, our revenue growth in the first quarter would have been 16% on a constant currency basis, excluding the impact of FX movements. Turning to our individual product groupings. Growth was driven by our betting technology and solutions products with revenue of $288 million, increasing 15% versus the first quarter a year ago. This growth was led by a 20% increase in betting and gaming content revenues, driven by strong demand for IMG content across our client base and continued growth in both our streaming and betting engagement products as well as odds and live data products despite slower growth from U.S. sportsbooks. We continue to capitalize on the revenue synergies related to IMG by leveraging this content across our global scale and integrating it further into our extensive product suite, and we fully anticipate exceeding the 25% synergy target we discussed last quarter. Managed Betting Services was down slightly in the quarter as increased turnover at Managed Trading Services was offset by unfavorable sporting outcomes, most notably during February on European soccer, which we expect to normalize over the course of the year. Moving to our other product group, sports content, technology and services products delivered revenues of $59 million, a decrease of 4% year-on-year, predominantly driven by reduced spending on marketing campaigns during the quarter and foreign currency headwinds, partially offset by media upsells to technology companies and increased contributions from Integrity services as we expand our league partnerships. The growth in the quarter was once again geographically broad-based with Rest of World revenue increasing 14%, while U.S. revenue was up 4% on a reported basis. Headwinds from foreign currency movements and to a lesser extent, the timing of marketing campaigns significantly impacted U.S. reported revenue, which would have increased approximately 17% on a constant currency basis. Turning to adjusted EBITDA. Our continued focus on cost efficiencies, along with our stable sports rights portfolio, delivered slight margin expansion in the quarter with adjusted EBITDA of $66 million, up 12% year-on-year. As anticipated, the IMG acquisition continues to be margin accretive as we scale the business and realize cost synergies in areas such as engineering, scouting, audiovisual production and personnel. Looking at the individual cost buckets, I will be speaking to adjusted expenses to provide a breakdown of the expenses that impact adjusted EBITDA. We have detailed in the earnings release and the financial section of the earnings presentation, the bridge from IFRS amounts. This past quarter, sports rights expense increased 18% year-on-year to $122 million due primarily to the addition of IMG. As we have said previously, all of our major rights deals are locked in long term. So we have significant visibility on sports rights costs moving forward, giving us high confidence in our ability to drive operating leverage as we capitalize on the value of our high-demand sports portfolio and the premium products we have developed for our global customer base. Adjusted personnel expenses were $84 million in the quarter, up 5% year-on-year, predominantly driven by the inclusion of IMG headcount with slower growth across our existing workforce even as we drive new growth opportunities. Importantly, personnel expenses continued to decline as a percentage of revenue, down 144 basis points versus last year as we further capitalize on efficiencies provided by technology advancements and focus resources on the most profitable growth opportunities. Adjusted purchase services were $46 million, up 5% year-on-year, primarily due to the inclusion of IMG as well as higher cloud spending. Overall, adjusted purchase services declined by 84 basis points as a percentage of revenue as we further leverage our existing infrastructure. Adjusted other operating expenses of $28 million in the quarter were up 16% year-on-year, with the increase predominantly driven by costs related to IMG. Overall, we continue to anticipate meaningful margin expansion over the long term, given the inherent scale we have in our business and our long-term cost visibility, including the benefits of sports rights being amortized on a straight-line basis. At the same time, we have recently initiated steps to further streamline our business and drive additional cost efficiencies. We anticipate these steps, which are expected to result in restructuring charges of between $13 million and $18 million during the remainder of the year, will drive additional operating leverage and optimize our organizational structure for sustained value creation. Looking at the full P&L, we generated a net loss for the quarter of $6 million versus a profit of $24 million in the first quarter a year ago as our operating growth year-on-year was offset predominantly by unrecognized foreign currency losses of $9 million, primarily associated with our U.S. dollar-denominated sports rights versus a gain of $28 million in the same period a year ago. Turning to the balance sheet. Sportradar remains in a very strong liquidity position, closing the quarter with $322 million in cash and cash equivalents and no debt outstanding. In the first quarter, the company generated free cash flow of $44 million, an increase of 38% from the first quarter a year ago, and we continue to convert more of each dollar of EBITDA into free cash flow as demonstrated by free cash flow conversion rate of 67% versus 54% a year ago. Looking forward, we continue to anticipate strong free cash flow growth for the full year and a conversion rate above last year's rate of 56%. Cash and cash equivalents declined $44 million from the end of 2025 as the strong free cash flow generation was offset primarily by share repurchases of $90 million during the quarter. Our priority with regards to capital allocation remains investing in the long-term growth of the company. However, given the significant discount between the current share price and the fundamental strength of our business, we believe there is currently no better use of capital than investing in Sportradar shares. Last quarter, the Board approved a significant increase in our share repurchase program, raising the total plan by an additional $700 million to bring the total authorization to $1 billion. This quarter, under this expanded authorization, the Board has approved a $250 million enhanced open market repurchase program with purchases to commence when our trading window opens and with the expected completion within approximately 3 months, subject to trading volumes. This reflects our conviction in the durable growth trajectory of our business and the multitude of value creation opportunities ahead. Turning to our expectations for the year. We are reaffirming our full year 2026 outlook. While there have been some short-term headwinds, there are also a variety of opportunities for the remainder of the year that we expect to capitalize on such as further IMG synergies, the prediction market ecosystem and global customer renewals. As such, we still anticipate constant currency revenue growth of 23% to 25%, which at current FX rates is expected to be between $1.56 billion and $1.58 billion reported. We expect to drive significant operating leverage on this revenue growth with adjusted EBITDA growth of 34% to 37% on a constant currency basis, which at current FX rates is expected to be $390 million to $400 million reported with approximately 200 to 225 basis points of margin expansion in 2026. As a reminder, we expect the strongest revenue growth to occur in the second and third quarters given the timing of sporting events and the inclusion of IMG content. Additionally, given the weakening of the U.S. dollar throughout 2025 at current currency rates, the FX headwinds will still be significant in Q2. Overall, we are very excited about the opportunities Sportradar has moving forward. The investments we have made in content, technology and products, along with an unmatched global customer base has us well positioned to deliver durable revenue growth as the market expands and additional opportunities arise. At the same time, we are becoming even more efficient with our cost structure and with strong visibility regarding sports rights, we fully expect to deliver significant margin expansion and further ramp free cash flow, delivering additional value for our shareholders in the months and years ahead. Thank you for your time this morning. And now Carsten and I will be happy to answer any questions you may have. Operator: [Operator Instructions] Your first question comes from Ryan Sigdahl with Craig-Hallum Capital Group. Ryan Sigdahl: Good to see positive business momentum despite some of those transitory impacts in the quarter. I want to start with marketing services just to dig in there because that was where most of the miss was versus ours and I think generally street expectations. But had been a good growth business. It was down 9% in the quarter. Can you talk about what specifically happened in the quarter? And if there's been a structural change in spend from your operator customers or if it was really a timing of spend? And then kind of along that lines, reiterating the guidance, but given that softer start to the year, what gives you confidence to reiterate that? Craig Felenstein: Sure. Thanks, Ryan. I appreciate the question. When you look at marketing services, listen, it's always been a very choppy revenue line item, right? It really depends on what operators want to do in any given quarter, and they can shift their spending, I would say, up to the last minute with regards to when they want to spend. Sometimes they keep it in the current quarter, sometimes they push it out and sometimes they don't spend at all. What I think happened in the first quarter is you did have some people pull back given some of the uncertainty in the space. And I think you also had some people who were saving some of their spend heading into the World Cup, which you could see come back in the second and third quarter. When we look at the marketing spend line for the full year, we still expect it to deliver really nice growth. Our ads business is in really healthy shape, and we know the value that we bring to our sportsbook partners and our iGaming partners, and we see a significant opportunity to grow this line moving forward. When you think about the guidance for the full year and what we expect, we do expect marketing services to grow definitely more in line with what it's done historically, excluding any onetime items. Some of the other things that we look at with regards to guidance for the full year that we are -- gives us confidence that we'll ultimately get to where we guided to at the start of the year, one would be the marketing that we just talked about. Two would be the continued success that we're seeing with IMG and how it's resonating with our customers. And the third and probably the biggest is we have really good sight lines right now, we think, with regards to some prediction market revenue opportunity that's going to happen in the predominant in the back half of the year. So those 3 things give us confidence that we're going to hit our guidance for 2026. Ryan Sigdahl: Helpful. Then for my follow-up, just given the recent news flow kind of over the past handful of days here. From our standpoint, there's a big difference between licensed gray market operators and black market illegal operators. Curious if you're willing to quantify and say with confidence what your revenue mix is for operators in black illegal markets. And then if there would be ways for those operators to get radar data without having a direct relationship with the company? And then kind of lastly, with that, how you think about licensed gray market operators? Carsten Koerl: Ryan, this is Carsten. The first point is the black market and the gray market, we do not work with black market operators. For the gray market, we have a solid compliance structure in place, and we only work with licensed operators. And the measurements which we apply here is a risk assessment and irrespective of licensing and jurisdictions, we support only business which has a license. The team is constructed out of legal experts, compliance and risk personnel together with external advisers. We take this very, very serious, and we are running a very rigid KYC process, which I think I explain later on. But maybe we jump now to the second part of your question to define what is the pocket sitting in this gray market. Overall, it is between low single digit to a mid-double -- sorry, it's a low to mid-single-digit number, so 5% to 12%, 13%. That's the range which we have, and we are drilling this down from our operational business. For this, I hand over to Craig that he can give you these numbers. Craig Felenstein: Sure. Thanks, Carsten. When you think, Ryan, about ultimately our revenues, obviously, we looked at -- come up with those numbers at a bottoms-up approach on a client-by-client basis. But let me talk to you a little bit about what is out there from an information that you guys can see, which can frame ultimately what this exposure could be. First, you have to look at our overall revenue. When you think about our overall revenue, there's really 2 big buckets. You have the betting technology and solutions part of our business and then the sports content technology and services part of our business. The sports content, technology and services part of our business makes up a little over 20% of our revenues, and that is certainly non-betting related. When you break down the other 78% of our business in the betting technology and solutions products, betting and gaming content and managed betting services are what make up that kind of product group. Within the betting and gaming content side of that, the primary exposure is from our data and odds business. The other products in this group are our fan engagement tools, which is predominantly made up of AV streaming, which is not related. Within the managed betting services part of our business, the primary exposure from that is from our MTS business. And when you think about kind of the pieces I just laid out that are exposed to potential gray markets, you're really talking about the data and odds business and the MTS business. And when you add those pieces together, you're talking about somewhere in the mid-40% of our overall revenues. Out of that mid-40%, you need to exclude the U.S. revenues, which are generated. And when you do that, the potential exposure gets reduced to somewhere in the mid-30% range. Then on top of that, there's obviously some large global providers that are in there. When you remove those out of the equation and you apply what I would say our public estimates with regards to what gray markets are, you can see that the math takes you back down to that low to mid-single-digit exposure with regards to gray markets overall. Operator: Your next question comes from Chad Beynon with Macquarie. Chad Beynon: Slide 8 was really helpful in terms of outlining the prediction market ecosystem. And Craig, you talked about the guidance includes some of that ramp in the back half. And Carsten, you said that there's really good conversations. Is there any other touch points that you can help us with just in terms of thinking about the ramp or which one of those constituents, FCM, DCM or market makers is the most important and where we could see some activity in the back half? Carsten Koerl: Chad, this is Carsten. So as you know, we got the green light from NHL, UFC, MLS and MLD that we can start the marketing here and we created services for this. So there are different needs, exchanges and market makers, they have a fundamental different need when it comes to the ultra-low latency data and video feeds. Market makers are interested in prediction models based on deep data, how can we forecast the next couple of seconds. This is really very important for them. Very different to online sports betting operators where you have a big importance on the result. It must be 100% right because it triggers a payout. For market makers, it stimulates liquidity in those directions. So we develop products meanwhile for serving this. So that was good for us that we have some time. If we're looking now to the exchanges, you know that we already have fan engagement tools and customer acquisition here, and we are speaking with all the players in the market. As Craig said, we are very confident that we will see very soon some bigger news and announcements around this. We think that the NBA is also thinking about prediction markets and how to enter. We are in close partnership with the NBA, as you know, and in enhanced conversations. So looking to the brokers, it's the segment where we have the customer acquisition, some visualization tools and of course, for both exchanges, we have the integrity services. If you look to the business model, what we are running here is pretty similar to online sports betting. So we have a fixed fee and a revenue share with a minimum guarantee, and that's at the moment in intensive negotiations. Chad Beynon: That's great. And then with respect to AI at the Investor Day last year, you guys outlined some of the opportunities on the product development side of things. Can you talk about additional AI implementations either on the revenue driving side or on the cost containment side given the restructuring? Carsten Koerl: We are on both sides. And as told in the last call, the engineering is a prime part of our business. We are one of the very first companies to set KPIs for the engineers, how they use the prompt and how they're working with it. It was leading already to a lead time reduction of 20%, and we are accelerating on this. We see excellent results from an engineering perspective. Operational-wise, more and more sports will be automatized. That's simply a trend. And we are doubling and tripling down to deploy AI and GenAI. Looking now into finance and legal, the opportunities are really big. So there are really things where we can accelerate client contracting processes for the different regions, and we are actively deploying this. We are training our people on AI, GenAI. We want them to use agentic agents. I think that's a job every company has to do. We said we want to be the front runner on this. Within this process, of course, we will see efficiency gains. We change structures and we change processes in the company to the benefit of being more efficient and delivering faster and better quality. Looking to the products, micro markets, Foresight, the foundation model and the Bettor Sense out product, which we developed, speaking very clearly on the deployment of GenAI and how we use this already with products. This is continuing, and we double and triple down on this. Operator: Your next call comes from Barry Jonas with Truist. Barry Jonas: Just curious since the reports came out if you've had any discussions with league partners or gaming regulators. Curious what the interactions there have been. Carsten Koerl: Barry, Carsten here. The feedback so far is overwhelming to me. I get a lot of support from all sites, our partners, our clients, the industry, some commissioners. And from a regulator perspective, we are in contact with some regulators on a very frequent base. Some of them contacted our teams, explaining them the situation, and that's an ongoing process. Overall, the response was for me overwhelming that I got so much support and feedback on the allegations. Barry Jonas: That's great. And then just a follow-up question on prediction markets. Given some of the ongoing U.S. state-by-state legal nuances, let's say, do you expect to have any limitations on the offerings for prediction market operators? Carsten Koerl: Asking me about this is really a tricky territory. There are so many cases ongoing. At the moment, we don't see limitations. That is something which we leave to the regulators figuring out the way here. What we can do is we are working hands-on and very quick on the best possible product to serve our partners on the prediction market. And our partners, as you know, can be also online sports betting operators, which are switching into this segment. So we are fully focusing on this, and we try to deliver here the best quality product. Operator: Your next question comes from Jeff Stantial with Stifel. Jeffrey Stantial: Maybe just starting off on the marketing business, you talked about this a little bit, but just curious to get your latest thoughts on sort of the cadence of commercialization of more of the user acquisition services to predictions, specifically, how material was this of a growth driver in Q1 as we think about Q2 and into the back half, have you been able to start to deepen relationships with the exchanges now that you seem to be spending on user acquisition quite aggressively? Just any sort of thoughts there on that process and how you see that playing out through the remainder of the year would be great. Craig Felenstein: Yes. Listen, I think as Carsten highlighted, and thanks for the question, we're still very early days, right? So we have done, I would say, some collaboration with the prediction markets as they ramp up, and we continue to do work with the traditional OSBs as they continue to potentially enter that space as well as grow their existing business. So I would say there's been some work in that space, but certainly not of scale compared to what is our traditional marketing business. Jeffrey Stantial: That's great. And then shifting over to the reports from last week in the 6-K that you filed this morning. So you talked about 3 types of customers, right, direct license B2C, licensed B2B and then noncustomers, but bad actors that are pirating the data illegally. That second cohort, the licensed B2B distributors, I just want to be clear, [ Craig ], the low to mid-single digits revenue exposure you talked about for unregulated, would this include B2B resellers that are selling into unregulated markets? I assume you have really no idea which markets that do sell into. So I would think no. And if the answer is no, can you just help us think about sort of how material those relationships are relative to your overall revenues? Carsten Koerl: Let me take the overall revenues because that might be a bit confusing before. So the bridge, which Craig did is, I think, pretty clear that the exposure here after looking into the areas of our business is roughly 45% of our business might be subject to exposure. And then Craig said that the U.S. business, which is 1/3 of this, that comes from managed trading services and from data and ops. These are the 2 components which are exposed. That 1/3 goes away. So we are sitting on 30%. And from this 30%, we are looking into our client base. The vast majority of our clients do not operate in unregulated markets, take a Flutter or take an Entain or take a FanDuel. We subtract this, and we are coming then down to a number which is low to mid-single digit. That's where we sit. In some cases, if you let now an AI system running through this, and of course, we did simulations with public market data, that might drop into the range of a maximum of 12%. We believe it's a low to mid-single-digit number of our total revenues, which are exposed. I hope that clarifies the situation. Operator: Your next question comes from the line of Shaun Kelley with Bank of America. Shaun Kelley: Maybe just high level, like looking at the quarter and the trends here. I don't know if you gave this, but could you give us a sense of -- turnover sounded like it was healthy, but obviously, there was an outcome-driven issue on the trading or betting side. Could you normalize for that at all and give us a sense of sort of what core might have looked at either on revenues or EBITDA had that not been the case? Craig Felenstein: Sure. When you look at our MTS business, Shaun, obviously, it is somewhat outcome dependent. That said, given the diversity that we have in our MTS business, you tend not to see too many fluctuations in a given quarter. But when you look at the growth that we delivered last year from an MTS perspective and you look at the growth has been, I would say, relatively consistently with regard to our MTS business here over the last several years, you're going to look for that growth to continue here as we continue to add clients, as we continue to grow the overall handle and as we continue to do well from an efficiency perspective. So I don't have any reason to believe that the historical growth rates will alleviate. At some point, you do start to face the law of larger numbers, but the trends in the business are very positive overall aside from the short-term outcomes. Shaun Kelley: Okay. And then maybe just higher level, could we just talk about some of the puts and takes that are in the outlook as it relates to where we stood a quarter ago and specifically kind of referring to the cost reduction program you mentioned and then sort of any incremental uplift for prediction markets or any sort of shift in timing on U.S. growth just as we kind of think about where maybe some of that marketing spend might show up. So just what's kind of changed as it relates to the remainder of the back half, more specifically, is the cost reduction program factored into EBITDA? Is that incremental? And then specifically on prediction markets, is there now a number baked in here that was either bigger or more material than what we had previously? Craig Felenstein: Sure. So let's break it down a little bit. So originally, when we gave our guidance a few months ago, there was a few things that have changed since then. First and foremost, the U.S. market growth is definitely slower than it was when we were speaking after our fourth quarter results. At that point, we also did not include anything significant from prediction markets in our results and IMG was at a certain level. What's changed since then is certainly the U.S. market, we think it's going to grow a little bit slower than we originally anticipated. We are including more from prediction markets. Carsten talked last quarter about the fact that we think on an annual basis, prediction markets can bring tens of millions of dollars to our ultimate results. We don't expect to generate all of that this year, but we certainly expect to generate some of that this year. And then IMG is continuing to perform better. We're seeing better cross-sell. We're seeing better upsell from IMG, and that will allow us to do better than our 25% revenue synergies than we originally thought. So when you layer all those things in together, you do get, I would say, revenue in the range that we expected. From a margin perspective, the cost-out initiatives that we're putting forth will have an impact. Obviously, we're sitting here at the middle of the year. So it's going to have less of an impact in the first half of the year and will be more of an impact in the back half of the year. But there is some savings factored in from a guidance perspective and a margin perspective in the back half of the year. And that's how I would frame it. Operator: Your next question comes from Mike Hickey with StoneX. Michael Hickey: Just a quick follow-up on the allegations here. One piece of it was that your sales team was uploading prospects from legal markets, sort of the [indiscernible] for everyone. Can you just specifically address that allegation, Carsten? And then I got a follow-up on Playradar. Carsten Koerl: Mike, can you please repeat the question? So there was a dropout in my line. Michael Hickey: Yes. Sorry about that. The part -- one wrinkle of the allegation was they had interviewed or they're acting as prospects -- prospective operators to your sales team at ICE. And I think we were saying they're from illegal markets and that your team was receptive to that, yes. Carsten Koerl: So you're speaking about the [ Sinch ] campaign, which was deployed at ICE on one of our salespersons. Now you need to know ICE is a gaming show with around about 60,000 spectators. The team is fully loaded with a lot of meetings. I think we had more than 4,000 meetings on this 2 days or 3 days of ICE. And this was deliberately done and the sales guy, a relatively young sales guy was [ teens ]. Of course, we did some interviews with him after this. And we know that he was picked for more than 2 hours. And those taking was, of course, not reflecting all his statements. That's the first point. But the second and much more important one is this is never a contract. So when a sales guy is selling something, there is a kickoff of a very intensive KYC process. That has the identification, the verification, the license verification against the regulator, the verification of a corporate filing and the register, which is in there. Then finally, running this through sanction list from all the available markets where we are acting. And then it goes to a final review of our legal counsel before a contract is signed. So this is far off from signing a contract, and this was a [indiscernible] campaign on a relatively young sales employee at ICE. No excuse on this, should not happen, but this was far off from signing a contract or teasing somebody into doing business in our legal markets. James Bombassei: Mike, we can't hear you. Operator: Yes, apologies. The last question dropped. The next question is from Trey Bowers with Wells Fargo. Raymond Bowers: First question, I guess, would just be on the guidance. Well, 2 questions on the guidance. One, just given the timing of when you provided the full year guide coming out of the fourth quarter, any thoughts about giving a specific Q2 guide this late in the quarter? It seems like potentially things really fell off pretty rapidly in March, given the timing of your guide and then ultimately the kind of the EBITDA production. And then for the full year, in terms of prediction markets versus kind of traditional OSBs, are you guys seeing that these 2 things are related? Do you feel like the prediction markets are kind of cannibalizing your OSB business and you're going to make up for it with the higher prediction market business? And I'll stop there. Craig Felenstein: I'll answer the guidance question, and then I'll turn it over to Carsten, who could talk about the prediction markets versus traditional OSBs. So Trey, obviously, we don't guide from a quarterly basis. We didn't guide to the first quarter, and we're certainly not going to guide to the second quarter. But what I would say is when you look at what happened in the first quarter, the biggest change from when we guided to ultimately when we reported was the, I would say, softness on the marketing line as well as some of the continued softness on the U.S. market being greater than we anticipated. So those 2 things obviously now have already baked into our results. And when you think about our guidance for the year, we're factoring those in. And certainly, we expect to deliver really nice growth during the second quarter from both a revenue perspective, but also from a bottom line perspective. Carsten Koerl: Good. Taking the second part with the cannibalization. Well, first, we see that now more people have the opportunity to place their opinion, if I phrase it in this way, on a prediction market in California or in Texas or in Florida. So that is a big population, which can now get an opinion on a sport event and monetize on this. That is in principally an expansion of the TAM. We might also discuss there is a TAM expansion because the age is dropping to 18. That's at the moment what we see. So we see that this additional market access is by far outpacing whatever cannibalization effect is in there. What I can tell you from talks with the CEOs of our clients is that the cannibalization is pretty small here. So looking to this, we see an outpacing TAM. We see an expansion opportunity for us, and this is something which excites us. Raymond Bowers: And then if I can just follow up, there's -- included in these reports we saw last week is the idea that all of the profits of the company are generated from kind of Tier 3 and 4 leagues that are arguably more ripe with kind of integrity issues. Can you guys just speak to that? Are the primary leagues still major profit centers? And is that a founded accusation? Carsten Koerl: Yes, of course, it's an unfounded acquisition. And looking into our partners and the leagues where we monetize 30% of our complete revenue streams is AV, predominantly AV is dedicated to the Tier 1 leagues. Our [indiscernible] investment, which we have there, the partnerships and the products which we develop. By the way, AV is in this allocation, I think, no way disputed. So we have a geo ring-fencing on this. Our partners are telling us where we can play out AV screens and how we can play out those AV screens. So it's in no way that the majority of our revenues and profits are tied to this. This is purely unfunded allocation. Operator: Your next question comes from Robin Farley with UBS. Robin Farley: Just on the prediction markets commentary, I wanted to clarify, you mentioned you expect some revenue now in the second half. But would the timing of an announcement be before then? Just it sounded like the discussions are a little more near term than that. And then just to understand whether or how much that could add to guidance. It sounds like maybe since the last quarter's call, even though your full year guidance is unchanged, that there maybe is some prediction market revenue now in that guidance. I'm just trying to get a sense of when we see announcements, would certain leagues be additive to your current guidance levels, just kind of so we can think about what that could mean when we see that announcement. Carsten Koerl: Well, without putting too much speculation out and Robin, so the talks which we have with all the players in the prediction markets are pretty intense. We are doing this now since a couple of weeks. We are very optimistic that we soon have something to announce, which is for us important that we have the right framework in place with the players. The same goes for the market makers, but one somehow needs the other. So that's the debate which we currently do with many, many parties in this space. And of course, we are also in discussions with our partners on the league side, which are deploying the [ errors ] of official data. This goes on now for a couple of weeks, like I said, we think that the discussions are on a very mature stage. There is nothing to announce now, but we believe soon, we can announce something. And I went over maybe to the impact to you, Craig. Craig Felenstein: Yes. Just -- and Robin, what I would add in terms of the magnitude of the impact really depends on what ultimately gets done. And Carsten referenced that we're talking to a variety of players from all facets of the prediction market ecosystem, whether it be the brokers, whether it be the exchanges, whether it be the market makers. If anything that happens in, what I would say, short term gets announced, you can pretty much assume that, that was included in our estimates for the year. Anything that gets done a little bit later, you can assume is additive on top of that because we're only including in stuff that we feel pretty confident we will get done here in the short term. Robin Farley: Okay. Great. That's very helpful. And then just a follow-up question on the results, if you could just help us quantify, it sounds like the revenue is in line with expectations from a constant currency perspective. But typically, your EBITDA grows more than your revenue growth sizably more. So can you just quantify in any way how much was maybe sport outcomes how much was FX? And then if there's anything else you'd call out that for that difference in this quarter? And then including, I don't know if you said sports rights increase, excluding IMG. Craig Felenstein: Yes. Listen, I think we broke it down a little bit earlier. What I would say is if you look at the revenue growth in the quarter, we delivered 11% revenue growth. We indicated that the FX impact to that would have been closer to 16% had it not been for FX. And I think that was the biggest, I would call, headwind during the quarter. And a lot of that does fall down to the bottom line. The EBITDA growth would have been certainly larger without the FX. So other than that, the components that we talked about in the quarter, we delivered margin expansion in the quarter despite the revenue coming in a little lower than we traditionally have delivered. And I think that speaks to our ability to control costs and our ability to manage our business as revenues fluctuate up or down. Operator: Our next question comes from the line of Sam Nielsen with JPMorgan. Samuel Nielsen: Just following up on that last point of the 5-point FX headwind in the quarter. If I recall correctly from your last call, 1Q is expected to be the largest headwind for the year. So how should we kind of think about the cadence of these FX headwinds as we go through the balance of the year? Craig Felenstein: Yes. So for the most part, it should shake itself out after the second quarter. So if you look at what happened with the FX rates in the 2025, the U.S. dollar weakened throughout the year, right? So certainly, in the third and fourth quarter, you're lapping an already weak U.S. dollar. In the first and second quarter, you are not. The impact in the second quarter should not be as great as it was in the first quarter, but it still should be material with regards to the growth rate overall. Samuel Nielsen: Makes sense. And then following up on the prediction markets topic and maybe looking kind of broader picture. Obviously, it's early, but wondering if you kind of see a bigger revenue opportunity for Sportradar in the data and betting segment or within the advertising segment at maturity? Carsten Koerl: The clear answer is we see it in both segments. So in the advertising segment, those guys are sitting quite on some funds that they want to grab market shares. That's a good thing for a provider like us. Same goes now on the downside pressure for online sports betting. So we expect for the World Cup a material uplift on marketing and investments in this. So that's a good opportunity for us. But there is a big opportunity on the data and especially on the ultra-low latency data, server colocation, et cetera [indiscernible] , which we are actively following up with the operators. James Bombassei: Operator, we have time for one more question. Operator: Your last question comes from the line of Clark Lampen with BTIG. William Lampen: I've got 2 follow-ups, if I may. Maybe going back to, I guess, third question on some of the KYC detail that you put out this morning, which was very helpful. I think in one of the passages, you talked about enforcement and verification responsibility potentially being placed on the intermediary. Is it right to think that if something -- if there's a negative event that, I guess, impacts revenue for some portion of the sort of 3% to 12% that you dimensionalized before, is the recourse ultimately with the B2B partner and not really with radar? Is it right to sort of think about it in that context? And then Craig, just, I guess, another guidance question. You talked about global customer renewals. Could you give us a sense for when you will start to begin the renegotiation or renewal process with some of your partners and whether there's anything baked into guidance for this year in terms of upticks? Carsten Koerl: I will go on the first part. So let me use another company sample here. We all know Bloomberg. Bloomberg is working predominantly on the terminals with hedge funds and banks. That's the business model. So the data is delivered there, also some of the products. So that's a B2B business. Some of those partners are sublicensing the content. They apply a KYC, same like we apply it with highest market standards. So it can be always happening to Bloomberg, but also to us that some of this content is stolen, and I explain to you later on how this is done. But it happens to everybody who is in this space, and you have to have methods and mitigation methods in place, how you figure this out. What is the fact is that the regulators are scrutinizing the operators in Bloomberg example, the banks. If there is a bank which is failing or a fund which is failing, it is not Bloomberg. It is the banks. Looking now to our split, the B2C is something where we apply the intensive KYC. That's what we also do with B2B operators. But the B2B operators, in our case, they have some syndications. And sometimes we are not aware of this. So some of them might also act without our agreement on this one. And we have this. As soon as we see this, we shut it down. There was one case in 2023, where an operator was exposing in Iran some content. We got aware of this. We shut it down immediately. This is now used all allegations to put us in this credit and to somehow look into the direction that they have a financial profit. But that is the scheme which we have in place, and we indeed have piracy. So Sportradar is probably most of the most attacked company when it comes to sport data and piracy. Our data is scrapped, is redistributed without our knowledge, our ideas and the client ideas can be reengineered. And yes, the very important fact here is we speak predominantly around about 90% of this content where there is a Java code on a web page about live match trackers. I don't know if everybody knows what it is, but this is a live score for a sport. That's it. So it's not a betting functionality. It's an information tool about the score, a league table, live score, which is in there or a halftime score or a full-time score. That is what the tracker is transporting. I hope I answered the first part of your question. Craig Felenstein: Yes. And with regards to the second part of your question, listen, I think the global customer renewals is actually something that happens on a regular course of business for us. So when you think about our company, about 2/3 of our revenue are fixed fee, 1/3 are variable out of the 2/3 that are fixed. Traditionally, about 1/3 comes up every single year, and that's not obviously on January 1. It comes up throughout the course of the year. And we have some renewals here that are coming up throughout the rest of the year that we think that there's some additional opportunities for, which can help us get additional revenue and capture additional share of wallet from some of our customers as we deliver them more value. So that is ultimately some of the upside that we see in the back half of the year as well. James Bombassei: That ends our first quarter call. Thank you, everyone. Now I'll turn it back over to the operator. Operator: This concludes today's call. Thank you for attending. I will now turn the call back to Jim for closing remarks. James Bombassei: Operator, with that said no closing remarks, we'll end the call. Thank you. Operator: Perfect. You may now disconnect. Thank you for attending. Before you buy stock in Sportradar Group Ag, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sportradar Group Ag wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Sportradar Group Ag. The Motley Fool recommends the following options: short May 2026 $22.50 calls on Sportradar Group Ag. The Motley Fool has a disclosure policy. Sportradar (SRAD) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: EUR347 million, an 11% increase year-over-year. Adjusted EBITDA: EUR66 million, with a margin of 19%. Free Cash Flow: EUR44 million, a 38% increase from the previous year. Cash Conversion Rate: 67% in the quarter. Betting Technology and Solutions Revenue: EUR288 million, a 15% increase year-over-year. Sports Content, Technology and Services Revenue: EUR59 million, a 4% decrease year-over-year. Net Loss: EUR6 million, compared to a profit of EUR24 million in the previous year. Cash and Cash Equivalents: EUR322 million, with no debt outstanding. Share Repurchases: EUR90 million during the quarter. Full Year Revenue Growth Outlook: 23% to 25% on a constant currency basis. Full Year Adjusted EBITDA Growth Outlook: 34% to 37% on a constant currency basis. Warning! GuruFocus has detected 4 Warning Signs with SRAD. Is SRAD fairly valued? Test your thesis with our free DCF calculator. Release Date: April 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sportradar Group AG (NASDAQ:SRAD) reported Q1 revenues of EUR347 million, marking an 11% increase year-over-year, driven by strong performance in betting and gaming content. The company generated an adjusted EBITDA of EUR66 million, translating to a margin of 19%, with a strong free cash flow conversion rate of 67%. Sportradar has expanded its sports coverage, expecting to stream over 700,000 matches globally in 2026, up from 525,000 matches last year. The company has successfully integrated IMG content into its core product suite, with more than 75% of core betting clients consuming IMG content. Sportradar announced a $250 million enhanced open market repurchase program, reflecting confidence in the company's long-term growth prospects. The company faced headwinds from foreign currency movements, impacting revenue growth, which would have been 16% on a constant currency basis. Managed Betting Services saw a slight decline due to unfavorable sporting outcomes, particularly in European soccer, affecting trading margins. Marketing services revenue was down 9% in the quarter, attributed to operators pulling back spending and timing of marketing campaigns. Sportradar addressed allegations from short sellers, which aimed to drive down the company's stock price, emphasizing their robust compliance framework. The US market growth was slower than anticipated, impacting the company's revenue expectations for the year. Q: Can you explain the decline in Marketing Services revenue and your confidence in maintaining full-year guidance despite this? A: Craig Felenstein, CFO: Marketing Services revenue can be volatile as operators adjust their spending. Some operators pulled back due to uncertainty, while others saved for the World Cup. We expect growth in Marketing Services for the full year, driven by our strong ads business and opportunities in prediction markets, which should support our full-year guidance. Q: Can you clarify your exposure to black and gray market operators and how you manage compliance? A: Carsten Koerl, CEO: We do not work with black market operators and have a robust compliance framework for gray markets, working only with licensed operators. Our exposure to gray markets is estimated to be in the low to mid-single digits of our revenue. We have a strict KYC process to ensure compliance. Q: What is the status of your discussions with prediction market players, and how do you see this impacting your business? A: Carsten Koerl, CEO: We are in advanced discussions with exchanges, market makers, and brokers in the prediction market space. We expect to announce agreements soon, which will diversify our customer base and expand our market opportunities, contributing to revenue growth in the second half of the year. Q: How are you utilizing AI to drive growth and efficiency in your operations? A: Carsten Koerl, CEO: We are leveraging AI across engineering, operations, finance, and legal to improve efficiency and reduce lead times. AI is also being integrated into our products, such as micro markets and foresight models, to enhance our offerings and drive innovation. Q: How have league partners and regulators responded to recent allegations against Sportradar? A: Carsten Koerl, CEO: The response from partners, clients, and regulators has been overwhelmingly supportive. We maintain regular contact with regulators and have explained the situation, reinforcing our commitment to integrity and compliance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.