Genius Sports posts first quarter of operating profit as revenue jumps 62%

Genius Sports Limited has reported group revenue of $270 million for the third quarter of 2026, up 62% year-on-year and ahead of its $260 million guidance. The company also posted income from operations of $10 million, its first quarter of positive operating income, marking a $36 million improvement on the prior year.

Group net loss narrowed to $16 million, a $13 million improvement year-on-year, helped by a drop in stock-based compensation. Group adjusted EBITDA came in at $87 million against guidance of $85 million, with margin expanding by roughly 12 percentage points to 32%.

The company generated $54 million in free cash flow, a 61% conversion rate, and $69 million in unlevered free cash flow, an 80% conversion rate.

Segment performance

Revenue from Betting Technology, Content & Services rose 33% year-on-year to $153 million, attributed to price increases on contract renewals, expanded value-add services and growth in existing markets. Media Technology, Content & Services revenue climbed 126% to $117 million, largely driven by the Legend acquisition.

Business developments

During the quarter Genius Sports partnered with prediction market platforms Polymarket and Kalshi to supply content, integrity services and marketing solutions, and launched its own platform, Prediction.com. It also implemented Semi-Automated Offside Technology for Brazil’s CBF, formed a sports media venture with NBA player Chris Paul and Words + Pictures, and struck a broadcast enhancement partnership with TelevisaUnivision for Liga MX coverage.

After the quarter closed, the company partnered with X to link NFL Gametime with official NFL data, and extended its offside technology partnership with the Argentine Football Association.

Outlook raised

Genius Sports lifted its full-year 2026 guidance to group revenue of $1.015 billion to $1.035 billion and adjusted EBITDA of $287 million to $297 million, up from previous guidance of $1.005 billion to $1.025 billion in revenue and $285 million to $295 million in adjusted EBITDA. The company expects to end the year with a cash balance of approximately $260 million, implying more than $100 million of free cash flow in the second half of 2026.

Founder and CEO Mark Locke said the quarter’s cash generation reflected the performance the company’s model was built to deliver, citing its betting business, media capabilities and prediction markets opportunities, alongside additional commercial value from the Legend acquisition.