Genius Sports Limited 2026 Q2 Earnings Call

Please go ahead. Good morning, thank you for joining.

Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecast. We assume no responsibility for updating forward-looking statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our annual report on Form 20-F, filed with the SEC on March 17th, 2026. During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius's operating performance. These measures should not be considered in isolation or as a substitute for Genius's financial results prepared in accordance with the US GAAP.

A reconciliation of these non-GAAP measures to the most directly comparable US GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.geniussports.com. With that, I'll now turn the call to our CEO, Mark Locke.

Thank you, good morning, everyone. Before we get into the quarter, I want to step back for a moment. Genius is becoming the operating system of modern sport. We own the official data, the technology, and now the audience that regulated sports ecosystems run on. As we bring these capabilities together on one platform, they reinforce each other. As AI becomes more powerful, the value of our data only increases. Since announcing the Legend acquisition in February, we have told the market consistently that success would be shown, not told. This quarter is the first real look at that combined platform in action, and it delivered. Three takeaways today. First, we delivered on every single line of our guidance. Revenue of $196 million, up 65% year-over-year and ahead of our guidance. Adjusted EBITDA of $53 million, well ahead of the $45 million we guided.

Cash came through our seasonal low point ahead of the range that we set out last quarter. Revenue, adjusted EBITDA, and cash all ahead. Second, this quarter gives you a flavor of the margin profile that this business is built to deliver. Strong underlying profitability accelerated by the addition of Legend and synergies that we are already realizing in the early stages of integration. The combination of the businesses is doing exactly what we said that it would. Third, we sit at the center of the two things that this whole market is chasing, official data and live high intent audiences. In a world that's being reshaped by AI, that position is worth more, not less. It is already showing up in real deals. Let me take each in turn and then Bryan will take you through the numbers. Revenue was $196 million, up 65%.

Betting grew 28%. Our media business, which now includes Legend from the 1st of May, grew 193% as reported. Our $11 million revenue beat in Q2 flowed through to an $8 million EBITDA beat, aided by the strong natural operating leverage in our business model, ramp of GeniusIQ, and the initial Legend synergies, which, as we will discuss in a bit, are just getting started. We outperformed across both betting and media, which now includes Legend. First, the core betting business continues to progress. We serve over 500 sportsbook brands across regulated markets. More than half our revenue comes from outside of the U.S. Net revenue retention remains consistent with the range we share annually. Year after year, our customers spend more with us because our data and products only get more central to how they operate.

Our 28% year-over-year growth comes in a quarter of customer-friendly results across sport. Championship runs, star players scoring, the kind of outcomes that typically result in lower win margins for sportsbooks. Our business model is built differently. Our revenue is not driven by which way the ball bounces. We are paid on contractual guarantees and volumes across both sides of the house, we continue to grow despite that operating backdrop. That is what durable growth looks like. In fact, in a sports betting ecosystem which has shown volatility, our betting segment has delivered over 25% revenue growth in each year since 2023 and is on track to do the same this year. Again, that is what durable growth looks like.

In addition to our outperformance in betting, we have also outperformed in media, reflecting continued momentum across our existing media business, driven by new brand and agency customers, increased spend, and strong demand from prediction market operators. This performance was further strengthened by the addition of Legend. The market is shifting in the direction of the business that we have built. At Cannes Lions a few weeks ago, the industry's loudest conversation was live sport, one of the last places that a brand can reach a large, emotionally engaged audience at scale. Genius is now a well-known name at Cannes because we own the data layer underneath that attention. This gives us a unique view of sports fans. Our data does not just tell us who the sports fans are, it tells us how they behave during key moments.

As an example, it tells us that consumers spend 25% more on food delivery when their team loses. Ahead of the NBA Finals, we knew the Knicks fans spent 7 times more on live entertainment than Spurs fans. While Spurs fans are 3 times more likely to be fishing enthusiasts. Our biometric research with MediaScience has showed that an ad served immediately after a heightened moment in live sport can double unaided brand recall. Those aren't just interesting data points, they're signals that brands can act upon. Our advantage is the data layer behind the Moment Engine. We don't just help brands reach sports fans, we help them reach the right fans at the right moment with the right message. That's the difference between buying impressions and delivering outcomes. We're proving this value as more brands buy in.

On our last earnings call, we told you that we had won roughly 70 new customers since launching the Moment Engine in March. In Q2 alone, we've added 174 new customers, including major brands like McDonald's, YouTube TV, and DoorDash, who are shifting spend to our platform. This is not sponsorship. It is measurable attention sold on our own data. The World Cup showed exactly what that looks like in practice. Take the example on the screen. Argentina's comeback against Egypt was one of the defining moments of the tournament. Using GeniusIQ data, we not only tracked what was happening on the pitch, but what millions of fans were likely to be feeling as that match unfolded. That allowed brands to adapt their ad campaigns in real-time, aligning spend and creative with the moments that mattered most. That wasn't a one-off. We executed this throughout the tournament.

One global consumer brand used GeniusIQ to activate campaigns around goals, penalties, VAR decisions, and other pivotable moments. The result was roughly 3 times greater CPM efficiency than planned, and the lowest cost per click of any campaign that they ran during the World Cup. That is the opportunity. Official data is no longer just telling you what happened. It's helping brands to decide what to do next. While the World Cup was a great showcase of what our products can deliver, we expect this to scale across the entire sports calendar. As a result, Genius is in the middle of conversations that we simply were not in 12 months ago. We are serving as a strategic sports partner to agencies, we are integrating with established ad tech businesses. Brands are telling us our data is some of the most important infrastructure in their programmatic campaigns.

We're only just beginning. This season, we expect to bring the Moment Engine capabilities to the NFL-related media activations, extending into one of the most valuable media properties in sport and unlocking another avenue for long-term growth. Underneath both the growth and the margin sits product. GeniusIQ turns our official data into faster, more automated, higher value products, and it is a direct driver of the margins that you're seeing and will continue to see. These are still very early days. Our single connected platform is creating value across every point of the sports ecosystem. One platform, endless solutions. Every new capability we build creates another way to monetize the same infrastructure. Broadcasters like DAZN are using it to make live sport more immersive. Brands like Amazon and Enterprise are using it as real-time sponsorship opportunities during heightened moments of the match.

Analysts at Sky Sports are using it to deliver rich insights and analysis. Leagues like CBF and Liga MX are using it to make fast, accurate, and transparent officiating decisions. While these are different use cases, they all point to the same simple objective. GeniusIQ is turning official data into products that make sport more valuable for every participant in the ecosystem. This is the operating system of modern sport. Now to Legend and the synergies specifically, because this is the part that I want you to hear clearly. Legend is one layer in the Genius system, the demand layer, sitting alongside our data and our technology. It brings a durable owned audience, roughly 118 million users, two-thirds of whom return, and customers acquired through Legend carry around 60% higher lifetime value for operators after their first year. Those audience characteristics aren't just theoretical.