Genius Sports (GENI) Earnings Date & Reports

Key Takeaways

• Group revenue rose 62% year over year to $270 million, topping management guidance of $260 million and beating consensus estimates of roughly $260.9 million.
• Genius Sports posted its first-ever quarter of positive GAAP (Generally Accepted Accounting Principles) operating income at $10 million, a $36 million improvement from the prior-year period.
• Group adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed about 156% to $87.1 million, exceeding guidance of $85 million and expanding margin to roughly 32%.
• The company generated $54 million in free cash flow, a 61% conversion rate from adjusted EBITDA, as it emphasized cash generation as a core performance metric.
• GAAP net loss narrowed to $15.7 million, or $0.06 per share, an improvement from a $0.11 loss per share a year earlier, though the figure fell short of consensus EPS (earnings per share) expectations.
• Full-year 2026 guidance was raised, with revenue now expected between $1.015 billion and $1.035 billion and adjusted EBITDA between $287 million and $297 million.
• For more detail on the company's Major News, Today's Price Move, Price Targets, and Forecast, explore these additional pages for deeper context on GENI.
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Earnings Context and Why It Matters

Genius Sports' third-quarter results mark a pivotal moment for the sports data and technology provider. This was the company's first full quarter as a combined business following its roughly $1.2 billion acquisition of Legend, a deal that initially pressured the share price earlier in 2026. The report offered investors their first clear look at whether the integration could deliver on its promise of revenue synergies and accelerating cash generation. With betting revenue proving resilient and the media segment scaling rapidly, the quarter served as a critical test of management's thesis that the combined business could convert strong top-line growth into sustained profitability and meaningful free cash flow.

Reported Results

Genius Sports reported third-quarter group revenue of $270 million, up 62% year over year and above its guidance of $260 million. Betting technology revenue grew 33% to approximately $153 million, while media technology revenue surged 126% to about $117 million, driven largely by the Legend acquisition and adoption of the company's Moment Engine advertising product.

Group adjusted EBITDA reached $87.1 million, up about 156% year over year and ahead of the $85 million guided range. The adjusted EBITDA margin expanded to roughly 32%, up about 12 percentage points from the prior-year period. Notably, the company generated $54 million in free cash flow, representing a 61% conversion rate from adjusted EBITDA.

On a GAAP basis, Genius Sports reported operating income of $10 million — its first positive quarter of operating income — while net loss narrowed to $15.7 million, or $0.06 per share, compared with a $0.11 loss per share a year ago. Revenue beat consensus estimates of about $260.9 million, but the GAAP loss per share came in below analyst expectations of roughly breakeven.

Management also raised its full-year 2026 outlook, now projecting revenue of $1.015 billion to $1.035 billion and adjusted EBITDA of $287 million to $297 million, up from prior guidance of $1.005 billion to $1.025 billion and $285 million to $295 million, respectively.

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Market Reaction and Investor Sentiment

Heading into the report, investor attention was firmly fixed on two themes: whether the Legend integration would justify its purchase price and whether the business could demonstrate real cash-generating power. The strong revenue and adjusted EBITDA beats, combined with the free cash flow milestone and raised full-year guidance, addressed those concerns directly. However, the GAAP loss per share landing below consensus tempered enthusiasm, reflecting the ongoing costs associated with the acquisition, including higher interest expense from the $825 million term loan used to fund the deal. The stock closed at $7.01 ahead of the report, down roughly 7.6% over the prior three months, underscoring the market's wait-and-see posture entering earnings.

Forward Outlook and Key Factors to Monitor

Management now expects to end 2026 with approximately $260 million in cash and targets reducing net leverage to roughly 2.0 by year-end, signaling a clear priority on debt repayment following the Legend acquisition. Investors should watch whether the company sustains its free cash flow conversion rate as interest costs normalize and data rights expenses moderate as a percentage of revenue.

On the revenue side, the betting business remains anchored by contractual minimum revenue guarantees, which management says cover roughly 70% to 80% of that segment's revenue, providing a stable base. The media segment's momentum will depend on continued advertiser adoption of the Moment Engine, where growth could prove uneven as spending patterns evolve.

The prediction markets category — including partnerships with Kalshi and Polymarket and the launch of Prediction.com — represents a significant growth opportunity, though its regulatory landscape remains fluid. Management has reiterated its long-term 2028 targets of 35% adjusted EBITDA margin and at least 60% unlevered free cash flow conversion, providing a framework for evaluating execution in the quarters ahead.

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