Sportradar, a sports data and betting technology provider, announced its second quarter revenue for 2026 at 377.8 million euros, a 19% increase year-over-year but below market expectations; adjusted earnings per share were zero and full-year guidance was lowered, causing the stock price to drop by 17.9% and hit a 52-week low at one point.
Growth did not meet capital market expectations
Analysts had previously estimated revenues of about 381.9 million euros and adjusted earnings per share of 0.06 euros. The company actually recorded a net loss of 4 million euros, compared to a net profit of 49 million euros in the same period of 2025, and the stock price significantly fell from the previous close of 14.54 USD after the earnings report.
Exchange rate fluctuations drag on net profits
The company confirmed an unrealized foreign exchange loss of 9 million euros this quarter, compared to an unrealized gain of 54 million euros in the same period last year, mainly involving sports rights priced in USD. The divergence between revenue growth and accounting profits reflects the magnifying effect of cross-currency rights contracts on financial statements.
Betting technology core business still maintains double-digit growth
Betting Technology & Solutions revenue was 313.6 million euros, up 21% year-over-year; including a 27% growth in betting and gaming content. Sports Content, Technology & Services revenue was 64.2 million euros, up 8.8%, but sports performance business declined by 13% due to exchange rate impacts.
Cash flow and adjusted profits remain positive
Adjusted EBITDA grew 19% year-over-year to 76.3 million euros, with the profit margin slightly increasing from 20.1% to 20.2%; operating cash flow grew 20% to 117 million euros, and free cash flow was 59 million euros, indicating that cash generation from operations was better than net profit performance.
Full-year revenue and EBITDA guidance both lowered
The company lowered its full-year revenue forecast from 1.56 billion to 1.58 billion euros to 1.518 billion to 1.533 billion euros, and adjusted EBITDA expectations from 390 million to 400 million euros to 360 million to 368 million euros, significantly narrowing growth expectations.
Sports rights costs become a focus for future observation
Sports rights expenses increased by 29.7% year-over-year to 137.8 million euros, compounded by slowing growth in the US and exchange rate pressures. Investors need to distinguish between short-term exchange rate changes and content cost structures, and observe whether IMG ARENA's rights portfolio can enhance monetization efficiency through more customers and products.
————
This article is from "PASA-Global iGaming Leader" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
