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.
IMG ARENA integration supports content growth
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.
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.
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.
Prediction markets emerge as a new growth channel
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.
iGaming rollout and cost actions
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.
Guidance revised amid market headwinds
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.
About Sportradar Group (NASDAQ:SRAD)
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.
