Genius Sports Limited announced second-quarter financial results that surpassed its prior outlook. The company reported revenue of $196 million, representing 65% growth compared to the prior year, and adjusted EBITDA of $53 million, which exceeded the company’s guidance of $45 million. The adjusted EBITDA margin reached 27%, more than 250 basis points above what guidance had implied. Co-Founder and CEO Mark Locke attributed the strong performance to early synergies from the Legend acquisition, which closed on May 1, the ramp of GeniusIQ products, and continued expansion in the media business.
Revenue growth during the quarter was distributed across multiple business segments. Betting revenue increased 28% year over year, while media revenue rose 193% as reported, with the media growth including Legend’s contribution from its May 1 addition. The company noted that both the legacy Genius business and Legend Media achieved organic growth exceeding 20%. Genius serves more than 500 sportsbook brands in regulated markets and generates more than half of its revenue outside the United States. The company’s betting revenue model relies on contractual guarantees and volumes rather than game outcomes, allowing it to grow despite customer-friendly sporting results that can pressure sportsbook margins.
The Legend acquisition added approximately 118 million users to Genius Sports’ audience base, with about two-thirds returning regularly to the platform. Management indicated that customers acquired through Legend demonstrate approximately 60% higher lifetime value after their first year compared to other acquisition channels. The company completed the first phase of audience-data integration and began deploying Legend properties as media inventory, with cross-selling across the combined customer base underway. Additionally, Genius signed direct commercial agreements with Kalshi and Polymarket covering official data, customer acquisition, and related services.
For the full year 2026, Genius raised its guidance. The company now expects revenue between $1.005 billion and $1.025 billion, with adjusted EBITDA projected at $285 million to $295 million and an adjusted EBITDA margin of approximately 29%. At quarter-end, Genius held $155 million in cash and carried $825 million in debt from the Legend acquisition financing. Management emphasized that its 2026 guidance does not assume NFL approval for prediction markets and does not expect such approval in the near term or during the current season. The company expects to exit 2026 at approximately two times net leverage.
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