Genius Sports media revenue more than doubles in Q3

• Q3 revenue climbs 62% to $269.9m against $260m guidance
• Free cash flow reaches $53.6m, up from $3.3m a year earlier
• Full-year revenue guidance rises to between $1.015bn and $1.035bn

Genius Sports reported its first-ever quarter of income from operations on 5 November, beating its own forecasts for Q3 revenue and adjusted EBITDA.

The sports data supplier also raised its 2026 outlook for the third quarter in a row, helped by its purchase of digital sports and gaming media network Legend.

Where growth came from

Group revenue was $269.9m for the three months to 30 September, up 62% on a year earlier, according to its Q3 results. Genius had guided to about $260m.

Most of the increase came from media. Revenue in the Media Technology, Content & Services segment rose 126% to $116.9m, which Genius put down mainly to Legend.

Genius completed the purchase in May. The deal is valued at up to $1.2bn: $900m paid at closing, plus an earnout of up to $300m linked to profit and cash flow targets.

The betting business grew 33% to $153.0m. Genius said higher prices on renewed contracts, extra services and growth in existing markets drove the increase.

Its trading models also delivered record market availability at this summer’s World Cup. In-play markets stayed open more than a minute longer per match than at any previous major international tournament.

Mark Locke, Founder and CEO of Genius Sports, said:

“Legend is also creating additional commercial value, and we are seeing the benefits of our combined scale. Our strategy is working, and we are well positioned to deliver sustained growth, profitability and free cash flow.”

Profit and cash flow

Genius made $10.4m from its operations in the quarter, against a $25.6m operating loss a year earlier. The company called it its first-ever quarter of income from operations.

Adjusted EBITDA, the earnings measure Genius uses to track its core business, reached $87.1m against guidance of $85m. That equals about 32 cents of every revenue dollar, up from 20 cents a year ago.

Free cash flow came to $53.6m, compared with just $3.3m a year earlier. That is the cash left after running the business and investing in software and equipment.

Locke said:

“This quarter’s $54m of Free Cash Flow demonstrates the cash-generating power of the combined business and reflects the performance we always believed our model could deliver. Our predictable Betting business, expanding Media capabilities and growing opportunities in prediction markets position us to capture greater value from the data, technology and infrastructure we have spent 25 years building.”

Genius still posted a net loss, though a smaller one: $15.7m, down from $28.8m. Lower stock-based pay helped, falling $10.7m to $15.2m in the quarter.

Paying for Legend

The deal has added debt. Genius received $825m in loan proceeds this year, having said in February it planned to fund the purchase with an $850m term loan.

Interest costs rose to $19.1m in the quarter, from $0.1m a year earlier.

At 30 September, Genius owed $746.1m in long-term debt plus $41.3m due within a year. Cash stood at $206.5m, down from $280.6m at the end of 2025.

Its accounts also carry $202.5m in contingent consideration, the accounting value of future payments tied to the acquisition. Over the first nine months of the year, free cash flow is still negative at $136.2m.

Prediction market deals

During the quarter, Genius signed partnerships with Polymarket and Kalshi, which it describes as the two leading prediction market platforms. The deals cover content, integrity services and marketing. Rival Sportradar signed its own data deal with Kalshi in June.

Genius also launched Prediction.com, a site for comparing probabilities, event contracts and insights. According to an Investing.com analysis, the Kalshi and Polymarket agreements focus on football, including the Premier League, Serie A and Liga MX.

Its other football work in the quarter included Semi-Automated Offside Technology for Brazil’s CBF. Genius also added in-game data and sponsorship slots to TelevisaUnivision’s Liga MX broadcasts.

The year-end target

Genius now expects 2026 revenue of $1.015bn to $1.035bn, up from $1.005bn to $1.025bn. It raised adjusted EBITDA guidance by $2m at each end, to $287m to $297m.

It also expects to end the year with about $260m in cash. Genius says that means more than $100m of free cash flow in the second half, so at least $46m still has to come in during Q4.

Prediction markets carry their own risks. The results filing names legal and regulatory uncertainty over sports event contracts, and possible losses from providing liquidity on these platforms.

In October, the CFTC formally separated sportsbooks from prediction markets. Several US states are still challenging platforms such as Kalshi in court.

Genius has not put a figure on its prediction market revenue in these results. Its full-year report, and the 2027 guidance that comes with it, will most likely show the results of this investment.