Genius Sports (NYSE:GENI) Issues Quarterly Earnings Results, Misses Expectations By $0.21 EPS

Key Points

• Revenue beat expectations but profitability missed: Genius Sports reported quarterly revenue of $195.5 million, up 64.7% year over year and above the $184.4 million consensus estimate. However, its loss of $0.28 per share was $0.21 worse than expected.
• Full-year guidance was raised: Management now expects $1.005–$1.025 billion in revenue and $285–$295 million in adjusted EBITDA, supported by operating leverage, GeniusIQ automation, advertising growth and early Legend acquisition synergies.
• Growth opportunities remain balanced by financial risks: Partnerships with Kalshi and Polymarket expand Genius Sports into prediction markets, but the company still faces a $77 million GAAP quarterly loss, negative margins and approximately $825 million in acquisition debt.

Genius Sports (NYSE:GENI - Get Free Report) released its earnings results on Thursday. The company reported ($0.28) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.21), FiscalAI reports. Genius Sports had a negative net margin of 22.99% and a negative return on equity of 23.58%. The firm had revenue of $195.50 million for the quarter, compared to analyst estimates of $184.43 million. During the same period in the prior year, the company posted ($0.21) EPS. The business's revenue for the quarter was up 64.7% compared to the same quarter last year.

Here are the key takeaways from Genius Sports' conference call:

• Q2 exceeded guidance across key metrics: revenue rose 65% year over year to $196 million, adjusted EBITDA increased 54% to $53 million, and quarter-end cash of $155 million topped expectations.
• Management raised full-year guidance to $1.005–$1.025 billion of revenue and $285–$295 million of adjusted EBITDA, citing operating leverage, GeniusIQ automation, prediction-market growth, and early Legend synergies.
• The Legend acquisition is reportedly generating synergies ahead of schedule, including cross-selling, use of Legend-owned media inventory, and direct agreements with prediction-market platforms Kalshi and Polymarket.
• Genius added 174 Moment Engine advertisers in Q2, including McDonald’s, YouTube TV, and DoorDash, while management expects further expansion through NFL-related activations and increasing demand for live-sports advertising.
• The company ended Q2 with a $77 million GAAP net loss and $825 million of acquisition debt; although management expects approximately $145 million of unlevered free cash flow in the second half, interest and debt repayment will reduce levered cash-flow conversion to about 50%.

Genius Sports Stock Performance

Shares of GENI stock traded down $0.20 during trading hours on Friday, hitting $7.62. 9,279,801 shares of the company were exchanged, compared to its average volume of 7,187,120. The firm has a market cap of $1.88 billion, a P/E ratio of -11.21 and a beta of 1.90. Genius Sports has a fifty-two week low of $3.83 and a fifty-two week high of $13.73. The company has a 50 day simple moving average of $6.57 and a two-hundred day simple moving average of $5.97.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of Genius Sports from a "strong sell" rating to a "sell" rating in a research report on Monday. Roth Capital reiterated a "buy" rating and set a $12.00 price objective on shares of Genius Sports in a research report on Friday. Guggenheim lifted their target price on shares of Genius Sports from $11.00 to $12.00 and gave the stock a "buy" rating in a research note on Thursday. B. Riley Financial restated a "buy" rating on shares of Genius Sports in a report on Friday, May 8th. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Genius Sports in a research report on Monday, May 11th. They set a "buy" rating and a $10.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Genius Sports has an average rating of "Moderate Buy" and an average target price of $11.44.

Genius Sports News Summary

Here are the key news stories impacting Genius Sports this week:

• Positive Sentiment: Revenue and outlook beat expectations: Second-quarter revenue rose 64.7% year over year to $195.5 million, exceeding the $184.4 million consensus estimate. Genius Sports also raised its full-year revenue outlook to approximately $1 billion, reinforcing expectations for continued growth. Genius Sports raises revenue guidance after strong Q2
• Positive Sentiment: Expansion into prediction markets: Partnerships with Kalshi and Polymarket will allow Genius Sports to provide official sports data, media capabilities, and integrity services. The deals could open an additional growth channel beyond traditional sportsbook customers. Genius Sports enters prediction markets with Polymarket and Kalshi partnerships
• Positive Sentiment: Media and advertising opportunity: Management is using real-time sports data to help advertisers adjust campaigns during live games, signaling a shift toward higher-value media and advertising services. Genius Sports' media surge shows shift beyond sportsbook data
• Positive Sentiment: Analyst support strengthened: BTIG raised its price target to $10 from $9 and maintained a “buy” rating, while Oppenheimer increased its target to $12 from $10 and upgraded the stock to “outperform.”
• Neutral Sentiment: Wells Fargo reaffirmed its “equal weight” rating and set an $8 price target, indicating limited near-term upside in its base case.
• Negative Sentiment: Profitability remains a concern: Genius Sports reported a quarterly loss of $0.28 per share, substantially worse than the $0.07 loss analysts expected and wider than the $0.21 loss a year earlier. The company continues to report negative net margins and return on equity. Genius Sports Limited reports Q2 loss and tops revenue estimates

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. UMB Bank n.a. acquired a new stake in Genius Sports in the fourth quarter worth $63,000. Osaic Holdings Inc. raised its holdings in shares of Genius Sports by 72.6% during the second quarter. Osaic Holdings Inc. now owns 10,645 shares of the company's stock valued at $111,000 after purchasing an additional 4,477 shares during the period. Orion Porfolio Solutions LLC bought a new position in shares of Genius Sports during the 2nd quarter worth about $112,000. California State Teachers Retirement System bought a new position in shares of Genius Sports during the 2nd quarter worth about $144,000. Finally, Mackenzie Financial Corp acquired a new stake in shares of Genius Sports in the 3rd quarter valued at about $173,000. 81.91% of the stock is owned by institutional investors.

About Genius Sports

Genius Sports is a global sports technology company that specializes in collecting, analyzing and distributing real-time sports data and video streams. The firm provides official data feeds, live video streaming solutions and digital engagement tools to sports leagues, federations, broadcasters and betting operators. By integrating data directly from sporting events through its network of field officials and proprietary technology, Genius Sports ensures accuracy and integrity for partners who rely on up-to-the-second information.

The company’s product suite includes a cloud-based platform for data capture and distribution, an integrity services offering designed to identify and mitigate match-fixing risks, and a suite of commercial products that power odds creation, in-game betting markets and fan engagement experiences.

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