Genius Sports Q2 2026 earnings: Revenue rises 65% as GAAP loss widens

Genius Sports (NYSE: GENI) reported fiscal Q2 2026 revenue of $195.5 million, up 64.7% year over year, while its GAAP diluted loss per share widened to $0.28 from $0.21. Adjusted EBITDA increased 54% to $52.6 million, but the net loss reached $76.7 million as expenses and financing costs associated with the Legend acquisition weighed on GAAP results. The company also raised its full-year revenue and adjusted EBITDA guidance.

Core financial results

Revenue exceeded the company’s $185 million Q2 guidance, while adjusted EBITDA surpassed its $45 million guidance. Growth came from both operating segments, although the addition of Legend was a major contributor to Media revenue.

Gross profit expanded by $54.9 million, helping narrow the operating loss despite higher total operating expenses. That improvement did not extend to the bottom line because interest expense, acquisition-related items and a less favorable foreign-currency comparison increased losses below the operating level.

Business and segment performance

Betting Technology, Content & Services revenue increased 27.5% to $117.4 million. The company attributed the growth to price increases through contract renewals and renegotiations, wider adoption of value-added services, expansion in existing markets and new service offerings.

Media Technology, Content & Services revenue rose 192.8% to $78.2 million. This increase reflected the addition of Legend, stronger demand for the Genius Sports Moment Engine and continued commercial momentum for GeniusIQ-powered products. Because Legend closed on May 1, the segment’s growth rate includes an acquisition-driven step-up rather than representing entirely organic expansion.

Genius Sports also said prediction markets made an incremental contribution during the quarter. After the reporting period, the company announced partnerships with Polymarket and Kalshi covering content, integrity services and marketing solutions.

Legend boosts scale while acquisition costs widen the GAAP loss

Q2 was the first quarter reported as a combined business following the Legend acquisition. Legend supported Media growth and contributed early synergies, but the transaction also created substantial costs that explain the divergence between improving operating results and a wider net loss.

Transaction-related expenses were $28.9 million, compared with $2.1 million a year earlier. Net interest expense was $13.8 million following term-loan financing, while the company recorded an $8.0 million loss from remeasuring contingent consideration. Genius Sports also had only a minimal foreign-currency gain, compared with a $27.0 million gain in the prior-year quarter.

As a result, the operating loss narrowed by $25.1 million, but the net loss widened by $22.8 million. This distinction is important when evaluating whether the acquisition’s operating benefits can eventually outweigh its financing, integration and accounting costs.

Profitability, cash flow and balance sheet

Adjusted EBITDA margin declined 190 basis points year over year to 26.9%, even as adjusted EBITDA increased in dollar terms. However, the margin was 258 basis points above the level implied by the company’s Q2 guidance. Management attributed that result to early Legend synergies, execution across the combined Media business and incremental prediction-market contributions.

The adjusted EBITDA calculation excludes several material Q2 expenses, including $28.9 million of transaction-related costs, $25.2 million of stock-based compensation and $15.5 million of acquisition-related employee payments, along with depreciation, amortization and interest. These adjustments help explain the large difference between adjusted EBITDA and the GAAP net loss.

Cash-flow figures were provided for the six months ended June 30 rather than Q2 alone. Operating activities used $147.2 million of cash in the first half of 2026, compared with $29.8 million a year earlier. Investing activities used $617.4 million, including $578.8 million for the acquisition, net of cash acquired.

Financing activities supplied $643.0 million, supported by $825.0 million of long-term debt issuance before repayments and issuance costs. Genius Sports ended June with $155.1 million in cash and cash equivalents, down from $280.6 million at the end of 2025. Current and long-term debt totaled approximately $785.3 million.

Earnings guidance

Genius Sports raised both ends of its full-year revenue and adjusted EBITDA ranges. The midpoint adjusted EBITDA margin outlook also increased by 1.1 percentage points, indicating that management expects additional scale and integration benefits during the remainder of 2026.

For fiscal Q3 ending September 30, Genius Sports expects approximately $260 million of revenue and $85 million of adjusted EBITDA. The company also expects to finish 2026 with approximately $260 million in cash, implying more than $100 million of total cash flow during the second half.

Management’s view

Founder and CEO Mark Locke said the company is benefiting from the infrastructure it has built around official data, audiences and AI-powered products. Management sees greater advertiser demand for its combination of data and audience capabilities, continued outperformance in Betting and a new growth avenue in prediction markets.

Management also emphasized the early benefits of integrating Legend and the potential for GeniusIQ to support longer-term revenue growth, profitability and cash generation.

Risks investors need to watch

• Legend integration: Media revenue received a significant acquisition-related boost, but the expected synergies depend on successful integration and retention of customers and employees.
• Cash flow and leverage: First-half operating cash outflow was $147.2 million, while acquisition financing increased total debt to approximately $785.3 million and added interest expense. Execution against the second-half cash-flow outlook is therefore important.
• GAAP and adjusted profitability remain far apart: Adjusted EBITDA excludes substantial acquisition costs, stock-based compensation and other items. Investors should monitor whether these expenses decline and whether operating improvement reaches GAAP earnings and cash flow.
• Prediction-market exposure: Prediction markets contributed to Q2 performance and represent a new growth channel, but the company identifies legal, regulatory, liquidity and potential trading or market-making losses as relevant uncertainties.

Summary

Genius Sports delivered a significant increase in Q2 scale, driven by continued Betting growth and the addition of Legend to Media. Gross profit and adjusted EBITDA improved, but acquisition expenses, new interest costs and other below-the-line items widened the GAAP net loss, while first-half cash use remained substantial. The raised outlook points to confidence in further integration benefits, making Legend execution, cash generation and prediction-market development the main areas to monitor.