Sportradar Q3 Revenue Rises 24%, 2026 Outlook Reiterated

Sportradar (SRAD) reported record third-quarter 2026 revenue as demand from existing and new customers, IMG Arena content and prediction markets lifted sales by 24%. The sports-data and betting-technology company reiterated its full-year outlook and said it still expects adjusted EBITDA margin expansion for 2026, even as higher sports-rights costs weighed on the quarterly margin.

Revenue rose to €362.5 million for the three months ended September 30, from €292.1 million a year earlier. Profit for the period increased to €27.0 million from €22.5 million, while adjusted EBITDA, a non-IFRS measure, advanced 21% to €102.2 million.

The adjusted EBITDA margin was 28.2%, compared with 29.0% in the prior-year quarter. Sportradar said revenue growth and lower adjusted personnel expenses supported profitability, while higher sports-rights costs—primarily associated with IMG content—partly offset those benefits.

Customer net retention among Sportradar’s top 200 customers, including the IMG contribution, was 116%.

Betting and content drive growth

Revenue from Betting Technology and Solutions increased 27% year over year. Within that business, Betting and Gaming Content revenue rose by €66 million, or 37%, reflecting IMG contributions and increased adoption of content and products by new and existing customers, including prediction-market clients.

Managed Betting Services revenue declined 3%. Higher turnover in Managed Trading Services was more than offset by lower margins resulting from unfavorable sports outcomes, according to the presentation.

Sports Content, Technology and Services revenue grew 11%. Marketing and Media Services revenue increased by €7 million, or 15%, supported by new and existing media and technology customers and higher affiliate-marketing spending.

Sportradar said it is expanding its prediction-market activities through relationships with exchanges, brokers and market makers. Its prediction-services ecosystem includes more than 20 league and partner relationships and over 10 market makers.

The company also highlighted progress integrating IMG Arena. It has added premium golf and mixed martial arts products across its client base and combined odds, streaming and visualization features into a single offering. Sportradar said revenue synergies are exceeding its target, though it did not disclose the target or the amount achieved.

Product launches included Player and Micro Markets, 4Sight Streams and Match Trackers across tennis Grand Slams, along with updated Match Tracker visualizations for Major League Soccer and UFC. Sportradar also renewed rights agreements covering Wimbledon, the DP World Tour, The British Open, Germany’s DFB Pokal, EuroLeague Basketball and Liga National Basquete.

Rights costs rise as personnel expenses fall

Sports-rights expenses increased 54% to €111.7 million, mainly because of IMG content and, to a lesser extent, prediction-market costs tied directly to revenue. Adjusted purchased services rose 24% to €51.4 million due to higher cloud and traffic expenses and the inclusion of IMG.

Adjusted personnel expenses declined 5% to €68.3 million as the company continued cost-efficiency measures and managed headcount around what it described as the most profitable growth opportunities. Adjusted other operating expenses climbed 34% to €28.9 million, reflecting spending on adjacent-market growth initiatives and costs related to Brazil.

Management expects adjusted EBITDA margin expansion of 70 to 100 basis points for full-year 2026, supported by revenue growth and cost efficiencies. Beyond 2026, Sportradar is targeting a long-term adjusted EBITDA margin above 30%, citing cost visibility from long-term sports-rights agreements and continued management of its cost base. Major rights contracts have an average remaining term of about four years.

Cash flow supports repurchases and portfolio changes

Free cash flow for the first nine months increased 18% to €176.6 million. Free cash flow conversion remained at 72%. Sportradar ended the period with €440 million of liquidity, comprising €190 million in cash and cash equivalents and a €250 million undrawn revolving credit facility, with no debt outstanding.

The company repurchased $157 million of shares during the third quarter and $408 million, or 28 million shares, year to date. Through October 30, it had repurchased $519 million, or 34 million shares, since the plan began.

Sportradar also agreed to sell Atrium Sports, the coaching and scouting business of Synergy Sports, to Teamworks Innovations for $170 million. The transaction is expected to close in the fourth quarter of 2026. Sportradar will retain computer-vision capabilities, competition-management products, automated video-production cameras and automated-graphics technology already integrated into its core operations. The company said the disposal would sharpen its focus on betting, gaming and media while supporting its balance sheet and capital-allocation priorities.

Full-year guidance maintained

For 2026, Sportradar continues to expect revenue of €1.518 billion to €1.533 billion, representing constant-currency growth of 19% to 21%. Adjusted EBITDA is projected at €360 million to €368 million, equivalent to constant-currency growth of 24% to 27%, with an adjusted EBITDA margin of 23.7% to 24.0%. Free cash flow conversion is expected to exceed 56%.

The guidance includes the expected effect of foreign exchange movements. Free cash flow conversion guidance excludes non-routine litigation costs and any effect from the anticipated Atrium Sports sale because the timing of the closing remains uncertain.

Key uncertainties identified by the company include foreign-exchange volatility, dependence on sports-league relationships and data rights, unfavorable sports results, cybersecurity and technology risks, competition, evolving betting and prediction-market regulation, litigation, and the provisional online-betting ban in Brazil. Sportradar also cautioned that the Atrium transaction, its share-repurchase plan and its financial outlook remain subject to execution and other forward-looking risks.