Genius Sports recently announced its third-quarter financial results, with revenue increasing by 38.2% to $166.3 million, marking the best growth record since 2022. Despite a net loss due to foreign exchange losses and increased operating expenses, the company has raised its full-year revenue and adjusted EBITDA expectations based on strong growth momentum. Business divisions performed differently, with media revenue soaring by 88.9%, while betting technology maintained a leading position. The company is cautiously optimistic about the forecasting market, emphasizing long-term value creation.
Third Quarter Performance Overview
For the third quarter (ending September 30), Genius Sports' revenue reached $166.3 million, a 38.2% increase from the same period last year, mainly benefiting from the comprehensive expansion of the three core divisions. However, the net loss was $28.8 million, compared to a profit of $12.5 million in the same period last year, marking a reversal in performance. The loss was primarily due to a $7.5 million loss caused by foreign exchange fluctuations and a significant increase in operating expenses, with general and administrative expenses increasing by 50.3% to $45.7 million. Adjusted EBITDA grew by 32.3% to $34 million, with a profit margin of 20.4%, reflecting improved operational efficiency.
Business Division Performance and Growth Drivers
By division, betting technology, content, and services revenue grew by 38.3% to $110 million, driven by existing customer renewals, price increases, and new customer acquisitions. Media technology, content, and services revenue soared by 88.9% to $41.8 million, mainly due to the expansion of programmatic advertising services. Sports technology and services revenue grew by 16.4% to $14.5 million, stemming from sales growth of the GeniusIQ technology product. During the quarter, the company enhanced its fan engagement platform through the acquisition of Sports Innovation Lab and expanded collaborations with Hard Rock Bet and ESPN Bet, launching the BetVision product and securing exclusive data rights for the Italian Serie A.
Financial Loss and Full-Year Outlook
Despite revenue growth, the pre-tax loss for the third quarter was $33.2 million, with a net loss of $91 million year-to-date, an increase from the same period last year. Increased expenses and foreign exchange losses were the main drags. However, the company has raised its full-year 2025 expectations, setting a revenue target of $655 million (an increase from the original target), with adjusted EBITDA expected to be about $136 million, a 59% increase year-over-year. CEO Mark Locke emphasized the platform's value validation in the betting and media sectors and revealed a cautious approach to potential market expansion, pending compliance with regulatory and commercial standards.
