Genius Sports’ Q1 2025 Revenue Jumps 20% with Big Betting Gains
Genius Sports kicked off 2025 with a 20% revenue surge and a slashed net loss, driven by betting tech wins and strategic deals like NCAA and BetVision.
A Strong Start to 2025
Genius Sports posted a solid Q1 2025, with group revenue climbing 20% year-over-year to $144 million from $119.7 million in Q1 2024. The betting segment led the charge, but new partnerships and tech rollouts, like BetVision for soccer and NCAA data deals, stole the show.
“This quarter demonstrates the strong execution of our strategic objectives, as we continue our technology distribution, product innovation, and commercial momentum,” said CEO Mark Locke.
Net loss shrank 68% to $8.2 million from $25.5 million, while adjusted EBITDA soared 188% to $19.8 million, boosting the EBITDA margin to 13.7% from 5.7%.
Gross profit hit $35.2 million, up from $12.8 million, with a GAAP gross margin of 24.4% versus 10.7% last year. The board, confident in long-term cash flow, greenlit a $100 million share buyback program.
“Our largely fixed cost base, coupled with several durable growth drivers, reinforces our confidence in delivering sustainable growth, profitability, and cash flow in 2025 and beyond,” Locke added.
Genius reaffirmed its 2025 outlook, targeting $620 million in revenue and $125 million in adjusted EBITDA, up 21% and 46%, respectively.
Betting Tech Fuels the Surge
The betting technology, content, and services segment was the star, with revenue spiking 44% to $106.5 million from $73.9 million, thanks to price hikes on contract renewals with existing clients.
“Business growth with existing customers as a result of price increases on contract renewals and renegotiations” drove the gains, per the company. Sports technology and services grew 12% to $11.6 million, powered by GeniusIQ product sales.
But media technology, content, and services took a hit, dropping 27% to $25.9 million from $35.5 million due to weaker programmatic and social ad services.
The betting segment’s growth reflects Genius’ grip on the US market, where NFL in-play betting jumped 60% in 2024, and gross gaming revenue rose 50%. With Brazil’s betting market launching in 2025, Genius is poised to cash in further, especially with deals like Football DataCo for Premier League data.
Strategic Wins Stack Up
Genius rolled out some big moves. After Q1, it locked in an exclusive NCAA data deal for March Madness and postseason tournaments through 2032, no rights fees attached.
The partnership, building on existing ties, adds GeniusIQ for better broadcasts, ads, player tracking, and coaching analytics. “This is a natural extension of our data collaboration,” the company noted.
BetVision for soccer also launched post-Q1, covering 120+ leagues like Ligue 1 and Brazil’s Série A, with features like Touch-to-Bet and low-latency streams to juice up live betting.
The Premier League’s semi-automated offside tech (SAOT), using Genius’ next-gen “mesh” data, went live in April after FA Cup tests, promising faster, sharper calls. Performance Studio, a 3D immersive analysis tool, debuted to revolutionize player development, letting analysts view plays from any angle.
Genius also launched Data Zone for Ligue 1 broadcasts and expanded FANHub with a women’s sports audience service via Deep Blue Sports and an Indianapolis 500 promo with EchoPoint Media.
Some Dicey Signals
Not everything’s rosy. Genius still posted an $8.2 million net loss, though much improved, signaling it’s not yet profitable. The media segment’s 27% revenue drop raises red flags about ad market softness.
Cash flow from operations was negative at $30.8 million in Q1, and while cash reserves jumped to $209.8 million from $110.2 million, $144 million came from issuing new shares, hinting at reliance on external funding.
The fact that significant cash was raised through financing in a quarter where operations consumed cash could be a concern.
Ongoing litigation, including Sportscastr, dMY, and Spirable cases, adds legal costs, listed as adjustments in EBITDA calculations. Genius also flagged risks like losing sports organization ties, regulatory shifts, data privacy compliance, and economic volatility, which could trip up growth. “Dependence on sports partnerships is a key risk,” the report warned.
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