Revenue in Q3 amounted to $166.3 million, up 38.2% year-on-year, but it was not enough to prevent a net loss.
Genius Sports has increased full-year guidance for both group revenue and adjusted EBITDA after reporting its strongest quarter of growth since Q1 2022, although the company posted a quarterly net loss amid a multi-million-dollar foreign currency loss.
For Q3, covering the three months to 30 September, revenue hit $166.3 million, up 38.2% from last year. This, Genius said, came following growth across each of its three core operating segments.
Betting technology, content and services remained the primary source of revenue for the group. However, it was media technology, content and services that stole the show, with revenue rocketing 88.9% year-on-year.
It was not all smooth sailing for Genius which, despite growth, ended the quarter at a net loss. This was primarily due to a negative foreign currency, while the group also saw certain operating expenses increase.
On the whole though, co-founder and CEO Mark Locke was upbeat about the quarter, with the hike in revenue his main focus. This, he said, was enough to make the group increase its full-year guidance with less than two months until the year ends.
“Our growth this quarter reflects our unique ability to combine sports data with audience intelligence to deliver personalised fan experiences at scale,” he said. “We’re extending our leadership in online sports betting and sports advertising through richer content, rapid product adoption and strong commercial momentum, driving continued growth and long-term value for our partners.”
Genius considers expansion into predictions
Locke also touched on one of the key talking points in the US sports betting market in recent months: the prediction markets.
Rather than make any commitment about whether Genius will into this sector, Locke said on an earnings call that the group will continue to observe developments before making a decision.
“As they evolve and mature, prediction markets may provide a meaningful new opportunity for us in expanding the addressable market,” he said. “While these products are nascent, they are evolving rapidly and the need for Genius official league data, marks and logos and integrity solutions will only grow as prediction markets become more sophisticated. This means that we are extremely well placed should we decide to engage.
“With regard to timing, we are being extremely considered and deliberate in our approach. We will work closely with key stakeholders across the ecosystem, our league partners, regulators, existing customers and, indeed, the prediction markets themselves to determine the next steps, and we are confident in our ability to capitalise on this opportunity in a responsible and sustainable way if we feel all of the requirements we need to be in place to participate in this market are met.
“Given the early and evolving nature of this market, we won’t be providing additional detail on this call, but I want to be clear, if we are confident that prediction markets will meet our robust regulatory and commercial thresholds, these developments could result in positive developments for Genius Sports and our future growth.”
What drove revenue growth?
Switching focus back to Q3, and beginning with the core betting segment, revenue jumped 38.3% to $110 million.
Genius attributed this to growth among existing customers after price increases on contract renewals and renegotiations. It also noted the positive impact of the expansion of value-add services, growth and expansion in existing markets, new service offerings, as well as new customer acquisitions.
As for the media business, revenue almost doubled from $22.1 million to $41.8 million. The group said this was mainly driven by higher programmatic advertising services during Q3.
The remaining $14.5 million came from the sports technology and services business, a rise of 16.4%. This was primarily attributed to an increase in sales of products built on GeniusIQ technology.
In terms of stand-put developments in Q3, Genius noted its acquisition of Sports Innovation Lab, strengthening its fan activation platform. It also expanded its partnerships with Hard Rock Bet Sportsbook and ESPN Bet, launched the BetVision product for global basketball competitions, and secured exclusive official data and streaming rights with Italy’s Serie A.
Genius in the red in Q3
However, looking towards the bottom line, this is where the results did not read as positively for Genius.
Gross profit edged up year-on-year in Q3 but higher operating expenses meant the group posted an operating loss of $25.6 million, compared to $6.1 million in 2024. Spending was higher in almost all areas, with general and administrative expenditures amounting to $45.7 million, some 50.3% higher.
There was also a $7.5 million loss on foreign currency, in contrast to last year’s $21.1 million gain. As such, pre-tax loss stood at $33.2 million, compared to a $15 million profit in Q3 of 2024.
Genius received $2.6 million in income tax benefit and gained $1.8 million from equity method investment. This meant it ended Q3 with a net loss of $28.8 million, versus a $12.5 million profit last year. However, adjusted EBITDA was 32.3% higher at $34 million, at a margin of 20.4%.
In terms of the year-to-date, results made for similar reading. For the nine months through 30 September, group revenue was 27.9% higher at $429 million. Gross profit was higher but higher expenses offset revenue growth, leaving a net operating loss of $126.7 million, wider than last year’s $51.3 million loss.
Genius did note a $32.6 million foreign currency gain but still posted a pre-tax loss of $94.1 million, almost three times the $33.2 million loss at the same point in 2024.
The group took $302,000 in tax benefit and $2.9 million in equity method investment gain, with this resulting in a net loss of $91 million for the period, compared to the $34.8 million loss last year.
Adjusted EBITDA, on the other hand, climbed 64.7% to $87.9 million, at a margin of 20.5%.
Firm on improved full-year guidance
While net loss widened in Q3 and the year-to-date, Genius was steadfast in its confidence in raising full-year guidance for both revenue and adjusted EBITDA.
For 2025, revenue is now expected to reach $655 million. This would surpass the restated target of $645 million after H1 and would beat last year’s actual revenue haul by 28%.
As for adjusted EBITDA, this is forecast to amount to approximately $136 million for the full year. Again, this is up from refreshed guidance of $135 million in the summer and would beat the previous year by 59%. Genius added that it also expects to generate positive annual cash flow in the full year.
“We are continuously proving the value of our platform – both in betting and in media – and this success is reflected in the results we’ve delivered to date,” Locke said. “We’re gaining significant momentum with brands and agencies and remain optimistic about the long-term potential of this business.”
