Genius Sports grew revenue by 38% in the third quarter, driven by its expanding media and betting technology businesses, as analysts reaffirmed bullish outlooks.
Genius reported $166 million in revenue and $34 million in adjusted EBITDA, reflecting a 20% margin and 32% year-over-year growth.
That growth led the company to lift full-year guidance to $655 million in revenue and $136 million in EBITDA, citing advertising demand and continued growth from renewals, pricing, and new markets within its sports betting segment. That implies growth of 28% and 59%, respectively, over 2024.
Shares of GENI opened at $11.02 on Wednesday, up roughly 12% from when it released the quarterly earnings report Tuesday.
Genius praised by Wall Street
Analysts called the quarter “in line” on profitability but praised Genius’ continued ability to beat revenue expectations and raise guidance.
Citizens JMP’s Jordan Bender said stronger-than-expected media performance “came with higher costs,” noting that investors now want greater visibility into how free cash flow will ramp and how long-term margins will trend.
Truist’s Barry Jonas highlighted the company’s execution on renewals and contract repricing as a “near-term tailwind” for its betting segment, saying Genius “continues to consistently execute” while raising guidance. Truist maintained a $15 price target.
Needham & Co. reiterated its Buy rating and $16 target, implying more than 40% upside from pre-earnings levels and pointing to continued U.S. betting growth and media momentum as key catalysts.
Live betting handle spikes
Revenue from the betting technology, content & services segment rose 29% year-over-year to $110 million, fueled by growth from existing sportsbook partners amid renewed and repriced contracts. Genius also cited expansion of services and growth in both existing and newly regulated markets.
Through the first six weeks of the NFL season, live NFL betting represented roughly 30% of total NFL handle, a key focus for US operators as they seeking to sustain handle growth amid a broader slowdown.
Engagement within BetVision, Genius’s same-screen stream-and-bet product, climbed sharply. Unique devices were up 35%, while average time spent was up 25%. Live wagers accounted for about 74% of total handle through the platform this season.
“BetVision is now available on nearly every major sportsbook in the U.S.,” CEO Mark Locke said. “We’ve grown from six partners last year to more than 100 today.”
The company also secured official data rights for Serie A and the European Leagues and expanded partnerships with Hard Rock Bet and ESPN BET to include official data, live trading, and BetVision coverage across the NFL, soccer, and basketball. Management said a temporary timing mismatch between new rights fees and revenue recognition weighed on margins but will normalize in the fourth quarter.
Genius Sports posts record media quarter
Revenue from the media, technology & commerce segment nearly doubled to $42 million, marking the strongest year-over-year increase since early 2022. Genius credited rising agency spend and new ad formats integrated directly into live sports content.
Highlights included new partnerships with major advertisers such as Procter & Gamble and live-broadcast placements that convert real-time stats and “moments of emotion” into branded sponsorship opportunities.
Locke said all available NFL ad inventory is sold out this season. The company’s acquisition of Sports Innovation Lab added deeper first-party data to target fans based on “real spending patterns,” a capability Locke said is already improving advertiser returns.
Sports tech & services revenue grew 16% year-over-year to $14.5 million, supported by continued adoption of GeniusIQ, the company’s AI-driven analytics and data-integration suite for teams and leagues.
Prediction markets and integrity
Locke again addressed prediction markets, calling them a “potentially meaningful new opportunity” for Genius’ official-data, integrity, and league-mark services.
“We’ll be extremely deliberate,” he said, “and only move forward when regulatory conditions allow.”
On integrity, Genius said it doesn’t expect major restrictions on player-prop or micro-betting markets, emphasizing that U.S. regulators and leagues are already converging on the “single source of truth” model the company built its business on.
