Sportradar reported a 47% increase in US revenue during the third quarter, as its expanding prediction market business began contributing to the sports data provider’s financial results.
Sportradar U.S. revenue reached €98 million ($109.6 million), with CEO Carsten Koerl telling analysts Tuesday that the quarter marked the first financial impact from its prediction market partnerships.
Overall revenue rose 24% to €363 million ($405.8 million), topping Wall Street consensus estimates. Adjusted EBITDA increased 21% to €102 million ($114 million), also beating expectations.
Sportradar shares climbed 10.3% Tuesday to close at $14.20, on roughly 4.4 times its daily average trading volume. The stock remains down about 46% this year.
Sportradar prediction market business expands
Sportradar now provides services to Kalshi, Polymarket and Novig, along with Robinhood, its first prediction market brokerage partner. Its expanded agreement with Polymarket covers more than 20 leagues and competitions, while Kalshi uses its data, technology, integrity and customer acquisition services, much like a traiditonal sportsbook customer.
The company has also signed roughly 10 market makers, which Koerl identified as a particularly promising opportunity among more than 300 potential customers. Sportradar is developing ultra-low-latency data feeds to give them faster access to official game information for automated trading.
The company expects additional revenue as trading activity increases, without requiring significant new investment.
“We are using the same rights, the same technology, and the same teams that already power our betting business,” Koerl said.
CFO Craig Felenstein said the agreements combine fixed fees with variable payments tied to market activity.
“We do expect there to be some significant growth from prediction markets next year,” he said, declining to quantify the expected contribution.
Prediction markets offset slowing sportsbook growth
Traditional online sports betting growth has slowed from the levels Sportradar anticipated at its 2025 investor day.
“Today, the traditional OSB market is growing a lot less than that,” Felenstein said, referring to earlier expectations for double-digit growth. “Now, what you have seen replace some of that, as we talked a lot about on this call, is the prediction market opportunity, and we are just starting to scrape the bottom of that opportunity with the deals that we have struck.”
Koerl highlighted the NBA’s recent authorization of prediction markets, including a requirement that participating exchanges use official data for settlement.
Asked about state restrictions, Koerl said Sportradar’s contracts prohibit customers from using its content where prediction markets are not permitted, although the financial impact has so far been immaterial.
Sportradar earnings beat expectations
Sportradar’s betting technology & solutions division generated €297 million ($332 million) in third-quarter revenue, up 27%, driven by its expanded content portfolio and prediction market demand. Marketing & Media Services, meanwhile, grew 15% as sportsbook and prediction market operators increased affiliate marketing spending.
Quarterly profit rose 20% to €27 million ($30.2 million). Sportradar maintained its full-year revenue guidance of €1.518 billion ($1.697 billion) to €1.533 billion ($1.714 billion) and adjusted EBITDA guidance of €360 million ($402.4 million) to €368 million ($411.4 million).
Truist analyst Barry Jonas said uncertainty in Brazil, where restrictions on online sports betting threaten more than €60 million ($67.1 million) in annual revenue, largely explains why Sportradar did not raise its guidance despite the earnings beat.
