Sportradar raised its 2025 outlook after posting record second-quarter revenue and double-digit growth in both its core US market and managed trading business.
Sportradar generated €318 million in revenue, up 14% year-over-year, with profit climbing to €49 million, up from a €2 million loss in Q2 2024. Adjusted EBITDA rose 31% to €64 million, and EBITDA margin improved to 20.1%.
Management, on an investor call Tuesday, attributed the gains to increased adoption of Sportradar’s AI-powered live betting products and managed trading services, along with deeper integrations with sportsbooks and leagues.
Despite the positives, shares closed down 5.7% to $27.84, trading on five times their normal volume.
US betting lifts full-year guidance
US revenue rose 30% year-over-year and now accounts for 28% of all global revenue, up from 24% a year ago. Koerl credited much of that to the overall industry’s rapid expansion in North America.
“Since the legislation of the U.S. sports betting [market] in 2018, the market has grown from approximately $300 million in GGR to nearly $14 billion last year,” CEO Carsten Koerl said. “This is providing a strong tailwind and reinforces the significant opportunity ahead. We see strong conversion from in-play in the U.S. at the moment. … we are around about 50% in-play when it comes to the pre-match betting and we see that this trend goes into the direction of more than 70%.”
Sportradar now expects at least €1.278 billion in full-year revenue, up from previous guidance of €1.263 billion, and at least €284 million in adjusted EBITDA, up from €272 million. Both figures represent year-over-year growth of 16% and 28%, respectively.
Sportradar managed turnover grows
Managed Trading Services revenue rose 21% in Q2, as turnover on the platform reached nearly €45 billion.
Sportradar onboarded 15 new sportsbooks to MTS last year and is currently integrating 42 more. Executives said the volume of tickets and events is boosting trading efficiency, especially as Alpha Odds and Foresight continue to roll out.
“We are now trading close to €45 billion in turnover on this,” Koerl said. “And we have a very nice table here with the trading services.”
Micro markets and AI tools scale across sports
Sportradar expanded microbetting and streaming products across several US sports, including NBA, MLB and WNBA. During the NBA playoffs, the company launched eight additional micro markets compared to the regular season.
Foresight, its AI-driven live streaming solution, has been deployed across all ATP events and will later expand to MLB and soccer. A case study showed Foresight lifted turnover 30% for covered events, which his helping client adoption, Koerl said. The company expects Foresight coverage to reach 14,000 matches on the UTR pro tennis tour by the end of 2025.
Executives said Alpha Odds, a predictive AI pricing tool now integrated into four sports, helped increase client profits by an average of 11%. More than 40% of clients now use at least four Sportradar products, a trend the company sees as a key driver of higher take rates and cross-sell opportunities.
Sportradar: IMG Arena deal expected to close in Q4
Sportradar is still waiting on regulatory approval for its pending acquisition of IMG Arena’s betting data rights, a $225 million transaction that includes coverage of Wimbledon, the US Open, Roland Garros, MLS, EuroLeague and the PGA Tour.
Koerl said integration planning is underway and the deal remains on track to close in Q4.
Analyst backing builds for data providers
Sportradar’s Q2 results come amid growing support on Wall Street for betting data providers as a more stable alternative to consumer-facing operators. In recent weeks, both Deutsche Bank and Truist Securities called Sportradar and competitor Genius Sports the long-term winners legal betting.
Analysts cited factors like fixed, recurring revenue streams, exposure to in-play growth, and AI-enhanced product suites as structural advantages. Truist projected a 27% EBITDA CAGR for Sportradar through 2027.
“We are in a pretty strong position,” Koerl said. “With the breadth and depth of our content portfolio and the products, we can outperform the underlying market growth.”
