Sportradar Swings to Q2 Loss as Executives Say U.S. Sports Betting Growth Is Slowing

Sportradar Group swung to a net loss in the second quarter as company executives pointed to slowing growth in the U.S. online sports betting market and unfavorable currency exchange rates as key headwinds. The sports data and technology giant posted a loss for the period of roughly €4 million, a sharp reversal from the €49 million profit it recorded in the same quarter a year ago.

Despite the bottom-line miss, Sportradar still grew revenue 19% year-over-year to €378 million, driven by strength in its Betting Technology & Solutions segment, which grew 21%, and continued 9% growth in Sports Content, Technology & Services. Even so, that revenue figure landed just below Wall Street’s forecast of roughly €381.9 million, and shares tumbled nearly 20% in premarket trading as investors zeroed in on the softer guidance rather than the topline beat from a year ago. The company also updated its full-year guidance, now projecting revenue growth of 19% to 20% to reach roughly €1.5 billion (about $1.7 billion), with free cash flow expected to climb between 24% and 27%, landing between €360 million and €368 million.

Currency Losses and a Softer U.S. Outlook

Chief Financial Officer Craig Felenstein said the swing to a loss was driven primarily by unrealized foreign currency losses of roughly €9 million, tied mainly to Sportradar’s U.S. dollar-denominated sports rights contracts, compared with a €54 million currency gain in the prior-year period. That currency swing, along with severance costs tied to cost-efficiency initiatives and lower income taxes, more than offset otherwise solid operating performance for the quarter.

Executives also flagged that growth in the U.S. online sports betting market — long one of Sportradar’s fastest-growing regions — is decelerating, alongside added tax pressure in some state markets. That slowdown factored directly into the company’s decision to trim its full-year revenue outlook, even as international markets and core betting-technology products continued to perform well.

Prediction Market Deals Still Coming, Just Slower

Felenstein noted that expected deals with prediction market operators are still materializing, but are taking longer to finalize than the company had anticipated. Sportradar signaled that the third quarter should be its strongest for revenue growth this year as some of those delayed agreements are expected to close.

The company has already made inroads into the prediction market space, striking a multi-year global agreement with Kalshi earlier this year to supply official data, live odds, integrity monitoring, and fan engagement tools across leagues including MLB, the NHL, MLS, and the UFC. That deal marked Sportradar’s first formal partnership with a prediction market operator, and additional agreements with other players in the space appear to be part of the pipeline referenced in the Q2 report — just not landing as quickly as executives had hoped.

Notably, the NBA has been absent from Sportradar’s prediction market dealmaking so far, with league commissioner Adam Silver previously indicating the league is still monitoring how the space develops before committing to any partnerships. That caution from one of the four major U.S. leagues underscores just how new and unsettled the prediction market landscape remains, even as rivals like Polymarket sign their own marketing and data deals with other leagues and competitions.

Adjusted EBITDA for the quarter rose 19% to €76 million, with margin holding at 20.2%, and the company ended the period with no debt while continuing an active share repurchase program, buying back $140 million of stock in the second quarter alone. Year-to-date free cash flow climbed 23% to €103 million, a sign that the underlying business remains healthy even as the headline profit figure disappointed.

Still, the combination of a cooling U.S. betting market and delayed prediction-market revenue is likely to keep investors watching closely as Sportradar works through the back half of the year. Management pointed to the third quarter as the point where growth should reaccelerate, betting that pending prediction-market agreements finally close and that currency headwinds ease. For bettors tracking how sportsbook promotions and product rollouts might shift alongside these industry dynamics, the next few quarters could offer some early signals of where operators are directing their growth investments next.