Genius Sports (NYSE:GENI) Posts Quarterly Earnings Results, Misses Expectations By $0.21 EPS

Genius Sports (NYSE:GENI) released its earnings results on Thursday. The company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.21), FiscalAI reports. Genius Sports had a negative return on equity of 23.58% and a negative net margin of 22.99%.The firm had revenue of $195.50 million for the quarter, compared to analyst estimates of $184.43 million. During the same period last year, the business earned ($0.21) earnings per share. The firm’s quarterly revenue was up 64.7% compared to the same quarter last year.

Here are the key takeaways from Genius Sports’ conference call:

• Q2 exceeded guidance across key metrics: revenue rose 65% year over year to $196 million, adjusted EBITDA increased 54% to $53 million, and quarter-end cash of $155 million topped expectations.
• Management raised full-year guidance to $1.005–$1.025 billion of revenue and $285–$295 million of adjusted EBITDA, citing operating leverage, GeniusIQ automation, prediction-market growth, and early Legend synergies.
• The Legend acquisition is reportedly generating synergies ahead of schedule, including cross-selling, use of Legend-owned media inventory, and direct agreements with prediction-market platforms Kalshi and Polymarket.
• Genius added 174 Moment Engine advertisers in Q2, including McDonald’s, YouTube TV, and DoorDash, while management expects further expansion through NFL-related activations and increasing demand for live-sports advertising.
• The company ended Q2 with a $77 million GAAP net loss and $825 million of acquisition debt; although management expects approximately $145 million of unlevered free cash flow in the second half, interest and debt repayment will reduce levered cash-flow conversion to about 50%.

Genius Sports Stock Performance

NYSE GENI traded down $0.20 during trading on Friday, reaching $7.62. 9,279,801 shares of the company traded hands, compared to its average volume of 7,187,120. Genius Sports has a 1-year low of $3.83 and a 1-year high of $13.73. The company has a market cap of $1.88 billion, a price-to-earnings ratio of -11.21 and a beta of 1.90. The stock’s 50 day moving average price is $6.57 and its two-hundred day moving average price is $5.97.

Key Genius Sports News

Here are the key news stories impacting Genius Sports this week:

• Positive Sentiment: Revenue and outlook beat expectations: Second-quarter revenue rose 64.7% year over year to $195.5 million, exceeding the $184.4 million consensus estimate. Genius Sports also raised its full-year revenue outlook to approximately $1 billion, reinforcing expectations for continued growth. Genius Sports raises revenue guidance after strong Q2
• Positive Sentiment: Expansion into prediction markets: Partnerships with Kalshi and Polymarket will allow Genius Sports to provide official sports data, media capabilities, and integrity services. The deals could open an additional growth channel beyond traditional sportsbook customers. Genius Sports enters prediction markets with Polymarket and Kalshi partnerships
• Positive Sentiment: Media and advertising opportunity: Management is using real-time sports data to help advertisers adjust campaigns during live games, signaling a shift toward higher-value media and advertising services. Genius Sports’ media surge shows shift beyond sportsbook data
• Positive Sentiment: Analyst support strengthened: BTIG raised its price target to $10 from $9 and maintained a “buy” rating, while Oppenheimer increased its target to $12 from $10 and upgraded the stock to “outperform.”
• Neutral Sentiment: Wells Fargo reaffirmed its “equal weight” rating and set an $8 price target, indicating limited near-term upside in its base case.
• Negative Sentiment: Profitability remains a concern: Genius Sports reported a quarterly loss of $0.28 per share, substantially worse than the $0.07 loss analysts expected and wider than the $0.21 loss a year earlier. The company continues to report negative net margins and return on equity. Genius Sports Limited reports Q2 loss and tops revenue estimates

Hedge Funds Weigh In On Genius Sports

Several hedge funds and other institutional investors have recently modified their holdings of GENI. Invesco Ltd. grew its position in Genius Sports by 3,584.2% during the 2nd quarter. Invesco Ltd. now owns 3,291,635 shares of the company’s stock worth $34,233,000 after acquiring an additional 3,202,290 shares during the last quarter. Balyasny Asset Management L.P. increased its holdings in Genius Sports by 785.5% during the 4th quarter. Balyasny Asset Management L.P. now owns 3,289,270 shares of the company’s stock valued at $36,248,000 after purchasing an additional 2,917,830 shares in the last quarter. Wellington Management Group LLP raised its position in Genius Sports by 17.9% in the 3rd quarter. Wellington Management Group LLP now owns 13,513,537 shares of the company’s stock valued at $167,298,000 after purchasing an additional 2,051,503 shares during the last quarter. Shapiro Capital Management LLC bought a new position in Genius Sports in the 3rd quarter valued at $19,652,000. Finally, Engineers Gate Manager LP acquired a new position in Genius Sports in the fourth quarter worth $17,194,000. Institutional investors own 81.91% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. The Goldman Sachs Group reiterated a “buy” rating and issued a $10.50 price objective on shares of Genius Sports in a research report on Friday. Roth Capital restated a “buy” rating and issued a $12.00 target price on shares of Genius Sports in a research note on Friday. BTIG Research raised their target price on Genius Sports from $9.00 to $10.00 and gave the stock a “buy” rating in a research report on Thursday. Guggenheim lifted their price target on shares of Genius Sports from $11.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Wall Street Zen upgraded shares of Genius Sports from a “strong sell” rating to a “sell” rating in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Genius Sports presently has an average rating of “Moderate Buy” and a consensus target price of $11.44.

About Genius Sports

Genius Sports is a global sports technology company that specializes in collecting, analyzing and distributing real-time sports data and video streams. The firm provides official data feeds, live video streaming solutions and digital engagement tools to sports leagues, federations, broadcasters and betting operators. By integrating data directly from sporting events through its network of field officials and proprietary technology, Genius Sports ensures accuracy and integrity for partners who rely on up-to-the-second information.

The company’s product suite includes a cloud-based platform for data capture and distribution, an integrity services offering designed to identify and mitigate match-fixing risks, and a suite of commercial products that power odds creation, in-game betting markets and fan engagement experiences.