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

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

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

Shares of GENI opened at $7.62 on Friday. Genius Sports has a 52 week low of $3.83 and a 52 week high of $13.73. The stock has a market capitalization of $1.88 billion, a price-to-earnings ratio of -11.21 and a beta of 1.90. The stock has a fifty day moving average of $6.57 and a 200-day moving average of $5.97.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on GENI shares. Citigroup dropped their price target on shares of Genius Sports from $9.00 to $8.00 and set a “buy” rating for the company in a research report on Friday, May 8th. Deutsche Bank Aktiengesellschaft assumed coverage on Genius Sports in a research report on Monday, May 11th. They set a “buy” rating and a $10.00 price target on the stock. Stifel Nicolaus upped their target price on Genius Sports from $5.00 to $7.00 and gave the company a “hold” rating in a research report on Wednesday, July 22nd. Roth Capital reissued a “buy” rating and set a $12.00 target price on shares of Genius Sports in a report on Friday. Finally, Truist Financial decreased their price target on Genius Sports from $13.00 to $10.00 and set a “buy” rating on the stock in a research report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $11.44.

Institutional Investors Weigh In On Genius Sports

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

Genius Sports News Summary

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

Genius Sports Company Profile

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.