Genius Sports Limited

Thank you for joining us and welcome to Genius Sports second quarter 2026 earnings results. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Genius Sports. Please go ahead.

Good morning and thank you for joining. Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecast. We assume no responsibility for updating forward-looking statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our annual report on Form 20F filed with the SEC on March 17, 2026. During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius' operating performance. These measures should not be considered in isolation or as a substitute for Genius' financial results prepared in accordance with U.S. GAAP. A reconciliation of these non-GAAP measures to the most directly comparable U.S. GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.geniusports.com. With that, I'll now turn the call to our CEO, Mark Locke.

Thank you and good morning everyone. Before we get into the quarter, I want to step back for a moment. Genius is becoming the operating system of modern sport. We own the official data, the technology, and now the audience that regulated sports ecosystems run on. As we bring these capabilities together on one platform, they reinforce each other. And as AI becomes more powerful, the value of our data only increases. Since announcing the Legend acquisition in February, we have told the market consistently that success would be shown, not told. This quarter is the first real look at that combined platform in action, and it delivered. Three takeaways today. First, we delivered on every single line of our guidance. Revenue of $196 million, up 65% year over year and ahead of our guidance. Adjusted EBITDA of $53 million, well ahead of the $45 million we guided. And cash came through our seasonal low point ahead of the range that we set out last quarter. Revenue, adjusted EBITDA and cash all ahead. This quarter gives you a flavour of the margin profile that this business is built to deliver. Strong underlying profitability accelerated by the addition of legend and synergies that we are already realising in the early stages of integration. The combination of the businesses is doing exactly what we said that it would. Third, we sit at the centre of the two things that this whole market is chasing. Official data and live, high intent audiences. In a world that's being reshaped by AI, that position is worth more, not less. And it is already showing up in real deals. Let me take each in turn and then Brian will take you through the numbers. Revenue was $196 million, up 65%. Betting grew 28%. And our media business, which now includes Legend from the 1st of May, grew 193%, as reported. Our $11 million revenue beat in Q2 flowed through to an $8 million EBITDA beat, aided by the strong natural operating leverage in our business model, ramp of Genius IQ, and the initial Legend synergies, which, as we'll discuss in a bit, are just getting started. We outperformed across both betting and media, which now includes Legend. The core betting business continues to progress. We serve over 500 sportsbook brands across regulated markets. More than half our revenue comes from outside of the United States. And net revenue retention remains consistent with the range we share annually. Year after year, our customers spend more with us because our data and products only get more central to how they operate. Our 28% year on year growth comes in a quarter of customer friendly results across sport. Championship runs, star players scoring, the kind of outcomes that typically result in lower win margins for sportsbooks. Our business model is built differently. Our revenue is not driven by which way the ball bounces. We are paid on contractual guarantees and volumes across both sides of the house, and we continue to grow despite that operating backdrop. That is what durable growth looks like. In fact, in a sports betting ecosystem which has shown volatility, Our betting segment has delivered over 25% revenue growth in each year since 2023 and is on track to do the same this year. Again, that is what durable growth looks like. In addition to our outperformance in betting, we've also outperformed in media, reflecting continued momentum across our existing media business, driven by new brand and agency customers, increased spend and strong demand from prediction market operators. This performance was further strengthened by the addition of legend. The market is shifting in the direction of the business that we have built. At Cannes Lion a few weeks ago, the industry's loudest conversation was live sport. One of the last places that a brand can reach a large, emotionally engaged audience at scale. Genius is now a well-known name at Cannes because we own the data layer underneath that attention. This gives us a unique view of sports fans. Our data doesn't just tell us who the sports fans are. It tells us how they behave during key moments. As an example, it tells us that consumers spend 25% more on food delivery when their team loses. Ahead of the NBA Finals, we knew the Knicks fans spent seven times more on live entertainment than Spurs fans, while Spurs fans are three times more likely to be fishing enthusiasts. Our biometric research with media science has showed that an ad served immediately after a heightened moment in live sport can double unaided brand recall. Those aren't just interesting data points. They're signals that brands can act upon. Our advantage is the data layer behind the moment engine. We don't just help brands reach sports fans. We help them reach the right fans at the right moment with the right message. That's the difference between buying impressions and delivering outcomes. and we're proving this value as more brands buy in. On our last earnings call, we told you that we had won roughly 70 new customers since launching the Moment Engine in March. In Q2 alone, we've added 174 new customers, including major brands like McDonald's, YouTube TV and DoorDash, who are shifting spend to our platform. This is not sponsorship. It is measurable attention sold on our own data. The World Cup showed exactly what that looks like in practice. Take the example on the screen. Argentina's comeback against Egypt was one of the defining moments of the tournament. Using Genius IQ data, we not only tracked what was happening on the pitch, but what millions of fans were likely to be feeling as that match unfolded. That allowed brands to adapt their ad campaigns in real time, aligning spend and creative with the moments that mattered most. And that wasn't a one-off. We executed this throughout the tournament. One global consumer brand used Genius IQ to activate campaigns around goals, penalties, VAR decisions and other pivotal moments. The result was roughly three times greater CPM efficiency than planned and the lowest cost per click of any campaign that they ran during the World Cup. That is the opportunity. official data is no longer just telling you what happened it's helping brands to decide what to do next while the world cup was a great showcase of what our products can deliver we expect this to scale across the entire sports calendar as a result Genius is in the middle of conversations that we simply were not in 12 months ago. We are serving as a strategic sports partner to agencies. We are integrating with established ad tech businesses and brands are telling us our data is some of the most important infrastructure in their programmatic campaigns. And we're only just beginning. This season, we expect to bring the moment engine capabilities to the NFL related media activations, extending into one of the most valuable media properties in sport and unlocking another avenue for long term growth. Underneath both the growth and the margin sits product. Genius IQ turns our official data into faster, more automated, higher value products. And it is a direct driver of the margins that you're seeing and will continue to see. These are still very early days. Our single connected platform is creating value across every point of the sports ecosystem. One platform, endless solutions. Every new capability we build creates another way to monetize the same infrastructure. Broadcasters like DAZN are using it to make live sport more immersive. Brands like Amazon and Enterprise are using it as real-time sponsorship opportunities during heightened moments of the match. Analysts at Sky Sport are using it to deliver rich insights and analysis. Leagues like CBF and Liga MX are using it to make fast, accurate and transparent officiating decisions. While these are different use cases, they all point to the same simple objective. Genius IQ is turning official data into products that make sport more valuable for every participant in the ecosystem. This is the operating system of modern sport. Now to legend and the synergies specifically, because this is the part that I want you to hear clearly. Legend is one layer in the genius system, the demand layer sitting alongside our data and our technology. It brings a durable. owned audience, roughly 118 million users, two thirds of whom return and customers acquired through legend carry around 60% higher lifetime value for operators after their first year. Those audience characteristics aren't just theoretical. They have been consistent since the start of the year and they are already showing up in our results. Group revenue increased $77 million year over year, yet sales and marketing expenses are only up $3 million. And that's with Legend only contributing since the 1st of May. If we'd acquired a business that depended on continually buying and reselling its traffic, then that sales and marketing expense line would have looked very different. In reality, however, we do not rent the audience, we own it. Here's what's new. When we announced the deal, we laid out a set of revenue synergies and said they would build over time. They're building faster than expected. Cross-selling across the combined customer base is underway, already delivering results. Prediction markets are our most visible example of this coming through. The first phase of audience data integration is complete, immediately benefiting our fan graph, and delivering results for our media customers. And we have begun using Legends properties as media inventory, which benefits margin as we shift spend away from third party platforms and onto our own. On the forward, the significant bulk of the Synergy opportunity is still ahead of us, but it is no longer just a line on a slide. It has started and it is ahead of schedule. and on the AI question that we always get, an owned returning first party audience becomes more valuable as the open web fills with generic machine made content, not less. As AI decides more of what people discover and buy, the businesses that own real data and a real audience are the ones that win. We own both. That is the position. Prediction markets are one example of how we're leveraging this position. In the second quarter, we generated meaningful revenue from the category. And after the quarter end, we reached another important milestone by signing direct commercial agreements with both Cauchy and Polymarket across official data and customer acquisition. At a high level, three things are happening at once. First, the data layer. Over the past few months, both Cauchy and Polymarket have partnered with leagues like the Argentinian Football Association, Liga MX and Serie A, each built on official data and integrity from Genius. Building on those league partnerships, we've now established direct commercial agreements with both prediction market platforms, covering a wide range of content across our data portfolio. Official rights run league by league. That is the structure of this industry. And on the sports that we hold, settlement runs on our data. Leagues will move at their own pace in this category, and so will the scale of our platform relationships. As an example of this, look at what happened last week. The NFL filed formally with the CFTC and told the regulator in writing that markets on sport cannot operate with integrity without official settlement data, real monitoring and information sharing between the venues and the leagues. The largest league in America has put on record that this category runs on infrastructure and that infrastructure is what we have spent two decades building. For the avoidance of doubt, we do not expect the NFL to green light prediction markets in the near future and have not included this in our 2026 guidance. However, what is clear is that the direction of travel is towards more official data, not less. What we've established with Kaoshi and Polymarket is a foundation upon which we will layer more content, more services and more territories over time. It is the same compounding playbook that you have watched us execute in sports betting, now applied to prediction markets. Second, the data layer also extends to market making. The reliance on our official data and models to price markets is essential to provide liquidity on these exchanges. This puts us in a uniquely valuable position. The audience layer, as was part of our thesis when we first announced Legend in February, and this category is where Legend is already excelling and delivering in our Q2 results. We are sourcing new customers for prediction market operators in a very significant volume. Every one of those customers is acquired somewhere. With our organic media platform now turbocharged by legend, we own many of the destinations where those customers are acquired and competition for those customers is only becoming more intense. That is why acquisition dollars flow to us in Q2 and why our combined media offering became a key part of our deals with Kalshi and Polymarket. Our role in this market is infrastructure. We supply everyone. All three of these elements come together to represent a sum larger than its component parts. That is exactly how we said the legend acquisition helps us and exactly how we said prediction markets would expand our total addressable market. While sports moments will come and go, our prediction market revenue is beginning to structurally rise and we expect significant upside in the years ahead, both in our betting and media segments from this important market segment. Two key questions about our stock, asked frequently since the legend announcement in February, are now directly addressed in our results. More importantly, they leave us better positioned for the next phase of growth. And with that, let me hand to Brian.