Genius Sports posts first operating profit as Q3 revenue rises 62%

Genius Sports reported third-quarter revenue of $269.9 million on 5 November 2026, an increase of 62% year on year, and recorded income from operations of $10.4 million, which the company calls its first-ever operating profit; higher interest on debt left a net loss of $15.7 million. The group raised full-year guidance to revenue of $1.015 billion to $1.035 billion and adjusted EBITDA of $287 million to $297 million.

Results at a glance

Genius put group revenue at $269.9 million versus $166.3 million a year earlier. Adjusted EBITDA was $87.1 million, up 156% year on year, producing a margin of 32.3% compared with 20.4%. Free cash flow for the quarter was $53.6 million, equal to 61.5% of adjusted EBITDA, though free cash flow remains negative $136.2 million over the first nine months of the year.

The company said stock-based compensation fell by $10.7 million to $15.2 million. Net interest expense rose to $19.1 million from $0.1 million a year earlier after Genius borrowed $825 million this year; total debt stood at $787.4 million on 30 September. Cash at year end is expected to be about $260 million, up from $206.5 million at 30 September.

Segment performance and Legend acquisition

Genius now reports two segments. Betting Technology, Content & Services revenue rose 33% to $153.0 million, which the company attributes mainly to price increases at renewal and value-added services. Media Technology, Content & Services rose 126% to $116.9 million, which management says was "primarily driven by the Legend acquisition".

The filing and earnings call tied the improved margin and operating line to Legend, while highlighting that interest on debt raised for the Legend acquisition absorbed the operating profit into a net loss for the quarter.

Guidance and implied fourth quarter

Full-year guidance was adjusted to revenue of $1.015 billion to $1.035 billion and adjusted EBITDA of $287 million to $297 million. At the midpoint the range implies an adjusted EBITDA margin of 28.5%. Subtracting the nine-month results, the range implies fourth-quarter revenue of $361.7 million to $381.7 million and adjusted EBITDA of $123.3 million to $133.3 million; on the call Mark Locke put the fourth-quarter margin at about 34.5%.

Genius said the raise largely carried forward the quarter’s beat: revenue beat guidance by roughly $10 million, and adjusted EBITDA beat by about $2 million, shifting full-year midpoints by the same amounts.

Prediction markets and NFL exposure

The release lists partnerships with Polymarket and Kalshi covering content, integrity services and marketing, and cites the September launch of Prediction.com. On the earnings call Mark Locke described three revenue stages for prediction markets, saying Genius earns from customer acquisition, trading and settlement, and that the company had "over **50 new customers this year".

"I don't speak for the NFL," Mark Locke said on the call, and he added that the NFL working with prediction markets is not included in Genius' guidance for 2026, 2027 or 2028.

The company reiterated that the NFL and Premier League rights, which generate most of its fees, are contracted to the end of the decade. The NFL's August sportsbook renewals excluded prediction markets from the league data and intellectual property rights; Genius is the league's official data distributor.

Genius' risk disclosures also cite "providing liquidity on prediction markets" and the possibility of "potential trading or market-making losses", language that points to exposure beyond a simple data feed.

Profit, cash and outstanding questions

The reported $10.4 million operating income is a GAAP figure; it is under 4% of quarter revenue and was fully consumed by interest on Legend-related debt. The company said its year-end cash target implies more than $100 million of free cash flow in the second half, with Q3 contributing $53.6 million.

Genius and competitor Sportradar gave no explicit prediction-market revenue figures: Sportradar called its contribution significant two days earlier, while Locke called prediction markets the industry's biggest opportunity but supplied no dollar figures. Until Genius discloses prediction-market revenues and the NFL's position on exchanges changes, the upside the company emphasises remains outside the published numbers.

For related coverage, see the company's release and the earnings call transcript in the public filings and the broader news and regulation context around prediction markets.