Sportradar's Earnings Miss Expectations, Shares Drop 13%

Sportradar Group AG reported second-quarter 2026 results on Monday that fell short of analyst expectations on both earnings and revenue, while its full-year guidance also disappointed investors.

The sports technology company's shares declined 13.20% in pre-market trading following the earnings release.

Earnings and Revenue Miss Wall Street Forecasts

Sportradar reported adjusted earnings of €0.00 per share for the second quarter, missing analysts' expectations with a consensus estimate of €0.06 per share.

Quarterly revenue increased 19% year over year to €378 million from €317.8 million, but came in below the market expectation of €381.9 million.

Full-Year Revenue Outlook Disappoints

The company issued fiscal 2026 revenue guidance of between €1.518 billion and €1.533 billion.

The midpoint of €1.526 billion fell below analysts' expectations, contributing to the negative market reaction.

Despite the softer revenue outlook, Sportradar expects adjusted EBITDA on a constant-currency basis to range from €360 million to €368 million during fiscal 2026, representing projected growth of 24% to 27%.

CEO Highlights Strategic Progress

Chief Executive Officer Carsten Koerl said the company continued to strengthen its position within the global sports industry despite the quarterly earnings miss.

"Sportradar's second-quarter financial growth, along with the progress we delivered across a variety of key strategic initiatives, reflects our mission-critical role at the center of the global sports ecosystem," said Carsten Koerl, Chief Executive Officer.

Foreign Exchange Impacts Bottom Line

Sportradar reported a net loss of €4 million for the quarter, compared with net income of €49 million in the same period last year.

The company attributed the decline primarily to unrealized foreign exchange losses of €9 million, compared with unrealized foreign exchange gains of €54 million in the prior-year quarter.

Despite the lower reported earnings, adjusted EBITDA increased 19% year over year to €76 million.

Adjusted EBITDA margin also improved slightly to 20.2%, compared with 20.1% a year earlier.

Betting Business Continues to Deliver Growth

The Betting Technology & Solutions segment generated revenue of €314 million, an increase of 21% from the prior year.

Within that business, Betting & Gaming Content revenue climbed 27%, providing the primary driver of segment growth.

Meanwhile, revenue from Sports Content, Technology & Services increased 9% year over year to €64 million