Genius Sports Limited Q1 FY2026 earnings call

• Successfully closed Legend acquisition last week, integration underway. - Q1 was strong, reinforcing compounding business model. - Betting's growth from selling additional content/products, winning new customers, sharing in market growth, and renewal pricing events. - Media's Moment engine identifies fan engagement peaks, matches to high value audiences, integrated with key players. - Legend adds intent layer, extends Moment Engine into iGaming market, acquisition is margin accretive. - Genius IQ replacing legacy systems in sports leagues, winning market share. - AI lowers cost base, automates data collection, cuts feature development time.

Group revenue grew 31% and adjusted EBITDA grew 21% in Q1. Betting grew 33%, media grew 22%. Over half of revenue is generated outside of the United States. Betting's net revenue retention remains in the 120 to 130% range across Sportsbook customers. Media's Moment engine has gained traction, integrated with ~90% of programmatic market, agencies, broadcasters, and major SSPs and DSPs.

• For Q2, expects group revenue of approximately $185 million and group adjusted EBITDA of $45 million (one month of standalone Genius and two months of combined group financials). - For full year 2026, expects group revenue of between 990 million and 1.01 billion and adjusted EBITDA of between 270 and $280 million, raising 2026 adjusted EBITDA margin expectation from 23% to 28%. - Q2 will mark low point due to seasonality and one-off acquisition expenses, second half expects ~$100 million total cash flow. - 2027 expected to see free cash flow conversion increase towards 2028 target of at least 60% unlevered, and transition to positive gap net income sustained basis. - Guidance doesn't yet include four revenue synergies identified at transaction time, with upside potential.

• Volatility in handle or hold doesn't translate to earnings volatility for Genius, but regulatory framework evolution in prediction markets is a risk. - Competition in the sports data and advertising space is a risk. - Risk of data piracy and protection of valuable data assets.

Q: Hey, Brian, can you break out the legacy genius guide relative to new guide and what's included for legend?

A: This is all in line with earlier February guidance. February had genius standalone guidance with 22% revenue growth and 36% EBITDA growth, now presented as combined business from May 1st, immediately accretive to margin and cash flow with potential synergies.

Q: Curious about NFL sports book negotiations and relation to you guys?

A: Don't want to comment on NFL negotiations, but have strong visibility over future revenues and partnerships with NFL locked in until Super Bowl 2030.

Q: Talk about early commercial traction of legend integrations and moment engine?

A: Legend integration going well, 60-person commercial off site next week, integrating BetVision into Legend for more inventory and value. Moment Engine has picked up 70 new customers and ~90% of SSP DSP market, delivering immediate revenue.

Q: Can you talk about selling data to market makers and market making yourselves?

A: Deals with market makers are short-term, various economic structures, leaving flexibility. On market making yourselves, focus currently is de-levering.

Q: Talk about prediction opportunity and allocation?

A: Prediction markets have early revenue from market makers, raise money for marketing/product, regulatory environment evolving, expect progress on NFL and leagues front, focus now is de-levering.

Q: Expand on Syria engagement and BetVision contract?

A: Italy's big betting market, relationship strong, technology integration and product distribution good. Already outselling NFL inventory with Moment engine.

Q: Quantify media business interest for NBA finals and World Cup?

A: Moment engine part of clients' workflow, product used in campaign management, generating revenue. BET Vision's global football growth surpassed some NFL, winning rights and strong ROI.

Q: Official data in prediction markets and competitors?

A: Market evolved, clear on rights, prediction markets will mirror traditional sports betting framework, we well placed.

Q: Seasonality of Legend and guide targets?

A: Legend less seasonal than Genius, back half weighted to Q3, Q4, but still has peak quarters. No change on guide, remains consistent.

Q: Renewals and international marketing opportunity?

A: Confident in renewals, levers known, value proposition strong. Legend globally diversified, iGaming growth significant, advertising product growth promising.

Q: Guidance seasonality and cash flow?

A: Q2 low point due to seasonality and transaction costs, second half expects ~$100 million cash flow, underlying cash flow better in Q3, Q4.

Q: CFTC and prediction market TAM, and regulated markets?

A: Quality of data needed, TAM like top US sportsbooks, betting business only with regulated license operators, selective in regulated markets.

Q: Market maker contracts and Moment engine adoption?

A: Market maker contracts short-term, evolve as market matures. Moment engine adoption rate good, results strong, like Samsung's 220% increase in spend.