Sportradar Q3 Revenue Climbs as US Growth Outpaces Wider Business

Sportradar reported third-quarter revenue of €363 million on November 3, 2026, up 24% year on year, as a 47% increase in US revenue and prediction-market contributions lifted its betting technology business while higher sports-rights costs pressured margins.

Betting Technology & Solutions revenue rose 27% to €297 million. Betting & Gaming Content supplied the main impetus, climbing 37% to €242 million on contributions from the IMG ARENA acquisition and increased uptake by existing and new customers, including prediction-market participants. Managed Betting Services moved in the opposite direction, falling 3% to €54.7 million as higher Managed Trading Services turnover was offset by lower trading margins caused by unfavorable sports outcomes.

Sports Content, Technology & Services revenue increased 11% to €66 million. Within that division, Marketing & Media Services grew 15% to €50.7 million, helped by new and existing media and technology customers and higher affiliate-marketing spending from sportsbook and prediction-market customers.

The US was the faster-growing geography, reaching €98 million, while Rest of World revenue rose 17% to €264.5 million. The US business supplied 27% of total revenue, up from 23% a year earlier. Sportradar attributed the shift to market expansion, including prediction-market growth, and customer adoption of premium content and solutions.

Chief Executive Officer Carsten Koerl connected the quarter to demand for premium content, data and technology, further monetization of the acquired IMG ARENA rights and prediction-market contributions. “Fans are engaging with sports across more platforms than ever before,” he said, adding that the trend expands Sportradar’s addressable market and demand for its products.

Rights Costs Weigh on Margins

Profit increased 20% to €27 million, but profit as a percentage of revenue slipped to 7.5% from 7.7%. Adjusted EBITDA rose 21% to €102 million, while its margin declined to 28.2% from 29.0%. Both profit measures therefore grew more slowly than revenue, leaving margins narrower despite the substantial increase in sales.

Sports-rights expenses, including amortization of capitalized licences, rose to €111.7 million from €72.5 million. Sportradar said Adjusted EBITDA growth was mainly driven by revenue and lower adjusted personnel costs, partly offset by IMG ARENA costs, particularly sports rights. Its Adjusted EBITDA definition retains the full cost of sports-rights licences, including amortization of capitalized rights, making those expenses central to the margin result.

Quarterly profit was also constrained by a €6 million foreign-currency loss, mainly tied to unrealized movements on US-dollar-denominated sports rights, €4 million of higher financing costs associated with additional sports rights, and severance costs from cost-efficiency initiatives.

Cash generation continued to increase. Quarterly net cash from operating activities rose 37% to €157 million, and free cash flow increased 12% to €73 million. Sportradar defines free cash flow as operating cash flow adjusted for lease-liability payments and purchases of property, equipment and intangible assets.

Full-Year Outlook Held

Sportradar reiterated its fiscal-2026 outlook for constant-currency revenue growth of 19% to 21% and Adjusted EBITDA growth of 24% to 27%. At current exchange rates, that corresponds to revenue of €1.518 billion to €1.533 billion and Adjusted EBITDA of €360 million to €368 million. The forecast also calls for reported Adjusted EBITDA margin expansion of approximately 70 to 100 basis points and free-cash-flow conversion, defined as free cash flow as a percentage of Adjusted EBITDA, above the 2025 level of 56%, excluding non-routine litigation costs.

The outlook excludes any effect from the anticipated Atrium Sports divestiture because its closing timing remains uncertain. Sportradar announced the definitive agreement on October 7, 2026, to sell Atrium Sports, the Coaching & Scouting business of Synergy Sports, to Teamworks Innovations for US$170 million. It expects the transaction to close in the fourth quarter of 2026, subject to customary closing conditions.

The company also continued its share repurchases, buying US$157 million of shares during the quarter and completing its enhanced open-market program. Through October 30, 2026, it had repurchased 34 million shares for US$519 million since the plan began, including US$408 million during 2026, under a total authorization of US$1 billion.

Cash and cash equivalents were €190 million at quarter-end, compared with €365 million on December 31, 2025. Including its undrawn credit facility, Sportradar had total liquidity of €440 million and no debt outstanding.

The central issue is whether growth from the US, prediction markets and IMG ARENA can outpace the rising cost of the rights supporting that expansion. The reiterated forecast for full-year margin expansion sets a clear benchmark as Sportradar balances those content costs, lower adjusted personnel expenses and continued repurchases.