Sportradar's 2025 Q2 Earnings Call: Unpacking Contradictions on In-Play Betting, Growth Expectations, and AI's Role in Margin Expansion

In-play betting penetration in the U.S., impact of Brazil on growth expectations, IMG acquisition valuation and strategy, AI and margin expansion, and U.S. market growth and in-play penetration are the key contradictions discussed in Sportradar's latest 2025Q2 earnings call.



Revenue Growth and Market Expansion:
- Sportradar reported record quarterly revenues of $318 million, up 14% year-over-year.
- This growth was driven by strong performance across both products and regions, along with increased operating leverage and robust cash flow generation.

U.S. Market Growth:
- Sportradar saw 30% growth in U.S. revenue during the quarter.
- This was attributed to the expansion of the U.S. sports betting market and strong market fundamentals.

Managed Trading Services Uptake:
- The Managed Trading Services business grew by 21% year-on-year.
- Increased adoption by clients and growth in the number of sports managed on the platform contributed to this growth.

Operating Margins and Cash Flow:
- Sportradar's adjusted EBITDA increased by 31% year-on-year to $64 million, with an adjusted EBITDA margin expansion of 250 basis points.
- This was driven by cost efficiencies and a strong cash flow conversion rate of 68% for the first half of the year.