- **Record Q3 Growth**: EUR 292 million revenue (+14% YoY), 29% EBITDA margin, and EUR 149 million free cash flow highlight strong execution.
- **IMG Synergies**: EUR 225 million financial benefit and 2026 EBITDA margin expansion of 250bps via 700+ new client integrations.
- **AI Innovation**: Generative basketball models and 4Sight Streaming drive engagement, with MTS managing EUR 48 billion annually.
- **Guidance Raise**: 2025 revenue to EUR 1.29 billion (+17%), EBITDA to EUR 290 million (+30%), with 2026 growth of 23-25% (constant currency).
- **Share Buyback**: EUR 300 million program reflects confidence in long-term value creation.

**【CEO Summary Section】**
- Q3 2025 revenue reached EUR 292 million, up 14% YoY, driven by organic growth and the IMG Arena acquisition. Adjusted EBITDA rose 29% to EUR 85 million, with a record 29% margin.
- IMG Arena adds EUR 225 million in financial considerations, enhancing content and AI-driven products like generative basketball models.
- Managed Trading Services (MTS) turnover grew 25% YoY, managing EUR 48 billion annually, with a 11% margin advantage.
- Expanded media partnerships (e.g., DAZN, NBC) and AI innovations (e.g., 4Sight Streaming) boost engagement and monetization.
- Share repurchase program increased to EUR 300 million, reflecting confidence in long-term growth.

**【CFO Financial Commentary】**
- Full-year 2025 guidance raised to EUR 1.29 billion revenue (+17%) and EUR 290 million EBITDA (+30%), with 240bps margin expansion.
- Q3 free cash flow of EUR 149 million (72% conversion) supports growth and M&A, with 2026 revenue growth expected at 23-25% (constant currency).
- IMG Arena is margin-accretive, with 2026 EBITDA margin expansion of 250bps, driven by synergies across 800+ clients.
- Cost control maintained, with personnel expenses down 260bps as a percentage of revenue.

**【Q&A Highlights】**
- **IMG Integration**: Early discussions with leagues like NHL and MLB show interest in new AI products; 2026 revenue synergies expected from 700+ new clients.
- **Prediction Markets**: Sportradar sees limited share in exchanges but offers data and risk management services to licensed operators.
- **iGaming Expansion**: Testing holistic client acquisition in Brazil, with potential U.S. expansion leveraging existing sports betting infrastructure.
- **Integrity Services**: AI-driven GenAI tools detect anomalies, supporting leagues and regulators, though not a major profit driver.
- **FX Impact**: 2025 revenue growth headwinds from USD/EUR weakness, but 2026 guidance excludes FX for clarity.

Sportradar Group AG (SRAD) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SRAD

SRAD fundamentals

You can ask Aime