Genius Sports Posts First-Ever Quarterly Operating Profit

Genius Sports reported an operating profit of $10.4 million for the three-month period ending September 30. In the same period last year, the company had an operating loss of $25.6 million. Revenue rose 62.3% to $269.9 million. Adjusted EBITDA increased 156.4% to $87.1 million. The company continued to post a net loss, but the loss was significantly smaller than a year earlier.

Free cash flow was $53.6 million, compared with $3.3 million last year. The free cash flow conversion rate rose to 61.5% from 9.7%. Unlevered free cash flow was $69 million, with a conversion rate of 80%.

The Betting Technology, Content and Services segment grew 33% to $153 million in revenue. The company said the growth came from price increases in renewed and renegotiated contracts with existing customers. The Media Technology, Content and Services segment rose 126% to $116.9 million in revenue, driven by the acquisition of Legend in May. Genius also announced a partnership with Polymarket and Kalshi in the prediction markets space, under which it will provide content, integrity services and marketing solutions to these platforms. The company also launched Prediction.com, a platform that compares prediction markets.