Genius Sports Rallies on Upped 2025 Revenue Guidance

Posted on: March 4, 2025, 02:58h. 

Last updated on: March 4, 2025, 02:58h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Data provider unveils 2025 guidance
  • Revenue outlook of $620 million easily beats Wall Street consensus

On another rough day for domestic equities, Genius Sports (NYSE: GENI) stood out as shares of the sports betting data provider surged on the back of strong 2025 guidance.

Genius
A slide from a Genius Sports investor presentation. The stock surged today as the company unveiled 2025 revenue guidance well ahead of expectations. (Image: Genius Sports)

In late trading, the stock was higher by 12.50% on volume that was more than double the daily average after the company told investors it expects 2025 sales of $620 million on earnings before interest, taxes, depreciation, and amortization of (EBITDA) of $125 million. That top-line forecast is well ahead of the $590.7 million consensus.

This implies year-over-year Group Revenue and adjusted EBITDA growth of 21% and 46%, respectively. Genius Sports also expects to continue to increase its annual cash flow in the full year of 2025,” said Genius in a statement.

Genius was cash-flow positive last year with 2024 marking the fourth consecutive year in which the company grew sales by at least 20%.

Genius Cash Position Improving

Genius concluded 2024 with cash and cash equivalents of $110.21 million, up from $100.33 million at the end of the prior year.

That strong cash position could prove meaningful because it may imply the stock is undervalued relative to the data provider’s liquidity because that amount of cash represents a significant percentage of the company’s market capitalization of $1.94 billion.

“We have consistently exceeded expectations, bolstered our technology advantage, and strengthened our balance sheet, now positioning Genius Sports for continued success in 2025 and a clear path to achieve greater scale,” said co-founder and CEO Mark Locke in the press release.

Along with rival Sportradar (NASDAQ: SRAD), Genius is the dominant provider of data to sportsbook operators. That perch is achieved in part by partnerships with professional sports leagues and Genius has one of the premier contracts on that front as it’s the exclusive data provider to the NFL. That’s pertinent at a time when in-game, or live betting, is taking off because Genius and Sportradar provide the data and technology operators need to power related betting menus.

Genius Sports Notches Impressive 2024 Results

Earlier today, Genius told investors fourth-quarter and full-year revenue for 2024 checked in at $176 million and $511 million, respectively, marking year-over-year increases of 38% and 24%. The fourth-quarter results may have been supported by football season.

Genius  is the exclusive provider of the NFL’s real-time, official play-by-play statistics, which are in high demand by sportsbook operators because football is the most wagered on sport in the US.

Due to its status as a business-to-business provider, Genius was buffered from the customer-friendly NFL outcomes that hindered sportsbook operators’ fourth-quarter results.