Sportradar Group AG (NASDAQ:SRAD) Reports Mixed Q3 2025 Results, Raises Full-Year Outlook Despite EPS Miss

Sportradar Group AG (NASDAQ:SRAD) reported financial results for the third quarter of 2025, delivering a performance that presented a mixed picture for investors. While the company demonstrated robust operational growth and raised its full-year outlook, its earnings per share fell short of analyst expectations, a factor seemingly reflected in the stock's negative pre-market price movement.

Quarterly Performance Versus Estimates

The company's third-quarter results revealed a slight revenue miss alongside a more significant earnings per share shortfall.

• Revenue: The company reported revenue of €292.1 million for the quarter. This represents a 14% year-over-year increase but came in just below the analyst consensus estimate of €301.0 million.
• Earnings Per Share (Non-GAAP): Sportradar reported a non-GAAP EPS of €0.07. This fell short of the €0.09 per share that analysts had projected for the quarter.

The market's immediate reaction appeared to focus on this earnings miss, with the stock trading lower in pre-market activity following the announcement.

Full Year Outlook and Strategic Moves

Despite the quarterly EPS disappointment, the company's forward-looking statements and strategic initiatives provided a more optimistic tone. Sportradar raised its full-year 2025 guidance, now anticipating:

• Revenue of at least €1,290 million, representing growth of at least 17%.
• Adjusted EBITDA of at least €290 million, representing growth of at least 30%.

This revenue outlook aligns closely with the current analyst consensus estimate of €1.318 billion for the full year, suggesting management's confidence in the company's growth trajectory for the remainder of the year. The company also announced the completion of its acquisition of IMG ARENA, a move expected to bolster its content portfolio and be accretive to margins and cash flow. Furthermore, the Board of Directors increased the existing share repurchase authorization by $100 million, bringing the total program to $300 million, signaling a commitment to returning value to shareholders.

Operational and Financial Highlights

The press release detailed several areas of strong operational performance that underpin the raised annual guidance.

• Profitability: Adjusted EBITDA saw a significant 29% increase year-over-year to €85 million, with the Adjusted EBITDA margin expanding to a record 29.0%.
• Cash Flow: The company generated €115 million in net cash from operating activities and €65 million in free cash flow during the quarter.
• Segment Growth: The Sports Content, Technology & Services segment was a standout, growing revenue by 31% year-over-year. The Betting Technology & Solutions segment, the company's largest, grew revenue by 11%.
• Customer Loyalty: The Customer Net Retention Rate remained strong at 114%, indicating the company's success in expanding business within its existing client base.

Conclusion

Sportradar's third-quarter results paint a picture of a company experiencing strong fundamental growth and operational execution, as evidenced by its raised EBITDA guidance and record margins. However, the earnings miss relative to high expectations has tempered immediate investor enthusiasm. The company's ability to leverage its recent acquisition and maintain its elevated growth rate through the fourth quarter will be critical in determining its longer-term stock performance.

For a detailed breakdown of future earnings estimates and historical performance, you can review the earnings and estimates page for SRAD.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making an investment decision.